Q2 2023 PG&E Corp Earnings Call
Our Investor Relations website.
Turning to financial risk mitigation, our strategy continues to hinge around the simple affordable model, which delivers consistently improving value for customers and investors.
Regarding the fire victim Trust, we are encouraged that the trust has now monetized over 85% of its initial holding and it steadily higher values for its beneficiaries.
After their 60 million share sale earlier this month. The trust now holds just over 3% of our stock.
As of the end of June determination notices have been issued for 97% of all claims with the trustee having indicated a goal to reach 100% and monetize the remaining shares by year end.
Turning to slide five.
We highlight our layers of protection strategy, along with our anticipated step up in risk reduction from 90% to 94% as we rollout our new and expanded programs under a 2023 wildfire mitigation plan. One example is down conductor detection technology, which involves installing new hardware in the field.
Supplementing our enhanced power line safety settings.
We filed our <unk> with the office of energy infrastructure safety in late March and the OIS came out with its revision noticed towards the end of June we view this feedback as a constructive part of the <unk> process and we embrace the opportunity to drive further alignment with our regulators.
He has identified eight critical issues and we will file a response by August seven deadline with the draft decision from OIS expected at the end of September .
The revision notice process will not preclude us from filing our annual safety certificate application by the due date of September 13th with OIS approval do 90 days later.
As a reminder, our existing safety certificate remains in effect pending in OIS decision on our timely filed new application.
Earlier this month at the annual board level safety briefing with the CPUC, Our utility Board Chair, Cheryl Campbell, and our chief operating officers to meet sing discussed our safety culture performance and details of our enterprise safety management system. These.
These meetings are an element of our $82 50 for compliance and provide an opportunity to engage with regulators on our improvement strategies.
We were encouraged to hear commissioners recognize our significant progress, while acknowledging our challenges, including changing climate conditions.
It's in moments like this that we step back and reflect on the progress being made in fact at our recent meeting with all of our top leaders Mark Quinlan, our SVP of wildfire and emergency operations.
Put up to address the elephant in the room. When he said I bet you are all watching the weather and thinking back to 2017, well, let me remind you just how much we've done since then.
He went on to remind us all that we have an entirely different readiness posture and physical risk mitigation regime in place.
Back in 2017, we were reacting and responding to hazard the.
The investments we've made since then have enabled a dramatic shift to predicting and preventing.
Slide six illustrates the mitigation now in place thanks to these important investments in innovation.
Just a few since 2017, we have installed over 600 high definition cameras now with AI capabilities more than 4500 weather stations and almost 1400 sexualizing devices.
We've hardened over 300 miles of line and underground at over 300, more we've removed $3 3 million trees. We have staffed our hazard awareness warning center 24 hours a day seven days a week 365 days a year and we've hired 130 fire prevention professionals, who are on our P. Genie team.
And making us safer every day, we've implemented a host of operational mitigation, including enhanced bar line safety settings on 44000 miles of line in an adjacent to our high fire risk areas. We've enabled public safety power shut offs when conditions warrant them and new for 2023, we've deployed partial voltage force out and down conductors.
Detection.
Our system has never been safer and yet it will be even safer still tomorrow and every day after that.
As we shared with the CPUC during the safety briefing, we are making progress and we have more work to do safety permeates through everything we do and the presence of controls, including our layers of protection leads to manageable and predictable outcomes.
I am confident that we and our key partners, including the state are doing everything we can to cause our stand catastrophic wildfires shelf stuff.
The data tell the story through mid July reportable admissions in our high fire threat districts have decreased 53% from the equivalent date in 2017.
Last year, we saw 58% reduction in Ignitions on EPS S enabled circuits and a 99% reduction in acres burned the data. So far suggests we are on track to see further improvement in 2023.
Our hard work over the past five years has dramatically changed our risk exposure and fundamental safety of our system and we aren't stopping there.
Moving to slide seven we also see profound changes in financial risk mitigation due to the framework put in place by SB 901, and $2 54.
At our Investor Day, you heard and Patterson Governor Newsome Cabinet Secretary talk about how the state Wildfire fund is working as planned the a $10 54 construct is designed to give utilities and capital providers the financial assurance they need while deploying the investments required to bring down wildfire risk on the system over.
Time.
Let me quickly revisit the key features for those looking for a refresher or who may be newer to our story.
For wildfire claims exceeding $1 billion in a calendar year, we have access to the state wildfire fund.
This provides $21 billion of claims paying capacity protecting investors from the risk of a liquidity event.
Our annual wildfire mitigation plan as a requirement for receiving our annual safety certificate.
So long as we have a valid safety certificate, we have access to two additional key features of AB $2 54 <unk>.
First the utilities' conduct is presumed to have been prudent upfront when it comes to seeking cost recovery at the CPUC along with the prudency standard modeled on the constructive FERC precedent.
Second in the unlikely event of the utility being found to have active imprudently any resulting obligation to reimburse the wildfire fund would be capped at 20% of electric T&D equity rate base on a three year rolling basis. This cap is currently around $3 billion for P. J.
This is a much better construct than what was in place prior to SB 901, and AB 1054 that enables the attraction of the necessary capital to build and operate a safe and climate resilient energy system.
Turning to slide eight let's review, our regulatory and legislative timeline we've.
We've made progress on multiple fronts in the first half of the year, including approval of our wildfire self insurance settlement Zog fire litigation settlement and 2022 whimsy interim rate relief.
Looking forward, we have several catalysts on the horizon, starting with our <unk> final decision expected in the current quarter.
The ongoing legislative session in Sacramento, where we have seen constructive engagement on energy station, which you've heard us previously referred to as new customer connections showing the legislature's commitment to California's clean energy transition and then on our 2023 wildfire mitigation plan and safety certification processes.
Yeah.
Looking a little further out at the end of this year, we will file our nuclear operating license extension application for Diablo Canyon, NRC and we remain ready to submit our 10 year underground plan once the OIS and the CPUC complete their scoping process.
On slide nine you have our 2023 report card, where we're showing on track for each of our 2023 and long term targets. This includes our plan to underground 350 miles in 2023 double last year's target and our 2024 <unk> to debt target of mid teens.
As you can see we're also projecting on track for our 2% non fuel O&M reduction target, which brings me to my story of the month.
This month story illustrates how our regional service model together with our performance playbook and lean operating system is helping improve the customer experience, while we eliminate waste and cost in our work processes.
In the North Coast region field operations teams are improving upon a commonsense approach that has worked in a lot of our programs bundling works. What's different now is that the teams are working across various branches of electric gas systems inspections and vegetation management to coordinate many types of work not just bundling similar work in silos.
Programs as we've done in the past.
Cross functional work bundling allows crews to do more work under the same planned outage line clearance, reducing the cost of switching and grid operations and improving overall reliability.
During Q2, my coworkers planned and executed 12 jobs under just one planned outage near the town of Willis.
Rather than impacting 100, plus customers multiple times over the year, we did it all in just one go.
That's one outage one day of traffic Lane closures, one batch of notifications in only one visit this goes to show you what's possible when we put the customer at the center of our operations.
So far this year, we estimate savings of half a million dollars and 800 plus hours. When we did not have to de energize our customers.
This is just the tip of the iceberg and something we are working actively to scale up across all regions proving we can deliver an improved customer experience, while cutting costs all at the same time.
This is all part of the momentum we're building here at <unk>.
And with that I'll turn it over to Carol.
Thank you Patty and good morning, everybody as Patti mentioned, we are on track to deliver our 2023 financial commitments today, we are reaffirming EPS growth of at least 10% each year in 2023, and 2024 and at least 9% in 2025.
And 2026.
We're also reaffirming our commitment to no new equity in 2023 or 2024.
This morning, I'll cover three main topics with you.
Our 2023 results the simple affordable model and our value proposition.
Let's start on slide 10.
We are on track to meet our 2023 EPS guidance of $1 19 to $1 23.
Our first half results and drivers of our forecast for the second half of 2023 are represented here on.
On a year to date basis, our results 52 per share, including 23 in the second quarter.
Our first half EPS is on plan and as Patti mentioned, our plan to reduce non fuel O&M by 2% is also on track.
So far this year, we've realized for a favor ability from our cost saving efforts and we've redeployed <unk> right back into the business.
Although our year to date result is down <unk> <unk> compared to 2022, a key driver for the second half of 2023 will be a final decision in our <unk>.
As a reminder, the CPUC has approved standard memo account, which allows us to record catch up revenues back to January one once a final decision is receipt.
This explains the one sense of timing as shown here and also why you don't see customer capital investment as a growth driver in our first half results.
Finally, we're showing <unk>. This is a combination of many smaller items over the first and second quarters, including higher property taxes, reflecting our increased customer capital investment.
On slide 11, our capital investment plans have not changed from Investor day, when we provided insight into our 10 year plan.
Our 95% rate base CAGR reflects the abundant opportunities to invest capital into our system for the benefit of customers.
Please recall this is a no big bets approach focus on safety and reliability with growth benefiting both our customers and our investors.
Just as our earnings grow with capital growth, it's worth repeating that this capital investment growth above depreciation also provides additional cash flow to help internally fund the investment.
Moving to slide 12, we continue to see ample opportunities to expand customer investment beyond the 52 billion plan to 2027.
We are fortunate to have substantial needs for investment in our electric distribution and transmission systems as well as opportunities to further improve quality and reduce cost.
Our simple affordable model is at the heart of our plant.
It is how we plan to keep bills affordable for our customers.
Which takes us to slide 13.
As you've seen we revisit this slide with you each quarter, providing proof points on our execution.
Patti already provided an update on our O&M cost reduction progress and now I'm excited to share some recent efficient financing developments.
Our minority sale of non nuclear generating assets or Pacific churn continues to move through the regulatory process. We launched the marketing for the proposed sale last month, we expect these attractive and differentiated assets to draw strong investor interest as they are fully regulated with a favorable ratemaking.
Framework and with California's environmental policies in place, we see a very supportive backdrop for growth opportunities.
As a reminder, the pack Gen regulatory and sales processes will progress on parallel timelines.
Additionally, last month, we submitted a loan application to the department of energy under the energy infrastructure Reinvestment program are.
Application is all about enabling California's clean energy transition.
If our application is approved we would expect to draw down these funds starting in 2024 and through 2026. So in line with spending in our G Hersey cycle.
This is another example of how we're pursuing efficient financing to deliver for our customers and our communities at a lower cost.
In addition to providing a diversified funding source for our large capital program lower cost Doe loans could result in hundreds of millions of dollars in interest expense savings for our customers over the life of the loans.
This means that our planned rate base growth could come at a lower cost for our customers, creating more capacity for investment in customer benefiting infrastructure definitely.
Definitely a win win.
We plan to submit part two of our application in the coming months and which we will work with our lunar program office on the technical and financial evaluation of our application.
I'll end here on slide 14, with a reiteration of dividend timing.
Specifically, we expect to reach accumulative, six 2 billion and non-GAAP core earnings since our emergence from chapter 11 during the third quarter.
As we have said before this timing remains subject to assumptions, including the timing of major regulatory decisions and.
In practice this means that our board could have the opportunity to declare a dividend as soon as our third quarter earnings call.
We are committed to restoring a dividend and recognize its importance to traditional utility investors, but let me be clear.
We plan to recommend to the board that we start out with a small dividend likely lower than some published estimates.
This will allow us to continue prioritizing needed capital investment, including safety and physical risk reduction on behalf of our customers.
Well, we would expect to grow our dividend at least in line with earnings per share. Our initial bias will be towards premium EPS growth versus higher yield consistent with our capital investment priorities.
Our physical and financial risks are being mitigated.
Our capital investment needs and growth forecast benefits customers and investors.
Our EPS growth is among the very best as our stock price recovers from a deep discount.
And our value our value proposition is strong and improving every quarter.
And with that I'll hand, it back to Patti.
Thank you Caroline.
Before we take your questions I wanted to take a quick moment to highlight two other pieces of news from PG need. This week yesterday, we issued our annual corporate sustainability report, which outlines major strides we've made towards the triple bottom line of serving people the planet and California's prosperity.
Using statistics and stories. The report details meaningful action, we took last year in service of our hometown throughout northern and Central California.
Second as highlighted here on slide 15, we hosted our inaugural innovation summit earlier this week drawing over 2000 in person and virtual participants from venture capital technology academic and financial World.
Risk mitigation and particular wildfire has rightly been job one and our main priority at the same time, our California service area is at the very forefront of the energy transition given our state's bold vision for the future with this in mind, we created our innovation research and development team.
To capitalize on breakthrough opportunities drawing on the external innovation ecosystem to inspire bold new ideas for safety and our operations. For example, during the innovation Summit. We featured a first of its kind version of Schneider Electric distribution energy management system operating on the Microsoft Cloud.
On the topic of innovation I'm also pleased to announce that the X Prize competition featured at our Investor Day is already received interest from 120 individual teams out of 32 different countries.
Talk about breakthrough opportunities. The objective of this competition is to be able to pinpoint ignitions from space within 60 seconds or less and autonomous Lee suppressed wildfires within 10 minutes I'm excited to see what these brilliant minds produce.
I'll wrap up on slide 16 by saying, we feel good about the progress we are making mitigating physical and financial risk. We're confident in the protections we have in place for this wildfire season and.
And we see several catalysts ahead for investors, including restoration of our common stock dividend and a final decision in our 2023 Herc.
We see the progress and feel the momentum we hope you do too.
With that operator, please open up the line for questions.
At this time I would like to remind everyone in order to ask a question. Please press star followed by the number one on your telephone keypad.
Your first question is from the line of Shar <unk> with Guggenheim. Your line is open.
Hey, guys good morning.
Morningstar, Inc.
Good morning.
To start off with a question on the <unk> timing seems theres, obviously, some filings still happening they are coming through and the PD still isn't initiatives you kind of highlighted there I guess, what's your level of confidence here and getting a PD.
A potential delay in the PD do as we're thinking about disclosures and when Youll recognize earnings guidance, including obviously inaccurate or official dividend policy.
Okay Shar. Thank you for a very robust question I'm going to get right at it first let me remind you that our G. R. C is 85% safety reliability resilience work our customers are demanding this work of us and our stakeholders are.
Really supportive of US doing this work so I think that bodes very well for our <unk> and its outcome. It is important that we remain aligned with our regulators to deliver on a on a very important regulatory outcome that is so important and so good for customers. So I'll just start with that but just I'll just back up and remind you about the <unk>.
Timing.
The CPUC voted to extend the <unk> deadline from June 30th two December 30th they need a deck that calendar. So that the final decision could be issued still in Q3, which they have been pretty clear that it was going to be issued in Q3, so that while the CPUC hasnt issued their proposed decision the July <unk>.
The order included language that reinforced the timing the commission. The in fact, the quote is that the commission still anticipates consideration of this matter on a commission agenda in the third quarter of 2023, we were very grateful for that reiteration of the importance of the timing I think it's been really clear we've been working closely.
With our stakeholders here in the state how important it is that we get a timely GIC. So that we can do this very important necessary work.
For our customers. So all that to say, obviously, we plan conservatively on the expected outcomes in and we've got a plan that we think is defendable and it's going to be welcomed by the commission, but we are also putting in our contingency planning to make sure. We're ready now I'll just close out with your final question about the implications for the.
Dividend I think Caroline was very clear in our prepared remarks about the importance of the dividend why we know that it's important to establish a dividend, but what's most important is that we're doing the right work for customers and we've got the GSC is obviously the most important that we have a good GIC outcome now we're in the final stages of the GSE process.
We've said that the dividend is dependent on regulatory timing and I don't want to get ahead of ourselves at all here, we're going to watch how that plays out and then will give us an update and let you know the status on the third quarter call.
Perfect Fantastic.
Lastly for me maybe.
Maybe briefly touching on sort of your expectations for safety certification in the WP approvals.
Okay.
Stakeholders still kind of scrutinize the details of the plan are there concerns that caused you to engage remedial action or is that already and plan and how is the timeline shifting as the WMC moves towards P. D. Then you plan to file 23 certifications.
<unk>.
Yeah, well you know one of the things I'm really going to appreciate is this wm P process, it's an open and transparent preceeding. It allows us to align with our regulator and frankly to get the best ideas on the table, we welcome that alignment and we welcome the feedback because that will make us better and anything we can do to make the system.
Safer faster is important to us now in the revision notice that the OIS issued.
Identified eight critical issues and we have until August 7th we will be filing our revision.
Our response to that revision notice.
It had some about three main themes I would suggest in their feedback.
They are asking for additional granularity like for example quarterly data through 2024 on vegetation management targets, that's a reasonable request and we can provide that feedback additional information on proposals and alternatives considered like for example, the changing.
In our underground mine timing, when we might make those revisions and more insights to understand our objectives in the both the three year filing but also the 10 year look which all of that is is they're good questions and we can have good healthy dialogue with the safety.
Regulators here in the state to make sure that we've got alignment there. So we will submit that vision on August 7th.
And we expect a draft decision from OIS at the end of September now the safety Certificate filing date is set as prior to September 13th 2023, So we'll make that filing even if we don't have a final decision on the Wm P. And then the OIS has 90 days to review our safety certificate application.
Perfect.
<unk> probably on the execution, it's very noticeable thanks krish.
Sure.
Your next question is from the line of David Arcaro with Morgan Stanley . Your line is open.
Hi, good morning, Thanks, so much for taking my question.
Hey, David.
You know I was just wondering if you could give an update on how the.
Environmental backdrop is shaping up so far.
During the summer and into fire season, you just.
Is the expectation still or are the have the conditions changed at all in terms of expectations. When youre looking at fuel cost fuel out there moisture content just outlook into the rest of the summer and how this year's kind of fire season shaping up right now.
Yeah. So a couple of things one of course all of that moisture that we got in the first quarter of this year certainly has.
I would say delayed the start of fire season, you know we had a good moisture.
But as you've indicated David It also provides for additional fuel in the form of grasses and grasses to be managed.
But the important thing to know and what we're really trying to convey in our in our report today and really making the distinction about about how far we've come since 2017, we are ready no matter what.
We are ready no matter the conditions are Hawk 24, $703 65 is utilizing all of those cameras and weather stations, we know precisely the conditions and our enhanced power line safety settings went into automatic mode on July 1st we deactivate those when conditions.
<unk> warrants. So there are certain cases, where we do know we have high moisture and in particular polygon in our service area and so we deactivate the PSS, but we have EPS as a ready enable every single day of the year.
And so for us we're.
We're just using this as an opportunity to be wildfire ready no matter the conditions all that being said, we're having great performance.
Our EPS settings continue to be an extraordinary risk mitigation tool for us in fact this year, our ignitions year to date are 50% less than what they were last year and last year wasn't extraordinary.
Year of performance as well so we're feeling very good about our posture and we're ready.
That's clear thanks for that color.
Then separately.
Looking at the $5 billion bucket of potential incremental upside capex opportunities you've added a bit more.
Ill around where some of those opportunities could come from I'm wondering if you could give us a sense of if there are any near term opportunities to pull any of those programs into the Capex plan.
Or just a little bit of color around the cadence and the timing for when those opportunities start to crystallize.
Yeah, David I'll take that question. So I would say the two areas that we see the most potential in terms of.
Working our model to see that theyre going to be affordable is in the transmission area and new customer connections.
So we are.
Looking at partnerships, we're looking at additional new customer we've made a significant progress in terms of looking at our overall process of bringing those connections online sooner and so there's I would say those are the two areas that you could expect.
More insight in over the coming earnings calls and David I'll add that all of that is contingent upon affordability for our customers and do we in fact have.
The headroom to go ahead and add additional capital and so all of our waste elimination work all of our cost savings work some of our big strategic efforts to reduce cost and get more streamlined and then the little itty bitty ideas that all add up give us an opportunity to then deploy that more that capital for the benefit of customers.
When we can be sure that they can afford it so that's always the the equation that we're running.
Understood makes sense. Thanks, so much.
Thank you.
Your next question is from the line of Julien Dumoulin Smith with Bank of America. Your line is open.
Hey, good morning, Thanks for the time.
Good morning, Joe.
Hey, good morning, just following up on the last one actually I'll I'll pivot to this direction.
We add lives here, maybe we could talk a little bit about how you think about.
Is that incremental or not.
You think about that.
In terms of the projects that you already have underway versus being incremental does that displace. Some other projects just kind of thinking about the financial impacts of pulling down on that money, obviously clearly beneficial in any regard for customers.
Yeah. Julian this is Carolyn and thank you for the question. So it is not incremental we believe that we're going to use this financing to fund the programs that we have already in place.
We have a very well laid out plan.
We have more than enough to.
Uh huh invest into our system and so this financing is simply going to allow it to be more efficiently financed.
Okay, Alright fair enough.
Maybe just pivoting to another subject real quickly here.
Do you think just with capital structure again. This is more of a financing when do you no longer.
No longer need or expect to meet the capital structure waiver as you think about kind of a normalization we talk about dividend today do you think about capital structure tomorrow et cetera.
Yeah I think.
Two things just to recall I mean, I'll reiterate the no new equity in 'twenty, three and 'twenty four and we have a commitment to pay down parent debt of about $2 billion plus by 2026. So in terms of that waiver. We're on we're monitoring that we're on track we've made improvements over the last couple of years and we continue to foresee.
Those improvements and we don't.
The waivers in place until.
We'll be able to make that waiver.
Until June 25, I thought it was 25, sorry could I couldn't remember it was June or for March.
Wonderful, Okay excellent well I'll leave it there well I will see you guys. Soon thank you.
Great. Thanks Julien.
Again, if you would like to ask a question press star followed by the number one on your telephone keypad Youre.
Your next question is from the line of Ryan Levine with Citi. Your line is open.
Good morning, everybody.
Hey, good morning, a follow up.
Hi.
In terms of the dividend are there any other regulatory items outside of the GSV that could impact the timing of reinstating the dividend with the third quarter caused some footnotes.
Baird.
Comments I just wanted to clarify what was being done with that statement.
No it's primarily the GIC Ryan.
Okay great.
And then on the heels of the innovation summit.
Curious your latest thinking about how artificial intelligence could impact your business, both from a cost of capital or risk standpoint, going forward and work streams you have to incorporate that.
Yeah, Ryan that innovation summit was just spectacular.
<unk> opened.
The doors to the future with thousands of people participated in that event from all across the globe. We have people signed on from Australia, and Israel and U K and all across the country here in the U S. As well we had standing room only here in California was very fun to see the appetite to support our true North Star.
<unk> and the key enablers to our pathway to the clean energy transition and our and our robust gas system. It was really exciting to imagine how all of those partnerships might emerge from that day.
And I'm glad that so many investors signed on for that day as well, but back to your question about AI first of all I'll remind you that we've been using artificial intelligence already and in fact in 2019, we introduced.
Our wildfire spread model, we call it that's the technical silver.
Platform that helps us forecast, where our highest risks are in water wildfire spread might look like we operationalize that artificial intelligence in 2021, we've been utilizing that routinely and that's just the tip of the iceberg. We're also using AI for asset health as we do our inspections and then coordinating.
Tween drone inspections and data collection, you know, it's very hard for humans to review photos, we take all of these images and humans can make an error. They it's a judgment, but on artificial intelligence.
Platform that can review all of those visual images.
Can truly automate our response and then build into our asset health plan.
Next might fail and be predictive in that way and so we're pretty excited about the application of AI.
Continue our system safety efforts and our asset health, but then there are simple things like just automating simple back office processes processes, and and you know administrative tasks. So we're playing with that and then things like customer service.
And.
So we're really excited about the applications of artificial intelligence, we know there's things to be cautious about it and we're working to make sure that any platform that we use protects our customers' data and any kind of company secret data, we make sure that that that safety exist for our data as well as our physical assets so much more to come in the NII.
Or P J D for sure.
I look forward to it in terms of the deal you congratulations on receiving that subsidized capital.
Sort of federal dollars are there any speed programs that youre looking to tap into to help mitigate bill impact.
Let me go through different in California initiatives.
Yeah, we have several California initiatives, so things like the California climate credit we accelerated that earlier this year. So that it was during the heating season to offset some of those gas charges that were so high at the beginning of the year, we have our income qualified customer.
Customer assistance programs, we call that care, it's a very robust income qualified program too to help customers, who don't have the ability to always afford their utility bill we make sure that they are cared for and have the energy that they need there's a California Richards payment program, where for example or more than three.
300000 customers, who were experiencing financial hardships during the pandemic received an automatic onetime bill credit in February of 2023, and then back to your innovation point earlier, Ryan the $83 million Epic program is a source of funding so that we can invest in.
Doing new technologies that make it safer and more affordable for customers in the future. So that's a really exciting part of our portfolio to that benefits customers.
Great. Thanks for taking my question.
Youre welcome Thanks Ryan.
There are no further questions at this time I will now turn the call back over to the CEO Ms Patti Bobby.
Well. Thank you everyone for joining us today I know you've got a busy calendar and we're grateful for your time and we look forward to seeing you soon be safe out there.
Ladies and gentlemen. This concludes today's conference call you may now disconnect.
Okay.
Okay.
Yeah.