Q3 2023 NiSource Inc Earnings Call

Thank you for standing by and welcome to the Q3 2023 Nisource earnings Conference call I would now like to welcome Chris certainly our director of Investor Relations to begin the call Chris over to you.

Good morning, and welcome to the Nisource third quarter 2023 Investor call.

Joining me today are president and Chief Executive Officer, Lloyd Yates Executive Vice President and Chief Financial Officer, Shawn Anderson Executive Vice President of strategy and risks and Chief Commercial Officer, Michael Lewis Executive Vice President and group, President Nisource utilities, Nobody Birmingham, and Vice President of Investor Relations.

And treasurer Randy.

The purpose of this presentation is to review <unk> financial performance for the third quarter of 2023 as well as provide an update on our operations and growth drivers.

Following our prepared remarks, we'll open the call to your questions slides for today's call are available in the Investor Relations section of our website.

We would like to remind you that some of the statements made during this presentation will be forward. Looking these statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the statements.

Formation concerning such risks and uncertainties is included in the risk factors and MD&A sections of our periodic SEC filings.

Additionally, some of the statements made on this call relate to non-GAAP measures. Please refer to the supplemental slides segment information and full financial schedules for information on the most directly comparable GAAP measure and a reconciliation of these measures.

I would now like to turn the call over to Lloyd.

Thanks, Chris.

Good morning, and thank you for joining us.

I'll start with an overview of our value proposition on slide three.

At year end 2022, we had $16 $6 billion of rate base deployed for our customers and today are outlining a refreshed base plan to invest another nearly $16 billion of capital over the next five years.

We plan to execute on our resilient financial commitments.

Quoted by a superior regulatory and stakeholder foundation and balance sheet flexibility.

Assuming a constant p/e ratio or.

Our plan can deliver a total shareholder return of 10% to 12%.

Slide four shows our four key priorities.

First.

We are reiterating our expectation of achieving the upper half of our $1 54 to $1 60 EPS range. This year.

We are introducing 2024 EPS guidance of $1 68 to $1 72.

Over 8% growth midpoint to midpoint versus our current 2023 range.

We are extending our 6% to 8% long term EPS growth guidance to the 2023 2008 period.

This is supported by five year <unk>.

Unknown Executive: Thank you for standing by and welcome to the Q3 2023 NiSource earnings conference call. I would now like to welcome Chris Turnure, Director of Investor Relations to begin the call. Chris, over to you.

<unk> capital plan of $16 billion, and an 8% to 10% annual 2023, and 28 rate base growth.

We are confident our commitments are resilient to periods of rapidly changing business conditions, such as those seen by the utility industry over the last 12 months.

Christopher Turnure: Good morning and welcome to the NiSource 3rd quarter 2023 investor call.

We continue building a track record of execution and growth.

Christopher Turnure: Joining me today are President and Chief Executive Officer Lloyd Yates, Executive Vice President and Chief Finance Financial Officer, Shawn Anderson, Executive Vice President of Strategy and Risk and Chief Commercial Officer, Michael Luhrs, Executive Vice President and Group President, NiSource Utilities, Melody Birmingham, and Vice President of Investor Relations and Treasurer, Randy UN. The purpose of this presentation is to review NiSource's financial performance for the 3rd quarter of 2023 as well as provide an update on our operations and growth drivers.

Our commitment to investors employees and customers is central to everything we do.

Second.

Our superior regulatory and stakeholder foundation differentiates us from peers.

In early August the Indiana utility regulatory Commission approved NIPSCO electric rate case settlement.

This case represented the culmination of years of investment and stakeholder engagement, beginning with our 2018 integrated resource plan.

In October the public utility law judge of Maryland's recommendation to approve Columbia gas of Maryland rate case settlement became a final order.

Unknown Executive: Following our prepared remarks, we'll open the call to your questions.

Unknown Executive: Slides for today's call are available in the Investor Relations section of our website. We would like to remind you that some of the statements made during this presentation will be forward-looking. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the statements. Information concerning such risks and uncertainties is included in the risk factors and NDNA sections of our periodic SEC filings. Additionally, some of the statements made on this call relate to non-gap measures. Please refer to the supplemental slides, segment information, and full financial schedules for information on the most directly comparable gap measure and a reconciliation of these measures.

Last week, we filed a new gas general rate case in Indiana seeking recovery of $1 1 billion estimated cumulative investments to be completed through the end of 2024.

Third our.

Our balance sheet flexibility allows us to both optimize cost of capital for customers and ultimate return on capital for our shareholders.

The transaction announced in June with Blackstone infrastructure Partners is an example of a diverse funding sources embedded in our plan.

Raise at an attractive relative value or preserving the scale of our business.

Christopher Turnure: I'd like to turn the call over to Lloyd. Thanks, Chris.

Fourth.

Lloyd Yates: Good morning and thank you for joining us. I'll start with an overview of our value proposition on slide 3. At year end 2022, we had $16.6 billion of rate-based deploy for our customers and today are outlining a refreshed based plan to invest another nearly $16 billion of capital over the next five years. We plan to execute on our resilient financial commitments supported by superior regulatory and stakeholder foundation and balance sheet flexibility. Assuming a constant PE ratio, our plan can deliver a total shareholder return of 10 to 12%.

Our company is experiencing a record investment cycle, driven by safety reliability regulatory mandate de carbonization and modernization.

Investment is constrained primarily by normal operational constraints and our desire to manage the impact on customer bills.

The surplus of investment opportunity.

Favorable position.

<unk> is the deployment of capital and the investments in jurisdictions generating the highest risk adjusted returns.

Slide five details our annual capital expenditures across our six state service territory.

And the five year period through 2028, we plan to invest $16 billion.

Lloyd Yates: Slide 4 shows our 4 key priorities. First, today we are reiterating our expectation of achieving the upper half of our $$54 to $$60 EPS range this year. We are introducing 2024 EPS guidance of $$68 to $$72 over 8% growth midpoint to midpoint versus our current 2023 range. We are extending our 6-8% long-term EPS growth guidance to the 2023-28 period. This is supported by 5-year base capital plan of $16 billion and an 8-10% annual 2023-28 rate-based growth.

Every single one of these dollars are they real investment in our communities.

For example, at Columbia gas of Virginia.

We replaced over 8000 feet of Maine, and over 10000 feet of service line infrastructure as part of a $4 million investment in our system in the town of Culpeper.

As part of this project Columbia gas updated several multi meter set and 130 individual customer connections improving the quality and reliability of service to our customers within Culpeper County.

Slide six shows key rate case, and select capital rider activity since 2021.

Our leading regulatory execution continues with no less than 10 cases filed in seven jurisdictions across fixed state during this period.

Lloyd Yates: We are confident our commitments are resilient to periods of rapidly changing business conditions such as those seen by the utility industry over the last 12 months. We continue building a track record of execution and growth and our commitment to investors, employees and customers is central to everything we do.

Our state regulatory team are in a constant cycle of communication and engagement with key intervenors.

Regulators and customer groups.

In addition to general rate cases.

Regular capital tracker filings allow timely recovery on and of our investments.

Lloyd Yates: Second, our superior regulatory and stakeholder foundation differentiates us from peers. In early August, the Indiana Utility Regulatory Commission approved MIX skills, electric rate case settlement. This case represented the culmination of years of investment and stakeholder engagement beginning with our 2018 Integrated Resource Plan. In October, the Public Utility Law Judge of Maryland's recommendation to approve Columbia Gas of Maryland's rate case settlement became a final order. Last week, we filed a new gas general rate case in Indiana seeking recovery of $1.1 billion estimated cumulative investments to be completed through the end of 2024.

A dialog with our Pennsylvania stakeholders, starting late last year is an example of this.

And approved long term infrastructure improvement plan in the state as a prerequisite to recovering investment grade this tracker.

Columbia gas of Pennsylvania saw the authority to replace infrastructure based on risk rather than our prior focus on bare steel and with a granted approval. This spring.

This change enables inclusion of an additional first generation assets such as first generation plastic pipe for expedited replacement.

And the safety and reliability of our system.

All of this activity is built on a foundation of robust economic activity for our states.

Customer count across our territories has been growing on average by.

Lloyd Yates: Third, our balance sheet flexibility allows us to both optimize cost of capital for customers and ultimate return on capital for our shareholders. The transaction announced in June with Blackstone Infrastructure Partners is an example of the diverse funding sources embedded in our plan raised at an attractive relative value while preserving the scale of our business.

5% to 1% annually for years, including 2023 to date.

Favorable demographic trends have driven inbound migration, thanks to a stable and growing manufacturing base.

Robust utility and non utility infrastructure and low tax rates in the states we serve.

In southwestern Pennsylvania.

Lloyd Yates: Fourth, our company is experiencing a record investment cycle driven by safety, reliability, regulatory mandates, decarbonization and modernization. Investment is constrained primarily by normal operational constraints in our desire to manage the impact on customer bills. The third plus of investment opportunities puts us in a favorable position to prioritize the deployment of capital in the investments and jurisdictions generating the highest risk-adjusted returns.

One of the largest titanium melting companies in the World has advanced plans for a plant expansion in our service territory.

Let me guess, Pennsylvania engage the business and the department of community and economic development to enable the extension of a gas infrastructure.

And support job creation and economic development in the region.

Moreover, this extension will present greater access to low cost natural gas throughout the surrounding community, while enhancing energy diversification and energy resilience.

Lloyd Yates: Slide five details are annual capital expenditures across our six state service territory. In the five-year period through 2028, we plan to invest $16 billion. Every single one of these dollars is a real investment in our communities. For example, at Columbia Gas of Virginia, we replaced over 8,000 feet of main and over 10,000 feet of service line infrastructure as part of a $4 million investment in our system in the town of Culpepper. As part of this project, Columbia Gas updated several multimeter sets in 130 individual customer connections, improving the quality and reliability of service to our customers within Culpepper County.

Slide seven shows how our operational excellence model is incorporated into decision, making in all areas of the company.

Project Apollo is on track generating efficiencies by doing things safer better more efficiently and with less cost.

This will keep non tracked O&M flat through the duration of our five year plan.

Nisource has continued to invest in technology that will drive risk reduction across gas and electric assets.

And increase customer value by ensuring reliable service.

Advanced mobile leak inspection as one example.

Our historical practice of addressing leaks one by one is transforming into a process of clustering large volume leaks into small replacement projects.

Lloyd Yates: Slide six shows key rate case and select capital rider activity since 2021. Our leading regulatory execution continues with no less than 10 cases filed in seven jurisdictions across six states during this period. Our state regulatory teams are in a constant cycle of communication and engagement with key intervenants. Regulators and customer groups. In addition to general rate cases, regular capital tracker followings allow timely recovery on and of our investments. A dialogue with our Pennsylvania stakeholders starting late last year is an example of this.

This project brings visibility to large volume leaks and prioritization of repair.

<unk> methane emissions and improves efficiency.

We are focused on affordability for our customers every day.

All of this is expected to contribute to keeping total customer bills in line with inflation over a five year financial plans.

These achievements would not be possible without our dedicated employees and their commitment to our customers communities and all nine of our stakeholders.

With that I'll turn the call over to Michael.

Thank you Lloyd I'll begin on slide eight <unk>.

NIPSCO is generation transition continues to advance as we optimize the new portfolio to benefit customers and retire all coal fire generation by the end of 2028.

Lloyd Yates: An approved long term infrastructure improvement plan, and the state is a prerequisite to recovering investments through a dis-tracker. The lemma of gas, Pennsylvania sought the authority to replace infrastructure based on risk rather than a prior focus on bare steel and with a granular approval of this spring. This change enables inclusion of an additional first-generation assets such as first-generation plastic pipe for expedited replacement, enhancing the safety and reliability of our system.

Our first for renewable projects and the associated electric transmission are in service and represent approximately $1 billion of investment and economic sustainable zero fuel costs, new generation for NIPSCO as northern Indiana customers.

Also our Indiana Crossroads, two wind PPA is advancing and is expected in service late this year.

Construction on Calgary, solar and storage and <unk> to solar and storage continues in both projects have expected in service dates in 2024.

Lloyd Yates: All of this activity is built on a foundation of robust economic activities for our states. Customer account across our territories has been growing on average by 0.5 to 1% annually for years, including 2023 to date. Favorable demographic trends have driven inbound migration thanks to a stable and growing manufacturing base, robust utility and infrastructure and low tax rates in the states we serve. In southwestern Pennsylvania, one of the largest titanium melting companies in the world has advanced plans for a plan expansion in our service territory.

The Fairbanks Solar project is expected to be in service in 2025 and is in the early stages of construction.

Gibson project is also expected to be in service in 2025, and construction is anticipated to begin in early 2024.

Our plans have included these four owned renewable projects under tax equity structures.

However, based on our evaluation of the inflation reduction act and the benefits to customers with tax credit monetization.

We have filed a modification with the IRC for approval of full ownership of Calgary solar and storage and dones reached two solar and storage.

Lloyd Yates: Columbia gas of Pennsylvania engaged the business and the department of community and economic development to enable the expansion of a gas infrastructure in support job creation and economic development in the region. Moreover, this extension will present greater access to low-cost natural gas throughout the surrounding community while enhancing energy diversification and energy resilience.

Ownership of these projects provides a lower cost to customers and tax equity supporting affordability and enhances our base plan.

We continue to assume tax equity structures in our plan for the other two projects Fairbanks and Gibson. However, we are actively evaluating the potential benefits to customers of inflation reduction act provisions related to these projects.

Lloyd Yates: Slide 7 shows how our operational excellence model is incorporated into decision-making in all areas of the company. Project Apollo is on track generating efficiencies by doing things safer, better, more efficiently, and with less cost. This will keep non-tracked on and flat through the duration of our five-year plan. Nitroists have continued to invest in technology that will drive risk reduction across gas and electric assets and increase customer value by ensuring reliable service.

NIPSCO has several generation related filings under review at the IRC.

A CPC and for a conversion of the Gibson projects into a BTA.

Build transfer agreement modification for Calgary and Dones bridged two filed in August which includes the aforementioned customer beneficial proposal of switching the <unk> full ownership of the projects instead of tax equity financing.

<unk> for our planned gas Pico project.

In addition, <unk> has recently received orders are proving several PPA projects Appleseed solar Templeton wind and Carpenter wind.

Lloyd Yates: Advanced mobile leak inspection is one example. Our historical practice of addressing leaks one by one is transforming into a process of clustering large volume leaks into small replacement projects. This project brings visibility to large volume leaks and prioritization repair, reduces methane emissions and improves efficiency. We are focused on affordability for our customers every day and all of this is expected to contribute to keeping total customer bills and line with inflation over the five-year financial plans.

For the gas Speaker in September we filed a CPC and for an approximately 400 megawatt brownfield gas Speaker project on our Schafer site in Indiana.

The project utilizes a combination of technologies, including Aero derivatives for quick start capability and is a key enabler of our generation transition system performance and the full retirement of coal fired generation by 2028.

Our in service renewable projects are performing in line with expectations and our reducing fuel costs for our customers.

Lloyd Yates: These keepments would not be possible with our dedicated employees and their commitment to our customers, communities, and all nights for stakeholders.

Since our first project with commercial in late 2020, we have been passing back both excess generation and renewable energy credits revenues to customers from this and subsequent projects.

Michael Luhrs: with that, I'll turn the call over to Michael. Thank you, Lloyd. I'll begin on slide 8.

In the third quarter alone this amount totaled $5 3 million for a year to date total of $19 9 million.

Michael Luhrs: NiSource Generation Transition continues to advance as we optimize the new portfolio to benefit customers and retire all coal-fired generation by the end of 2028. Our first four renewable projects and the associated electric transmission are in service and represent approximately one billion of investment in economic, sustainable, zero fuel cost, new generation for Nipsko's Northern Indiana customers. Also our Indiana Crossroads 2 Win PPA is advancing and is expected in service like this year.

As we look forward slide nine shows additional capex opportunities not included in our base financial plan through 2028.

These include potential items, such as <unk>.

Continued employment of the IRA to benefit customers and reduced tax equity financing.

Long term incremental generation investment opportunities.

This is a gas infrastructure spending.

And multiple additional opportunities.

The 2020 Federal pipes Act will require incremental investment in our system for various leak reduction safety and other operational requirements.

Michael Luhrs: Construction on Calvary Solar and Storage and Dunbridge 2 Solar and Storage continues and both projects have expected in service dates in 2024. The Fairbank Solar project is expected to be in service in 2025 and is in the early stages of construction. The Gibson project is also expected to be in service in 2025 and construction is anticipated to begin in early 2024. Our plans have included these four own renewable projects under tax equity structures.

These requirements will build on the investments we have been making on our advanced leak detection and repair program.

We will continue to be active in this area to support the best outcome for customers in terms of safety emissions and infrastructure investment the pipeline of opportunities listed on this page and the approximately $2 billion 2024 to 2028 upside capex opportunities.

Michael Luhrs: However, based on our evaluation of the inflation reduction act and the benefits the customers with tax credit monetization. We have filed a modification with the IURC for approval of full ownership of Calvary Solar and Storage and Dunbridge 2 Solar and Storage. Full ownership of these projects provide a lower cost to customers than tax equity supporting affordability and enhances our base plan. We continue to assume tax equity structures in our plan for the other two projects, Fairbank and Gibson.

<unk> to be evaluated to determine the most beneficial actions to deliver safe reliable and cost effective energy for our communities.

As we look beyond 2028, we think a regulated gas and electric integrated utilities, such as Nisource has the potential to access even more investment. This is particularly true as we think about the landscape of further de carbonization as nascent technology develops into practical applications <unk> will look to work. These.

<unk> into our capital expenditure plans and a customer beneficial manner. These potential and current investments across our electric and gas business support our clean energy transition further our scope one emissions reduction goals and enhanced customer value in a balanced way.

Michael Luhrs: However, we are actively evaluating the potential benefits the customers of inflation reduction act provisions related to these projects. Nipsko has several generation related filings under review at the IURC. A CPCN for conversion of the Gibson project into a BTA. A build transfer agreement modification for Calvary and Dunbridge 2 filed in August, which includes the aforementioned customer beneficial proposal of switching the Nipsko's full ownership of the projects instead of tax equity financing.

In early October we announced the launch of a multi phase hydrogen blending project. It is one of the first lien United States, either blending scattered in a controlled setting to mix hydrogen and natural gas at precise levels.

Columbia gas of Pennsylvania partnered with Ian Engineering to construct the skid at our training facility, allowing for the control blending of hydrogen into are isolated and controlled natural gas system to blend levels, ranging from 2% to 20% hydrogen.

Michael Luhrs: NACPCN for our plan gas-peaker project. In addition, Nipsko has recently received orders approving several PPA projects, Apple Seed Solar, Templeton Wind and Carpenter Wind. For the gas-peaker, in September, we filed a CPCN for an approximately 400 megawatt-Franfield gas-peaker project on our Schaefer-Sighten in Vienna. The project utilizes a combination of technologies, including aero-derivatives for quick start capability and is a key enabler of our generation transition system performance and the full retirement of cold-fire generation by 2028.

Throughout the blending project Nisource will continue to evaluate the viability of hydrogen and natural gas plans for other applications, such as factories and power plants.

As we consider the benefits and potential uses of hydrogen in the future. This project is one step that helps nicer to determine the most beneficial and viable opportunities.

Finally last month, we issued our first sustainability report.

For years, we have published and integrated annual report, incorporating both financial and sustainability metrics.

Michael Luhrs: Our in-service renewable projects are performing in line with expectations and are reducing fuel costs for our customers. Since our first project went commercial in late 2020, we have been passing back both excess generation and renewable energy credits revenues to customers from this and subsequent projects.

This year marks our first Standalone report of key sustainability topics.

The report details the incorporation of E S and G policies throughout the organization and how these actions support and align with our mission vision and values.

I am proud of the companywide efforts captured in this report that demonstrate how we strengthen and support our communities through our business activities and I encourage everyone with an interest in sustainability to review the report.

Michael Luhrs: In the third quarter alone, this amount totaled $5.3 million for a year-to-date total of $19.9 million, as we look forward, Slide 9 shows additional CAPEX opportunities not included in our base financial plan through 2028. These include potential items such as continued employment of the IRA to benefit customers and reduce tax equity financing, long-term incremental generation investment opportunities, denser gas infrastructure spending, and multiple additional opportunities. The 2020 Federal PICE Act will require incremental investment in our system for various leak reduction, safety and other operational requirements.

I'll now turn things over to Shaun.

Thanks, Michael and good morning, everyone.

Slide 10 reviews, our financial results from the third quarter.

non-GAAP net operating earnings were $84 million or <unk> 19 per share compared to $45 million or <unk> 10 per share in the third quarter of 2022.

Year to date results continue to track in line with our plan.

Visibility from constructive regulatory outcomes and execution on O&M initiatives support our continued guidance to the upper half of the $1 54 to $1 60, EPS guidance provided last quarter.

Michael Luhrs: These requirements would build on the investments we have been making on our advanced leak detection and repair program. We will continue to be active in this area to support the best outcome for customers in terms of safety, emissions, and infrastructure investment. The pipeline of opportunities listed on this page and the approximately $2 billion 2024 to 2028 upside CAPEX opportunities continue to be evaluated to determine the most beneficial actions to deliver safe, reliable, and cost-effective energy for our communities.

Turning to slide 11, you will find segment details and key drivers of our results.

Gas distribution operating earnings were $53 million in the third quarter, an increase of $21 million versus the same quarter last year.

New rates and capital investment programs drove $42 million of incremental revenue, including general rate case contributions in Ohio, Pennsylvania, Indiana, Virginia and Maryland.

Michael Luhrs: As we look beyond 2028, we think a regulated gas and electric integrated utility such as NiSource has the potential to access even more investment. This is particularly true for us. This is also true as we think about the landscape of further decarbonization. As Nathan Technology develops into practical applications, NiSource will look to work these investments into our capital expenditure plans in a customer beneficial manner. These potential and current investments across our electric and gas business support our clean energy transition, further our scope one emissions reduction goals, and enhance customer value in a balanced way.

Capital Trackers in Ohio, Kentucky, and Virginia provided additional return of capital investment for the segment as well.

Offsetting these revenue increases were spending activities and non tracked gas O&M for the quarter of $8 million and depreciation from infrastructure programs, which increased $14 million on a year over year basis.

The electric operating earnings were $184 million in the third quarter.

Michael Luhrs: In early October, we announced the launch of a multi-phase hydrogen blending project. It is one of the first in the United States to use a blending skid in a controlled setting to mix hydrogen and natural gas at precise levels. Columbia Gas Appinplubania partnered with Ian Engineering to construct the skid at our training facility, allowing for the controlled blending of hydrogen into our isolated and controlled natural gas system to blend levels ranging from 2 to 20 percent hydrogen.

An increase of $69 million versus the same quarter last year.

New rates as well as improved weather normalized commercial and residential customer usage increased revenue by $7 $3 million.

Non tracked electric O&M decreased $4 million.

Depreciation increased $6 million.

Lastly, corporate and other contributed $5 million due primarily to lower overall costs across several activities.

Michael Luhrs: Throughout the blending project, NiSource will continue to evaluate the viability of hydrogen natural gas plans for other applications such as factories and power plants. As we consider the benefits and potential uses of hydrogen in the future, this project is one step that helps NiSource determine the most beneficial and viable opportunities.

Now I'd like to briefly touch on our debt and credit profile on slide 12.

Our debt level as of September 30 was $13 3 billion.

$11 billion of which was long term debt with a weighted average maturity of 12 years and a weighted average interest rate of three 9%.

Michael Luhrs: Finally, last month we issued our first sustainability report. For years we have published an integrated annual report incorporating both financial and sustainability metrics.

At the end of the third quarter, we maintained net available liquidity of $1 billion.

Michael Luhrs: This year marks our first standalone report of key sustainability topics. The report details the incorporation of E, S, and G policies throughout the organization and how these actions support and align with our mission vision and values. I'm proud of the company wide efforts captured in this report that demonstrate how we strengthen and support our communities through our business activities. And I encourage everyone with an interest and sustainability to review the report.

Insisting of cash and available capacity under our credit facility.

Our accounts receivable securitization programs.

All three credit agencies have affirmed nice source ratings and outlooks for the year.

We remain committed to our current investment grade credit ratings and remain on track to achieve our stated 14% to 16% <unk> to debt range for this year upon closing of the minority interest sale transaction by the end of 2023.

Shawn Anderson: I'll now turn things over to Sean. Thanks like Linda Morning everyone. Slide 10 reviews our financial results from the third court. Non-Gap Net Operating Earnings were $84 million, or 19 cents per share, compared to $45 million for 10 cents per share in the third quarter of 2022. Your-to-date results continue to track in line with our plan. Visibility from constructive regulatory outcomes, an execution on ONM initiatives, support, or continued guidance for the upper half of the $1.54 to $1.60 EPS guidance provided last quarter.

Slide 13 details our refreshed long term financial commitments.

We are extending our six to eight long term EPS growth guidance for the 2023 to 2028 period.

This is supported by a five year base capital plan of $16 billion.

Fuels, 8% to 10%.

Annual 2023 to 2028 rate base growth.

The enhanced base capital expenditure plan builds on our five year plan by switching from tax equity to full ownership of our next two renewables project 24.

Shawn Anderson: Turning to slide 11, you'll find segment details and key drivers of our results. Gas distribution operating earnings were $53 million in the third quarter, an increase of $21 million versus the same quarter last year. New rates in capital investment programs drove $42 million of incremental revenue, including general rate case contributions in Ohio, Pennsylvania, Indiana, Virginia, and Maryland. Capital trackers in Ohio, Kentucky, and Virginia provided additional return of capital investment for the segment as well.

It also assumes additional capital for FEMSA related gas infrastructure requirements and electric transmission investments in 2027 and 2028.

These investments support incremental $1 billion of Capex, we have now moved into our base capital forecast over.

Over the next five year horizon.

Additionally, we are highlighting $2 billion of upside Capex not included in the base plan.

As Michael indicated this includes investments to switch from tax equity to full ownership for our last two renewables projects in 2025.

Shawn Anderson: Offsetting these revenue increases were spending activities in non-tracked gas ONM for the quarter of $8 million in depreciation for infrastructure programs, which increased $14 million on a year-over-year basis. Electric operating earnings were $184 million in the third quarter, an increase of $69 million versus the same quarter last year. New rates, as well as improved weather-normalized commercial and residential customer usage, increased revenue by $7.3 million. Non-tracked electric ONM decreased $4 million, and depreciation increased $6 million.

Long term incremental generation investment opportunities.

Electric and gas distribution enhancement opportunities.

In terms of driven investments will.

We will be sharing more about these upside capital expenditure opportunities as we engage with stakeholders and develop better line of sight to make these investments for our customers and we'll continue to update and guide our annual capital expenditures plans to reflect the full scope of activities nice sources engaging upon to deliver safe and rely.

<unk> service for our customers.

Next I'd like to focus on our financing plan and make four key points on slide 14.

First we intend to re market our equity units later this month for proceeds of $863 million.

Shawn Anderson: Lastly, corporate and other contributed $5 million due primarily to lower overall costs across several activities. Now I'd like to briefly touch on our debt and credit profile on slide 12. Our debt level, as of September 30, was $13.3 billion, $11 billion of which was long-term debt with a weighted average maturity of 12 years and a weighted average interest rate of 3.9%. At the end of the third quarter, we maintained net available liquidity of $1 billion, consisting of cash and available capacity under our credit facility and our accounts receivable securitization programs.

Second this continues to be the only equity required in our base plan and 2023 and 2024 and is consistent with our prior financing plan for these years.

Third we expect to issue $200 million to $300 million of annual maintenance equity in the 2025 to 2028 periods.

Shawn Anderson: All three credit agencies have affirmed nice source ratings and outlooks for the year. We remained committed to our current investment grade credit ratings and remain on track to achieve our stated 14-16% FFO to debt range for this year upon closing of the minority interest sale transaction by the end of 2023. Slide 13 details are refreshed long-term financial commitments. We are extending our 6-8 long-term EPS growth guidance to the 2023-2028 period. This is supported by a five-year base capital plan of $16 billion, which fuels 8% to 10% annual 2023 to 2028 rate-based growth.

Using an ATM to maintain our capital structure and our current base case capital expenditures plan.

Due to the strengthening of our balance sheet in 2023.

We believe further enhancements to the capital plan.

Access to our upside Capex can.

Can be funded constructively by growth in cash from operations and requires minimal incremental equity from this base financing plan.

Fourth.

All of these financing costs have been included in our guidance ranges and continue to be reflected fully in the growth rate of our business, which we have projected today.

This plan supports both an annual 6% to 8% annual EPS growth rate.

In 2014% to 16% <unk> to debt annually for 2023, and the entire 2024 to 2028 period reflected in this plan refresh.

As we sit here today, we've been able to increase our capital plan by $1 billion compared to the plan a year ago, while requiring limited incremental equity.

Shawn Anderson: The Enhanced Base Capital Expenditure Plan builds on our five-year plan by switching from tax equity to full ownership of our next two renewables project 24. It also assumes additional capital for FIMSA-related gas infrastructure requirements and electric transmission investments in 2027 and 2028. These investments support incremental $1 billion of CAPEX we have now moved into our base capital forecast over the next five-year horizon. Additionally, we are highlighting $2 billion of upside CAPEX not included in the base plan.

This is due in part to higher expected deferred taxes, driven by larger solar capex in the full ownership of select assets generating more accelerated depreciation as well as modest amounts of tax transferability proceeds and some timing associated with monetization of credits.

One final note on this slide while the financing plan shared on slide 14 is projected to support the $16 billion base capital plan.

We expect minimal changes when we access capital investment opportunities within the upside plan.

This is due in part to the strengthening of the balance sheet projected to be executed in 2023.

Shawn Anderson: As Michael indicated, this includes investments to switch from tax equity to full ownership for our last two renewables projects in 2025, long-term incremental generation investment opportunities, electric and gas distribution enhancement opportunities, and FIMSA-driven investments. We'll be sharing more about these upside capital expenditure opportunities as we engage with stakeholders and develop better line of sight to make these investments for our customers and will continue to update and guide our annual capital expenditures plans to reflect the full scope of activities NiSource is engaging upon to deliver safe and reliable service for our customers.

These activities as well as improvements in cash from operations as a result of selecting those investments continue to support our commitment for all years of our plan to remain within the 14% to 16% <unk> to debt, which we are positioned to deliver upon once we close the minority sale transaction at NIPSCO This year.

I also want to be clear that the Nisource team has been and will continue to be thoughtful about the risks of elevated leverage.

One year ago, we recognize the value of financing flexibility and diversity of capital and announced our intention to proceed with an alternative source of financing.

Shawn Anderson: Next, I'd like to focus on our financing plan and make four key points on slide 14. First, we intend to remarket our equity units later this month for proceeds of $863 million. Second, this continues to be the only equity required in our base plan in 2023 and 2024 and is consistent with our prior financing plan for these years. Third, we expect to issue $200 to $300 million of annual maintenance equity in the 2025 to 2028 periods using an ATM to maintain our capital structure and our current base case capital expenditures plan.

Our NIPSCO minority transaction.

Capital markets remain volatile and expensive versus historical levels for both utility equity and debt.

Our base plan continues to carefully take these risks in the consideration and builds and balance sheet flexibility cushion and realistic financing assumptions accordingly.

We've also updated our plan to reflect the current interest rate environment, which extends a higher short term interest rate longer into our plan horizon and before and reflects the current outlook of the credit curve for our projected long term debt issuances.

I'll conclude on slide 15 today, we introduced our refreshed long term financial plan that builds and enhances upon the prior five year plan introduced this time last year.

Shawn Anderson: Due to the strengthening of our balance sheet in 2023, we believe further enhancements to the capital plan and access to our upside capex can be funded constructively by growth and cash from operations and requires minimal incremental equity from this base financing plan. Fourth, all of these financing costs have been included in our guidance ranges and continue to be reflected fully in the growth rate of our business which we have projected today.

Since our Investor day in 2022 and in just one year, we have outperformed our 2022 and <unk> guidance range by exceeding our $1 44 to $1 46 with actual <unk> of $1 47.

We've enhanced our 2023 EPS.

<unk> guidance range from $1 50 to $1 57 up to the upper half of a $1 54 to $1 60.

Shawn Anderson: This plan supports both an annual 6 to 8% annual EPS growth rate and 14 to 16% FFO to debt annually for 2023 and the entire 2024 to 2028 period reflected in this plan refresh. As we sit here today, we've been able to increase our capital plan by $1 billion compared to the plan a year ago while requiring limited incremental equity. Equity. This is due in part to higher expected deferred taxes driven by larger solar capex in the full ownership of select assets, generating more accelerated depreciation, as well as modest amounts of tax transferability proceeds and some timing associated with monetization of credits.

We've received approval for an agreement to raise to one $5 billion of diversified capital, while preserving the scale of our business for our customers' benefit.

We've enhanced our projected capital expenditures outlook by $1 billion.

And we've identified $2 billion more of capital expenditures, we believe are important to delivering safe and reliable energy for our communities.

We continue building a track record of execution and growth.

And our commitment to investors employees and customers is central to everything we do.

We'd now like to open up the line for your questions.

Shawn Anderson: Once final note in this slide, while the financing plan shared on slide 14 is projected to support the $16 billion base capital plan, we expect minimal changes when we access capital investment opportunities within the upside plan. This is due in part to the strengthening of the balance sheet projected to be executed in 2023. These activities, as well as improvements in cash from operations, as a result of selecting those investments, continue to support our commitment for all years of our plan to remain within the 14 to 16 percent FFO to debt, which we are positioned to deliver upon once we close the minority sale transaction had nips go this year. I also want to be clear that the NiSource team has been and will continue to be thoughtful about the risks of elevated leverage.

And at this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad, we'll pause for just a moment to compile any questions.

Again, if you would like to ask a question. Please press star one on your telephone keypad now.

Our first question comes from the line of Shar <unk> with Guggenheim Partners. Please go ahead.

Good morning statements and reward on for sure.

Thanks for taking my questions.

Hey, James Good morning.

Okay.

Just building on your prepared remarks, as we think of the <unk>.

For remaining renewable projects at NIPSCO.

Shawn Anderson: One year ago, we recognized the value of financing flexibility and diversity of capital and announced our intention to proceed with an alternative source of financing via our nips go minority transaction. Capital markets remain volatile and expensive versus historical levels for both utility equity and debt. Our base plan continues to carefully take these risks and the consideration and builds in balance sheet flexibility, cushion and realistic financing assumptions accordingly. We've also updated our plan to reflect the current interest rate environment, which extend the higher short-term interest rate longer into our plan horizon than before, and reflects the current outlook of the credit curve for our projected long-term debt issuances.

The potential to replace tax equity with increased ownership.

You, obviously mentioned having filed with two and then two you hadn't yet.

As we think particularly about the amount, which is not already part of the base capital plan.

Could you remind us of how we should think about how much capital at a high level that could.

Represent.

Michael <unk> will handle that question Michael yes. So.

Thank you so when we think about the remaining two projects.

As as you mentioned the first two associated with Calgary and guns bridge have been included.

Any of that and file for that from the tax transferability, we continue to evaluate the second to those.

Those are a customer beneficial then we'll look at how to move forward those but effectively you would be looking in the neighborhood of about $400 million.

Shawn Anderson: I'll conclude on slide 15. Today, we introduced a refreshed long-term financial plan that builds and enhances upon the prior five-year plan introduced this time last year. Since our investor day in 2022, and in just one year, we have outperformed our 2022 NOEPS guidance range by exceeding our $1.44 to $1.46 with actual NOEPS of $1.47. We've enhanced our 2023 NOEPS guidance range from $1.50 to $1.57 up to the upper half of $1.54 to $1.60.

The incremental capital associated with those projects if they were to be included under full ownership with tax transferability.

Got it perfect. Thank you.

The second question.

There have been some concerns and rumblings out there amongst some.

<unk> seen some supply chain issues to do with renewables.

Specifically have you guys been seeing any issues in terms of getting panels from the two developers that youre working with.

So at this point in time honestly, we feel very strong and are confident in our dates and in service dates with our projects and we think thats evidenced by how we brought in across the recent projects into schedule. I think there are a lot of benefits to us and how we exercise the generation transition earlier and planned for.

Shawn Anderson: We've received approval for an agreement to raise $2.15 billion of diversified capital while preserving the scale of our business for our customers benefit. We've enhanced our projected capital expenditures outlook by $1 billion and we've identified $2 billion more of capital expenditures we believe are important to delivering safe and reliable energy for our communities. We continue building a track record of execution and growth and our commitment to investors, employees and customers is central to everything we do.

And at this point, we do not see significant supply disruptions, we do pay attention to that we are always wary of it there continues to be the need for long lead time equipment with certain items, but we've addressed those.

Perfect Thats all I have thank you very much and looking forward to seeing you guys at <unk> in a couple of weeks.

Thanks, you too.

Our next question comes from the line of Zara guests Chopra with Evercore ISI. Please go ahead.

Unknown Executive: We'd now like to open up the line for your questions. And at this time, I'd like to remind everyone in order to ask a question, press star than the number one on your telephone keypad. We'll pause for just a moment to compile any questions. Again, if you'd like to ask a question, please press star one on your telephone keypad now.

Hey, good morning team, Thanks for giving me the time.

Morning, Michael.

Good morning, Michael just staying on the topic of those.

Tax equity versus rate base.

Maybe can you just give us a little bit of color because I think thats, an important point for the industry as a whole what went ahead with the two projects to projects you were kind of evaluating is there any difference project by project as we think about tax equity versus greater use of our shape of the tax equity market more tighter now.

Jamieson Ward: Our first question comes from the line of Shahra Pourreza with Google Behind Partners. Please go ahead.

Just anything that you can share there because I think that's going to be really important as we move forward with Iran.

Companies choose rate basing versus tax equity.

Michael Luhrs: Good morning. It's Jamison Ward on for Shahra. Thanks for taking our questions. Hey, James, good morning. Hey, just building on your prepared remarks. As we think of the four remaining renewable projects at Nipsco, the potential to replace tax equity with increased ownership, obviously mentioned having filed through the two and then they too hadn't yet. As we think particularly about the amount which is not already part of the base capital plan, could you remind us of how we should think about how much capital at a high level that could represent?

So what I would say is fundamentally when you look at the benefits of the IR array and what we determined with the first two projects is that it produced significant additional benefits for customer call.

Both in the near term and then long term over the project.

So we felt very comfortable and we know that they provide a lot of benefit to customers and that's why we filed for full ownership with them.

There are always differences associated with projects relative to what the capacity factors of them are depending on the region. There is always differences associated with them some of them.

Some of our projects includes storage versus not that changes the different tax credits with those projects. What I would say is that we continue to evaluate those projects. The remaining two under the tax transferability provisions.

Michael Luhrs: Michael Lloyds will handle that question. Yeah, so thank you. So when we think about the remaining two projects, you know, as as you mentioned, the first two associated with Calphery and Dunn's Bridge have been included and we evaluate that and file to that from the tax transfer ability. We continue to evaluate the second two. And if those are customer beneficial, then we'll look at how to move forward those. But effectively, you would be looking in a neighborhood of about $400 million of incremental capital associated with those projects, if they were to be included under full ownership with tax transfer ability. Got it. Perfect. Thank you.

So who knows.

<unk> provide that customer benefits opportunities and we will look at how to move forward.

But we're going to go through a very methodical and disciplined fashion to make sure that we know it provides us benefits all stakeholders.

Yeah.

That's helpful color I appreciate it and then maybe just I think this would mean sean's wheelhouse, but on.

On the remarketing, Sean like what are you assuming.

In your 2004 EPS guidance I know, it's small but are you assuming remarketing thats part one and then the language includes 200 in your slide deck includes 200 to 300 million equity.

Michael Luhrs: And second question. There've been some concerns and rumblings out there among some who've been seeing some supply chain issues to do with renewables. Specifically, have you guys been seeing any issues in terms of getting panels from the two developers that you're working with? So at this point in time, honestly, we feel very strong and confident in our dates and in service states with our projects. And we think that evidence by how we've brought the reason projects into schedule.

With or without the remarketing. So the question is if youre not going to re market, how you're replacing debt equity content.

Yes. Thanks I appreciate the question, so first and foremost all of our guidance range for all years of the plan reflects the full cost of financing, which is inclusive of all of the equity that we've shared I think on slide 14, and all of our financing plan is always contemplated a full remarketing in the placement of the $863 million effectively.

Michael Luhrs: I think we've transitioned earlier and planned for that. And at this point, we do not see significance of supply disruptions. We do pay attention to that. We are always wary of it. There continues to be the need for long-lead time and equipment with certain items. But we've addressed those.

Raising those proceeds here in 2023 that continues to be our assumption as we move forward that positions our balance sheet such that we are in the 14% to 16% range for all years of the plan, but more specifically the minority sale process concluding in closing by the end of 2023 positions us in that range.

Jamieson Ward: That's perfect. That's all I have. Thank you very much. And looking forward to seeing you guys at the EI in a couple of weeks.

For the second half of your question is related to what if the units are not remarketing and we have a lot of flexibility then in that scenario both in the timing of raising the equity as well as spending our capital expenditures plan.

Unknown Executive: Thank you, YouTube.

Durgesh Chopra: Our next question comes from a line of Dear guest Chopra with Evercore IFI. Please go ahead. Hey, good morning, King. Thanks for giving me time. Hey, just Michael. Good morning, good morning.

Therefore, we've got flexibility within the 2014% to 16% range should that not actually execute.

Michael Luhrs: Michael, just staying on the topic of the tax equity versus rate-based, maybe can you just give us a little bit of color because I think this is an important point for the industry of the whole. I mean, you went ahead with the two projects, two projects you are kind of evaluating. Is there any difference, you know, project by project as you think about, you know, tax equity versus rate-based ownership is the tax equity market more tighter now, just anything that you can share that because I think that's going to be really important as we move forward with IRA and as companies choose rate-based and versus tax equity.

Got it.

I appreciate the time.

Thank you.

Our next question comes from the line of Richard Sunderland with Jpmorgan. Please go ahead.

Okay.

Hi, Good morning can you hear me.

We can hear you Ryan good morning.

Great. Thank you.

To close out the Fairbanks and Gibson discussion.

What's the rough timeline for a final decision on those projects in terms of the ownership structure.

Michael Luhrs: So, what I would say is fundamentally when you look at the benefits of the IRA and what we determine with the first two projects is that it produced significant additional benefits for customer cost both in the near term and in the long term over the project. So we felt very comfortable and we know that they provide a lot of benefit to customers and that's why we filed for full ownership with them.

So the <unk> doesn't have a definitive timeline to make that decision.

We believe and hope that we'll get a decision from them sometime early next year.

<unk>, Calgary, and Don Weyerhaeuser, and downstream Fairbanks and Gibson upon that decision associated with calories tons bridge, we would expect to be done with the analysis on Fairbanks and Gibson roughly in that timeframe and then take the next steps forward associated with it.

Michael Luhrs: There are always differences associated with projects relative to what's the capacity factors of them are depending on their region. There's always differences associated with them, some of our projects include storage versus not. That changes the different tax credits with those projects. What I would say is that we continue to evaluate those projects, the remaining two under the tax transfer ability provisions and provide that customer benefits opportunity and we'll look at how to move forward with those. But we're going to go through it in a very much tactical and disciplined fashion to make sure that we know it provides the best benefits of all stakeholders. That's that's helpful. I appreciate it.

Got it understood.

One.

I guess additional points on the outlook here and sort of the gas price assumptions I know this is appointed to emphasis last year in <unk>.

Terms of the customer Bill impact.

And keeping rates that are above.

Moderate level.

How much of the year over year gas price held could you roll into this plan.

Still cushion relative to the assumptions a year ago that help on the kind of upside Capex, Brian X generation discussion.

Shawn Anderson: And then maybe just I think this will be in Sean's view of the house, but on the remarketing Sean, like what are you assuming in your 24 EPS guidance, I know it's small, but are you assuming remarketing that's part one. And then the language includes 200, you know, in your slide that includes 200 or 300, 300,000 equity, you know, with or without the remarketing. So the question is if you're not going to remarket how you placing that equity content.

Let me when we built the plan and rolled it out at Investor Day in 2022, and when we use.

A market curve on natural gas, we did not assume that gas would be two to $3 per million Btu.

We are still assuming that same market curve with the plan that we have so I don't characterize that as cushion we manage that we don't build up so we didn't build a plan.

Shawn Anderson: Thanks, Dugesh. Appreciate the question. So first and foremost, all of our guidance range for all years of the plan reflect the full cost of financing, which is inclusive of all the equity that we've shared. I think on slide 14 and all of our financing plan has always contemplated a full remarketing in the placement of the $863 million effectively raising those proceeds. Here in 2023, that continues to be our assumption as we move forward.

Shawn Anderson: That positions our balance sheet such that we are in the 14 to 16% range for all years of the plan, but more specifically the minority sale process, concluding and closing by the end of 2023 positions us in that range. So the second half of your question is related to what if the units are not remarketing, and we have a lot of flexibility then in that scenario, both in the timing of raising the equity as well as spending our capital expenditures plan. Therefore, we've got flexibility within the 14 to 16% range. Should that not actually execute.

Our pilot in an excess capital because we're assuming gas prices, we want to stay at two to $3. Our plan is built on gas prices.

We're at a market curve is and I think it's four to $5 and sustaining for the $4 40.

For dollar for dollar curve.

Got it.

To put a bow on on kind of the.

The incremental capital on how to think about layering that in.

Is this a.

And ongoing effort where over the next few quarters, we could see some of that comment with the plan or is this more about Andy.

Annual refreshes and kind of the bucket that could be adequate versus base capex stands today.

I would say both as we look at incremental capital opportunities now when they come to fruition. When we do the analysis and we understand them in terms of customer benefit shareholder benefit ability to execute accretion.

And so the plan for shareholders and will layer those plans and whether that's on a quarter by quarter basis, we will take it.

Durgesh Chopra: Thank you. Got it. Thank you, Sean. I appreciate the time. Thank you.

Take advantage on a quarterly opportunity and then we will also refresh our capital plans annually to reflect those incremental opportunities.

Richard Sunderland: Our next question comes from a line of Richard Thunderland with JP Morgan. Please go ahead. Hi. Good morning. Can you hear me? We can hear you fine. Good morning. Great. Thank you.

Got it very helpful. Just sorry, one final quick one for me.

The Mexico transaction with Blackstone.

Some of the qualitative synergies there.

So potentially that might come in and be in a territory as a result.

Michael Luhrs: What about the Fairbanks and Gibson discussion? Just what's the rough timeline for our final decision on those projects in terms of ownership structure? So the IURC doesn't have a definitive timeline to make that decision. We believe in hope that we'll get a decision from them sometime early next year. With Calvary and Dunnbury. With Fairbanks and Gibson, upon that decision associated with Calvary and Dunnbury, we would expect to be done with the analysis on Fairbanks and Gibson roughly in that timeframe and then take the next steps forward associated with it. Got it, understood.

John you want to take that one yes, absolutely we've found the partnership with Blackstone, even before we've closed here is very robust, they're very thoughtful consider it.

<unk> is around capital as well as understanding infrastructure and just a global landscape.

Broad ideas to the table that we've already partnered with Mike <unk>, our president in Indiana, and the Indiana team more broadly to try and evaluate how we can benefit the state of Indiana from this partnership and Thats, mostly in the vein of economic development onshoring, increasing manufacturing potential for data centers increase.

NIPSCO is load, but more specifically, bringing jobs and broader tax base of the state of Indiana and Blackstone has brought a lot of ideas to the table on that already and we're looking forward to continuing to action those and bringing some of those into fruition.

Shawn Anderson: One, you know, I guess additional points on the outlook update here and sort of the gas price assumptions. I know this is a point of emphasis last year in terms of that customer bill impact and keeping rates at a moderate level. How much of the year-to-year gas price help to do rolling to this plan is still cushion relative to the assumptions a year ago that help on the kind of upside cap, X-Fly, excess generation discussion.

Wonderful thanks for the time today.

Thank you.

Our next question comes from the line of Paul Fremont with Ladenburg. Please go ahead.

Hi, thank.

Thank you and congratulations on the.

The additional capital spend.

You mentioned $400 million for Fairbanks, Fairbanks, and Gibson how much.

Alright, Capex is associated with Calgary and Don Sprint.

Shawn Anderson: Let me, when we built plan and rolls out in yesterday in 2022, we used a market curve on natural gas. We did not assume that gas would be $2 to $3 per million BTU. We are still assuming that same market curve in the plan that we have. So I don't characterize that as cushion. We managed that. We didn't build a plan of filing an excess capital because we're assuming gas prices are going to stay at $2 to $3. Our plan is build on gas prices, you know, whatever the market curve is. I think it's four to five dollars and dating for the $4. $4. Got it.

Michael.

So when you look at the incremental billion, Sean mentioned, approximately $500 million associated with Calgary and spreads for the tax transferability and thats simply going through the full ownership of those projects.

So for the 24 through 2007 period it looks like your capital spend went up by about $1 billion 150, So I guess what makes up the <unk>.

The additional spend.

Yes, so when you look at the elements between I mean, some of that if youre looking specifically at the generation projects I mean, some of that honestly is just rounding associated with it and then we did have some general modifications with the projects, but then when you look at the other capital opportunities on top of that Sean.

Shawn Anderson: And so just to put a bow on kind of the incremental capital on how to think about layering that in. Is, is this a, you know, an ongoing effort where over the next few quarters, we could see some of that coming to the plan. Or is this more about, you know, annual refreshes and kind of the bucket that could be additive versus base cap expenses today. I would say both if we look at incremental capital opportunities.

I'll, let you, yes sure incremental MISO transmission projects are a portion of this becoming part of the plan in the middle of the year middle of the decade really.

Earlier than what we previously had shared a modeled those were part of the ROE for <unk>.

The change in legislation that we saw come through in May of 2023, and part of tranche, one that MISO had handed down for execution. We also see incremental gas modernization in terms of work and a little bit more work necessary for us to ensure electric resiliency most of that is towards the back half of this decade.

Shawn Anderson: Now, when they come to fruition, when we do the analysis and we understand them in terms of customer benefit, shareholder benefit, ability to execute creation into the plan for shareholders, then we'll layer those plans and whether that's on a quarter by quarter basis, we'll take advantage on a quarterly opportunity. And then we'll also refresh our capital plans annually to reflect those incremental opportunities. Got it, very helpful.

Right.

And then it looks like there is some delay in on the gas side in terms of you're spending less.

Lloyd Yates: This, sorry, one final quick one for me. You know, the midst of transactions with Blackstone, some of the qualitative synergies there. If there's any upside potential, that might come in the Indian Territory as a result. Don, you want to take that one? Yeah, absolutely. We've found the partnership with Blackstone even before we closed here as very robust. They're very thoughtful, considerate executors around capital, as well as understanding infrastructure and just a global landscape.

Less spending I think Ken.

Alright.

<unk> five.

A lot of that looks like its moved out to 'twenty seven.

Okay.

We're just moving capital projects associated with the regulatory timelines that our jurisdictions are supporting for their programmatic investment, but I don't think thats, a significant shift nor an indication of.

Lloyd Yates: They've brought ideas to the table that we've already partnered with Mike Cooper, our president in Indiana. And the Indiana team were broadly to try and evaluate how we can benefit the state of Indiana from this partnership. And that's mostly in the vein of economic development, ensuring increasing manufacturing, potential for data centers, increasing nips goes load. But more specifically, bringing jobs in broader tax base for the state of Indiana. And Blackstone's brought a lot of ideas to the table on that already. And we're looking forward to continuing to action those and bringing some of those, and DeFruition.

A change in investment thesis.

And to add that I think that is also a shift in our developing our workforce and align our contractors and employees to make sure we can execute that work effectively and efficiently.

And then last question for me when I think about any spend thats incremental to know what's in your base Capex.

Can you give us a sense of the percent.

Of that incremental investment that would be supported by equity.

We have not disclosed the specific percentage associated with that but we would reiterate that we believe it would be a modest change to the slide 14 that we laid out today and the main reason for that really is the execution of the minority interest sale process in 2023, and really all financing in 2023, which has strengthened our balance sheet.

Unknown Executive: Wonderful. Thanks for the time today. Thank you.

Paul Fremont: Our next question comes from a line of Paul Fremont with Latinburg. Please go ahead. Thank you and congratulations on the additional capital spend. You mentioned $400 million for Fairbanks and Gibson. How much catbacks is associated with Calvary and Dunn's Bridge? Michael, so when you look at the incremental billion that Shawn mentioned approximately $500 million in associated with Calvary and Dunn's Bridge for the tax transferability, and that's simply going to the flow ownership of those projects.

Such that incremental capital expenditures can flow through more accretively than when we had had otherwise not had a strengthened balance sheet.

All of the incremental capital expenditures are 100% regulated investments that means they will grow cash from operations. So on the left hand side of that slide you'll see cash from operations flow in that will help to support some of the financing costs otherwise and then also a portion of these investments will hopefully continue to benefit from the provisions established in the <unk>.

As we develop more solar assets and provide additional favorable tax treatment for nice source of its customers.

Paul Fremont: Right, so for the 24-27 period, it looks like your capital spend went up by about a billion 150, so I guess what makes up the additional spend? Yeah, so when you look at the elements between that, I mean some of that, if you're looking specifically at the generation projects, I mean some of that honestly is just rounding associated with it, and then we just have some general modifications with the projects. But then when you look at the other capital opportunities on top of that, Shawn, I'll let you...

And for 'twenty for where within sort of the 14% to 16% <unk> to debt would you land without incremental sort of capex.

Two quick points on that first off we don't see any material incremental capex in 2024 from the upside plan at this time, which also means that our 2020 for financing plan is materially unchanged in all scenarios, which again assumes no equity issued in 2024 after closing the NIPSCO minority.

The sale transaction as well as the equity units for marketing transaction. Both here in the fourth quarter of 2023 further from that we have not indicated a point estimate however, I'd say that all years of our plan are within the 2014% to 16% FX out of that range inclusive of 2023 at the conclusion of those transactions.

Paul Fremont: Yes, your incremental myso transmission projects are a portion of this becoming part of the plan in the middle of the year, middle of the decade really earlier than what we previously had shared and modeled. Those were part of the road for change in legislation that we saw come through in May of 2023, and part of charge one that myso had handed down for execution. We also see incremental gas modernization and fins of work, and a little bit more work necessary for us to ensure electric resiliency.

<unk>.

Okay, great. That's it thank you very much.

Thank you I appreciate your questions.

Okay.

Yes.

Our next question comes from the line of Travis Miller with Morningstar. Please go ahead.

Paul Fremont: Most of that is through the back half of this decade. Right. And then it looks like there's some delay in on the gas side in terms of your spending. So there's like less spending I think in 25, but a lot of that looks like it's moved out to 27. We're just moving capital projects associated with the regulatory timelines that our jurisdictions are supporting for their programmatic investment. But I don't think that's a significant shift nor an indication of changing investment pieces. Yeah, and to add that I think that is also a shift in our developing a workforce and allowing our contractors and employees to make sure we can execute that work effectively and efficiently.

Thank you and good morning.

Good morning, Hey, good morning Travis.

You just answered several of my questions on the Capex, but I'll put one more out there.

Adding adding that 2028 at the same level as 2027 does that still support the 8% to 10% when we get out to the year over year 20.

27, <unk> 28, or do you need some of that $2 billion to get to that 8% to 10% rate base.

Alright.

Yes at this point it does the base plan is still supported 8% to 10% annual rate base growth and certainly we will continue to evaluate potential for more investment if it's out there.

Okay. So there is enough growth in that $2 90 to $3 two.

To support right now.

At this time correct.

Okay.

As part of our financing plan.

Shawn Anderson: And then last question for me, when I think about any spend that's incremental to now what's in your base cap ex, can you give us a sense of the percent of that incremental investment that would be supported by equity? We've not disclosed the specific percentage associated with that, but we'd reiterate that we believe it would be a modest change to the slide 14 that we laid out today. And the main reason for that really is the execution of the minority interest sale process in 2023 and really all financing in 2023, which is strength and our balance sheet such that incremental capital expenditures can flow through more.

Of that 10% to 12% total shareholder return what are your thoughts within that in terms of dividend growth.

I would put it explicitly like you have before but.

6% to 7%.

Gross numbers will.

We will continue to stay within the 60% to 70% payout ratio and Thats, how I would I would mark the dividend within the 10% to 12% as well as we've assumed a flat PNR plan just in terms of financing assumptions.

Basically marked RPE if any in the financing side of things here in October and kept it flat for the duration of the plan.

Okay, Okay, and then one more in terms of the financing.

Shawn Anderson: Credibly, then when we had otherwise not had a strength and balance sheet, all of the incremental capital expenditures are 100% regulated investments. That means they will grow cash from operations. So on the left hand slot beside of that slide, you'll see cash from operations flow in that will help to support some of the financing costs otherwise. And then also a portion of these investments will hopefully continue to benefit from the provisions established in the IRA as we develop more solar assets and provide additional favorable tax treatment.

A couple of across I understood a couple of sales gas sales.

Utility sales comps here since you guys last we're out in the market.

What are your thoughts on the valuations there it appears they might be more attractive and assuring their straight market equity is that.

Something you will.

Consider.

As part of the financing plan.

So right now when we looked at our financing plan, we looked at our investment window down the road, we don't think we need to exercise any sales with LDC.

Shawn Anderson: And for 24, where within sort of the 14 to 16% FFO to debt would you land without incremental sort of catbacks? Well, two points on that. First off, we don't see any material incremental catbacks in 2024 from the upside planet this time, which also means that our 2024 financing plan is materially unchanged in all scenarios. Which, again, assumes no equity issued in 2024 after closing the nips government already sale transaction as well as the equity units for marketing transaction, both year and fourth quarter of 2023. Further from that, we've not indicated a point estimate. However, I'd say that all years of our plan are within the 14 to 16% FFO to debt range, inclusive of 2023 at the conclusion of those transactions.

We think we can stay within our 14% to 16% ethical to that we think we can grow the business, 6% to 8% a year and pay the dividend, 67% payout ratio. So we don't see a need to sell LDC, we like the scale of the LDC, we like our jurisdiction, we think theyre really constructive and we think we have.

Paul Fremont: Okay. Great.

Great organic growth plan.

Just to add to that real briefly that we still believe in this inflationary environment that stakeholders benefit from the scale of the nice source assets as constructed today. When you look at robust capital programs as well as potential for inflationary environments, we're able to hold O&M flat and take advantage of a lot of investment opportunity translating that across.

<unk> the scale of our business and by getting smaller it does have an impact to customer affordability that we watch and or consider it.

Okay got it and then one real quick one is their storage opportunities at the other solar sites.

Unknown Executive: That's it. Thank you very much. Thank you. Appreciate your questions.

So you could add.

Travis Miller: Our next question comes from the line of Travis Miller was morning star. Please go ahead. Thank you.

So we are actually going through a refresh of the IOP in 2024, and we are evaluating we know that the RFP indicates that storage will be beneficial to the system.

Shawn Anderson: Good morning. You just answered several of my questions on the catbacks, but I'll put one more out there that adding adding that 2028 at the same level as 2027. Does that still support the 8 to 10% when we get out to that year over year 2027, 2028? Or do you need some of that 2 billion to get to that 8 to 10% rate base? 2028. This point is the base plan still supports the 8 to 10% annual rate base growth, and certainly will continue to evaluate potential for more investment if it's out there.

And are looking at that within the future plan and yes, we will evaluate whether or not storage at the other solar sites would be beneficial to that as well.

Okay, great. Thanks, so much I appreciate the answers.

Thank you.

Okay.

Our next question comes from the line of <unk> Gandhi with Wolfe Research. Please go ahead.

Hi, Good morning, Louise Shawn and Michael can you hear me.

Good morning, good morning, loud and clear.

Thanks.

Sean just a question for you on the on the ATM you mentioned that you are.

Shawn Anderson: Okay. So there's enough growth in that 2.9 to 3.2 to support that. That's the time. Okay. As part of that financing plan, you have that 10 to 12% total share over the return. What are your thoughts within that in terms of dividend growth? You know, you have put it explicitly like you have before, but still that 6 to 7%. We'll continue to stay within the 60 to 70% hay out ratio, and that's how I would mark the dividend within the 10 to 12%.

You are now expecting higher.

Deferred taxes can you can you just remind us what assumptions, you're making around your cash taxpayer status in the plan. Please yes.

Yes, great question relative to the prior plan, we see a flip in our taxpayer status from the beginning of 2025 to outside of our current plan Horizon. This is driven by a host of assumptions associated with the IRS, but predominantly linked to higher ownership of solar assets.

So while there is a number of assumptions that linked to this the net impact is less cash utilization for tax payments than previously projected which enables more capital assets across our plan without incremental equity financing.

Shawn Anderson: As well as we've assumed a flat PE in our plan just in terms of financing assumptions, we basically marked our PE in the financing side of things here in October and kept it flat for the duration of the plan. Okay. And then one mark in terms of the financing, we've seen a couple across the industry, a couple of sales, gas sales, utility sales comps here since you guys left. We're out in the market.

Got it got it thanks, Thank you for clarifying that.

My second question is sort of more high level. So when you all came out with your 'twenty two analyst day plan last year gas.

Gas prices were much higher doses move lower.

<unk> have moved higher since but not.

Not terribly higher.

You've now added $1 billion of more Capex here to your plan that's been good regulatory outcomes.

Shawn Anderson: What are your thoughts on the valuations there that might be more attractive than issuing your straight market equity? Is that something you'll consider as part of the financing plan? So right now we look at our financing plan. We look at our investment windows down the road. We don't think we need to exercise any sales with LDCs. We think we can stay within our 14 to 16 percent ethical to debt. We think we can grow the business 6 to 8 percent a year and pay the dividend at 67 percent payoff ratio.

Execution on the O&M side as well just how do you feel.

About where youre tracking within 6% to 8% long term.

Well there is no change to the 6% to 8% long term, we still believe strongly that an annual 6% to 8% EPS growth range is feasible at this plan, most notably due to the programmatic nature of the investments themselves how they flow through the regulatory mechanism and then a line of sight, we have through trackers and otherwise.

Shawn Anderson: So we don't see a need to sell LDCs. We like the scale of the LDCs. We like our jurisdictions. We think they're really destructive. And we think we have a great organic growth plan. I just add to that real briefly that we still believe in this inflationary environment that stakeholders benefit from the scale of the NiSource assets that is constructed today. When you look at robust capital programs as well as potential for inflationary environments, we're able to hold O&M flat and take advantage of a lot of investment opportunity, translating that across the scale of our business. And by getting smaller, it does have an impact to customer affordability that we watch and are considerate of. Okay. Got it.

We're able to able to recover those accordingly. This plan refresh does incorporate updated guidance around short and long term interest rates. So it does flow and what we're seeing in the current marketplace and as I mentioned in my prepared remarks sustaining that longer at the plan horizon than previously all of that is refreshed here as we as we sit here today in commodity prices as well or.

Actively flat.

Those commodity I think what those commodity prices and thats, 6% to 8%.

EPS growth plan. We think we also can effectively manage customer affordability in that in that realm for a point of we can grow for the very long term as opposed to up in the capital and increase in customer rates.

Shawn Anderson: And then one row code one. Is there storage opportunities at the other solar sites? You could add. So we are actually going through a repressor of the IRP in 2024. And we are evaluating. We know that the IRP indicates that storage would be beneficial to the system and are looking at that within the future plan. And yes, we will evaluate whether or not storage at the other solar sites would be beneficial to that as well. Okay. Great. Thanks so much. Appreciate the answers. Thank you.

We believe that there is a regulatory sensitivity here that we need to manage around cups customer affordability and we're very focused on that.

Got it. Thank you that's all I had thanks for thanks for taking my questions. Thank.

Thank you.

Our next question comes from the Bank of America. Please go ahead.

Hey, good morning, Tim It's Julian Goldsmith not sure what.

What happened there with Tyler, but good morning, guys. Thank you very much I appreciate it.

Adidas Gandhi: Our next question comes from a line of Adidas Gandhi with Wolf Research. Please go ahead. Hi. Good morning, Louis. Sean and Michael. Can you hear me? Good morning. Live and clear. Good morning.

Look I wanted to follow up on a couple of items here first just.

Look, let's just talk about timing of these various incremental factors here you talk about these upsides can we lay out a little bit of the cadence through 'twenty four and when we could see some of those I heard you say earlier.

Shawn Anderson: Sean, just a question for you on the ATM. You mentioned that you're now expecting higher default taxes. Can you just remind us what assumptions you're making around your cash tax payer status in the plan, please? Yeah. Great question. Relative to the prior plan. We see a flip in our taxpayer status from the beginning of 2025 to outside of our current plan horizon. This is driven by a host of assumptions associated with the IRA, but predominantly linked to higher ownership of solar assets.

Shawn Anderson: So while there's a number of assumptions that linked to this, the net impact is less cash utilization for tax payments than previously projected, which enables more capital assets across our plan without incremental equity financing. Got it. Thank you for clarifying that.

See on these two incremental projects for conversion to tax credit transferability. That's in the first half of the year then as we layer in later in the year, you've got a few other pieces I imagine.

As best I understood your comments and then.

Could we get some updates on the RFP towards the end of the year I want to make sure I understand how these individual data points still throughout to getting visibility of that $2 billion and then if I can just a further detail on the <unk> translation to the extent, which you do get that 400 million uplift here and spend through the pivot away from tax equity.

How do you think about.

The corresponding asset voted that impact just on tax rate transferability, given the ability to monetize enough for Phil just just to clarify that.

Shawn Anderson: And my second question is sort of more high level. So when you all came out with your 22 and the state plan last year, you know, gas prices were much higher. Those have moved lower. Rates have moved higher since, but not, you know, not terribly higher. And you've now added $1,000,000,000 of more cap acts to your plan. There's been good regulatory outcomes and execution on the UNM side as well. Just how do you feel about where you're tracking within your six to eight percent long?

A little bit Sean Thank you guys very much.

Let's take those one at a time, Michael a lot of it you start with.

And some of the generation opportunity.

Yes, so it was a generation opportunities on the ERP and even when we talk about the potential upside associated with the plan as I mentioned before we're working through those in a very methodical and disciplined fashion, but it already mentioned with Calgary and tons bridge that we expect to see something from the IRC and the first part of the year by that point in time.

Shawn Anderson: Tom? Well, there's no change to the 68% long-term. We still believe strongly that in the annual 68% N O E P S growth range is feasible with this plan. Most notably due to the programmatic nature of the investments themselves, how they flow through the regulatory mechanisms, and then the line of sight we have through trackers and otherwise to be able to recover those accordingly. This plan refresh does incorporate updated guidance around short and long-term interest rates, so it does flow in what we're seeing in the current marketplace, and as I mentioned in my prepared remarks, sustaining that longer at the plan horizon than previously.

Time, we would expect to have our analysis associated with Fairbanks, and Gibson to be complete and ensuring that it's beneficial to customers. So that's that rough timeframe. We wouldn't you be expect to see an update on that analysis. We are working through the IRB refresh in 2020 for the IRB refreshed wouldn't be.

Towards the latter half of the year associated with it that will include looking at what we need associated with the pipeline for what's already been mentioned around potential battery's additional storage and other solar facilities and additional generation that may be needed relative to the plan from what we're seeing in either economic development or load growth in the.

Shawn Anderson: All of that's refreshed here as we sit here today. Commodity prices as well are effectively flat. And I think with those commodity prices, and at 68% of EPS growth plans, we think we also can effectively manage customer affordability in that realm. The point we can grow for the very long-term as opposed to up in the capital and increasing customer rates. We believe that there's a regulatory sensitivity here that we need to manage around customer affordability, and we're very focused on that. Got it. Thank you. That's all I have.

Unknown Executive: Thanks for taking my questions.

Areas, but that would be more towards the latter part of the year.

Okay, sorry, you want to talk about the <unk> impact I think it's all incorporated Julian in the 14% to 16% annual guidance range that we provided around <unk> to debt.

The net result of that is associated with higher deferred taxes, lower cash taxes paid and some slight timing around the monetization of these credits. Although we expect the credits to be passed back to customers and full therefore that might be a timing issue more so than it is any one long sustaining benefit to the <unk>.

<unk> to debt metric itself.

One other change that occurs through the concept of full ownership.

The concept of tax equity, we're able to retain the full tax attributes of a portion of those projects, particularly these two projects that were moving forward with discussions with the IRC upon such that we retain all those tax attributes our prior modeling as you would've expected would have had all those tax attributes.

Julie Newellsmith: Thank you. Our next question comes from the Bank of America. Please go ahead. Hey, good morning, team. It's Julie Newellsmith. Not sure what happened there with our dialect, but good morning, guys. Thank you very much. Appreciate it.

Shawn Anderson: Look, we wanted to follow up on a couple of five items here. First, just look, let's just talk about timing of these various incremental factors. Here you talk about these upsides. Can we lay out a little bit of the cadence through 24, and when we could see some of those, I heard you say earlier, IERC on these two incremental projects for conversion to tax credit transferability. That's in the first half of the year.

<unk> delivered to a tax equity partner. So net net that provides us additional tax attributes that are beneficial for the plan.

Got it yeah, absolutely. Thank you I appreciate it will look and then same side just what's the timeline there just to go back to the kind of the cadence of things real quickly I mean, I know that you guys see the big financial update call.

Shawn Anderson: Then as we layer in later in the year, you've got a few other pieces I imagine as best I understood your comments, and then could we get some updates on the IRP towards the end of the year? I just want to make sure I understand how these individual data points filter out to getting visibility in that $2 billion. Then if I can just a further detail on the FFO translation, to the extent which you do get that $400 million uplift here in spend through the pivot away from tax equity, how do you think about the corresponding FFO to debt impact just on tax credit transferability, given the ability to monetize an FFO? Just to clarify that out a little bit, Sean. Thank you guys very much.

Once a year around this time.

Is that going to be you're talking about still having some of this resolve some of it's still ongoing that's a next year. This time kind of update as well just to clarify that last season.

Yes, I believe by the time, we understand the full impact of influenza rule will rollout into next year's financial plan. It is a.

Big role with a lot in terms of but I think the focus is making the gas distribution system safer.

Significant reductions in methane leakage and replacing some of the first generation first generation piping. So I think we'll understand that better later and later this year early next year.

Michael Luhrs: So that's let's take those one at a time. Michael, a lot of you start with the IRP in some of the generation opportunities. Yeah, so it's a generation opportunity than the IRP, and even when we talk about the potential upsides associated with the plan, as I mentioned before, we're working through those in a very methodical and disciplined fashion. What you already mentioned with Calvary and Dunn's Bridge that we expect to see something from the IORC in the first part of the year.

Got it alright, guys. Thank you very much have a great day, okay alright. Thank you.

There are no further questions at this time I would now like to turn the call over to the Nisource team for closing remarks.

So let us.

Two things here.

Let me close and turn it over to Sean I just wanted to.

Michael Luhrs: By that point in time, we would expect to have our analysis associated with Fairbanks and Gibson to be complete, and ensuring that it's beneficial to cuff, customers, and that rough time frame would need the spectasy and update on that analysis. We are working through the IRP refresh in 2024. The IRP refresh wouldn't be towards the latter half of the year associated with it. That will include looking at what we need associated with the pipeline for what's already been mentioned around potential batteries, additional storage at other solar facilities, additional generation. That may be needed relative to the plan. From what we're seeing in either economic development or low growth in the area, but that would be more towards the latter part of the year.

A really strong team we have.

If an organization now excited about our plan that we believe executable and significantly de risk we.

We have a long tail of investment with an organization focused on operational excellence customer affordability.

The regulatory.

Regulatory and legislative relationships, along with great financial discipline. So we're excited about where we're going and.

I appreciate your question Sean Thanks, I appreciate that before concluding our call I just wanted to share some retirement news that we will release this afternoon.

Distinct honor for me to announce the intention of Randy Hulon, our head of Investor Relations and Treasury to retire from <unk> at year end.

Shawn Anderson: Okay, I'm showing you on top of what the FFOTA debt impact. Yeah, I think it's all incorporated. Julien in the 14 to 16% annual guidance rate that we've provided around FFOTA debt. So the net result of that is associated with higher deferred taxes, lower cash taxes paid, and some slight timing around the monetization of these credits. Although we expect the credits to be passed back to customers in full, therefore that might be a timing issue more so that it is any one long sustaining benefit to the FFOTA debt metric itself.

Many of you know Randy has been an integral part of Nisource for nearly three decades. His leadership has been invaluable to this company has transformed us from the company as we've been through the premium utility that we are today and it's without question that he has left his positive mark on Nisource and we're so fortunate to have had him at the helm in finance over the period of time.

On a personal level Randy has contributed tirelessly to the success of the <unk> franchise over his many years of service and it's without question that nice source as a stronger company as a result of his leadership and so many capacities.

Shawn Anderson: One other change that occurs through the concept of full ownership and the concept of tax equity, we're able to retain the full tax attributes of a portion of those projects, particularly these two projects that we're moving forward with discussions with the IORC upon such that we retain all those tax attributes. These are prior modeling that you would have expected would have had all those tax attributes delivered to a tax equity partner. So net net that provides us additional tax attributes that are beneficial for the plan. Yeah, absolutely. Thank you. I appreciate it.

I am grateful for all that Randy has done to help shape, our organization, particularly in the eyes of our investors.

While we will Miss Randy's ongoing leadership at Nisource, we are excited to announce that chapo Napa way will be joining <unk> as VP of Treasury and corporate finance and Chris turn year. It will be elevated to head of Investor Relations, both chapo and Chris bring a significant amount of industry expertise and experience and will be solid leaders.

In Ics going forward.

With that thank you all for joining us today and have a safe rest of the day.

Okay.

I would like to thank our speakers for today's presentation and thank you all for joining US. This now concludes today's call and you may now disconnect.

Michael Luhrs: We'll look. And then Simsa just looks the timeline there just to go back to the kind of the cadence of things real quickly. I mean, I know that you guys see these big financial updates, you'll call once a year around this time. I just, is that going to be, you know, you talk about still having some of this, you know, resolve some of it still ongoing? That's the next year this time kind of update as well.

Yeah.

Yeah.

Yeah.

Yeah.

Michael Luhrs: Just to clarify that last piece. Yeah, I believe by the time we understand the full impact of the new things, the rule will roll out into next year's financial plan. It is a big rule with a lot in terms of, but I think the focus is making the gap distribution system safer, significant reduction in methane leakage and replacing some of the first generation, some of the first generation piping. I think we'll understand that better later in the later this year or early next year.

Okay.

Yeah.

Yeah.

Yeah.

Yeah.

Unknown Executive: Got it. All right, guys. Thank you very much. Have a great day. All right. Thank you. There are no further questions at this time.

Lloyd Yates: I would now like to turn the call over to the nice source team for closing remarks. There's two things here. One, let me, let me close and turn it over to Sean. Now, I just wanted, we, we have a really strong team. You know, we have an organization now excited about a plan that we believe is executable and significantly be risked. We have a long tail of investment with an organization focused on operational excellence, customer affordability, an effective regulatory, regulatory and legislative relationships along with a great financial difference. So we're excited about where we're going and I appreciate your questions, Sean. I think we appreciate that.

Lloyd Yates: If we're concluding our call, I just wanted to share some retirement news that we will release this afternoon.

Lloyd Yates: It's a distinct honor for me to announce the intention of Randy. Julien, our head of investor relations and treasury to retire from NiSource at your end. As many of you know, Randy's been an integral part of NiSource for nearly three decades. His leadership has been invaluable to this company. It's transformed us from the companies we've been to the premium utility that we are today. And it's without question that he's left his positive mark on NiSource, and we're so fortunate to have had him at the helm and finance over the period of time we have.

Lloyd Yates: On a personal level, Randy has contributed tirelessly to the success of the NiSource franchise over as many years of service, and it's without question that NiSource is a stronger company as a result of his leadership and so many capacities. I am grateful for all that Randy's done to help shape our organization, particularly in the eyes of our investors.

Lloyd Yates: While we will miss Randy's ongoing leadership at NiSource, we are excited to announce that Choppo Napole will be joining NiSource as VP of Treasury and corporate finance, and Chris Turnier will be elevated to head of investor relations. Both Choppo and Chris bring a significant amount of industry expertise and experience, and we'll be solid leaders at NiSource going forward.

Unknown Executive: With that, thank you all for joining us today and have a safe rest of the day. I would like to thank our speakers for today's presentation, and thank you all for joining us.

Unknown Executive: This now concludes today's call, and you may now disconnect.