Q3 2023 NorthWestern Corp Earnings Call

Speaker 1: webcast for the quarter ended September 30th, 2023. My name is Travis Meyer. I'm the director of corporate development and investor relations officer for Northwestern. Joining us today to walk you through the results and provide an overall update are Brian Bird, president and chief executive officer, and Crystal Lail, chief financial officer.

Operator: Webcast for the quarter ended September 30th, 2023.

At September 32023.

Travis Meyer: My name is Travis Meyer. I'm the Director of Corporate Development and Investor Relations Officer for the Northwestern. Joining us today to walk through the results and provide an overall update are Brian Bird, President and Chief Executive Officer and Crystal Lail Chief Financial Officer.

My name is Travis Meyer I'm, the director of corporate development, and Investor Relations Officer for Northwestern Joy.

Joining us today to walk you through the results and provide an overall update or Brian Bird, President and Chief Executive Officer, and Crystal Lail, Chief Financial Officer.

Speaker 1: All participant lines are currently muted after the presentation. We have a lot of time for a Q&A session. I'll provide instructions for asking questions at that time. If you intend to ask a question or joining us by computer, please set your Zoom identity to your first and last name and firm so we can call on you by name and let you know when your line is open.

All participant lines are currently muted and after the presentation. We have a lot of time for our Q&A session I will provide instructions for asking questions at that time half you intend to ask a question are joining us by computer please such as zoom identity to your first and last name and firms. So we can call on you by name and let you know when your line is open.

Travis Meyer: All participant lines are currently muted after the presentation. We have a lot of time for a Q&A session. I'll provide instructions for asking questions at that time. How if you intend to ask a question or joining us by computer, please set your Zoom identity to your first and last name and firm so we can call on you by name and let you know when your line is open.

Speaker 1: Northwestern's results have been released, and the release is available on our website at northwesternenergy.com. We also released our 10Q premarket this morning. Please note that this company's press release, this presentation, comments by presenters, and responses to your question.

Northwestern's results have been released and the release is available on our website at northwestern energy Dot Com. We also released our 10-Q premarket. This morning. Please note that this company's press release this presentation comments by presenters and responses to your question.

Travis Meyer: Northwestern results have been released and the release of the Veilwanna website at northwesternenergy.com. We also released our 10-2 pre-market this morning. We have noticed this company's press release, this presentation, comments by presenters and responses to your question, may contain foreign-looking statements. As such, I will direct you to the disclosures contained within our SEC filings and safe harbor provisions included in the second slide of this presentation. Please also note this presentation includes non-GAAP financial measures. Please see the non-GAAP disclosures definitions and reconciliation is also included in the presentation today.

It may contain forward looking statements.

Speaker 1: As such, I will direct you to the disclosures contained within our SEC filings and safe harbor provisions included in the second slide of this presentation. Please also note this presentation includes non-GAAP financial measures. Please see the non-GAAP disclosures, definitions, and reconciliations also included in the presentation today. The webcast is being recorded. The archive replay of today's call will be available for one year beginning at 6 p.m. Eastern today and can be found in the financial results section of our website.

As such I will direct you to the disclosures contained within our SEC filings and Safe Harbor provisions included in the second slide of this presentation. Please also note. This presentation includes non-GAAP financial measures. Please see the non-GAAP disclosures definitions and reconciliations also included in the presentation debate. The webcast is being recorded the archived replay of todays.

Operator: Webcast is being recorded. The archive replay of today's call will be available for one year beginning at 6 p.m. Eastern today and can be found in the financial results section of our website.

Call will be available for one year, beginning at six PM Eastern today and can be found in the financial results section of our website.

Speaker 1: With that, I'll turn the presentation over to Northwestern CEO Brian Bird.

Brian Bird: With that, I'll turn the presentation over to Northwestern CEO, Brian Bird. Thanks, Travis. First of all, we just completed our board meetings for the third quarter in here in South Dakota. In fact, last night we celebrated the 100th birthday of Northwestern Public Service. Many of you may remember in 2012, we celebrated the 100th birthday of the Montana Power Company. All of our businesses achieved 100th birthday. In fact, actually, it'll be this November 27 will be the actual date because back on 11, 27, 19, 23, three employees from the Albert Immanuel Company, incorporated Northwestern Public Service Corporation and just a little bit more history there.

That I will turn the presentation over to northwestern and CEO, Brian Bird.

Speaker 1: Thanks, Travis. First of all, we just completed.

Thanks Travis.

First of all we just completed.

Our board meetings for the third quarter inherent in South Dakota.

Speaker 2: Our board meetings for the third quarter in here in South Dakota. And, matter of fact, last night we celebrated the 100th birthday of Northwestern Public Service. Many of you may remember in 2012.

And matter of fact last night, we celebrated the 100th birthday of Northwestern public service. Many of you may remember in 2012.

Speaker 2: We celebrated the 100th birthday of the Montana Power Company. So all of our businesses has achieved 100th birthday. In fact, actually, it'll be this November 27 will be the actual date because back on 11-27-1923, three employees from the Albert and Annual Company

We celebrated 100 birthday of the Montana power company. So all.

All of our business is achieved.

Both day in fact actually it will be this.

November 27 will be the actual date because back on 11 27.

<unk> 1923, three employees from the Albert an annual company.

Speaker 2: Incorporated Northwestern Public Service Corporation. And just a bit more history there. This company owned many utilities in the Ohio, Pennsylvania, and other Midwestern states.

Incorporated.

North Western Public Service Corporation.

And just a little bit more history there.

This company owned many utilities in the Ohio, Pennsylvania, and other Midwestern States.

Brian Bird: This company owned many utilities in the Ohio, Pennsylvania and other Midwestern states. And the reason that they named this Northwestern Public Service Company is because after its incorporation, it was the group of assets that were Northwestern of all the assets they owned. So, a little bit of history to start for the quarter.

Speaker 2: And the reason that they named this Northwestern public service company is because after its incorporation it was the

And the reason that they named this northwestern public service companies because after its incorporation it was the.

Speaker 2: group of assets that were most northwestern of all the assets they own. So a little bit of history to start for the quarter. The highlights certainly.

Group of assets that were most northwestern.

Of all the asset sale, so a little bit of history to start.

For the quarter the highlights.

Brian Bird: The highlights certainly have to do with providing guidance, both for 23 and 24. I think from 23's perspective, I'll do it at earnings per share, $3 to $3 and 10 cents per share for 2024, $3.42 to $3.62. Crystal will give more color on the guides of each of these and also on our long-term growth rates. Regarding those long-term growth rates, we are increasing our long term, think five years, rate-based and earnings per share growth rate targets to 4 to 6 percent.

Certainly.

Have to do with providing guidance both for 'twenty, three and 'twenty four.

Speaker 2: have to do with providing guidance, both for 23 and 24. I think from 23's perspective, I do it at earnings per share, $3 to $3 and 10 cents per share, for 2024, $3 and 42 cents to $3 and 62 cents.

I think from 'twenty threes perspective, our diluted earnings per share $3 to $3 10.

Per share for.

For 2020 for $3 42.

To $3 62.

Speaker 2: Crystal will give more color on the guides of each of these and also on our long-term growth rates. Regarding those long-term growth rates, we are increasing our long-term think five years, rate-based and earnings per share growth rate targets to four to six percent.

Crystal, we'll give more color on the guidance of each of these and also on our long term growth rates.

Barring those long term growth rates, we are increasing our long term five years rate base and earnings per share growth rate targets.

Two 4% to 6%.

Okay.

Brian Bird: . Much of this now hinges upon a unanimous approval of a constructed multi-party settlement in the Montana rate review, resulting in electric and natural gas increases of 67.4 million and 11, excuse me, 14.1 million respectively as rates go on effect November 1, 2023. And I know Crystal will talk about this more, but I'll stop for a second just to point out. First and foremost, I think we had a very constructive settlement between all of those intervening parties that provided revenue requirement testimony in the rate review.

Speaker 2: Much of this now hinges upon unanimous approval of a constructed multi-party settlement in the Montana rate review, resulting in electric and natural gas increases of 67.4 million and 11, excuse me, 14.1 million respectively. Those rates go in effect.

Much of this now hinges.

Upon unanimous approval of a constructive multi party settlement and the Montana rate review.

Resulting in electric and natural gas increases of 67, 4 million and 11, excuse me $14 $1 million respectively.

Rates go in effect November.

Speaker 2: November 1st, 2023. And I know Chris will talk about this tomorrow, but I'll stop for a second just to point out. First and foremost, I think we had a very constructive

November one 2023.

And I know, Chris will talk about this more but I'll stop for a second just to point out first and foremost I think we had a very constructive.

Speaker 2: settlement between all of those intervening parties that provided

Settlement between all of those intervening parties that provided.

Speaker 2: revenue requirement testimony in a rate review. So that was also constructive in and of itself. But I think how the commission handle this case.

Revenue requirement testimony in the rate review so.

Brian Bird: So that was also constructive in and of itself. But I think how the commission handled this case and certainly if you have an opportunity to listen in or listen in Wednesday or have an opportunity to listen in by connecting to link, you should listen in. We were extremely impressed with the slide presentation that was provided to the commission and just the comments from the commissioners in terms of the sincerity how they look at their jobs and their role to balance the needs of not customers for sure, but also the needs of financial help and the utility.

That was also constructive in and of itself.

But I think how the commission.

Handled this case.

Speaker 2: And certainly if you have an opportunity to listen in or listen in Wednesday or have an opportunity to listen in by link connecting to link.

And certainly if you have the opportunity to listen in or listened in on Wednesday, or have an opportunity to listen in.

Connecting to link.

Speaker 2: You should listen in. We were extremely impressed with the slide presentation that was provided to the commission. And just the comment.

You should listen in.

Extremely impressed with the slide presentation that was provided to the commission and just the comments from the commissioners.

Speaker 2: from the commissioners in terms of the sincerity how they look at their jobs in their role to balance the needs of that customers for sure, but also the needs the financial health of the utility.

In terms of the sincerity, how they look at their jobs and their role to balance the needs.

Customers for sure, but also the needs the financial health of the utility.

Speaker 2: And noting that, you know, there are federal and state statues associated with that. And in many aspects that go under their decision making, it was impressive and well done. So we feel very, very good about it. I think you've heard me saying the past.

Brian Bird: And noting that there are federal and state statues associated with that and in many aspects that go into their decision making, it was impressive and well done. So we feel very, very good about it. I think you've heard me saying the past. I feel good about the alignment certainly and the governor's offer of legislature and the commission. I think what's happening from my perspective, there's certainly an observation by all of those parties how important it is of product or service that we provide our customers from electric and gas perspective.

And noting that.

There are federal and state statues associated with that and in many aspects that go into their decision making.

It was impressive.

And well done.

So we feel very very good about it I think.

Heard me say in the past.

Speaker 2: I feel good about the alignment certainly in the governor's offer of legislature and the commission. I think what's happening from my perspective. There's a good certainly a observation by all of those parties how important it is the product or service that we provide our customers from electric and gas perspective. And there are many challenges that we face to provide that service in the future in terms of capacity and other needs.

I feel good about the alignment certainly on the Governor's office legislature and the commission I think whats happening from my perspective, there is.

Certainly.

<unk> by all of those parties how important it is the product or service that we provide our customers from electric and gas perspective, and the many challenges that we face to provide that service in the future in terms of capacity and other needs.

Brian Bird: And the many challenges that we face to provide that service in the future in terms of capacity and other needs. And I think people understand in order for to do that we have to be a financially strong company. And I think yesterday or excuse me Wednesday's outcome certainly that resonated with me as I heard the commissioners vote. It wasn't lost on us too that it was an anonymous 5.0 vote. So we feel very, very good about that outcome.

Speaker 2: And I think people understand in order for to do that, we have to be a financially strong company. And I think yesterday or excuse me, Wednesday's outcome.

And I think people understand in order to do that we have to be a financially strong company and I think yesterday or excuse me Wednesdays outcome.

Speaker 2: Certainly that resonated with me as I heard the commissioners voted wasn't lost on us too that it was the unanimous

Certainly.

That resonated with me as I heard the commissioners.

And it wasn't lost on us to that it was a unanimous.

Speaker 2: I don't know so we feel very very good about that outcome. Earlier year we get also approval to move forward with the holding company from all our jurisdictions, including.

So and we feel very very good about that outcome.

Earlier.

Brian Bird: Like earlier in the year we get also approval to move forward with the holding company from all our jurisdictions including Montana and we actually during the quarter we have actually the first phase of that holding company reorganization talk a little bit more about that later on in the presentation. During the quarter we also finished up our ATM program we issued 63 million of the remaining 75 million posing on our equity distribution agreement. And we declared dividends of 64 cents per share payable December 29th 23 for shareholders of record as a December 15th 2023.

Here, we get also approval to move forward with the holding company from all our jurisdictions, including Montana.

Speaker 2: Montana and we actually during the quarter we have actually the first phase of that holding company reorganization talk a little bit more about that later on in the presentation during the quarter we also finished up our ATM program we issued 63 million of the remaining 75 million

Our Montana.

During the quarter, we are actually the first phase.

Of that holding company reorganization talk a little bit more about that.

On our presentation during the quarter. We also finished up our ATM program, we issued $63 million of the remaining $75 million.

Speaker 2: closing our equity distribution agreement and we declare dividends of 64 cents per share. It will December 2923 per share was a record as of December 15th. 2023 with that I'm going to hand it over to crystal walk through the financial matter.

Closing out our equity distribution agreement and we declared dividends of 64 per share.

Payable December $29 23 per shareholders of record as of December 15th.

'twenty, three and with that I'm going to hand, it over to crystal to walk through the financial matters.

Crystal Lail: And with that I'm going to hand it over to Crystal to walk through the financial matters.

Speaker 3: Thank you, Brian , and I echo your comments on coming up on the 100 year anniversary. We've been here for about 20 years of that feel pretty privileged to work here and work with the team, so that's a pretty cool accomplishment and getting to celebrate with those in community and you're on last night was wonderful. So with that, my comments today, I will discuss our third quarter results. I will also provide more comments areas for analytics to with regard to our release of 2023 and 2024.

Crystal Lail: Thank you Brian and I echo your comments on coming up on the 100 year anniversary. We've been here for about 20 years of that. Feel pretty privileged to work here and work with the team so that's a pretty cool accomplishment and getting to celebrate with those in community and year on last night was wonderful. So with that my comments today I will discuss our third quarter results. We'll also provide more comment areas for analytics to with regard to our release of 2023 and 2024 earnings guidance along with a bit of detail on our financing plans and how we're thinking about that going forward.

Brian and I Echo your comments on coming up on the 100 year anniversary. We've been here for about 20 years of that fell pretty privileged to work here in March with the team. So that's a pretty cool accomplishment in getting that celebrate 1000 community in here on last time it was wonderful.

So with that my comments today I will discuss our third quarter results. Alan will also provide more commentary as Brian alluded to with regard to our belief that 2023 and 2024.

Speaker 3: earnings guidance along with a bit of detail on our financing plans and how we're thinking about that going forward.

Our earnings guidance along with it.

Detail on our financing plans and how we're thinking about that going forward. So slide five <unk> for the quarter on a GAAP basis, we had an improvement of $1 9 million or one <unk> increase on a non-GAAP basis that was an improvement of $4 2 million or five cents.

Crystal Lail: So slide by first for the quarter on a gap basis we have an improvement of 1.9 million or 1 for one cent increase on the non-gap basis. That was an improvement of 4.2 million or 5 cents or 11.4 percent versus the quarter in 2022. To give you a bit more detail on that turning to the quarterly variance. I'll take you to slide 8. Among the major items, when you look at the drivers for the quarter, you see margin improvement, which added 11 cents.

Speaker 3: So slide five first for the quarter on a gap basis, we had an improvement of 1.9 million or one for a one cent increase.

Speaker 3: on the non-GAF basis that was an improvement of 4.2 million or $0.4 million or 11.4% versus the quarter in 2022. To give you a bit more detail on that, turning to the quarterly variance, I'll take you to slide 8.

11, 4% versus the quarter and 2022 to give you a bit more detail on that turning to the quarterly variance I will take you to slide eight.

Speaker 3: Among the major items, when you look at the drivers for the quarter, you see margin improvement, which added 11 cents. And that was offset by the continuing trends between depreciation and interest expense.

Among the major items when you look at the drivers for the quarter, you see margin improvement, which added 11.

And that was offset by the continuing trends between depreciation and interest expense.

Crystal Lail: And I was offset by the continuing trends between depreciation and interest expense. And importantly, also three sense of dilution from our share issuance. For a bit more detail in the quarter and how margin that 11 cents shaped up, I'll move you to slide nine. You can see we have an improvement of 10 cents driven by interim rates in Montana. And I would also tell you for the quarter, we saw cooler summer weather.

Speaker 3: and importantly also three sense of dilution from our share issuance.

And importantly, also <unk> <unk> of dilution from our share issuance.

Speaker 3: For a bit more detail in the quarter and how margin that 11th shape of a movie of the short area, 3, 2, 3, 8, 8, 8, 9, 8, 8, 8, 8, 8, 8, 8, 8, 8, 8, 8 and 9, 8

We're a bit more detail on the quarter and how margin that 11th have shaped up I'll move you to slide nine.

Speaker 3: You can see, we have an improvement of 10 cents driven by interim rates in Montana. I would also tell you for the quarter we thought cooler summer weather. It was also wet across our service territory a bit of variance there between the month. But I would remind you that last year in Q3, us and much of the.

You can see we had an improvement of 10 cents driven by interim rates in Montana I would also tell you for the quarter. We saw a cooler summer weather. It was also wet across our service territory a bit of variance there between the months, but I would remind you that last year in Q3 up and much of the Pacific Northwest Salt very warm hot weather.

Crystal Lail: It was also wet across our service territories that a variance there between the months, but I would remind you that last year in Q3 us and much of the Pacific Northwest all very warm hot weather. So definitely a variance driving the year over year results here on the silver lining of that. I would tell you that that provided some tailwinds on our PCAM. There's two pieces of that PCAM if you recall last year for the full year.

Speaker 3: Pacific Northwest all very warm pot weather. So definitely a very insuriding the year over year results here on the silver lining of that. I would tell you that that provided some tailwinds on our PTAM.

So definitely a variance driving the year over year results here.

On the silver lining of that I would tell you that that provided some tailwind on our <unk>.

Speaker 3: There's two pieces of that PPM if you recall last year for the full year. That was about 10 cents of the drag to have spent in Q3. We definitely thought detriment there. They have the absence of that detriment this year is helpful and also importantly. And I'll speak to the rate review and a bit more detail coming up here, but the adjustments that PPM base even through interim rates was very significant.

There's two pieces to that PJM. If you recall last year for the full year that was about 10 cents of drag to us that in Q3, we definitely saw detriment there. They can absence of that detriment. This year was helpful. And also importantly, and I'll speak to the rate review in a bit more detail coming up here, but the adjustment to that pecan base.

Crystal Lail: That was about 10 cents of drag to have been in Q3. We definitely thought detriment there. The absence of that detriment this year is helpful and also importantly, and I'll speak to the rate review and a bit more detail coming up here, but the adjustments that PCAM base, even through interim rates was very significant for us. So all of that resulted in from a PCAM perspective, five cents of improvement over the quarter.

For interim rates was very significant for us. So all of that resulted in from a PK perspective, <unk> some improvement over the quarter.

Speaker 3: So all of that resulted in from a P camp perspective, five-cent set of improvement over the quarter.

Speaker 3: uh in 2022 but the other side of that weather is it also impacted driving lower cell volume for us versus prior year and notably also lower demand for our transmission think about you know demand across our lines with the power to the west of us south and west north and west less demand for that this quarter so between those two that's about a six-minute drag to our earnings so offsetting some of that improvement from interim rates.

Crystal Lail: In 2022, but the other side of that weather is it also impacted driving lower sales volume for us versus prior year and notably also lower demand for our transmission think about, you know, demand across our lines with the power to the west of us, south and west, north and west, less demand for that this quarter. So between those two, that's about a six minute drag to earning so offsetting some of that improvement from interim rates.

In 2022, but the other side of that whether that also impacted driving lower sales volumes for us versus prior year, and notably also lower demand for our transmission and think about demand across our lines moving power to the west of us.

South and west North and west less demand for that in this quarter. So between those two that's about <unk> <unk> drag to earnings so offsetting some of that improvement from interim rates.

Speaker 3: turning to slide 10 on operating costs. You will see that we were relatively flat for the quarter versus the prior year. And you'll note that going through the first six months of the year, we had seen a bit of increase there. So that's putting our year to date back in line with our expectations of how we expected the year to shape up.

Crystal Lail: Turning to slide 10 on operating costs. You will see that we were relatively flat for the quarter versus the prior year and you'll note that going through the first six months of the year, we had seen a bit of increase there. So that's putting our year to date back in line with our expectations of how we expected the year to shape up. Slide 11 really gives you a full look of how we perform for the quarter adjusting out that non-gap piece.

Turning to slide 10 on operating costs, you will see that we were relatively flat for the quarter versus the prior year and Youll note that going through the first six months of the year, we had seen a bit of increase there. So that's putting our year to date back in line with our expectations of how we expected the year to shape up.

Speaker 3: Slide 11 really gives you a full look of how we perform for the quarter, adjusting out that non-GAAP piece. I just mentioned how weather in Q3 for us this year was unfavorable. So you'll see we've added back on a net income basis about $700,000. So $29.3 million of GAAP earnings adjusted to $30 million on a non-GAAP basis.

Slide 11 really gives you a full look of how we performed for the quarter adjusting out that non-GAAP I just mentioned how weather in Q3 for US this year was unfavorable.

Crystal Lail: I just mentioned how weather in Q3 for us this year was unfavorable. So you'll see we've added back on a net income basis about 700,000 so 29.3 million of that burning suggested to 30 million on a non-gap basis and reminds you that in prior year. That was favorable, whether we were adjusting out for that creates a four cent swing in results for the year and you can see there on a non-gap basis again, a 4.2 million dollar increase or 16.3% for the quarter.

You'll see we've added back on a net income basis about 700000 or $29 3 million of GAAP earnings adjusted to $30 million on a non-GAAP basis, and remind you that in prior year that was favorable weather. We were adjusting out so that creates a <unk> <unk> swing in results for the year and you can see there on a non-GAAP basis again.

$4 2 million increase or 16, 3% for the quarter.

Slide 12 provides a bit of detail on our cash flows and I would note here we go.

Crystal Lail: Slide 12 provides a bit of detail on our cash flows and I would note here we've been committed to our investment grade credit rating and proving our FFO to debt and you can see certainly a significant input improvement in cash flow from operations here with important changes to our TCM and also the base rates even captured from an interim rate basis and you can see that improvement of less cash outflow. So let's think of it that way versus 22 is very significant as we move back toward delivering growth and making sure our balance sheet is wrong to where it should be.

Speaker 3: Slide 12 provides a bit of detail on our cash flows. And I would note here, we've been committed to our investment grade credit ratings, improving our FFO to debt. And you can see certainly a significant improvement in cash flow from operations here with important changes to our PPM and also the base rates even captured from an interim rate basis. And you can see that improvement of less cash outflows, think of it that way, versus 22 is very significant as we move back towards delivering growth.

And committed to our investment grade credit rating and improving our <unk> to debt and you can see certainly a significant.

Improvement in cash flow from operations here with important changes to our <unk> and also the base rates, even captured from an interim rate basis, and you can see that improvement.

Less cash outflows think of it that way versus 22 is very significant as we move back toward delivering growth.

Speaker 3: and making sure our balance sheet is wrong where it should be. So...

And making sure our balance sheet is strong to where it should be so.

Speaker 3: That leads me to slide 13, and talking about the Montana rate review. Brian already mentioned how critical that was and also how constructive the work session was.

Crystal Lail: That leads me to slide 13 and talking about the Montana rate review Brian already mentioned how critical that was and also how constructive the work session was. We expect based off that last order that the final rates will be effective November 1st and we've made a compliance filing to trigger that with the commission those final rates will be an adjustment from interim rates increasing so thanks interim rates are detailed. Previously a little over 30 million will go to the final adjustment on a base rates basis of 81.5 million between electric and gas and we are pleased with that outcome while we acknowledge that we don't receive a true up back to the day of interim rates.

That leads me to slide 13, and talking about the Montana rate review, Brian already mentioned, how critical that was and also how constructive the lunch session was we expect based off that draft order that the final rates will be effective November one and we've made a compliance filing to trigger it out but the commission those final rates will be in <unk>.

Speaker 3: We expect based off that draft order that the final rates will be effective November 1st and we've made a compliance filing to trigger that with the commission. Those final rates will be an adjustment from interim rates increasing. So I think interim rates are detailed.

Adjustments from interim rates, increasing so think interim rates are detailed.

Speaker 3: Previously a little over 30 million will go to the final adjustment on a base rate spaces of 81.5 million between electric and gas.

Previously a little over $30 million will go to the final adjustment on a base rates basis of $81 5 million between electric and gas.

Speaker 3: And we are pleased with that outcome while we acknowledge that we don't receive a true up back to the day of interim rates. We do keep the interim rates. So thanks to 30 million that we've been collecting along. I think there's been a bit of confusion as to how that would work. So making sure we're clarifying here that affected November 1st. We go to the final rate incorporating the 81.5 million and there's no adjustment to the interim rates that we collected so far on a base rate basis.

And we are pleased with that outcome, while we acknowledge that we don't.

Receipt of a true up back to the day of interim rates.

Crystal Lail: We do keep the interim rates so thanks to 30 million that we've been collecting along I think there's been a bit of confusion as to how that would work. So making sure we're clarifying here that it actually November 1st we go to the final rates incorporating the 81.5 million and there's no adjustment to the interim rates that we collected so far on a base rate basis. We are certainly pleased with the outcome and again how the commission went about working through the order and working through what we believe was a very constructive settlement amongst the intervening parties.

We do keep the interim rates I think the $30 million that we've been collecting along I think there has been a bit of confusion as to how that would work so making sure. We're clarifying here that are factored in November 1st we go to the final rates incorporating the $81 5 million and there is no adjustment to the interim rates that we collected so far on our base rate basis.

Speaker 3: We are certainly pleased with the outcome. And again, how the commission went about working through the order and working through what we believe was a very constructive settlement amongst the intervening parties. We do need to see a final order, however, but once we see that, and based off the draft order that we have reviewed and the tenor of the work session at this point, we don't expect that we would appeal the outcome. Of that.

We are certainly pleased with the outcome and again, how that commission when about working through the order and working through what we believe was a very constructive settlement amongst the intervening parties, we do need to see a final order however, but once we see that and based off the draft order rate, we have reviewed and the tenor of it.

Crystal Lail: We do need to see a final order, however, but once we see that and based off the draft order that we have reviewed and the tenor of the work session at this point, we don't expect that we would appeal the outcome of that bucket. Certainly, that it provides a solid foundation for how we move forward and I'll address that in a couple of minutes here on how we're thinking about our growth and outlook, but that is certainly what allowed us to get guide into this quarter with our update to you and to move forward.

<unk> fashion at this point, we don't expect that we would appeal the outcome.

That market, but we also think and very importantly that it provides a solid foundation for how we move forward and I'll drop that in a couple of minutes here on how we're thinking about our growth and outlook, but that is certainly what allowed us to give guidance here this quarter with our update to you and to move forward and with that I want to talk about our South Dakota rate review.

Speaker 3: And very importantly that it provides a solid foundation for how we move forward and I'll address that in a couple of minutes here on how we're thinking about our growth.

Speaker 3: And outlook, but that is certainly what allowed us to get guide into this quarter with our update to you and to move forward. And with that, I will also talk about our South Dakota rate review, which we filed earlier this year in June slide 14.

Crystal Lail: And with that, I will also talk about our South Dakota great review, which we filed earlier this year in June, slide 14, you've seen the details of this and the update here is that we are working with commission staff and South Dakota commission staff is advocacy staff. We've been answering data requests, great questions from them on our operations and testing us appropriately as to the cost that we've included. And I would tell you that we expect we're winding down that right or the data request process and should be moving into hopefully settlement discussions here as we're into Q4.

Q, which we filed earlier this year in June slide 14, you've seen the details of this been the update here is that we are working with commission staff in South Dakota Commission staff is advocacy staff.

Speaker 3: You've seen the details of this and the update here is that we are working with Commission staff and South Dakota Commission staff is advocacy staff.

Speaker 3: We've been answering data requests, great questions from them on our operations and testing us appropriately as to the cost that we've included. And I would tell you that we expect we're winding down that rate or the data request process. And should be moving into hopefully settlement discussions here as we're into Q4. I would also remind you that in South Dakota, there's a 6 month waiting period before interim rates.

We've been answering data requests great questions from them on our operations and testing as appropriately as to the cost that we've included and I would tell you that we expect will winding down that rate or the data request process and should be moving into hopefully settlement discussions here as we're into Q4 I would also remind you that in South Dakota theirs.

Crystal Lail: I would also remind you that in South Dakota, there's a six month waiting period before interim rate would be available to us, which was put us some time in mid December, and we're hoping to work with the commission prior to that to move this case along. And that case is critical to our outlook as we think about 2024 and moving forward. So with that, I would turn you to slide 15 and thinking about our earnings alloc here.

Six month waiting period before interim rates would be available to us, which would put us sometime in mid December and we're hoping to work with the commission prior to that that moved this case along in that case, it's critical to our outlook as we think about 2024.

Speaker 3: would be available to us, which was put a time in mid-December. And we're hoping to work with the commission prior to that to move this case along. And that case is critical to our outlook as we think about 2020.

Speaker 3: And moving forward, so with that, I would turn you to slide 15 and thinking about our earnings outlook here. We are initiating guidance for 2023 as Brian mentioned with a range of 3 dollars to 3 dollars and 10 cents.

And moving forward so with that.

I would turn you to slide 15, and thinking about our earnings outlook here, we are initiating guidance for 2023, as Brian mentioned with a range of $3 to $3 10.

Crystal Lail: We are initiating guidance for 2023, as far I mentioned, with a range of $3 to $3 and 10 cents. And for 2024, a range of $3.42 to $3.62. Importantly, at the same time, we're also revising our long term growth outlook, increasing our earnings growth range on the long term basis to 4 to 6%. And I would frame that growth in two pieces. One is we're deploying capital growing rate base that supports our customers and does the right thing to keep them in the service that they would expect and delivering capital deployment as we should, while we're also focused on improving our earned returns and our jurisdictions and focusing on delivering to shareholders.

Speaker 3: And for 2024, a range of $3.42 to $3.62.

And for 2020 for a range of $3 42 to $3 62.

Speaker 3: Importantly, at the same time, we're also revising our long-term growth outlook, increasing our earnings growth range on the long-term basis to 4 to 6%.

Importantly at the same time, we're also revising our long term growth outlook, increasing our earnings growth range on a long term basis to 4% to 6%.

Speaker 3: And I would frame that growth in two pieces. One is we're deploying capital, growing rate base that supports our customers and those the right thing to keep them in the service that they would expect and delivering capital deployment as we should while we're also focused on improving our earned returns and our jurisdictions and focusing on delivering to shareholders. So both of those pieces are how we will derive growth moving forward.

And I would frame that growth in two pieces. One is we're deploying capital growing rate base that supports our customers and does the right thing to keep them in the service that they would expect and delivering capital.

Deployment as we should while we're also focused on improving our earned returns in our jurisdictions and focusing on delivering to shareholders. So both of those pieces are how we will drive growth moving forward.

Crystal Lail: So both of those pieces are how we will drive growth moving forward. I would also tell you how we're thinking about the capital plan here, and we do expect to provide more of an update on that, but critically in this environment, our current capital plan is to contain no equity in the current five year plan absent any opportunity incremental to that plan. So our financing of the plan will be driven by cash from operations and debt that, again, no equity in the plan in the current five year plan as as contemplated.

Speaker 3: I would also tell you how we're thinking about the capital plan here. And we do expect to provide more of an update on that, but critically in this environment, our current capital plan is by to contain no equity in the current five year plan, absent any opportunity incremental to that plan. So our financing of the plan will be driven by cash from operations and debt, but again, no equity in the plan in the current five year plan as as contemplated.

I would also tell you how we're thinking about the capital plan here and we do expect to provide more of an update on that but critically in this environment. Our current capital plan is five to contain no equity and the current five year plan absent any opportunities incremental to that plan. So our financing of the plan will be driven by <unk>.

Cash from operations and debt, but again no equity in the plan and the current five year plan.

As contemplated.

Speaker 3: And part of what that is, we are firmly committed to maintaining our investment, bring credit ratings and targeting to debt of greater than 14% in 2024. and the thing that I would mention here is we certainly have plenty of capital to deploy and our.

Crystal Lail: And part of what that is is we are firmly committed to maintaining our investment for accrediting and targeting FFO to debt of breeder than 14% in 2024 and the thing that I would mention here is we certainly have plenty of capital to deploy and our Discipline around that capital allocation and focus on what we need to do on the system, balance by our balance sheet and maintaining strong financial health and also delivering earnings at the same time. So, to conclude my comment, I was note that we provide a substantive update to how we're thinking about our outlook, followed upon a solid regulatory execution, the headwinds that we've had the last couple of years, we've navigated those and have stabilized with concluding our 2023 results here and you can see the midpoint of our 24 guidance provides what we believe is a stable platform for growth and to achieve our long-term growth that we're laying out here.

Part of what that is is we are firmly committed to maintaining our investment grade credit ratings and targeting <unk> to debt of greater than 14% in 2024, and the thing that I would mention here is we certainly have plenty of capital to deploy and our.

Speaker 3: Just to point around that capital allocation and focus on what we need to do on the system, balance fire, balance sheet, and maintaining strong financial health and also delivering earnings at the same time.

The discipline around that capital allocation is focused on what we need to do on the system balanced by our balance sheet and maintaining strong financial health and also delivering earnings at the same time.

Speaker 3: So to conclude my comment is I was with note that we provided the standard update.

So to conclude my comments I would note that we've provided substantive updates.

Speaker 3: to how we're thinking about our outlook, followed by or followed upon, followed regulatory execution. The headwinds that we've had the last couple of years, we've navigated those. And have stabilized with concluding our 2023 results here. And you can see the midpoint of our 24 guidance provides what we believe is a stable platform for growth and to achieve our long-term growth that we're laying out here.

So how we're thinking about our outlook followed by a recall it upon a solid regulatory execution. The headwinds that we've had the last couple of years, we've navigated those and have stabilized with concluding our 2023 results here and you can see the midpoint of our 24 guidance provides what we believe is a stable platform for growth.

And to achieve our long term growth that we're laying out here.

We also believe we offer a solid return potential weather earnings growth and dividend yield with a fundamental driver being the things that should be which is continued investment in our system to serve our customers and focusing on improving our earned returns so with that I will turn it back to Brian.

Crystal Lail: We also believe we offer a solid return potential whether earnings growth and do it in yield with a fundamental driver being the things that should be which is continued investment in the system to serve our customers and focus on improving our earned income.

Speaker 3: We also believe we offer a solid return potential with our earnings growth and dividend yield with a fundamental driver being the things that should be, which is continued investment in the system to serve our customers and focusing on improving our earned returns. So, with that, I will turn it back to Brian .

Crystal Lail: So, with that, I will turn it back to Brian. Thanks, Crystal. Crystal mentioned investment on the left hand side near the top here shows a five-year history of capital investment. As you can see over time, we've ramped up our investment as we need to, over 2.1 billion over this five-year period and nearly a 60% tager associated with that, the level of investment and a going forward basis. This is 2023 through 27 five-year forecast as 2.4 billion. A two-thirds of that is on the T&D side of our business. That investment doesn't include other supply opportunities or other opportunities that may resolve.

Thanks Crystal.

Speaker 2: Crystal mentioned investment on the left-hand side near the top here and shows our five-year history of capital investment. As you can see over time, we've ramped up our investment as we need to, over $2.1 billion over this five-year period and nearly a 16% TIGGER associated with that. The level of investment on a going-forward basis, this is 2023 through 2027 five-year forecast, it's $2.4.

Crystal mentioned investment.

On the left hand side near the top peer and shows a five year history with capital investment as you can see over time, we've ramped up our investment as we need to over $2 1 billion over this five year period, and nearly a 16% CAGR associated with that.

Level of investment in a going forward basis. This is 2023 through 27 five year forecast.

$2 4 billion or two thirds of that is in the.

Speaker 2: two thirds of that is in the T and D side of our business. That investment doesn't include other supply opportunities or other opportunities that may resolve to matter fact, we will update.

T&D side of our business.

That investment doesn't include other supply opportunities or other.

Opportunities that may.

Resolved to matter of fact, we will update.

Brian Bird: To matter fact, we will update our 24-28 capital plan at the EDI conference. As Crystal pointed out, you know, this is consistent with our rate-based growth of 4 to 6% and again, it's financed without the need for equity. Moving forward, you guys, I'm sure have been following along on a hold co. We're trading today with the same ticker, but we're now north, western energy group. And I think I'll give you the five reasons why.

Speaker 2: 24-28 capital plan at the EDI conference.

24 to 28 capital plan at the EI Conference.

Speaker 2: This crystal pointed out, you know, this is consistent with our rate-based growth of 4 to 6% and again, finance without the need for equity.

As christal pointed out this is consistent with our rate base growth of 4% to 6% and again financed without the need for equity.

Speaker 2: Moving forward, you guys, I'm sure been following on the hold code.

Moving forward you guys I'm sure been following along.

On the Holdco.

Speaker 2: trading today with the same ticker, but we're now Northwestern Energy Group. I'll give you the five reasons why we did the holding company, though I'm sure many of you certainly know all of these. First and foremost, it's a common industry structure, all but one of our peers.

<unk> today at the same ticker, but we're now in northwestern Energy group.

And I think.

I'll give you the five reasons why.

Brian Bird: You know, we did the holding company, though, I'm sure many of you certainly know all of these. First and foremost, it's a common industry structure, all but one of our peers have a holding company. Number two, it provides great flexibility for financing options. Three, from an individual utility jurisdiction, we certainly line up our assets and debt obligations with our legal entity structure. Or protect customers, ultimately in these entities or these jurisdictional entities with renfencing.

It is the the holding company that I'm sure. Many of you certainly know all of these first and foremost it's a common industry structure, all but one of our peers have a holding company and number two it provides great flexibility for financing options.

Speaker 2: have a holding company. Number two, it provides great flexibility for financing options.

Speaker 2: Three, we, from an individual utility jurisdiction, we certainly line up our assets and debt obligations with our legal entity structure. Four, we're

Three from.

From an individual utility jurisdiction, we certainly lineup their assets and debt obligations with our legal entity structure.

Four we protect customers.

Speaker 2: ultimately in these entities or these jurisdictional entities with ring fencing. And five, it allowed us to exit from a bankruptcy stipulation where 20 years has since passed, it was no longer relevant, but certainly important for us to enter into this bankruptcy, or excuse me, into this holding company.

Ultimately and these entities are these jurisdictional entities with ring fencing and five it allowed us to exit from bankruptcy stipulation. We're 20 years has since passed it was no longer relevant, but certainly important for us to enter into this bankruptcy or excuse me into this holding company.

Brian Bird: And five, it allowed us to exit from a bankruptcy stipulation. We're 20 years has since passed. It was no longer relevant, but certainly important for us to enter into this bankruptcy or excuse me into this holding company. In order to remove ourselves from the bankruptcy stipulation.

Speaker 2: in order to remove ourselves from the bankruptcy stipulation. So certainly pleased with how that's come about on October 2nd. We entered in the first phase of that, which is effectively establishing the holding company itself.

In order to remove ourselves from the bankruptcy stipulation. So certainly pleased with how that's come about on October 2nd we entered in the first phase of that which is effectively establishing the holding company itself.

Brian Bird: So certainly pleased with how that's come about on October 2nd. We entered in the first phase of that, which is effectively establishing the holding company itself. All assets currently sit within northwestern corporation, which reports up to the northwestern energy group on phase two. That's on the first of the year in the early, in the early 2024. Well, I'll separate assets that are within northwestern corporation into really two parts. Northwestern corporation will hold our Montana assets.

Speaker 2: All assets currently sit within Northwestern Corporation, which reports up to the Northwestern Energy Group on Phase 2. It's on the first of the year into early 2024. We'll now separate assets that are within Northwestern Corporation into really two parts. Northwestern Corporation will hold our Montana assets.

All assets currently sit within Northwestern Corporation.

Which reports up to the northwestern energy group.

Phase two is on the first of the year and into early Jan earlier early 2024 without separate assets that are within <unk>.

In Northwestern Corporation into really two parts.

Northwestern Corporation will hold our Montana assets.

Speaker 2: and some regulated subsidiaries associated with that.

And some regulated subsidiaries associated with that.

Brian Bird: And some regulated subsidiaries associated with that. We'll also have our South Dakota and Nebraska assets under northwestern energy group and some. Largely unregulated, very small and unregulated subsidiaries under northwestern energy group as well. So I just think it's putting it in a, in a, in a place of structure, it's common in industry and I can't give this much more flexibility. Lastly, I just say certainly the new name of of the holding company, but same pickers, same shareholders, same stock plans, same board of directors.

Speaker 2: We'll also have our South Dakota Nebraska assets under Northwestern Energy Group and some largely unregulated, very small non-regulated subsidiaries under Northwestern Energy Group as well. So I just think it's putting in a place of structure that's common in industry and it gives us much more flexibility. Lastly, I just say certainly the news.

We'll also have our South Dakota, Nebraska assets other northwestern energy group and some.

Largely unregulated very small nonregulated subsidiaries under the cluster of energy group as well.

So I just think it's putting in place a structure its common industry gives us much more flexibility.

Lastly, I'd, just say certainly the new name of.

Speaker 2: of the holding company but same kicker, same shareholders, same stock plans, same board of directors.

The holding company, but the same ticker same shareholders same stock plan same board of directors.

Brian Bird: Police, same executive team, same policies. And so, we're essentially, from an employee perspective, it looks very, the same as it has been in the past, except for obviously the many people who are really hard to put this in place. Non-soup base, too, here is still in process. But once even we execute that, there'll be things we need to do in 2024. And I'm excited about having this. It's been a long journey.

Speaker 2: same executive team, same policies. And so we're essentially, from an employee perspective, it looks very very...

Executive teams in policies and so.

We're essentially from an employee perspective, it looks very good.

Speaker 2: The saying is it has been in the past except for obviously the men of people who are really hard to put this in place. And I'm so faced to here is still in process. But then once even we execute that, there'll be things we need to do in 2024.

The same as it has been in the past except for obviously many people worked really hard to put this in place and obviously phase II is still in process and the once even we execute that there'll be things when we did do in 2024.

Speaker 2: And I'm excited about having this. It's been a long journey. We way back, I think it was in...

We're excited about having this it's been a long journey.

Brian Bird: We way back, I think it was in the 2008-2009, we first brought up the concept of the holding company in front of the Montana Commission, was the place to really struggle with that concept, other jurisdiction we were comfortable holding forward. But we're certainly pleased earlier in the year, being able to get that approval and move forward and moving on from there.

Way back I think it was in 2008 2009, we first brought up the concept of a holding company in front of them.

Speaker 2: 2008-2009 was first brought up the concept of the holding company in front of the

Speaker 2: Montana Commission was in a place to really struggle with that concept other jurisdiction we were comfortable moving forward but we're certainly pleased earlier in the year being able to get that approval and move forward and moving on from there and with that

Montana Commissioners in replacement, we really struggled with that concept other jurisdictions are comfortable moving forward.

We're certainly pleased earlier in the year being able to get that approval and move forward.

And moving on from there with that.

Brian Bird: And with that, just again, concluding thoughts before we hand over to Q&A, certainly Crystal Shader's sentiments as well. And, again, I think we feel very, very good about how our settlement was dealt with. But we still have a lot of execution we need to do on a going forward basis, but feel very, very good about how we're set up to perform in 2024. Certainly not only for our shareholders on the earnings call, but certainly equally important, our customers and our stakeholders.

Speaker 2: Just again, concluding thoughts before we hand over to Q&A.

Just again <unk>.

Concluding thoughts before we hand it over to Q&A.

Speaker 2: Certainly Crystal Shader's S?fense as well. And again, I think...

Crystal shared or sentiments as well.

And again I think.

Speaker 2: We feel very, very good about how our settlement was dealt with. But we still have a lot of execution. We need to do an ongoing basis, but feel very, very good about how we set up to perform in 2024. Certainly not only for our shareholders on the earnings call, but certainly equally important our customers and other stakeholders. So with that, I'll put it up.

We feel very very good about.

<unk>.

Our settlement was dealt with.

But we still have a lot of execution, we need to do on a going forward basis, but to a very very good about how we're set up to perform in 2024.

Certainly not only for our shareholders on this earnings call but.

Equally important our customers and other stakeholders, so with that open it up.

Operator: So with that, I'll put it up with Q&A.

With Q&A.

Speaker 1: Thank you, Brian and Crystal. Just a reminder, if you're joining us by computer day, I would like to ask a question. Please signal your intent by using the raise hand button found at the bottom toolbar of your screen. You also may push all twice on a PC or optional on a Mac to raise your hand. Please make sure your microphone is unmuted if you're in the queue to ask a question.

Thank you, Brian and Crystal just to reminder, if you're joining us by computer to Dave I would like to ask a question. Please signal your intent by using the raise hand button, we found at the bottom toolbar your screen.

Operator: Thank you, Brian and Crystal. Just a reminder, if you're joining us by computer today, I would like to ask a question. Please speak while you're intent by using the raise hand button, found at the bottom toolbar of your screen. You also may push all twice on a PC or optional line of Mac to raise your hand. Please make sure your microphone is unmuted if you are in the queue to ask a question.

You also may push off Hawaii on a PC or optional item. After raise your hand, please make sure. Your microphone is unneeded. If you were in the queue to ask a question.

Speaker 1: Your dialed in by phone can press star nine to raise your hand and star six to unmute your line to ask the question again that star nine to raise your hand and star six to unmute. If you haven't provided your name in the zoom ID please be listening to an answer zoom ID or the last word is just your telephone number to identify that your line is open and ready for a question.

Operator: If you're dialed in by phone, you can press star nine to raise your hand and star six to unmute your line to ask a question. Again, that star nine to raise your hand and star six to unmute. If you haven't provided your name in the Zoom ID, please be listening to an answer Zoom ID or the last four digits. Your telephone number to identify that your line is open and ready for a question.

Youre dialed in by phone you can press star nine to raise your hand and star six to Amit Your line to ask the question again that Scott and I and to raise your hand and star six on mute.

If you haven't provided your name in the Zoom I D.

<unk> be listening to announce resume idea of the last four digits. Your telephone number items identified that Youre line is open and ready for a question.

Speaker 1: We'll give a one moment here just to accumulate some questions in the queue.

We have a one more mature just accumulate some questions in the queue.

Operator: We'll give a one moment here just to accumulate some questions in the queue.

And we will take our first question from Jonathan Reeder at Wells Fargo. Please John.

Speaker 1: And we will take our first question from Jonathan Reader at Wells Fargo Foods. Jonathan.

Jonathan Reeder: And we will take our first question from Jonathan Reader at Wells Fargo, please. Jonathan, you should be unmuted. All right, can you hear me okay, then? Sure, Ken. All right, yeah, there's a new dialogue box that popped up this time. Yeah, thanks for taking my questions, team.

Jonathan you should be on mute.

Speaker 2: All right, can you hear me okay then? Sure can. All right, yeah, there's a new dialogue box that popped up this time, so. Huh? We're in two hours. Gotta click my neskin.

Alright can you hear me okay.

Sure Ken Alright, yes, there was a new dialogue box that popped up this time so.

Got.

Got a question I'd ask thank you.

Yes.

Yes, thanks for taking my questions team.

Speaker 2: Yeah, thanks for taking my questions, team. So in terms of the equity, is it safe to assume that the new five-year plan that you'll presumably roll out at EDI will be self-funded as well? In other words, no equity apps and larger projects, such as new generation, or something coming into the fold.

Brian Bird: So in terms of the equity, is it safe to assume that the new five-year plan that you'll presumably roll out at EI will be self-funded as well? In other words, no equity apps and larger projects such as new generation or something coming into the fold. Yeah, hi, Jonathan and happy Friday afternoon. I'll take that one. And yes, it is safe to assume we're sizing our capital plans consistent with no equity as we think about those current plans. Okay, figure that be the case that you wouldn't say no, I could do today and then two weeks later changes. I still like that would not be a good move from us. So no. Great.

In terms of the equity is it safe to assume.

The new five year plan that youll, presumably rollout.

We'll be self funded as well in other words, no equity absent larger projects, such as new generation or something coming into the fold.

Speaker 4: Yeah, hi Johnson and happy Friday afternoon. I'll take that one and yes, it is safe to spend more sizing or capital plans consistent with no equity as we think about those current plans.

Yeah, Hi, Jonathan and happy Friday afternoon, I'll take that one and yes. It is safe to assume we're sizing our capital plans.

With no equity as we think about those kind of plans.

Speaker 5: Okay, figure that be the case that you wouldn't say no, I could eat it today and then two weeks later changes. I still like that would not be a good move from us. It's just effective so no. Great.

Okay figured that would be the case that you wouldn't say no activity today and then two weeks later changes.

Feel like that would not be a good move for them.

So no great.

Speaker 2: So moving on to some regulatory stuff, I think you've typically reached settlements in South Dakota. Do you expect that that would be the case again, this time around or is the size of the request large enough that the key parties will want to fully litigate it?

So moving on to some regulatory stuff I think you've typically reached settlements in South Dakota.

Brian Bird: So moving on to some regulatory stuff, I think you typically reach settlements in South Dakota. Do you expect that that would be the case again this time around or is the size of the request large enough that you know the key parties will want to fully litigate it?

Do you expect that that will be the case again this time around or is the size of the request large enough that the key parties, but want a fully litigated.

Speaker 4: I would certainly expect that we will continue to work with to ask from an advocacy perspective and what expected we would reach a settlement there.

Brian Bird: I would certainly expect that we will continue to work with to ask from an advocacy perspective and would expect that we would reach a settlement there. Great.

I would certainly expect that we will continue to work with the App from an advocacy perspective and would expect that we would reach a settlement there.

Great and then.

Speaker 2: Great. And then last one for me is, you know, I know you just completed the Montana rate case and congratulations on that outcome. But just wanted to see if you're still thinking that the rate case cadence could be every two years or, you know, does the one-time adjustment, you know, for Yellowstone County under the settlement allow you to push out the next Montana filing a little longer.

Brian Bird: And then last one for me is, you know, I know you just completed the Montana rate. And congratulations on that outcome. But just wanted to see if you're still thinking that the rate case cadence could be every two years or, you know, does the one time adjustment, you know, for Yellowstone County under the settlement allow you to push out the next Montana filing a little longer. Yeah, Jonathan, I think I'd say this to me, and we have to evaluate what's the best way to start getting recovery of our cost said of Yellowstone, obviously will continue construction into 2024 with hopes of having it done this before summer peak, certainly in the third quarter.

Last one for me is I know you just completed the Montana rate case, and congratulations on that outcome.

But just wanted to see if you're still thinking that the rate case cadence could be every two years or does the onetime adjustments.

Yellowstone County under the settlement allow you to push out the next Montana filing a little longer.

Speaker 2: Yeah, Jonathan, I think I'd say this to me and we have to evaluate what's the best way to start getting recovery of our cost of the Yellowstone. Obviously we'll continue to continue construction into 2024 with hopes of having it done this before some of the peak, certainly in the third quarter. But, you know, if we have to look at the best way to recover our costs, in fact, that means filing a rate review with.

Yes, Jonathan I think I would say the estimate we have to evaluate what's the best way to start get a recovery of our cost of Yellowstone. Obviously will continue to continue construction into 2024 with the hopes that having had done.

This before some of the peak certainly in the third quarter.

But.

Brian Bird: But, you know, if we have to look at the best way to recover our costs, and in fact, if that means filing a rate review with, you know, known as vegetables, that would happen to come into play. I think the one thing to keep in mind here, what we just had an outcome on Wednesday was a 2021 test year, right, and we're approaching 2024. Our investment continues to go up our cost continue to go up, including interest expense.

If we have to look at the best way to recover our costs and in fact, what that means.

A rate review with.

Speaker 2: You know, no one in Nashville. So that would have become into play. I think the one thing to keep in mind here The what we just had an outcome on Wednesday was a

Known and measurable so that would pass through to come into play I think one thing to keep in mind here.

What we just had an outcome on Wednesday was a.

Speaker 2: 2021 test year, right? And we're approaching 2024. Our investment continues to go out, our cost continues to go out, including interest expense. And so, you know, there's continued pressure here, and I do heard Chris both mention earlier, you know, we want to, you know, earn as close to our authorized returns as we possibly can. And that's still a harder deliver.

2021 test year, right and we are approaching 2024.

Our investment continues to go up our costs continue to go up including interest expense.

And so there is continued pressure here and are you crystal.

Brian Bird: And so, you know, there's continued pressure here, and you could both mention earlier, you know, we want to, you know, earn as close to our authorized returns as we possibly can and that's still ordered delivered. What we're committing here today, we need to stand top of that, but we need to certainly think through that there's another alternative to try to collect costs on Yellowstone. We can think about, but we have to consider all of that in an in very short order to be quite frank.

I mentioned earlier.

We want to earn as close to our authorized returns as we possibly can in essence to order delivered.

Speaker 2: What we're committing here today we need to stand top of that but we need to certainly think through that There's another alternative to try to collect costs on the little stone We can think about but we have to consider all of that and in very short order to be quite frank

With committing here today, we need to stay on top of that but we need to certainly think through that there is another alternative to try to collect costs.

Stone.

We can think about but we have to consider all of that in very short order to be quite Frank.

Speaker 6: Okay, no great. Again, congrats on the outcome and look forward to seeing you guys at the

Okay no great again, congrats on the outcome and look forward to seeing you guys.

Jonathan Reeder: Okay, no, great, again, the growth on the outcome and with forward to seeing guys that he. Thanks Jonathan. Welcome.

Thanks, John and thanks, Jonathan.

We will take our next question from telephone line with the last four digits of 5805.

Tanner James: We will take our next question from a telephone line with the last four digits of 5805. Hi, this is Tanner James stepping in for Julian at Bank of America. How are you guys doing? Oh, good, good, good to see you, Tanner. Good to hear you, I guess, Tanner. Thanks. You know, given the pretty constructive rate increase outcome and your guiding you upgraded the guide from on the low end of your long term, EPS Kager.

Speaker 7: We will take our next question from a telephone line with the last four digits of 5805.

Yeah.

Okay.

Hi, this is on its energy.

Speaker 7: Hi, this is Tanner James Stepan in for Julian at Bank of America. How are you guys doing? Oh good. Good. Good to see you, Tanner. We're good to hear you, I guess, Tanner.

Hi, This is <unk> stepping in for Julian of Bank of America, How are you guys doing.

Oh good good good good.

Good to see if there are good to hear you I guess scanner.

Speaker 8: Thanks. You know, given the pretty constructive rate increase outcome and your guiding, you upgraded the guide from on the low end of your long-term EPS caterer, what are the different factors you observe that could help you get to the top end of your stated annual growth range? Is the growth rate fairly linear or is it more lumpy, perhaps, depending on rate case time?

Yes.

Thanks.

Given the pretty constructive rate increase outcome youre guiding you upgraded the guide from on the low end of your long term EPS CAGR what are the different factors you observe that could help you get to the top end of your stated annual growth range is the growth rate fairly fairly linear or is it more lumpy perhaps.

Tanner James: What are the different factors you observe that could help you get to the top end of your stated annual growth range? Is the growth rate fairly fairly linear or is it more lumpy perhaps depending on rate case timing? Tanner, this is Crystal. I'll take a shot at it and then Brian can pile on here, but we certainly as everyone will acknowledge who's been lumpy in the past. And when you have a historic test period across our jurisdictions, lack of kind of a formula rate or future looking, I think we will continue to be lumpy.

Depending on rate case filing.

Speaker 4: I'm Tanner, this is Crystal, I'll take a shot at it and then Brian can pile on here, but we certainly as everyone will acknowledge who's been lumpy in the past and when you have a historic test period across our jurisdictions, black of kind of a formula rate or future looking. I think we will continue to be lumpy and certainly as you think of what drives us into the upper end of a range versus lower. It will be how that recovery is time that we'll do that and in the other pieces any opportunities and criminal to what we're doing here obviously with Fischer.

Hi, Peter This is Chris I'll take a shot at it and then Brian can pile on here, but we certainly as everyone will acknowledge we had been lumpy in the past and when you have a historic test period across our jurisdictions blackout kind of a formulary or future looking I think we will continue to be lumpy and certainly as you think of what drives.

Tanner James: And certainly as you think of what drives us into the upper end of a range versus lower, it will be how that recovery is time that we'll do that. And then the other piece is any opportunities and criminal to what we're doing here, obviously with push upward in that range. I would say this, I think we're already demonstrating a tab lumpiness here, we use 2022 as a base here. Obviously, and I was when you look at 23s results, and then guides the 24 that in itself demonstrates lumpiness, I think that previous question from Jonathan in terms of cadence here.

And to the upper end of our range versus lower it will be how that recovery of time that we will do that and then the other pieces any opportunities incremental to what we're doing here, obviously with pressure upward in that range.

Speaker 4: uh, aborted in that range.

Speaker 2: I would say this, I think we're already demonstrating a Tata lumpy this year. We use 2022 as a base here.

I would say this I think we're already demonstrating a tad of lumpy. This year, we used 2022 as a base here, obviously and when you look at 'twenty threes results.

Speaker 2: Obviously, when you look at 23 results and then guides the 24, that in itself demonstrates a lumpiness. I think that previous question from Jonathan in terms of cadence here, it's just hard and obviously we could offset in other jurisdictions when we're coming in for the right reviews, but I just think it is going to be a tad long.

And then guidance for 'twenty for that in itself demonstrates lumpiness I think thats.

Previous question from Jonathan in terms of cadence here.

Tanner James: It's just hard and obviously we could offset in other jurisdictions when we're coming in for rate reviews, but I just think it is going to be a tab lump. Green. Understood. Thank you. And you stated in your investment program that it's sides for no activity issuance unless there's a there's future generation capacity additions or other strategic opportunities. What what could other strategic opportunities look like? Is there any things you guys would actively consider on that front?

It's just hard and obviously, we could offset.

And other jurisdictions, where we are coming in for rate reviews, but.

I just think it is going to be a tad lumpy.

Speaker 8: Understood. Thank you. And in you stated in your investment program that it's sides for no activity issuance unless there's a there's future generation capacity additions or other strategic opportunities. What could other strategic opportunities look like? Is there anything you guys would actively consider on that front?

Understood. Thank you.

And you stated in your investment program that its sides for no equity issuance in luck there as those future generation.

The additions or other strategic opportunities.

What could other strategic opportunities look like is there anything you guys would actively consider on that front.

Speaker 9: Yeah, that's a great question. I think we continue to look at transmission investment opportunities and something like that could come into play. And we just need to understand also those opportunities, the ability to, how quickly you could recover those costs as well, have to come into play. So things like that.

Tanner James: Yeah, that's a great question. I think we continue to look at transmission investment opportunities and something like that could that could come into play. And we just need to understand also those opportunities the ability to how quickly you could recover those costs as well have to come into play. So things like that. Understood. Great. Thank you very much, guys. Thanks, Tanner.

Yeah.

Question I think we continue to look at transmission investment opportunities.

And something like that.

Could that could come into play.

And we just need to understand also those opportunities the ability to how quickly we can recover those costs as well.

To come into play.

It's things like that.

Understood great. Thank you very much guys.

Thanks Peter.

Alright, we will take our next question from <unk> Board at Guggenheim.

Speaker 7: All right, we'll take our next question from Jamison Orward at Muganheim. We should be on you to.

Jamieson Ward: All right. We'll take our next question from Jamieson Ward at Muganine. You should be on me to Jamieson. Yep. Can you hear me? Yeah. We can hear you, Jamieson. How you doing? Perfect. I did the star nine and the unmute on the screen. And I think I dialed in the code correctly and get the formula. No, you guys have made it simpler than it has been in the past 12. So thank you for that.

It should be on mute Jameson.

Yes.

Can you hear me.

Speaker 8: Yeah, we can area James and how you doing? Perfect, I did the star nine and the unmute on the screen. And I think I dialed in the code correctly and did the formula. And you guys have made it simpler than it has been in the past while. So thank you for that. So first of all, just quickly, congratulations. I'm on a great result there.

Yeah, we can hear you Jameson how are you doing perfect I did the star nine of my mute on the screen and I think I dialed in the code correctly and get the Formula.

You guys have been similar than it has been.

In the past call. So thank you for that just first of all just quickly congratulations.

Jamieson Ward: So first of all, just quickly congratulations on a great result there. Wanted to ask specific to the hold code because a few of my other questions have been asked already. So we'll pass those. So basically, now that you have a hold code, should we read anything into the zero equity issuance plan associated with your current capital plan as applying that hold code leverage. Like many or all of your peers who have hold codes have done will be a source of funding that will allow you to go from being an equity issuer in recent years to no longer being one, most still kind of maintaining the same capex profile or is there something else to read into there?

On a great result, there.

Wanted to ask.

Speaker 8: wanted to ask specific to the hold coax, a few of my other questions have been asked already, so we'll pass those.

Specific to the Holdco. So a few of my other questions have been asked already so hospitals.

Okay.

Speaker 8: So basically, now that you have a hold code, should we read anything into the zero equity issuance plan associated with your current capital plan as applying that hold code leverage like

So basically.

Now that you have a holdco should we read anything into the zero equity issuance.

Land associated with your current capital plan.

Implying that holdco leverage.

Speaker 8: Many or all of your peers who have what goes have done will be a source of funding that will allow you to go from being an equity issuer in recent years to no longer being one, most still kind of maintaining the same cap ex profile or is there something else to read into there?

Many or all of your peers.

Gross have done will be a source of funding that will allow you to go from being an equity issuer in recent years to no longer being one must all kind of maintaining the same capex profile or is there something else to read into there.

Speaker 4: James, this fits all, I'll take that one and I would say no, there's nothing to read into that. My comments on our structure are this, we're still the same company and the capital structure. We don't anticipate being different than it was before. We've always carried a degree of

Jamieson Ward: At Jamieson, I'll take that one and I would say no, there's nothing to read into that. My comments on our structure are this. We're still the same company and the capital structure. We don't anticipate being different than it was before. We've always carried a degree of debt on our revolver. If any of our quick programs, we will continue to do that, but no intention to look at the capital structure in a different way.

Jamie I'll take that one and I would say no theres nothing to read into that Mike My comments on our structure, our that's where it's still the same company in the capital structure, we don't anticipate being different than it was before we've always carried a degree as debt on our revolver to finance our <unk> program, we will continue to do that but no.

Speaker 3: Dad on our revolver, if any, and their quick program, we will continue to do that, but no intention to look at the capital structure in a different way. Our thoughts on equity in the plan are two things that's got to, if you're going to issue equity currently in this environment and where utilities are trading, I think it's really got to be for a creative growth.

<unk> said look at the capital structure in a different way or thoughts on equity in the plan are two things. It's got to if youre going to issue equity currently in this environment and where utilities are trading I think it's really going to be for accretive growth and so regardless of the whole cost structure or not our plan is to issue equity.

Jamieson Ward: Our thoughts on equity and the plan are two things that's got to, if you're going to issue equity currently in this environment and where utilities are trading, I think it's really got to be for a creative growth. And so regardless of the hold code structure or not, our plan is to issue equity when it makes sense and when investors will see the growth that's behind that. And that's that sizing our capital plan to make sure we're keeping customer bills in mind, keeping our balance sheet in mind, but also keeping the ability to keep the lights on.

Speaker 4: And so regardless of the whole cost structure or not, our plan is to issue equity when it makes sense and when investors will see the growth that's behind that. And since that sizing our capital plan to make sure we're keeping customer builds in mind, keeping our balance sheet in mind, but also keeping the ability to keep the lights on. And the gas flowing in mind is a challenge, but we think it's important in the current environment to have no equity in the plan. We're a guard list of structures. Gotcha.

When it makes sense and when investors will see the growth that behind that and absent that sizing our capital plan to make sure we're.

Keeping customer bills in mind, we are keeping our balance sheet in mind, but also keeping the ability to keep the lights on and the gas flowing in mind, It's a challenge, but we think it's important in the current environment to have no equity in the plan regardless of structure.

Jamieson Ward: And the gas flowing in mind is the challenge that we think is important in the current environment to have no equity in the plan. We're a card list of structures. Gotcha. Thank you for that. And in the case that you do end up making use of leverage at the hold code for one reason or another as time goes on, it's something that you'll have available to you. Do you have any concerns around the commission eventually imputing double leverage?

Gotcha, Okay. Thank you for that.

In the case that you do end up making use of leverage at the Holdco for one reason or another as time goes on it's something that you'll have available to you do you have any concerns around the commission eventually imputing double leverage.

Speaker 8: In the case that you do end up making use of leverage at the whole code for one reason or another as time goes on, it's something that you'll have available to you. Do you have any concerns around the commission eventually imputing double leverage?

Jamieson Ward: I think you're way ahead of me, Jameson. You know, our message to the commission and the ring fencing week that out is the same company. It's the structure every other utility uses and, and certainly, whole co-leverages no longer free as it was for a while or close to dawn free. So we have no intentions there. The message we've given our commissioner filings is any of our unsecured borrowing. They're not in our capital structure and none of this change was the legal restructuring changes any of that message to the commission on how we think about our capital structure. Gotcha. Thank you. Very clear.

Speaker 4: If you're way ahead of me, James, and our message to the commission and the ring fencing week that I'll be the same company.

Thank you you're way ahead of me Jamie.

Our message to the commission and the ring fencing, we've got outbid.

And company infrastructure every other utility uses.

Speaker 3: It's the structure every other utility uses and and certainly whole code that which is no longer free is it was for a while or close to turn free. So we have no intentions there. The message we've given our commissioner filings is any of our unssecured borrowing they're not.

And certainly Holdco leverages no longer free as it was for a while or close to done for age. So we have no intention there the message we've given our commissioner filings as any of our unsecured borrowings or not.

Speaker 3: in our capital structure and none of this change was the legal restructuring changes any of that message to the commission on how we think about our capital structure.

In our capital structure and none of this changes whilst the legal restructuring changes any of that message to the commission on how we think about our capital structure.

Got you. Thank you very clear and then that's it for Holdco questions.

Speaker 8: Gotcha. Thank you very clear. And then that's it for whole co-questions. Just had

Jamieson Ward: And that's it for whole co-questions. Just to add, well, I guess two more quick ones here. One was just how many years does the no equity commitment last? I know the question was asked earlier about whether when you roll forward the five-year plan, you know, would you be changing the messaging and you said you wouldn't be doing that. But just want to give us any additional color on how long that might hold for.

Just had.

Well I guess two more quick ones here.

Speaker 8: Well, I guess two more quick ones here. One was just how many years does the no equity commitment last? I know the question was asked earlier about whether when we roll forward the five year plan, you know, would you be changing the messaging and you said you wouldn't be doing that. But just wondering if you can give us any additional color on how long that might hold for.

Was just how many years does the no equity commitment last I know the question was asked earlier about whether when you roll forward. The five year plan would you be changing the messaging and you said you wouldn't be doing that but just wondering if you can give us any additional color on how long that might hold for.

Jonathan I think your question Boulevard to Jonathan's whichever will definitely hold for three weeks until he but that's my sarcasm coming through as we think about our current five year plan. There is no equity in that I would tell you very candidly every year, we're going to take a look at that rate and then take a look at what financing makes sense and what our opportunities are in the plan.

Speaker 4: James and I think your question's a little similar to Johnson's, which it will definitely hold for three weeks until he, but that's my start as I'm going through. As we think about our current five-year plan, there's no equity in that. I would tell you very candidly every year, we're gonna take a look at that. We're gonna take a look at what financing makes sense and what our opportunities are in the plan. But as we plan out that current five-year plan and what we will roll for the EI on the Catholic side.

Jamieson Ward: Jameson, I think your question is a little similar to Johnson's which a little depth play hole for three weeks since he, but that's my start as I'm going through. As we think about our current five-year plan, there's no equity in that. I would tell you very candidly every year we're going to take a look at that. We're going to take a look at what financing makes sense and what our opportunities are in the plan.

Jamieson Ward: But as we plan out that current five-year plan and what we will roll for EI on the Catholic side, we intend to hold to the no equity as long as the current environment looks like it does. But we will continue to evaluate that and update you guys on an annual basis like we always do. Got it. Thank you. And then the timing of righeases is already answered. Lumpiness is answered. The last one I have is, were there any asks that you had in this case which in hindsight it might not have been the right time for, but anything that you might potentially reincorporate into your next rate filing and look to maybe achieve accomplish or add to your your regulatory tools at that point in time.

As we plan out.

That current five year plan and what we will roll forward <unk> on the Capex side, we intend to hold to the no equity as long as the current environment looks like it does.

Speaker 4: we intend to hold to the no equity as long as the current environment looks like it does.

Speaker 8: But we will continue to evaluate that and update you guys on an annual basis like we always do. Got it. Thank you.

But we will continue to evaluate that and update you guys on an annual basis like we always do.

Got it thank you and then.

Speaker 8: The timing of rig heases is already answered, lumpiness is answered. The last one I have is, were there any asks that you had in this case, which in hindsight it might not have been the right time for, but anything that you might potentially re-incorporate into your next rig filing and look to maybe achieve a complex ride to your regulatory tools at that point in time?

The timing of rate cases, as I already answered Lumpiness was answered lots of them. I have is are there any asks that you have in this case, which in hindsight it might not have been the right time for but anything that you might potentially reincorporate into your next rate filing and look to maybe achieve accomplish rod tier irregular.

Tori tools.

At that point in time.

Speaker 2: That's for me. That's a good question, James. I would say it this way. You know, we tried some methods.

Jamieson Ward: That's for me. That's a good question, James. I would say it this way. You know, we tried some methods. We deviated from just the historical test your concept and just going with that. We tried some track as we believe all three of those make great sense. We obviously threw the settlement, got the deferral on our wildfire program, which is very, very helpful for us to obviously be able to add a few more dollars to that program.

That's good.

Good question, Jamie I would say it this way.

I tried.

Methods, we deviated from just.

Speaker 2: We deviated from just the historical test your concept and just going with that we tried some track as we believe all three of those make great sense.

The historical test your concept and just going with that we tried some track because we believe all three of those make great sense.

Speaker 2: We obviously threw the settlement, got the deferral.

We obviously through the settlement got the deferral.

Speaker 2: Our wildfire program, which is very, very helpful for us to obviously be able to add a few more dollars to that program. And we're going to have to continue to look at those types of trackers and other mechanisms.

Our wildfire program, which is very very helpful for us to obviously be able to allocate more dollars to that program.

Jamieson Ward: And we're going to have to continue to look at those types of trackers and other mechanisms to help us recover quicker. And we believe, ultimately over time, we'll be persuade not only the commission, but the intervening parties just from the ability to make it an easier means to recover our costs. And maybe allow us not to be as frequent a filers from a rate review perspective. Got it. Thank you very much.

And we're going to have to continue to look at those types of trackers and other mechanisms.

Speaker 9: to help us recover quicker. And we believe ultimately over time, we'll be persuade not only the commission but the intervening parties just from the ability to make it an easier means to recover our costs. And maybe allow us not to be as frequent of filers from a rate review perspective.

To help us recover quicker and we believe ultimately over time will be persuade not only the commission, but the intervening parties just from the ability to make it an easier means to recover our costs and maybe allow us not to.

Frequent filers from a rate review perspective.

Got it. Thank you very much I appreciate the answers.

Jamieson Ward: Appreciate the answers. Hey, James, I want to think for you, you know, you guys asked the hard questions. So we kind of want to make it hard for you to get in to ask yours. So you just so you know,[inaudible] and Brian E. Coles and comments. Yeah, I think, you know, from my perspective, Crystal mentioned 20 years. It'll be my 20 years December 3rd in 2023 here. Travis has certainly been with us 20 years as well, and you know, 60 years from the three of us.

Speaker 7: And hey, Jamison, one other thing for you, you know, you guys ask the hard questions, so we kind of want to make it hard for you to get in to ask yours. So just so you know. No worries. Thank you. Have a good weekend. And with that we've exhausted all of our questions.

Hey, Jamie its the one other thing for you.

You guys ask the hard questions. So we kind of want to make it hard for you to get in to ask yours. So you just see that.

Okay.

Thanks, Jeff.

I have a good weekend.

And with that we've exhausted all of our questions. So.

Speaker 7: Brian and he called them comments. Yeah, I think um.

Brian any closing comments.

Think.

Speaker 2: You know, from my perspective, Crystal mentioned 20 years. I'd be my 20 years December 3rd.

From my perspective, Crystal mentioned 20 years.

20 years.

December 3rd.

<unk>.

Speaker 2: In 2023 here, Travis certainly been with us 20 years as well and you know 60 years from the three of us.

In 2023 here Travis certainly been with US 20 years, as well and 60 years from the three of us.

Speaker 2: the collective executive team, many of those folks have over 30 years experience, some new, but from my perspective, it's the people at this company that make this a great company. I certainly appreciate working with you two, but I certainly reach out to all of our employees and thank them as well. It's a great company. Thank you.

Jamieson Ward: The collective executive team, many of those folks have over 30 years experience some new, but from my perspective, it's the people at this company that make this a great company. I certainly appreciate working with you two, but I certainly reach out to all of our employees and think, thank them as well. It's a great company. Thank you.

<unk> executive team many of those folks have over 30 years' experience some new.

But from my perspective, it's the people at this company that make this a very company I certainly appreciate working with Youtube, but certainly reach out to all of our employees and thank thank them as well, it's a great company. Thanks Sharon.

Brian Bird: All right. With that, you may disconnect, and obviously if there are any other questions, please feel free to reach out.

Speaker 1: You know what that, you may disconnect and obviously if there's any other questions please feel free to reach out. Have a good day and a great weekend.

So with that.

You may disconnect and obviously, if there is any other questions. Please feel free to reach out.

Operator: Have a good day and a great weekend.

Good day, and a great weekend.