Q2 2022 NiSource Inc Earnings Call
And on track to meet the revised in service dates we shared last quarter.
Retirement dates for our remaining coal generation assets are unchanged since last quarter as well.
We continue to make strong progress in our regulatory agenda with a settlement approved the NIPSCO gas rate case settlement discussions underway in both Ohio and Pennsylvania.
And <unk> posted non-GAAP diluted net operating earnings per share or EPS of <unk> <unk> in the second quarter versus 13 in the second quarter of last year.
Before we move forward.
I'd like to briefly cover two items.
First our strategic review continues and is progressing very well.
This robust process involves our senior management team with a few board members.
And explore potential internal and external opportunities to maximize risk adjusted shareholder value.
As we have indicated previously all strategic scenarios are being benchmarked against the very competitive organic plan.
We intend to share the results together with our full long term growth plan beyond 2024, and an investor day in November .
Second.
We've added melody, Birmingham Anvil Jefferson to our executive leadership team.
Both are well respected and highly experienced.
We are also elevated chief human resource Officer, Melanie Birmingham Berman to the team.
These changes will drive clearer lines of accountability across the organization and excellence in everything we do.
I am excited about our team and the contributions they will make as we move <unk> forward.
Now I'd like to update you on the progress, we're making on our regulatory agenda.
Let's turn to slide 10, and the Nisource gas distribution highlights for the second quarter.
We received an order from the Indiana utility regulatory commission on NIPSCO gas rate case.
It provides a revenue increase.
$72 million annually with new rates effective September 20.
2022 and March 2023.
This balanced outcome demonstrates a positive path toward continuing investments in our central resources that will support safe operations upgrading aging infrastructure and enhancing the customer experience.
Columbia gas of Ohio has requested to reschedule hearings in its rate case until October to facilitate continued settlement discussions.
The company has quest at an increase of $221 million net.
Net of capital expenditures.
Finish a program and infrastructure replacement program riders.
Columbia gas of Pennsylvania also in settlement discussions.
Its rate case request additional revenues.
Of about $82 $2 million, which are intended to further upgrade and replace gas lines for the long term safety of customers and communities.
It also seeks to provide additional energy efficiency options, while balancing cost.
We're also making progress with our rate case in Virginia.
Columbia gas of Virginia request, an increase in annual revenues of $40 $6 million net of the Fei tracker to continue safety and modernization investments.
And finally, Columbia gas of Maryland filed a rate case on may 13th.
It seeks to further upgrade and replace portions of the company's underground natural gas distribution pipelines.
If approved the proposed rate adjustments will go into effect at the end of 2022.
Now for updates on our electric operations in renewables projects.
Like to bringing Shawn Anderson Shaw.
Thank you Lloyd Hey, good morning, everyone. Please turn to slides 11 and 14.
As Lloyd mentioned earlier, the pause on solar panel tariffs provide some clarity regarding the application of tariffs across the solar marketplace, creating some stability of the near term for the market.
This is a positive development to advance our solar projects and ultimately ensure a diverse reliable electric generation portfolio with significant environmental benefits stemming from wind and solar resources.
As each asset comes online we continue to grow our percentage of generation attributed to renewable sources. We continue to firmly believe that this portfolio of projects has delivered and will continue to deliver significant economic benefits to our customers and communities, including less volatile.
Electric generation cost.
That is especially relevant in today's energy commodity environment.
As we've reported the commercial and construction processes associated with the development of our renewable generation projects continue to track in line with our revised in service dates discussed last quarter.
NIPSCO, Indiana Crossroads solar and Dones bridge solar one projects continued to advance with solar panel installation well underway at both projects.
We are receiving a steady stream of panel deliveries and we anticipate both entering service in the first half of 2023.
NIPSCO continues to work closely with developer partners of the remaining <unk> approved solar projects to refine the timelines and tightened the ranges of in service dates.
As each project advances in the development lifecycle toward final in service dates.
<unk> remains on track to make capital investments totaling approximately $10 billion.
During the 2021% to 2024 period.
Capital investments for renewable projects of approximately $2 billion are expected primarily between 2022 and 2024 with any remainder expected in 2025.
In total capital investments are expected to drive compound annual rate base growth of 10% to 12% for each of the company's businesses through 2024.
We are also excited to share that we expect NIPSCO to issue an RFP for all sources of capacity resources, including renewable generation projects.
And a targeted RFP for gas, peaking units later this month.
A refresh of our recent RFP results will provide better market perspective on pricing and availability of resources in line with the preferred pathway outlined in the 2021 NIPSCO integrated resource plan.
Plans to retire existing coal fired generation are unchanged from our discussion last quarter. The shaffer generating stations remaining two coal units are expected to retire by the end of 2025 with Michigan City generating station retiring between 2026 and 2028 and.
And now I'd like to turn the call over to Donald who will highlight our financial performance in more detail.
Thanks, Sean and good morning, everyone as Lloyd mentioned, we've narrowed the timing of our planned Investor day to November and we're making progress towards sharing a definitive long term plan for <unk> beyond 2024.
As you might imagine the results of our strategic review.
Timing of planned solar projects and the RFP, Sean just mentioned are significant factors in our planning I hope all of you will be able to join us as we discuss our path forward.
Turning to our second quarter 2022 results on slide four.
We had non-GAAP net operating earnings of about $53 9 million.
Or <unk> 12 per diluted share compared to non-GAAP .
Net operating earnings of about $52 6 million or <unk> 13 per day.
Diluted share in the second quarter of 2021.
We have reaffirmed our 2022 guidance of $1 42 to $1 48.
And all of our long term diluted non-GAAP net operating earnings per share growth rates.
Taking a closer look at our second quarter segment non-GAAP results on slide five.
Gas distribution operating earnings were about $81 million for Q2 of 2022.
Representing an increase of approximately $15 million versus the same quarter last year.
Operating revenues net of the cost of energy and tracked expenses were higher by approximately $36 million.
Mainly due to new rates, resulting from base rate cases, and regulatory capital programs.
Operating expenses again net of the cost of energy and track expenses were higher by approximately $21 million due primarily to higher employee and depreciation expenses.
In our electric segment non-GAAP operating earnings for the second quarter were about $73 million, which was about $11 million lower than in the same quarter last year.
Second quarter operating revenues net of the cost of energy and track expenses were higher by approximately $8 million in 2022.
This is primarily due to the joint venture revenues offset in expense.
This quarter also saw increased capital investment recoveries and customer growth.
Operating.
<unk> once again, excluding the cost of energy and tracked expenses were approximately $19 million higher than 2021, due primarily to increase joint venture depreciation and amortization as well as joint venture related operating expenses, both of which are partially offset in revenues.
Now turning to slide six I'd like to briefly touch on our debt and credit profile.
Our debt level as of June 32022 was about $10 1 billion.
Of which about $9 6 billion was long term debt with a weighted average maturity of approximately 14 years and a weighted average interest rate of approximately three 7%.
At the end of the second quarter, we maintained net available liquidity of over $1 6 billion.
Consisting of cash and available capacity under our credit facility and our accounts receivable securitization programs.
We continue our commitment to retaining our current investment grade credit ratings late last week, Moody's reaffirmed our rating and outlook, which now has all three agencies reaffirming nice sources ratings in 2022.
Our debt and credit profile continue to represent a solid financial foundation to support our long term safety and infrastructure investments.
As you can see on slide seven and eight were continuing the process of making some adjustments to our financial plan to reflect the expected delays in solar generation projects.
These potential adjustments will help mitigate the earnings impact of project delays and enable us to maintain our 202004 EPS growth commitment.
The long term visibility of our capital plan and the flexibility in our regulatory mechanisms illustrate the resiliency and strength of our business to maintain all of our commitments, including EPS growth.
Taking a quick look at slide nine which highlights our financing plan. There is no change to the overall financing plan and I'm excited to highlight that on June 10, we successfully executed our first green bond issuance, which was a 30 year bond at 5%.
The proceeds for this node or intended to be used for the purchase of our Rosewater and crossroads wind projects next year.
I would also highlight that this balanced financing plan continues to be consistent with all of our earnings growth in credit commitments.
Thank you all for participating today and for your ongoing interest in and support of Nisource, We're ready now to take your questions.
At this time I would like to remind everyone in order to ask a question. Please press star and the number one on your telephone keypad.
For a moment to compile the Q&A roster.
We will now take our first question from Shar <unk> with Guggenheim Partners. Your line is now open.
Hi can you hear me.
We hear you.
Great Hey, Lloyd.
But you mentioned.
You mentioned in your prepared remarks that the pause on tariffs adds more confidence and clarity, but obviously no change in project timing delays, maybe just focusing on 'twenty three sort of with the reiterated slides it looks like still a little bit of a near term growth divot.
Any sort of offsetting opportunities that could further mitigate this drag like maybe incremental O&M savings so any sense on how we should think about.
Growth as we bridge from 'twenty two to 'twenty three.
Okay.
In terms of earnings.
As we outlined in our <unk>.
Good morning, Shar as we outlined in our Q1 call. What we are doing to mitigate the impact of the solar delays is pulling forward capital.
<unk> this year.
And next year to offset some of the impacts of that.
Balanced with some interest savings because of delay in that.
Remaining half billion dollars of capital and some O&M savings. So we feel like we've got a good plan that that mitigates those delays.
While we continue to negotiate.
With our developers to understand the timing of these projects.
Sean any other.
Okay.
No. That's all that's all correct and as we look at the projects most of those projects. We're really looking at a $23 24 in service dates. So we'd have to go back in line that up so we feel like the rate case outcomes that we could achieve a can still stagger in a similar path of revenue that can also be consistent with the plan we had in place before.
Got it so we shouldnt look at the.
The 23 Bar chart, where it kind of shows that the tracker investments are slightly trailing the delayed renewable investments there is a timing issue there. So we.
We shouldn't think about that as being the dividend.
That's correct, we expect to mitigate that.
Perfect and then Lloyd with sort of another quarter now under your belt. The CEO just wanted to get a sense on how some of the drivers may have changed since initiating the strategic review process as we think about sort of maybe the ldc's within the portfolio I guess, one thing comes to my.
As obviously, we're in a much higher interest rate environment is there any other factors, we should be thinking about that may have swung youre thinking and are you still seeing serious demand for the <unk>.
So we so let me let me answer the second question first and then we'll go so we still believe there is serious demand for vlccs.
When you talk about when we think about our strategic review process.
I will say, it's a really robust process.
We have as I mentioned senior management, and our board involved and we're just weighing that against what we call a pretty.
Robust standalone plans when you look at our Standalone plan.
Inside of our stand alone plan, we see O&M opportunities.
Inside of <unk> to make it better we're comparing that to what it would look like to monetize the LDC is to see how we can best finance to growth going forward. So.
All of those things are on the table.
Our robust Standalone plan, but.
With us working real hard inside to enhance that we've done some extensive benchmarking, we still see a demand for <unk>.
Ldc's due to this infrastructure funds out there some big infrastructure funds out there and we're just comparing those things and we'll come out with decisions in November .
Okay terrific.
Helpful looking forward to that thanks again guys.
Okay.
Your next question comes from Nick Campanella with Credit Suisse.
Please go ahead.
Hey, good morning, everyone and hope everyone is doing well.
So I guess just on an inflation reduction act potential for minimum tax just can you discuss how you're thinking about the impacts to your business, if and A&P was implemented and then maybe just any kind of benefits out of IR array that we should be thinking through as well. Thank you.
Yes, thanks for the question.
As we look at the act and obviously its early we need to.
Do some more analysis of what it means long term, but I'd say there is no near term material impacts to our plan.
If you look at the plan.
And the earnings thresholds.
We don't meet the earnings thresholds here in the near term.
And so we still have Nols through.
The first half of the decade.
Half of the decade.
As when we expected the Nols to expire we become a cash taxpayer. That's about also the time that we meet that income threshold. So nothing.
No change to how we were thinking about the business.
The tax payment on the business long term, we do need to.
Really understand.
This legislation how it is going to play out in terms of renewables long term.
Energy efficiency.
And what potential opportunities that might exist for us in the business.
Okay.
Fantastic Okay.
And then I guess just.
On Ohio, I know the proceedings have been a delayed delayed a bit just primarily because youre working.
You said youre working towards a settlement there I.
I guess, if you have new rates being delayed or are you still comfortable within your your 'twenty two guidance range that you gave today and are there any timing considerations there to better understand.
So that let Pablo who who's president of our utilities weigh in.
Thanks, Lloyd and yes, thanks for the question.
We did anticipate the potential for a more extended settlement set of discussions.
In our case that covers a pretty broad period of time 14 years in total.
And a lot of things to work through and want to make sure that everyone has an opportunity to thoroughly understand our position and that we can pull it thoroughly understand all of theirs. So we do have.
Levers that we can leverage through the back half of this year to try to mitigate some of the timing implications of the delay in the in those discussions.
And so we're confident in the guidance range that we are reaffirming today.
Alright fantastic. Thanks, so much.
Next we have Julien Dumoulin Smith with Bank of America. Please go ahead.
Hey, good morning, Thanks for the time and the opportunity I appreciate it it's pleasure good morning Joel.
Hey, Thank you maybe just continue here you used the word benchmarking a couple of times here can you elaborate a little bit more on what exactly you're benchmarking to I think that was in reference to some of the cost cutting opportunities and opportunities to enhance our standalone plan can you elaborate a little bit more you said you've done extensive benchmarking and you provided that.
In response to the question earlier, where you also talked about extensive LDC demand just talk about like what this benchmarking opportunity.
Good for you in terms of that organic plan.
We're still in the middle of it and I'll, let Sean talk about I'll start it off we've done an extensive study.
Well I'll say other.
Low cost top performing gas and electric utilities, and we understand how we performed versus those you know we've had a significant let me go without a significant focus on improving our safety our pipeline safety.
But going forward, we see some opportunities for enhanced productivity getting more done getting more work done with the people, we have and possibly displacing and getting some of our people to do some of the capital work that we've had contractors to do because we've got a lot more efficient on the O&M side. So I think.
This drive for efficiencies and a significant opportunity for US also when we think about our technology costs as compared to others, a modernization of our technology system.
It is also a significant O&M opportunity for us and so and when we look hard at our LNG costs as compared to others.
Little bit high so we're working through all of those things that we see an opportunity to enhance our plan.
And.
We're going to willing to lay that out for you in the near future, Sean you want to add to that.
Expand on a couple of their piece I think it applies also to capex efficiency and our ability to execute capital which can create.
Either more capital opportunities, which of course is attractive, but also a maximum value across safety technology renewables development all of the different elements that we're trying to support with the businesses that we have on the electric and the gas side, so by becoming more efficient. It can also create better financial performance, but it also.
Maximize the value of the work that we do as we operate our system and run our our businesses. So each of our businesses have a 10% to 12% rate base opportunity in their horizon and the more that we can become efficient upon that the better work. We can do the more safe with our system, we can run and the maximum value we can get on the recovery of those assets in the valley.
Hughes.
Also say that it's benchmarking beyond just O&M in Capex I think we're studying our ability to be a leader in the de carbonization space, which we are on the electric side I think we are studying how our overall return to shareholders can be maximized, including a compelling dividend that we offer I think we're looking at the 7% to 9% and studying what opportunities.
For us to extend that 79% for a period into the future and how that total shareholder return could look compared to being monetized in a more short term environment.
Got it understood compelling here.
And just to add.
Keep going towards opportunities here, let's just talk about structuring the renewals ownership opportunity.
In that upcoming RFP any thoughts about your own ability to own and then specifically in the context of Iran. With the solar PTC and some of these other elements of normalization to what extent could that actually enable more ownership gives.
Given the Apple to Apple the economics as well.
Yes, so a couple of pieces into that question Julien. Thanks for that first off on the RFP itself. It is agnostic to ownership structure. So it's an all source RFP, which is really going to include any dispatch of both semi dispatch of coal generation renewable stand alone and call in all of those projects. So that we can then evaluate what those proposals are and how ownership.
Could then be structured thereafter, we would expect some to be ppas, we'd expect some to come in with NIPSCO ownership, which of course, we have the bias for provided we can keep.
The cost to customer in a reasonable range relative to other alternatives.
Contrast that with the Shaffer RFP, which is really targeted for dispatch will black start capable resources at Shaffer on gas, peaking units, which is consistent with the plan. We rolled out in November of last year that would really utilize MISO generator replacement interconnections that we would expect to be the owner of that as part of that RFP. So I think that in that piece.
Fully implied the ownership for NIPSCO, whereas the all source RFP, we'd evaluate the full suite and understand from an affordability standpoint, how NIPSCO can maximize the ownership structure, while also delivering a compelling cost of customer and consideration of all other competing projects and then I think on the second part of your question.
And Donald highlighted it on the legislation itself just specific to PTC ITC and transferability, it's still fresh in terms of what that means and how the legislation is formed so we will absolutely take a look at the provisions and their applicability to our plan.
As you know our current plan does not contemplate something like this direct direct pay or transferability. So if we can find a way to utilize these concepts that's going to help us increase investment and hopefully keep keep cost down for customers will be a supporter of that we need to figure out in the language. If that's possible given where we're at and I think we've got some flexibility on the remaining.
Remainder of our projects, but we've got to also keep timelines in mind, they matter greatly to our ability to retire shafer by 2025, and making sure that these projects can track in line with the scheduled dates that we provided to you today. So as we look further out it might be applicable for Michigan City is retiring capacity and of course that could be a solution as well.
But we need to make sure that we consider the legislation the time horizon to make sure things track to be applicable to the plan, we have and the 14 projects that we have approved by the IRC.
Yeah.
Yeah fair enough okay.
Specifically would help you guys compete versus other rfps not just the customer receive a lower price right.
Yes, it's possible, but there are other considerations that we need to evaluate.
Notably IRS rules for regulated utilities, and we need to make sure everything can comport with an entire structure that can make sense. So a number of considerations, we need to see ironed out we view it as something as a possible upside and let's review the language and see how we can apply it to the projects when it gets formulated.
Got it excellent good luck. Thank you guys.
Okay.
The next question, we have come from <unk>, Kim with Goldman Sachs. Your line is now open.
Yes. Thank you.
Question on just weather normal demand trends I think last quarter and this quarter as well as at least on the industrial side. It seem like on a year over year basis, it's been trending down I don't know if you had already cover this before and if there was some something that I'm missing, but just more color on those trends.
A lot of other parts of the.
The the country. It seems like industrial demand that's been relatively relatively strong this quarter.
Graham too great to hear from you certainly we are seeing some weakness on our industrial sales.
As you know.
A portion of our customers are industrial customers in Indiana electric.
Electric revenues are down.
Because of the steel industry being down a little bit.
I'd say.
That is offset by.
Usage up on both residential and commercial as well as customer growth. So, yes, we might be having some short term weakness on.
On the industrials, but overall seen growth on the electric side.
The items I just wanted to make sure everyone understood was few years ago in the last electric rate case.
Good.
Change the tariff to really minimize the impact of the electric load on our overall earnings.
Phil.
Despite the industrials being down somewhat our overall earnings are not down.
We're not being driven down the cost.
Yeah.
Got it and I don't remember that.
Got it and then when we think about.
No.
All of that softness in industrials.
Some of the delays in the solar in 2020 three 'twenty four and the pension item, where I think disclosed pretty well, how you calculate that with the quarter method and all that.
You put all that together I know you reiterated that that five to seven on the 'twenty three growth rate that midpoint at this 6%. All of these considered are you you feel like you are still at a good point to hit that midpoint at least.
Yes, yes.
Absolutely.
We build contingencies into our plan recognizing that there's going to be changes potential changes in interest rates and financing costs as well as timing of an amount from rate cases, and so absolutely confident in our plan to meet this year's guidance as well as our long term guy.
<unk>.
Got it thank you so much.
Okay.
Next we have Travis Miller with Morningstar.
Please go ahead.
Good morning, everyone. Thank you.
Good morning, good morning.
Wonder if you could update your thinking on the NIPSCO.
Base rate filing and timing, especially given how inflation potentially hitting your capex or the renewable delays and shifts.
Any thoughts there in terms of timing.
Yes, good morning, Travis this is pablo.
We're still thinking that a case sometime before the end of this year. It makes sense because if you think about the projects that are already completed and the ones that we have in flight that we expect to go in service next year the timing for the case some tough file sometime before this end of this year makes sense to start stepping in those investments into our rate structure.
Sure and the way that we have the flexibility in Indiana, Indiana structure with rate cases is one of the more flexible ones, where we can.
Time, the kind of project investments completions with extensions out of the test year to try to capture and maximize the timelines that will eventually evolve from the projects that have been delayed and so we'll evaluate which can be incorporated into this next fight until this next rate case, and which would have to go into a subsequent.
Quint.
With the ability to kind of flex the test here in Indiana, and then the ability to flex into something of rates that align wind projects go into construction to service.
We still think that our rate case, probably sometime before the end of this year makes the most sense and then we would look to then pick up the balance of any of the projects that fall outside of those tests tears and a subsequent filing but we would have the ability to again timing as those rates go into effect. So that the overall earnings profile that we will be discussing would still be able to be achieved.
Okay got it and then.
Just thinking overall about the customer bill either on the electric side or our guests.
How do you see the higher commodity costs from the first half flowing through or customers are going to start to see that.
And there are summer bills or more delayed into their winter bills, just wondering and I guess that would go to your hedging program.
Also on behalf of customers.
Yes.
Customers are seeing the higher commodity prices and their bills already when we look at kind of year over year customer builds are up about 19%, 20% because gas prices really started to increase last summer.
Once we look at our.
Fuel adjustment clauses across our jurisdictions.
Typically adjusting.
We can adjust quarterly in some cases.
And we're trying to balance out.
Our payment of those.
Commodities with adjusting those prices over a 12 or 18 month period.
So we've got some flexibility, but at the same time want to make sure that we're managing cash flow appropriately so customers are seeing the impacts.
And it's something that we're paying attention to long term I think the forecast still continues to show that.
Natural gas prices will go back down to $45 range, but obviously, we've got some higher prices and more volatility in the period.
Got it I appreciate the thoughts thank you.
[laughter].
Next question comes from Ryan Levine with Citi. Your line is open.
Good morning.
I was hoping to touch on the in flight renewable projects, where is <unk> in key supply chain Hughes with these in place renewable projects and how is the company looking to manage the execution at this stage.
In the process.
Yes, Thanks, Ryan good morning.
So to answer your question, we have panelist flowing on the two projects under construction.
So those two projects continue to track online with our first half 2023.
Horizon Foreign service and then the remaining four projects. If we are talking about the <unk> here are finalizing the commercial negotiations associated with the supply construct and what would get them to construct ability. So that process is underway right now.
To ensure that they can continue to hit the deadlines that we've put together on slide 14.
Okay, and then are there contingencies that those dates arent met.
Yes, we've got active dialogue with our with our developers to understand what those time lines look like and we continue to refresh those timelines alongside our developers all point to the near term RFP as well as another opportunity for us to refresh the marketplace and understand outside of the bulk of the 14 projects that we've contracted.
Or what else might be available as a potential contingency should that arise. We still believe strongly that the <unk> projects that are being developed are compounding value for our customers most notably due to the low cost of energy in 2018 2019, when those projects were negotiated but also the value of the <unk> that are already approved from our.
Our regulators and just the immense amount of time and energy from a number of stakeholders. The developer partners, our internal teams, but community members to help support the development of those projects at this time, we have no delays other than the refreshed deadlines and timelines that we've provided last quarter and our continued dialogue with our developers have us.
Tracking online with that.
And given the timeline that you just highlighted you expect to address any cost increases for renal.
Renewable projects through future <unk> or through the existing CP CN.
Please.
The build transfer contracts are turnkey, which leaves the construction cost and timing risk really to be borne by the developer Counterparties.
Some level of tariff impacts contemplated with the contracts. So given the circumstances that have happened over the last few months.
We're in discussions with our developers to understand that impact of the project and then any price increase associated with any of the projects would require approval from the IRC either through <unk> or through a rate case process or a regulatory process to evaluate each of the projects in their circumstances.
Which path to go should there be increases that require that refresh with our regulators.
Thank you and then last question for me.
You highlighted ongoing negotiations in Pennsylvania or settlement discussions any color you could share around the state of that process.
Alright.
Yes sure Ryan this is Pablo <unk>.
Discussions have been I think very constructive we've seen since.
And the last the case that we settled last year in the settlement discussions this year, a reasonable tax taken by all the stakeholders the focus on customer value remains at the front of those discussions and making sure that the economics of the of the case state stay.
Reasonable for all customer classes.
Pennsylvania continues to be very supportive and our modernization program wanting us to advance our pipeline replacement program and continue on that safety work. So all around I'd say those conversations have gone constructively in the.
We look forward to continue to drive towards a settlement there.
Appreciate the color. Thank you.
Thanks, Brian .
Your last question comes from Steve Fleishman with Wolfe Research. Your line is now open.
Yes. Thank you I appreciate it.
I just wanted to close the loop on the.
The ongoing review and so.
Lloyd you mentioned robust.
Review of extending.
Extending our core plan.
And then comparing that to.
Kind of other options.
<unk> and the like could you just maybe just to kill.
Hilda.
Hopefully here.
Any review of options for the whole company.
It's just that not just assets so that's what.
That is also a part of their review I mean, we review what it looks like for the whole company.
If you look at the <unk>.
Private.
Equity market there with some of the large infrastructure funds and we're trying to understand what that looks like as compared to our stand alone plans. So that is.
<unk>.
Also part of the review that we are in are doing.
Okay.
And.
Just and then on the.
On the Standalone plan on the kind of core <unk>.
Lan and such.
I mean, it sounds like.
I mean this has been true since you got there.
Decent conviction.
O&M and rate based opportunities two to potentially sustain this.
The 7% to 9% growth.
Right.
That is it I mean, I'm a firm believer and I mean, our job one is to run the business you have as best you can.
And then you wanted to compare that to other opportunities whether you sell.
<unk> C is a cell in the whole company your obligation when you walk in the doors to run the business every day as best you can now safer better faster and for lower costs look at.
<unk> to do that and how it compares to these other opportunities and do the best thing Best you can for your shareholders. So thats a fundamental base. They are running the business to me and that will continue to always have that conviction.
Okay.
Okay and just since that's the.
The scenario you can probably control the most.
Just.
Again with the work you've done so far how are you feeling about.
The way the stand alone opportunities coming together.
I feel very good about them.
I feel very very good about it.
Okay.
Okay.
Thank you that's helpful. I appreciate it alright.
Right.
Okay.
There are no further questions at this time I will now turn the call back over to Lloyd Yates for closing remarks.
Thank you. Thank you for your questions and let me close by reiterating a few key takeaways.
One we are reaffirming our 2022 guidance of $1 42 to $1 48 diluted non-GAAP EPS and we are reaffirming our forecast for 79% compound annual growth rate from 2021 through 2024.
Including near term annual growth of 5% to 7% through 2023.
Second our renewable generation projects remain on track to meet the revised in service dates that we shared with you last quarter.
We continue to make strong progress in our regulatory agenda with a settlement approved the NIPSCO gas rate case.
And constructive settlement talks.
Ohio, Pennsylvania and Virginia.
And finally, we intend to prevent nice sources long term growth plan at an Investor day in November where I look forward to seeing you. All there. We appreciate you joining us this morning and please stay safe. Thank you.
This concludes today's call you may now disconnect.
Yeah.
[music].
Okay.