Q2 2024 NorthWestern Corp Earnings Call

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Operator: NorthWestern's results have been released, and the releases are available on our website at northwesternenergy.com. We also released our 10-Q pre-market this morning.

Operator: Northwestern's results have been released, and the release is available on our website at northwesternenergy.com. We also released our 10Q pre-market this morning. Please note that this company's press release, this presentation, comments by presenters, and responses to your questions may contain forward-looking statements. As such, I'll direct you to the disclosures contained in our SEC Financials and Safe Harbor provisions, included on the second slide of this presentation. Also, please note this presentation includes non-GAAP financial measures. Please see the non-GAAP disclosures, definitions, and reconciliations also included in the presentation. The webcast is being recorded.

Speaker Change: <unk> results have been released and the release is available on our website at northwestern Energy Dotcom. We also released our 10-Q pre market. This morning. Please note that this company's press release. This presentation comments by presenters and responses to your questions may contain forward looking statements as such I'll direct you to the disclosures contained in our SEC.

Operator: Please note that this company's press release, this presentation, comments by presenters, and responses to your questions may contain forward-looking statements. As such, I'll direct you to the disclosures contained in our SEC financials and safe harbor provisions included in the second slide of this presentation. Also, please note this presentation includes non-GAAP financial measures. Please see the non-GAAP disclosures, definitions, and reconciliation is also included in the presentation.

Speaker Change: <unk> financials in the Safe Harbor provisions included in the second slide this presentation.

Speaker Change: Also please note. This presentation includes non-GAAP financial measures. Please see the non-GAAP disclosures definitions and reconciliations also included in the presentation webcast is being recorded the archived replay of today's webcast will be available for one year beginning at six P. M. Eastern today and can be found in the financial results section of our website.

Operator: The archived replay of today's webcast 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. With that, I'll hand the presentation over to Brian Bird for opening remarks. Thanks, Travis.

Operator: Webcast is being recorded. The archive replay of today's webcast 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.

Brian Bird: With that, I'll hand the presentation over to Brian Bird for opening remarks. Thanks, Travis, and greetings to all of you from Great Falls, Montana. You know board meeting here this week, and we had an opportunity to tour some of our hydro facilities. That was great fun, and I had the opportunity to meet with Energy West employees this morning here in Great Falls. So we'll talk about that a bit later.

Speaker Change: With that I'll hand, the presentation over to Brian Bird for opening remarks, Thanks, Travis and greetings to all of you from our Great Falls Montana.

Brian B. Bird: And greetings to all of you from Great Falls, Montana. We had a board meeting here this week, and we had an opportunity to take a tour of some of our hydro facilities. That was great fun, and I had the opportunity to meet with Energy West employees this morning here in Great Falls. So we'll talk about that a bit later.

Speaker Change: Our board meeting here this week, and we had an opportunity to.

Speaker Change: Sure some of our hydro facilities that was great fun and on and I had the opportunity to meet with energy West employees. This morning here in Great Falls. So we'll talk about that a bit later, our recent highlights as noted on page three as we reported GAAP diluted EPS of <unk> 52 cents share in.

Brian B. Bird: Our recent highlights, as noted on page three, are we reported gap-diluted EPS at 52 cents, and share in non-gap-diluted EPS at 53 cents. We're affirming our 2024 diluted EPS guidance of $3.42 to $3.62. We're affirming our long-term five-year rate-based earnings per share growth rate targets of four to six percent, and we declared a dividend for the quarter of 65 cents per share payable on September 30th 2024 to shareholders, a record as of September 13th 2024.

Brian Bird: Our recent highlights, as noted on page three, is reported. Gap alluded EPS at 52 cents share and non-GAAP alluded EPS at 53 cents. We're affirming our 2024 diluted EPS guides of $3.42 to $3.62. We're affirming our long-term five-year rate-based earnings per share growth rate targets of 4 to 6%. And we declared a dividend for the quarter 65 cents per share, payable September 30th, 2024, to shareholders of record as of September 13th, 2024. I'm sure that you've seen that we filed rate reviews in Montana electric and gas and South Dakota natural gas and Nebraska natural gas, those three jurisdictions within two months.

Speaker Change: non-GAAP diluted EPS at 53 cents.

Speaker Change: We're affirming our 2024 diluted EPS guidance of $3.42 to $3.62.

Speaker Change: We're affirming our long term five year rate base earnings per share growth rate targets of 4% to 6% and.

Speaker Change: And we declared a dividend for the quarter 65 cents per share payable September 30 of 2024 to shareholders of record as of September 13, 2024.

Brian B. Bird: I'm sure that you've seen that we filed rate reviews at Montana Electric and Gas and South Dakota Natural Gas and Nebraska Natural Gas, those three jurisdictions within two months. And as a matter of fact, if you consider the South Dakota Electric Rate Review we filed last year, it's the first time, and certainly the 20 years that we've had, the Montana Power Assets, and the Northwestern Public Service Assets, certainly since that merger, that we filed in all jurisdictions in this short period of time. And really, and Crystal certainly will talk about this later. It's an effort.

Speaker Change: And surely you've seen that we've filed rate reviews.

Speaker Change: Montana electric and gas and South Dakota, natural gas, Nebraska natural gas those three jurisdictions within two months and.

Brian Bird: And, matter of fact, if you consider the South electric rate review, we filed last year's the first time in certainly the 20 years that we've had the Montana power assets in the Northwestern public service assets. But certainly, since that merger that we filed and all jurisdictions in this short period time. And really, in principle, certainly we'll talk about this later. It's an effort. We continue to invest high levels and all jurisdictions, obviously, in a rising cost environment. We need to make these rate review filings. We need to earn closer to our authorized rate of return.

Speaker Change: And matter of fact, if you consider the South Dakota Electric rate review, we filed last year. It's the first time and certainly the 20 years that we've had the.

Speaker Change: The Montana power assets in the northwestern public service asset certainly sense that merger that we filed in all jurisdictions in a short period of time.

Speaker Change: And really in Crystal certainly I'll talk about this later.

Speaker Change: It's an effort we continue to invest high levels in all jurisdictions, obviously in a rising cost environment.

Brian B. Bird: We continue to invest at high levels in all jurisdictions, obviously in a rising cost environment. We need to make these rate review filings. We need to earn closer to our authorized rate of return. She certainly will speak to that more as well.

Speaker Change: We need to make these rate review filings, we need to earn closer to our authorized rate of return she certainly will speak to that.

Brian Bird: She certainly will speak to that. For more as well.

Speaker Change: And Morris well I'll get an opportunity to talk about our two strategic transactions in the first being we've entered an agreement to acquire energy West Montana's natural gas distribution system.

Brian Bird: I'll get an opportunity to talk about two strategic transactions, and the first being we venture an agreement to acquire the Energy West Montana natural gas distribution system. serving 33,000 customers for $39 million in Reinventory and Agreement to acquire Puget Sounds 370 megawatt ownership interest in coal strip units, the three and four, and like the Avista Transage, can add no cost. Take a look at our NorthWestern value proposition. I mean, we are still providing a 5% dividend yield today. And when you consider just our base capital plan, and you're going to see a 4% to 6% EPS growth on top of that, providing a 9% to 11% total growth.

Brian B. Bird: I'll get an opportunity to talk about two strategic transactions. The first being, we've entered an agreement to acquire Energy West Montana's natural gas distribution system, serving 33,000 customers, for $39 million. And we've entered an agreement to acquire Puget Sound's 370-megawatt ownership interest in coal-stripped units 3 and 4, and like the Avista transaction, at no cost. Take a look at our Northwestern value proposition. I mean, we are still providing a 5% dividend yield today.

Speaker Change: Serving 33000 customers for $39 million and we've entered an agreement to acquire Puget Sound's 370 megawatt ownership interest and culture units three and four.

Speaker Change: And like the Avista transaction at no cost.

Speaker Change: Yes.

Speaker Change: Take a look at our northwestern and the value proposition I mean, its we are still providing a 5% dividend yield today.

Brian B. Bird: And when you consider just our base capital plan, you're going to see a four to six percent EPS growth on top of that providing a nine to 11% total growth. And when you can take into consideration incremental opportunities for transmission, and incremental generating capacity. QFs or other Power Purchase Agreement buyouts, electrification, and supporting economic development. And like these two transactions today, we are endeavoring to grow this business and provide a better value proposition for our shareholders. And much like these acquisitions, they provide better outcomes for our customers as well. With that, I'm going to hand it over to Crystal to talk about the second quarter financial results. Thank you, Brian.

Speaker Change: And when you consider just our base capital plan, and where youre going to see a four to six.

Per cent EPS growth on top of that providing a 9% to 11% total growth.

Brian Bird: And when you can take into consideration incremental opportunities for transmission, incremental generating capacity, QFs or other power versus agreement buyouts, electrification, supporting economic development, and like these two transactions today, we are endeavoring to grow this business and provide a better value proposition for our shareholders, and much like these acquisitions provide better outcomes for our customers as well.

Speaker Change: And when you can take into consideration incremental opportunities for transmission incremental generating capacity.

Ross: Ross or other power purchase agreement buyouts electrification.

Ross: Spur economic development and in fact, Mike. These two transactions today. We are we are endeavoring to grow this business and provide a better value proposition for our shareholders and much like these acquisitions provide better outcomes for our customers as well.

Crystal Lail: With that, I'm going to hand it over to Crystal to talk about the second quarter financial results. Thank you, Brian. In my comments today, I will discuss our financial performance for the first half of the year, with focus on Q2 here, and also discuss our outlook for the remainder of the year. Also, my comments will address the right reviews that Brian alluded to, to give you a bit more detail on those and how we're thinking about them.

Ross: With that I'm going to hand, it over to Crystal to talk about the second quarter financial results.

Crystal Dawn Lail: Thank you, Brian. In my comments today, I will discuss our financial performance for the first half of the year, with a focus on Q2, here, and also discuss our outlook for the remainder of the year. Also, my comments will address the rate reviews that Brian alluded to, to give you a bit more detail on those and how we're thinking about them. But importantly, I would mention that being here in Great Falls is fortuitous timing. We plan our board meetings well in advance.

Crystal: Thank you, Brian and my comments today, I will discuss our financial performance for the first half of the year with focus on Q2 here and also discuss our outlook for the remainder of the year.

Speaker Change: Also my comments will address the rate reviews that Brian alluded to to give you a bit more detail on those and how we're thinking about them, but importantly, I would I would mention that being here in great Falls has procured a tiny we plan our board meetings well in advance our board likes to be out with our employees and our management team as well to happen to align with the announcement that I will turn it back.

Crystal Lail: But importantly, I would mention that being here in Great Falls is for Q2 at its timing. We plan our board meetings well in advance. Our board likes to be out with our employees and our management team as well. To happen to align with the announcements that I will turn it back to Brian to talk to at the end is a pretty cool thing. So with slide six, you'll see the results that Brian alluded to with strong financial performance in Q2, with earnings for share of 52 cents, and that's compared with 32 cents in Q2 of 2023 for really significant improvement in performance there.

Crystal Dawn Lail: Our board likes to be out with our employees and our management team as well. To happen to align with the announcement that I will turn it back to Brian to talk to at the end is a pretty cool thing. So, on slide 6, you'll see the results that Brian alluded to with strong financial performance in Q2, with earnings per share of $0.52, and that's compared with $0.32 in Q2 of 2023. So, really significant improvement in performance there. I'll take you to slide 7 for a bit more detail on the quarter results. Gap had a net income of $31.7 million.

Brian B. Bird: Hey, Brian to talk to you at the end is a pretty cool thing, though at slide six you'll see the results that Brian alluded to with strong financial performance in Q2 in earnings per share of <unk> 52 cents and as compared with 32 cents in Q2 of 2023, so really significant improvement in performance. There I'll take you to slide seven for a bit more detail on the quarter.

Crystal Lail: I'll take you to slide seven for a bit more detail on the quarter results. Gap net income of 31.7 million in a 12.6 million improvement or 66 percent since Q2 of 2023 on an adjusted basis. And I'll speak to that a little bit more later in detail, but the only adjustment in Q2 here is weather. So, on an adjustment basis, that's 11.8 million or 58 percent improvement. Slide 8, again, most of my comments today will be addressed on the quarter, but I would be remiss to not cover our first half of the year performance. And we are pleased with that financial performance, with earnings of 96.7 million or $1.58 on a GAAP basis, which is a 21 cent increase or 15 percent.

Speaker Change: Results.

Crystal Dawn Lail: Again, that's $12.6 million improvement or 66% since Q2 of 2023 on an adjusted basis. And I'll speak to that a little bit more later in detail, but the only adjustment in Q2 here is weather. So on an adjustment basis, that's $11.8 million or 58% improvement. Slide 8, again, most of my comments today will be addressed on a quarter basis, but I would be remiss not to not cover our first half of the year performance. And we are pleased with that financial performance, with earnings of $96.7 million or $1.58 on a gap basis, which is a 21 cent increase or 15%.

Speaker Change: GAAP net income of $31 7 million in a $12 6 million an improvement or 66%.

Speaker Change: In Q2 of 2023 on an adjusted basis and I'll speak to that a little bit more later in detail, but the only adjustment in Q2 here is weather.

Speaker Change: So on an adjusted basis at $11 8 million or 58% improved mix slide.

Speaker Change: Slide eight again most of my comments today will be addressed on a quarter, but I would be remiss to not cover our first half of the year performance and we are pleased without financial performance with earnings of $96 7 million or $1 58 on a GAAP basis, which is a 20 ones that increase or 15%.

Crystal Lail: Moving to slide nine, you see our results for the quarter. And the details as to what's really driving those, you will see that the left side of this, the key driver here is really that focus on regulatory execution and outcomes, driving 26 cents of improvement from a margin perspective. They saw that. Those were offset and part by some operating cost pressures, including, as with everyone else, labor. If you think about that piece of it embedded within the five cents of detriment at the OA and G line and then also some cyclical, cold land generation maintenance.

Crystal Dawn Lail: Moving to slide nine, you see our results for the quarter and the details as to what's really driving those. You will see that on the left side of this, the key driver here is really that focus on regulatory execution and outcomes driving 26 cents of improvement from a margin perspective based on that. Those were offset in part by some operating cost pressures, including, as with everyone else, labor, if you think about that piece of it, embedded within the five cents of detriment at the OAMG line, and then also some cyclical land generation maintenance. And then you also see some offsets with depreciation and interest expense, again, leading to 52 cents on a gap basis and 53 cents on a non-ga Slide 10 breaks out that margin detail.

Speaker Change: Moving to slide nine you see our results for the quarter and the details as to what's really driving those that you will see that the left side of this the key driver here is really that focus on regulatory execution and outcomes driving 26 cents of improvement.

Speaker Change: From a margin perspective based off that.

Speaker Change: Those were offset in part by some operating cost pressures, including as with everyone else Labor. If you think about that piece of it embedded within the five cents a detriment of the O N. G line and then also some cyclical planned generation maintenance and then you also see some offense with depreciation and interest expense again, leading to fit.

Crystal Lail: And then you also see some assets with depreciation and interest expense, again, leading to 52 cents on a GAAP basis and 53 cents on a non-GAAP saluted basis. slide 10 for itself at margin detail and provides really the drivers for the quarter with 20 cents of improvement driven by regulatory outcomes. I would mention that, from a volumetric perspective, that was tempered a bit by milder weather in Q2. You all know that's our most shoulder season. The way experience seeing a bit lower residential usage driven by weather, someone offset by industrial usage overall. You also know that we saw five cents of contribution quarter over quarter from our Montana transmission assets.

Speaker Change: Two cents on a GAAP basis, and 53 funds on a non-GAAP diluted basis.

Speaker Change: Slide 10 breaks out that margin detail.

Speaker Change: And provides really the drivers for the quarter with 20 cents of improvement driven by regulatory outcomes I would mention that from a volumetric perspective, the was tempered a bit by milder weather in Q2.

Speaker Change: You all know that's our most shoulder season that we experienced a theme a bit lower residential usage driven by weather somewhat offset by industrial usage. Overall, you'll also note that we saw five sons the contribution quarter over quarter from our Montana transmission assets, we continue to believe fundamentally theyre very.

Crystal Dawn Lail: You also know that we saw five cents of contribution quarter over quarter from our Montana transmission assets. We continue to believe, fundamentally, they're very strategically located and important to driving both results in this quarter but also our growth in the future. These are also offset in part by, if you'll recall, the QF liability adjustment that we talked about with you many times last year. We adjusted that out, but that was a more favorable QF adjustment in Q2 2023, impacting, obviously, the quarter over quarter results, the absence of that favorable adjustment here. In addition, I'd also talk about our PCAM just briefly. You can see a detriment here from a PCAM perspective of about a penny.

Crystal Lail: We continue to believe fundamentally they're very strategically located and important to driving both results in this quarter but also our growth in the future. These are also offset in part by, if you'll recall, the QF liability adjustment that we talked about with you many times last year. We adjusted that out, but that was a more favorable QF adjustment in Q2 2023, impacting obviously the quarter-over-quarter results, the absence of that favorable adjustment here. In addition, I've also talked about our PCAM just briefly. You can see a detriment here from a PCAM perspective of about a penny.

Speaker Change: Really located in important to driving both results in the quarter, but also our growth in the future. These are also offset in part by if you'll recall the QF liability adjustment that we've talked about with you. Many times last year, we adjusted that out but that was a more favorable QF adjustment in Q2 2023.

Obviously the quarter over quarter results the absence of that favorable adjustment here. In addition, I would also talk about our P. Cam just briefly.

Speaker Change: Can see a detriment here from a PJM perspective of about a penny. The way you should think about that is that P. Chem was quite favorable to us last year in Q2 and wallet with favorable here in Q2 of 24, it was less favorable driving one cent or different but again I.

Crystal Dawn Lail: The way you should think about that is that PCAM was quite favorable to us last year in Q2, and while it was favorable here in Q2 of 24, it was less favorable, driving one cent a detriment. But again, and I'll allude to, Brian's going to talk about another strategic transaction, taking out volatility for our customers and being able to serve them with own resources is just a critical part of being able to serve them in the right sorts of ways.

Crystal Lail: The way you should think about that is that PCAM was quite favorable to us last year in Q2, and while it was favorable here in Q2 of 24. It was less favorable driving one cent a different but again.

Crystal Lail: And I'll look to Brian can talk about another strategic transaction, taking out volatility for our customers and being able to serve them with own resources. It's just a critical part of being able to serve them in the right sorts of ways. So again overall from a margin utility utility margin improvement that the driver there is execution from regulatory outcomes. Slide 11. Again, many of you know as, but as we think about what we adjust out from a quarter perspective. We had a couple of naughty be items I'll call them one timers and Q1 here and Q2 you'll see only the impact of weather.

Brian B. Bird: And now I'll look to Brian can talk about another strategic transaction, taking out volatility for our customers and being able to serve them with own resources. Its just a critical part of being able to serve them in the right parts away. So again overall from a margin utility utility margin improvement the driver there is execution from regulatory outcomes.

Crystal Dawn Lail: So again, overall, from a utility margin improvement perspective, the driver there is execution from regulatory outcomes. Slide 11. Again, many of you know us, but as we think about what we adjust out from a quarter perspective, we had a couple of noisy items, I'll call them one-timers in Q1. Here in Q2, you'll see only the impact of weather.

Speaker Change: Slide 11.

Speaker Change: Again, many of you know is that as we think about what we adjust out from a quarter perspective, we had a couple of noisy items I'll call them. One timers in Q1 here in Q2, you'll see only the impact of weather I mentioned, we have some milder weather in Q2. So you see only a penny of adjustment out of unfavorable weather with Ambac and when you think about <unk>.

Crystal Lail: I mentioned we have some milder weather in Q2, so you see only a penny of adjustment out of unfavorable weather with add back, and when you think about last year in Q2, that was compared to a recent that add back. Of unfavorable weather, so overall. You adjust that and you have 53 cents on a non-GAAP basis compared to 35 cents in the prior quarter, and again that's an 18 cent improvement over 20, a 20, a 20, a 30. Slide 12 we talked about at the end of Q1 really executing on our strategy of strengthening our balance sheet and being where we need to be from both the financing perspective and driving strength and our ability to continue investing for our customers.

Crystal Dawn Lail: I mentioned we had some milder weather in Q2. So you see only a penny of adjustment out of unfavorable weather with ad back. And when you think about last year in Q2, that was compared to a three cent ad back of unfavorable weather. So overall,

Speaker Change: Last year in Q2 that was compared to a three sent back add back of.

Speaker Change: Of unfavorable weather so overall.

Crystal Dawn Lail: You adjust that, and you have 53 cents on a non-gap basis compared to 35 cents in the prior quarter. And again, that's an 18 cent improvement over 2020-23. And that is consistent with the guidance we've given you of maintaining strength there, so you'll see 14.8% closing out on a twirling 12-month basis in the first half of 2024, and we are very happy to be over that level. So with that on slide 13, you'll see our disclosures here are consistent with what we shared with you previously.

You adjust that and you have 53 times on a non-GAAP basis compared to 35 cents in the prior quarter and again, that's an 18th that improvement over 2023.

Speaker Change: Slide 12, we talked about at the end of Q1 really executing on our strategy of strengthening our balance sheet and being wherever we need to be from both a financing perspective and driving strengthen our ability to continue investing for our customers. We have executed on our financing plan. When we talked to you by the end of April.

Crystal Lail: We had executed on our financing plan when we talked to you about the end of April, and we were also above our 14% targeted threshold for FFO, and I'm happy to say we continue to be above that, and that is consistent with the guidance we've given you, maintaining strength there. So you'll see 14.8% closing out of twirling 12 month basis the first half of 2024, and very happy to be over that level. So, with that on slide 13, you'll see our disposal here are consistent with what we shared with you previously. We are pleased with our financial performance for the first half of the year and on track to deliver solid results for 2024, really driven by those constructive regulatory outcomes where we're investing to be able to serve our customers.

Speaker Change: And we were also above our 14% targeted Russell or F. F O and I'm happy to say, we continue to be above that and that is consistent with the guidance. We've given you of maintaining strength. There. So you'll see 14.8% closing out on a trailing 12 month basis. The first half of 'twenty 'twenty, four and very happy to be over that level.

Speaker Change: Okay.

Speaker Change: So with that on slide 13, you'll see our disclosures here are consistent with what we shared with you previously we are pleased with our financial performance for the first half of the year and on track to deliver solid results for 2024 really driven by those constructive regulatory outcomes, where we're investing to be able to serve our customers.

Crystal Dawn Lail: We are pleased with our financial performance for the first half of the year and on track to deliver solid results for 2024, really driven by those constructive regulatory outcomes where we're investing to be able to serve our customers. We also believe that we are uniquely positioned with no equity needs in our current capital plan, while we're still deploying substantial investment in our You'll note that our teams have been busy here in Q2, as Brian alluded to, submitting rate reviews in each of our jurisdictions.

Crystal Lail: We also believe that we are uniquely positioned with no equity needs in our current capital plan while we're still deploying substantial investment in our. and jurisdictions, which I'll talk more, which is my next thing to talk about, which is our regulatory filings during the quarter, really driven by what I just alluded to as our capital plan and investing on our customers being passed.

Speaker Change: We also believe that we are uniquely positioned with no equity needs in our current capital plan, while we're still deploying substantial investment in our.

Jurisdictions, which I'll talk more which is my next thing to talk about which is our regulatory filings during the quarter really driven by what I just alluded to is our capital plan and investing on our customers' behalf. So with that I will transition from discussing the impacts of the quarter to what we use strategic to driving our growth going for.

Crystal Lail: So with that, I will transition from discussing the impacts of the quarter to what we use strategically to driving our growth going forward here and what we look at in the next year or so. You'll note that our teams have been busy here, and Q2 has, Brian alluded to, submitting great reviews in each of our jurisdictions. You will also note on slide 15, each of these filings is driven by critical capital investments to meet our customer needs and reflect our focus on, while doing that, earning our returns to direct consistent growth, consistent with the strategy that we blade out for you.

Speaker Change: Word here and what we look at in the next year or so.

Crystal Dawn Lail: You will also note on slide 15, each of these filings is driven by critical capital investment to meet our customer needs and reflect our focus on, while doing that, earning our returns to drive consistent growth, consistent with the strategy that we've laid out for you. We are confident in each of these cases that we can work with our interveners and commissions to achieve constructive outcomes and continue to be able to invest in infrastructure in each of these states. You'll note that Montana's filing, both electric and gas, is laid out on the left-hand side of the slide.

You'll note that our teams have been busy here in Q2, as Brian alluded to submitting rate reviews in each of our jurisdictions.

Speaker Change: You'll also note on slide 15, each of these filings is driven by critical capital investment to meet our customer needs.

Speaker Change: And it looked like our focus on while doing that earning our returns to drive consistent growth consistent with the strategy that we've laid out for you.

Crystal Lail: We are confident in each of these cases that we can work with our interveners and commissions to achieve constructive outcomes and continue to be able to invest infrastructure in each of these states. You'll note that Montana filing, both the lecturing and gas, is laid out on the left-hand side of the slide while we just concluded a great review on Montana in late 2023. We are continuing to invest to meet our customers' needs, with over a billion of investments since that time. So when you think about that, the end of 2024, the filing includes an owner measurable period.

Speaker Change: We are confident in each of these cases that we can work with our intervenors in commissions to achieve constructive outcomes and continue to be able to invest.

Speaker Change: Infrastructure in each of these states.

You'll notice the Montana filing both electric and gas is laid out on the left hand side of the slide while we just concluded a rate review in Montana in late 2023, we are continuing to invest to meet our customers' needs with over a billion of investments since that time. So when you think about by the end of 2020 for the filings include the known immeasurable peer.

Crystal Dawn Lail: While we just concluded a rate review in Montana in late 2023, we are continuing to invest to meet our customers' needs with over a billion dollars of investment since that time. So when you think about by the end of 2024, the filings include a known and measurable period. In 2023 and 2024, we will have invested a billion dollars to serve customers in Montana. Importantly, in that case, we are also talking about mechanisms to help support ongoing critical needs, particularly around wildfire mitigation and what we need to do to provide safe, reliable service to our customers and the importance of that to those in Montana that we serve to support Montana generation investment and also the technology needed to continue to serve our customers.

Crystal Lail: In 2023 and 2024, we will have invested a billion dollars to serve customers in Montana. Importantly, in that case, we are also talking about mechanisms to help support ongoing critical needs, particularly around wildfire mitigation and what we need to do to provide safe, reliable service to our customers and the importance of that to those in Montana that we serve to support Montana generation investment and also technology needed to continue to serve our customers. The other thing I would touch upon in that filing that is significant is the Yellowstone Generating Facility. It is a key part of our focus on customer affordability is that importance of own generation.

Speaker Change: <unk> in 2023, and 2020 board, we will have invested $1 billion to serve customers in Montana.

Speaker Change: Importantly in that case, we were also talking about mechanisms to help support ongoing critical needs, particularly around wildfire mitigation and what we need to do to provide safe reliable service to our customers and the importance of that to those in Montana that we serve.

Speaker Change: To support Montana generation investment and also technology needed to continue to serve our customers. The other thing I would touch upon in a filing that is significant as the Yellowstone generating facility.

Crystal Dawn Lail: The other thing I would touch upon in that filing that is significant is the Yellowstone Generating Facility. It is a key part of our focus on customer affordability and the importance of own generation. So while we're seeking to recover, in this case, an investment of approximately $300 million, that investment is providing price stability and a Montana resource that is more cost effective than the market. We've talked many times about impacts in our PCAMS.

Speaker Change: It is a key part of our focus on customer affordability is that importance of owned generation. So while we are seeking to recover in this case, an investment of approximately $300 million that.

Crystal Lail: So while we are seeking to recover in this case an investment of approximately $300 million, that investment is providing price stability and a Montana resource that is more cost effective than the market. We've talked many times about impacts in our PCAM being on the market when we need to serve our customers most, and we are really happy to be in the home stretch of bringing that facility online to serve our customers. We understand the potential for the rate impacts of that, and you will note that the recovery of this facility is offset by a reduction in costs in our PCAM, and importantly, it aligns the timing of that recovery with the value that customers are receiving from the facility.

Speaker Change: And that investment is providing price stability and a Montana resource that is more cost effective than the market. We've talked many times about impact in our P. Hem a being on the market when we need to serve our customers most and we're really happy to be in the homestretch of bringing that facility online to serve our customers we understand the potential for the.

Crystal Dawn Lail: Being on the market, we need to serve our customers most, and we're really happy to be in the homestretch of bringing that facility online to serve our customers. We understand the potential for the rate impacts of that, and you'll note that the recovery of this facility is offset by a reduction in costs in our PCAMS. And importantly, it aligns the timing of that recovery with the value that customers are receiving from the facility.

Speaker Change: The rate impacts of that and you'll note that the recovery of this facility is offset by a reduction in costs in our P. Chem and importantly, it aligned the timing of that recovery with the value that customers are receiving from the facility.

Crystal Dawn Lail: As it relates to the South Dakota and Nebraska gas filings on the right-hand side of the slide, you'll notice it's been a while since we filed in each of those jurisdictions. Lots of reasons for that, but critically, we are focused on capital investment that needs to be recovered from those customers and also being in to update the basis of rates there. And again, we certainly believe that we'll be able to work constructively and paint a very clear picture of efficient, cost-effective service and investments that are needed to serve our customers in each of those jurisdictions.

Crystal Lail: As it released the South Dakota and Nebraska gas filings on the right-hand side of the slide, you'll notice it's been a while since we've filed in each of those jurisdictions. Lots of reasons for that, that critically we are focused on capital investment that needs to be recovered from those customers and also being in to update the basis of rates there. And again, we certainly believe that we'll be able to work constructively and paint a very clear picture of efficient, cost-effective service and investments that are needed to serve our customers in each of those jurisdictions. With each of these filings, we are working to develop timelines with the appropriate interveners and commissions to work through the process with them to achieve critical outcomes.

Speaker Change: As it relates to the South Dakota, Nebraska gas filings on the right hand side of this slide you'll notice has been a while since we've filed in each of those jurisdictions lots of reasons for that but critically we are focused on capital investment that needs to be recovered from those customers and also being end to update the basis of rates there and again, we certainly believe that we'll be able to work constructively.

Speaker Change: We're actively and paint a very clear picture of efficient cost effective service and investments that are needed to serve our customers in each of those jurisdictions.

Crystal Dawn Lail: With each of these filings, we are working to develop timelines with the appropriate interveners and commissions to work through the process with them to achieve critical outcomes. You will also note, importantly, back to the growth outlook slide and our outlook for 2024 earnings guidance, that we do assume an amount of rate relief related to certain interim rate assumptions. So with that, I will turn it back to Brian to discuss our two key announcements.

With each of these filings we are working to develop timelines with the appropriate intervenors in commissions to work through the process with them to achieve critical outcomes. You will also note and importantly back to the growth outlook slide in our outlook for 2024 earnings guidance that we do with whom and amount of rate relief related to certain interim rate assumptions.

Crystal Lail: You will also note importantly back to the growth outlook slide and our outlook for 2024 earnings guidance that we do assume an amount of rate relief related to certain interim rate of functions.

Brian Bird: So, with that, I will turn back to Brian to discuss our two key announcements. Yeah, before I do that, I just on the rate reviews, I do need to say this. I said it earlier, and I want to reiterate the point. Obviously, filing in all of our jurisdictions within the last two years really it's important to send the appropriate price signals to our customers, but also having making sure we're investing the right amount of capital and spending in the right amount to properly serve our customers, but being also able to earn closer to our authorized rate return.

Speaker Change: So with that I will turn it back to Brian to discuss our two key announcements you had before I do that I just on the rate reviews I do need to say this I said it earlier I want to iterate the point.

Brian B. Bird: Yeah, before I do that, on the rate reviews, I do need to say this. I said it earlier. I want to reiterate the point, obviously, filing in all of our jurisdictions within the last two years, really, it's important to send the appropriate price signals to our customers, but also to make sure we're investing the right amount of capital and spending the right amount to properly serve our customers, but also to be able to earn closer to our authorized rate This is different than what we've done in the past.

Brian B. Bird: Obviously filing and all of our jurisdictions within the last two years really it's important to send the appropriate price signals to our customers, but also having making sure we're investing the right amount of capital and spending the right amount to properly serve our customers, but it being also able to.

Earn closer to our authorized rate of return this is different than what we've done in the past we havent been this quick turnaround rate reviews and to try to improve our recovery and I just Wanna brokerage shot.

Brian Bird: This is different than what we've done in the past.

Brian Bird: We haven't been this quick to turn around rate reviews and to try to improve our recovery, and I just want to real quick shout out to Crystal on her finance team, Cindy Fang, the VP of regulatory and her team, and Shannon Heimer, GC and her team. It's been monumental with these folks and all the witnesses and others who support that have done to get to this point. I just felt that it's worth noting in light of all the activity we've got going on from that perspective.

Brian B. Bird: We haven't been this quick to turn around rate reviews and to try to improve our recovery. And I just want a real quick shout out to Crystal and her finance team, Cindy Fang, the VP of Regulatory, and her team, and Shannon Heimer, GC, and her team.

Speaker Change: The crystal on her finance team.

Speaker Change: And defang, the VP of regulatory and her team in Shanghai, our GC and her team it's been monumental what these folks and all the witnesses and others, who support that have done to get to this point I. Just felt was worth noting in light of all the activity. We've got going on from that perspective with that on the strategic update I'm very very pleased.

Brian B. Bird: It's been monumental what these folks and all the witnesses and others who support them have done to get to this point. I just felt it was worth noting in light of all the activity we've got going on from that perspective. With that, on the strategic update, I'm very, very pleased to report the acquisition of Energy West and CutBank Natural Gas. We have coveted these assets for 20 years. They have been owned by others over the time period, on a larger portfolio.

Brian Bird: With that on the strategic update, very, very pleased to report the acquisition of Energy West and Cut Bank Natural Gas. We have covered these assets for 20 years. They have been owned by others over the time period with over a larger portfolio. We've always wished we could own these Montana resources and believe they belong and are portfolio at the end of the day as part of our business. and we believe this; I'll call this even a tuck-in investment, if you will. It should fit very, very nicely into our business. Many of you are well aware that we already serve Great Falls from an electric perspective.

Speaker Change: <unk> to report.

The acquisition of energy West and cut back natural gas.

Speaker Change: Coverage of these assets for 20 years they have been.

Speaker Change: Owned by others over the time period with overall larger portfolio. We've always wished we could own these Montana resources and believe they belong in our portfolio at the end of the day as part of our business.

Brian B. Bird: We've always wished we could own these Montana resources and believe they belong in our portfolio at the end of the day as part of our business. And we believe this, I'll call this even a tuck-in investment, if you will, should fit very, very nicely into our business. Many of you are well aware that we already serve Great Falls from an electric perspective. Now, customers in Great Falls will receive one bill, if this is ultimately closed and approved by the Montana Commission, from one provider, Northwestern Electric and Gas. So we're very excited about that. We also have properties and our own business up in Cut Bank.

Speaker Change: And we believe this alcohol is even ive talked in investment if you will it should fit very very nicely into our business. Many of you are well aware that we already serve great falls from an electric perspective, now and our customers in great Falls receive one bill. This is ultimately closed and approved by the Montana Commission.

Brian Bird: Now when customers in Great Falls will receive one bill if this is ultimately closed and approved by the Montana Commission, from one provider, NorthWestern and Electric, NorthWestern on gas. So we're very excited about that. We also have properties of our own business, something Cut Bank. So it should work extremely well with their employees, and obviously having an addition of West Yellowstone into our business and Montana is great. So again, we're really excited to move into this transaction. We think it's adding 33,000 customers. That's approximately 15% of the gas customers we have in Montana today. So it's a nice addition to NorthWestern Energy.

Speaker Change: From one provider northwestern and electric northwestern on gas. So we're very excited about that we also are properties, but our own business up in cutbank. So it should work extremely well with their employees and obviously.

Brian B. Bird: So it should work extremely well with their employees, and obviously, having an addition of West Yellowstone into our business in Montana is great. So again, we're really excited to move into this transaction. We think it's adding 33,000 customers. That's approximately 15% of the gas customers we have in Montana today.

Speaker Change: Having an addition of west Yellowstone into.

Speaker Change: Into our business in Montana is great. So again, we're really excited.

Speaker Change: To move into this transaction, we think it's adding 33000 customers that's approximately 15% of the gas customers. We have in Montana today. So it's a nice addition to northwestern energy and is great.

Brian B. Bird: So it's a nice addition to Northwestern Energy and a great, I think, addition for our Montana business. I think the only other thing I'd say about that is, again, I had a chance to meet with the employees, and obviously, when you hear something like this, you know, it's news, and you think about yourself, but at the end of the day, you know, we're both 100-year-old companies. And I think, you know, once you come to us, you have to stay with us for many, many years, not getting bounced around with other owners. And so I hope that stability is something that will sink in with them as we move forward.

Brian Bird: And it's great, I think, add for our Montana business. I think the only other thing I'd say about that is, again, I had a chance to meet with the employees, and obviously you hear something like this. It's news, and you think about yourself, but at the end of the day, we're both 100-year-old companies. And I think, once you come to us, you have to stay with us for many, many years, not getting bounced around with other owners. And so I hope that stability is something that will sink in with them, and as we move forward.

Think AD for our Montana business.

Speaker Change: I think the only other thing I'd say about that is again had a chance to meet with employees and obviously me or something like this.

Speaker Change: It's news and you think about yourself, but at the end of the day you know were both 100 year old companies.

Speaker Change: And I think once you come to us.

Speaker Change: To stay with us for many many years not getting bounced around with other owners and so I hope that stability is something that will syncing with them and as we move forward. So again very excited about that opportunity I'm also very excited about our ability to acquire an incremental ownership in colstrip on slide 18, you can.

Brian B. Bird: So again, I'm very excited about that opportunity. I'm also very excited about our ability to acquire an incremental ownership in Coal Strip on slide 18. You can see as we talk about on the far right, we mentioned reliability, affordability, and sustainability. Those are the three things we try to balance each and every day as we serve our customers, and only we have that obligation to serve them. And I think this really fits into that mold well.

Brian Bird: So again, very excited about that opportunity.

Brian Bird: I'm also very excited about our ability to acquire an incremental ownership in coal strip on slide 18. You can see, as we talk about to the far right, we mentioned reliability, affordability, and sustainability. Those are the three things we try to balance each and every day as we serve our customers. And only we have an obligation to serve them. And I think this really fits into that mold well. Full strip, we obviously have ownership in it today. Adding a VISTA and Puget just allows us more ownership in a reliable resource that we've had for decades.

Speaker Change: See as we talk about to the far right.

Speaker Change: Mention reliability affordability and sustainability of those are the three things we try to balance each and every day as we serve our customers normally we have an obligation to serve them.

Speaker Change: And I think this really fits into that mold well pulse.

Brian B. Bird: Coal Strip, we obviously have ownership in it today. Adding Avista and Puget just allows us more ownership in a reliable resource that we've had for decades. Obviously, acquiring these resources, like the Avista resources, at zero cost is fantastic for our customers from an affordability standpoint.

Speaker Change: Colstrip, we obviously have ownership in it today, adding avista Puget just allows us more ownership in a reliable resource that we've had for decades, obviously acquiring these resources like the Avista resources at zero cost.

Brian Bird: Obviously, acquiring these resources like the Avista resources at zero cost is fantastic for our customers from an affordability standpoint. And from a sustainability standpoint, we see coal strip as a bridge to a future that someday, in the future, when something's available, that's low carbon or carbon-free at a reasonable cost, we can invest in that. And ultimately, even around coal strip would be our desire.

Speaker Change: It's fantastic for our customers from an affordability standpoint, and from a sustainability standpoint, we see colstrip as a bridge to a future that someday in the future when something's available, that's low carbon or carbon free or at a reasonable cost we can invest in that and ultimately in or around colstrip would be our desire.

Brian B. Bird: And from a sustainability standpoint, we see Coal Strip as a bridge to a future when someday in the future, when something's available that's low carbon or carbon free at a reasonable cost, we can invest in that, and ultimately, investing in or around Coal Strip would be our desire. And one thing I want to spend a little bit more time on Coal Strip; I will go to 19 for a second just to talk about the facility ownership overview.

Brian Bird: And I, one thing I want to spend a little bit more time on Coal Strip. I will go to 19 for a second just to talk about the facility ownership. We sit here today at, you know, we own 30% of unit four or 15% of the full facility at Coal Strip. With Avista, we go up to having 33%, excuse me, 30% of the whole complex at Coal Strip. But ultimately, with the Avista and the Puget piece, we'll have a total of over 800 megawatts at the facility between units three and four. While 40% interest in unit three, a 70% interest in unit four, and a 55% ownership in the facility.

Speaker Change: One thing I want to spend a little bit more time on pulsar. If I will go to 19 for a second just to talk about facility ownership.

Brian B. Bird: We sit here today and, you know, we own 30% of unit four or 15% of the full facility at Coal Strip. With Avista, we go up to having 33, excuse me, 30% of the whole complex at Coal Strip. But ultimately, with the Avista and the Puget piece, we'll have a total of over 800 megawatts at the facility between Units 3 and 4. We'll have a 40% interest in Unit 3, a 70% interest in Unit 4 and a 55% ownership in the facility.

Speaker Change: Overview, we sit here today.

Speaker Change: We own 30% of unit four or 15% of the full facility at Colstrip.

Speaker Change: With a Vista, we go up to having 33 or excuse me, 30% of the whole complex of colstrip, but ultimately with the Avista and the Puget piece will have a total of over 800 megawatts.

Speaker Change: At the facility between units three and four well.

Speaker Change: 40% interest in unit three at.

Speaker Change: 70% interest in unit four in a 55% ownership in the facility I do want to mention you know are we in Tallinn collectively and unit three would have a 70% interest we believe talents done a nice job as the operator in this facility.

Brian B. Bird: I do want to mention, you know, we and Talon collectively in Unit 3 would have a 70% interest. We believe Talon's done a nice job as the operator in this facility, and we certainly hope on a longer-term basis we can continue to partner in providing Montanans and others with service from here. There are other parties that will stay in.

Brian Bird: I do want to mention, you know, we and talent collectively in Unit Three would have a 70% interest. We believe talent's been a nice job as the operator in this facility. And we certainly help on a longer-term basis. We can continue to partner in providing Montana's and others' service from here. Our other parties that will stay in, I understand they still have regulatory issues in terms of having to exit the facility. But hopefully, again, they will continue to serve their customers much like we want to for the time that we're in here. But it's our intent to keep a coal strip open as long as we can.

And we certainly hope on a longer term basis, we can continue to partner and providing montanans in others service from here or other parties that will stay and I understand they still have.

Brian B. Bird: I understand they still have regulatory issues in terms of having to exit the facility, but hopefully, again, they will continue to serve their customers much like we want to for the time that we're here. But it's our intent to keep a coal strip open as long as we can. And we believe that the coal strip is really a win-win for customers and shareholders. And when I say that about customers, I really think of five things that jump out at me.

Speaker Change: Our regulatory.

Speaker Change: Issues in terms of having to exit the facility, but hopefully again, they will continue to serve their customers much like we want to for the time that we're in here, but it's our intent to keep a culture of open as long as we can and we believe that colstrip is really a win win for customers and shareholders and when I say that for our customers really think of five things.

Brian Bird: And we believe that coal strip is really a win-win for customers and shareholders.

Brian Bird: And when I say that for customers, I really think of five things that jump out at me. You know, we are an essential service for our customers. And again, we aren't going to sacrifice reliability and affordability. This transaction provides more 24-7 energy when our customers need it the most, and they get that at zero upfront costs. This is a resource in mind to stand up provides crucial grid support and our customers need it most. Secondly, there's going to be less exposure to the market for our customers on peak days with high energy prices, resulting in decreased volatility in the customer bill.

Speaker Change: That jump out at me and now we are an essential service for our customers and again, we aren't going to sacrifice reliability and affordability.

Brian B. Bird: You know, we are an essential service for our customers, and again, we aren't going to sacrifice reliability and affordability. This transaction provides more 24-hour energy when our customers need it the most, and they get that at zero upfront cost. This is a resource in Montana that provides crucial grid support when our customers need it most. Secondly, there will be less exposure to the market for our customers on peak days with high energy prices, resulting in decreased volatility in the customer bill.

Speaker Change: Transaction provides more 24 seven energy when our customers needed the most and they get that at zero upfront cost.

This is a resource of months' standard that provides crucial grid support when our customers needed most.

Speaker Change: Leanne theres going to be less exposure to the market for our customers on peak days with high energy prices.

Leanne: And decrease volatility and the customer bill.

Brian Bird: Number three, we have, we'll have more ownership in both units three and four at Poll Strip. So we can better serve our customers when maintenance is required on a unit. Number four, 55% ownership of the plan will allow us to guide the future of investment at closer for our customers. What we think is the best interest of our customers. And number five, lastly, the next best alternative to providing 370 megawatts of dispatchable capacity is a natural gas plant. And at 370 megawatts, it would cost over $700 million. And that plant would still not be available to serve customers for at least five years.

Brian B. Bird: Number three, we have we'll have more ownership in both units three and four at Pulse, so we can better serve our customers when maintenance is required on a unit. Number four, 55% ownership of the plant will allow us to guide the future of investment at Kohl's for our customers, what we think is in the best interest of our customers. And number five, lastly, the next best alternative to providing 370 megawatts of dispatchable capacity is natural gas.

Leanne: Number three we have we will have more ownership in both units three and four at Colstrip.

Leanne: We can better serve our customers when maintenance is required on a unit.

Leanne: Number 455% ownership of the plant will allow us to guide the future of investment at closer for our customers.

Leanne: But we think it's in the best interest of our customers and number five lastly, the next best alternative to providing 370 megawatts of dispatch book capacity.

Leanne: As a natural gas plant.

Brian B. Bird: And at 370 megawatts, it would cost over $700 million, and that plant would still not be available to serve customers for at least five years. We're going to get the Avista and Puget Sound Pieces on 1-1-2026. And to be honest, we can't wait. We wish we had them now.

Leanne: And at 370 megawatts, it would cost over $700 million and that plant would still not be available to serve customers for at least five years, we're going to get the avista.

Brian Bird: We're going to get the Avista and Puget pieces on 112, 2026. And to be honest, we can't wait. We wish we had them now. So we're excited about that opportunity. This is fantastic for customers. But for shareholders, this is also a great opportunity that helps us we continue to think about how we can invest in our business for Montana and all of our customers at the same time for being able to provide a reasonable return to our shareholders. But for shareholders specifically, number one, this additional capacity generation at no cost allows us to invest in other Montana infrastructure to meet customer needs with reduced pressure on customer bills.

Leanne: And Puget pieces on 112026 and to be honest, we can't wait we wish we had them now. So we're excited about that opportunity. This is fantastic for customers for shareholders. This is also.

Brian B. Bird: So we're excited about that opportunity, and this is fantastic for customers. But for shareholders, this is also a great opportunity that helps us continue to think about how we can invest in our business for Montanans and all of our customers, at the same time as being able to provide a reasonable return to our shareholders. But for shareholders specifically, number one, this additional capacity, Generation, at no cost, allows us to invest in other Montana infrastructure to meet customer needs with reduced pressure on customer bills.

Leanne: Great opportunity that helps us we continue to think about how we can invest in our business for montanans in all of our customers.

Leanne: At the same time being able to provide a reasonable return to our shareholders, but for shareholders specifically number one this additional capacity gen.

Leanne: Generation at no cost allows us to invest in other Montana infrastructure to meet customer needs with reduced pressure on customer bills.

Brian Bird: Number two, with 55% ownership, we will be able to guide investment in culture to reliably serve our customers until cost-efficient, carbon-free alternatives are available. And yes, that may include additional pollution control equipment, depending on rules that are in effect. But that investment in the pollution control equipment, we believe, will be more cost-efficient than, again, the alternatives we have today. Number three, the Puget transaction is essentially the same as the Avista deal in that Puget and Avista are responsible for their share of remediation costs. Number four, this gives us the appropriate amount of time to evaluate low carbon or no carbon alternatives and develop plans to replace coal strip at the right time and the right price.

Brian B. Bird: Number two, with 55% ownership, we will be able to guide investment in ColdStrip to reliably serve our customers until cost efficient, carbon-free alternatives are available. And yes, that may include additional pollution control equipment, depending on the rules in effect. But that investment in pollution control equipment, we believe, will be more cost efficient than, again, the alternatives we have today. Number three, the Puget transaction is essentially the same as the Avista deal, in that Puget and Avista are responsible for their share of remediation.

Leanne: Number two with 55% ownership, we will be able to guide investment at colstrip to reliably serve our customers until cost efficient carbon free alternatives are available.

Leanne: And yes that may include additional pollution control equipment, depending on the rules are effect, but that investment in a pollution control equipment. We believe we will be more cost efficient than again the alternatives we have today.

Dave: Three the Puget transaction is essentially the same as Dave has to deal in our Puget and the Vista are responsible for their share of remediation costs.

Brian B. Bird: Number four, this gives us the appropriate amount of time to evaluate low-carbon or no-carbon alternatives and develop plans to replace the coal strip at the right time and the right price. Number five, this Puget Capacity uniquely positions us with excess capacity now to better serve our existing customers and allows us the opportunity to enable economic growth in Montana going forward. In fact, we've had interest from large load customers who are interested in coming to Montana. Now we can say yes, and we can be part of the growth in Montana. This one final thought.

Dave: Number four this gives us the appropriate amount of time to evaluate low carbon or no carbon alternatives and developed plans to replace colstrip at the right time and the right price.

Brian Bird: Number five, this Puget capacity uniquely positions us with excess capacity now to better serve our existing customers and allows us the opportunity to enable economic growth in Montana going forward. In fact, we've had interest from large load customers who are interested in coming to Montana. Now we can say yes, and we can be part of growth in Montana.

Dave: Number five this puget capacity uniquely positions us with excess capacity now to better serve our existing customers and allows us the opportunity to enable economic growth in Montana going forward.

Dave: In fact, we've had interest from large load customers, who are interested in coming to Montana now we can say, yes, and we can be part of growth in Montana.

Brian Bird: This one final thought, NWE is still committed to our net zero by 2050 goal, and you may have seen the South Side piece by Wells Fargo that was put out here recently that shows our generation portfolio was the second most carbon-free today. The progress we have already made should allow an easier carbon-free energy transition. This makes total sense when you consider all of our hydro resources and all the owned and contracted contracted wind on our system. We see coal strip as a bridge to a cleaner alternatives down the road, and in the meantime we are going to maintain this bridge until those other carbon-free resources like SMRs, long-duration storage, and other technologies are available.

Dave: Just one final thought.

Brian B. Bird: NWE is still committed to our net zero by 2050 goal, and you may have seen the sell-side piece by Wells Fargo that was put out here recently that shows our generation portfolio was the second most carbon-free today. The progress we have already made should allow an easier carbon-free energy transition. This makes total sense when you consider all of our hydro resources and all the owned and contracted wind on our system. We see Coal Strip as a bridge to cleaner alternatives down the road, and in the meantime, we're going to maintain this bridge until other carbon-free resources like SMRs, long-duration storage, and other technologies are available.

Dave: M. W is still committed to our net zero by 2050 goal.

Dave: And you may have seen the sulfide piece by Wells Fargo that was put out here recently that shows our generation portfolio was the second most carbon free today.

Dave: Yes, we have already made should allow an easier carbon free energy transition.

Dave: Makes total sense when you consider all of our hydro resources.

Dave: And all the owned and contracted contracted wind on our system.

Dave: We see colstrip as a bridge to a cleaner alternatives down the road and in the meantime, we're going to maintain this bridge until those other carbon free resources like S. M ours long duration storage and other technologies are available and all.

Brian Bird: and I said a little bit more on that than the two slides are shown, but this transaction is extremely important to our customers and NorthWestern Energy. I wanted to make sure you understood where we stand on that issue.

Brian B. Bird: I know I said a little bit more on that than the two slides shown, but this transaction is extremely important to our customers and Northwestern Energy. I wanted to make sure you understood where we stand on that issue. Moving forward to Montana wildfire mitigation, I think you know we've recently come out with version 2.0 of our wildfire mitigation plan, and I have to tell you I'm extremely impressed with how this company has responded in the last six months.

Dave: What I said, a little bit more on that in the two slides are shown with this transaction is extremely important to our customers and northwestern energy I wanted to make sure you understood, where we stood where we stand on that issue.

Brian Bird: Moving forward to Montana wildfire mitigation. I think you know we recently come out with our version 2.0 of Wildfire Mitigation Plan. And I have to tell you I'm extremely impressed with how this company's responded in the last six months. We effectively, at the start of the year, have stood up a situational awareness deployed for different technologies and are now monitoring our system like we've never been able to do before. We've developed communication plans. We've we've all instituted PSPS and are ready to use it at the right appropriate times. This come companies on a fantastic job from enhanced vegetation standpoint from operational practices system preparedness.

Speaker Change: Moving forward to Montana wildfire mitigation I think you know we've recently come out with our version two point all of our wildfire mitigation plan and I have to tell you I'm extremely impressed with how this company has responded in the last six months, we effectively at the start of the year have stood up a situational awareness dips.

Brian B. Bird: We effectively, at the start of the year, have stood up situational awareness, deployed four different technologies, and now are monitoring our system like we've never been able to do before. We've developed communication plans. We've all instituted PSPS and are ready to use it at the right, appropriate times. This company has done a fantastic job from an enhanced vegetation standpoint, from operational practices, and system preparedness. And I think if not, I believe in line with all of our peers in the West, if not better than many, where we didn't maybe fare as well as our peers, particularly those on the coast, the West Coast, in situational awareness in the public communication piece.

Speaker Change: Lloyd for different technologies and are now are monitoring our system like we've never been able to do before.

Speaker Change: Develop communication plans.

Speaker Change: We have all instituted PST asthma or ready to use it at.

Speaker Change: And the right appropriate times.

This company has done a fantastic job from enhanced vegetation standpoint.

Speaker Change: From operational practices system preparedness, and I think if not sure I believe in line with all of our peers in the west if not better than many where we didnt may.

Brian Bird: And I think if not, I believe in line with all of our peers in the West, if not better than many, where we didn't maybe fair as well as our peers, particularly those on the on the coast, the West Coast, the situational awareness in the public communication piece. I think we've done a tremendous amount in the last six months to catch up on that, and we feel extremely good about the development of our plan. And more so the plan how we put in place the things to execute on that plan, and obviously we were right smack dab in fire season right now, but we feel so much better prepared than even a year ago.

Speaker Change: It may be fair as well as our peers, particularly those on the on the coast to the West coast. The situational awareness in the public communication piece I think we've done a tremendous amount in the last six months to catch up on that and we feel extremely good about the development of our plan and more so the plan how we put in place the things to execute on.

Brian B. Bird: I think we've done a tremendous amount in the last six months to catch up on that, and we feel extremely good about the development of our plan and, more so, the way we put in place the things to execute on that plan. And obviously, we're right smack dab in fire season right now, but we feel so much better prepared than even a year ago and so excited about our ability to address this significant problem for our industry, let alone the western utilities.

Speaker Change: That plan and obviously, we're right smack Dab in fire season, right now, but we feel so much better prepared than even a year ago and so excited about our ability to address this significant problem for our industry, let alone the western utilities.

Brian Bird: And so excited about our ability to dress the significant problem for our industry, let alone the Western utilities.

Brian B. Bird: With that in conclusion, I just want to thank all of you for your continued interest in Northwestern, and with that, we'll open it up for any questions. Great. Thank you, Brian. And thanks, Crystal.

Operator: With that, in conclusion, just want to thank all of you for continued interest in Northwestern, and with that, we'll open it up for any questions.

Speaker Change: With that in conclusion, just want to thank all of you for your continued interest in northwestern and with that we'll open it up for any questions.

Operator: Great, thank you, Brian. And thanks, Crystal.

Operator: If you're joining us by computer today and would like to ask a question, please signal your intent by using the raise hand button that is typically found within the bottom toolbar of your screen. Please ensure that your microphone is unmuted if you are in the queue to ask a question. If you're dialed in by phone, you can press star 9 to raise your hand and star 6 to unmute your line. Again, that's star 9 to raise your hand and star 6 to unmute.

Speaker Change: Great. Thank you Brian and.

Operator: If you're joining us by computer today and would like to ask a question, please signal your intent by using the raise hand button that is typically found in the bottom toolbar of your screen. Please ensure your microphone is unmuted if you were in the queue to ask a question. If you're now in my phone, you can press star nine to raise your hand and star six to unmute your line. Again, that star nine to raise your hand and star six to unmute. If you are now in my phone, please be listening for us to announce the last four digits of your telephone number in order to call on you.

Speaker Change: Thank you Crystal if you're joining us by computer today and would like to ask a question. Please signal your intent by using the raise and button. It is typically found within the bottom toolbar their screen.

Speaker Change: Please ensure your microphone is on muted if you were in the queue to ask a question if the readout in by phone you compress star nine to raise your hand and star sixth on mute. Your line again, that's star nine to raise your hand and star sixth on mute.

Operator: If you are dialed in by phone, please be listening for us to announce the last four digits of your telephone number in order to call you. We'll give it just a moment here to get questions in the queue. Looks like we're going to take our first question from Jeremy Tonet at J.P. Morgan.

Speaker Change: If you are dialed in by phone please be listening for us to announce the last four digits of your telephone number in order to call on you.

Operator: We'll do it just a moment here to get questions in the queue. Looks like we're going to take our first question from Jeremy Tony at JP Morgan. And Jeremy.

Speaker Change: Just a moment here to get the questions in the queue looks like we're going to take our first question from Jeremy Toney at J P. Morgan.

Speaker Change: Hey, Jeremy.

Robin Shillock: Hey, this is Robin Schlock on for Jeremy. Can you hear me? Hey, Robin. Hey, so first of all, with the Yellowstone County Generating Station on track for three queue. And now to no cost call strip acquisitions in the pipeline, any updated thoughts on the timeline for a potential type of incremental catbacks opportunities that you may opt for. You stay on the generation front or the generation or transmission, or I'll be above. Well, I will tell you this. I think we have been making and making a tremendous amount of investment in our T and D business, and, matter of fact, we are looking at to investing even more in our transmission business.

Robin Shlock: Hey, this is Robin Shlock on behalf of Jeremy. Can you hear me?

Hey, this is robin chalk on for Jeremy can you hear me.

Thank you Robyn.

Operator: Hey, so first of all, with the Yellowstone County Generating Station on track for 3Q and now two no-cost coal strip acquisitions in the pipeline, any updated thoughts on the timeline for a potential type of incremental CapEx opportunities that you may opt for?

Speaker Change: Hey, so first of off with the Ocean County generating station on track for <unk> and now to no cost colstrip acquisitions in the pipeline any updated thoughts on the timeline for a potential type of incremental capex opportunities that you may opt for.

Robin Shlock: You're staying on the generation front.

Speaker Change: You said on the generation front.

Robin Shlock: Yeah, or the generation or transmission, or I'll be above.

Speaker Change: Yes, or the generation or transmission or I'll be above <unk>.

Brian B. Bird: Well, I would tell you this. I think we have been making a tremendous amount of investment in our T&D business. As a matter of fact, we are looking at investing even more in our transmission business. I think we've not seen as much regional transmission interest in Montana than we have in the whole 20 years I've been with the company.

Speaker Change: I would tell you. This I think we have banking, making a tremendous amount of investment in our T&D business and matter of fact, we are looking at to investing even more in our transmission business.

Brian Bird: I think we have not seen as much regional transmission interest in Montana than we have in the whole 20 years I've been with the company. There's a tremendous amount of opportunity above and beyond generation. But the interesting thing here, I still think even with what we're doing at Call Strip, we need to start planning to making future investments to help Montana to continue to grow. But this allows us more time and not only to properly plan, but to pick the right resources on a going forward basis. I think if you think about this company still investing $500 million without necessarily incremental investment in generation, we're going to continue to invest in extremely high level.

Speaker Change: <unk> not seen as much regional transmission interest.

In Montana than we have in the whole 20 years I've been with the company.

Brian B. Bird: There's been a tremendous amount of opportunity above and beyond generation. But the interesting thing here, I still think even with what we're doing at Coal Strip, we need to start planning for future investments to help Montana to continue to grow. But this allows us more time, and not only to properly plan, but to pick the right resources on a going forward basis. I think if you think about this company still investing $500 million without necessarily incremental investment in generation, we're going to continue to invest at an extremely high level. Again, primarily what we need to invest to serve our customers and keep the bills at appropriate levels.

Speaker Change: There has to be a tremendous amount of opportunity above and beyond generation, but the interesting thing here I still think even with what we're doing at colstrip, we need to start planning to making future investments to help Montana to continue to grow but this allows us more time and not only to properly plan.

Speaker Change: But to pick the right resources on a going forward basis I think if you think about this company is still investing $500 million without necessarily incremental investment in generation, we're going to continue to invest at extremely high level, but again, primarily what we need to invest to serve our customers and keep the bills at appropriate levels.

Brian Bird: But again, primarily what we need to invest to serve our customers and keep the bills at an appropriate level.

Brian Bird: News. Great. And then maybe just to kind of follow up on the generation piece, you know, you mentioned the transaction allowing for access capacity in the state and that really unlocking some economic opportunity. You know, how specifically does the second call strip transaction influence your timeline for closing the generation capacity deficit in the state. Well, I think we even said with the investor transaction, this certainly helps us to get to the round end of 2029 from a capacity to stand. This certainly takes us into the 2030s, but I think even more importantly, it allows us to have incremental growth in Montana.

Robin Shlock: And then maybe just to kind of follow up on the generation piece, you mentioned the transaction allowing for access capacity in the state and that really unlocking some economic opportunity. But, how specifically does the second coal strip transaction influence your timeline for closing the generation capacity deficit in the state?

Great and then maybe just to kind of follow up on the generation piece, you mentioned the transaction, allowing for access capacity in the state and that really unlocking some economic opportunity.

Speaker Change: How specifically does the second colstrip transaction.

Speaker Change: Influence your timeline for closing the.

Speaker Change: The generation capacity deficit in the state.

Brian B. Bird: Well, I think we even said with the Avista transaction, this certainly helps us to get to the end of 2029 from a capacity standpoint. This certainly takes us into the 2030s, but I think even more importantly, it allows us to have incremental growth in Montana. There have been concerns about, do you have sufficient capacity to serve incremental load? And the answer has been no. Now we can say yes.

Speaker Change: Well I think you even said with the Avista transaction. This certainly helps us to get to around the end of 2029 from a capacity standpoint, certainly takes us into the 2000, <unk>, but I think even more importantly, it allows us to have incremental growth in Montana. There's been concerns about do you have sufficient capacity to serve incremental load and the answer has been.

Brian Bird: There's been concerns about do you have sufficient capacity to serve incremental load, and the answer's been no. Now we can say yes. And so obviously, being able to bring on incremental load in Montana, certainly great for economic development for a state who's done a great job trying to bring more business into the state. And also, but on a longer term basis, we now have a larger portfolio that we ultimately will have to replace with investment on a longer term basis. So we want to grow. I think it's going to be, if we continue to grow, it's going to be better from a cost structure for existing customers.

Speaker Change: Now, we can say, yes, and so obviously being able to bring on incremental load in Montana, certainly great from economic development for state who has done a great job trying to bring more business into the state.

Brian B. Bird: And so obviously, being able to bring on incremental load in Montana is certainly great for economic development for a state that's done a great job trying to bring more business into the state. And also, but on a longer term basis, we now have a larger portfolio that we ultimately will have to replace with investment on a longer term basis. So we want to grow. I think it's going to be, if we can continue to grow, it's going to be better from a cost structure for existing customers. And we should have low cost generation for new customers to come into the state.

Speaker Change: And also but on a longer term basis, we now have a larger portfolio that we ultimately will have to replace with investment on a longer term basis. So we want to grow I think it's going to be if we can tenants continuing to grow it's going to be better from a cost structure for our existing customers and we should have low cost generation for new customers to come in the state.

Robin Shillock: And we should have low cost generation for new customers to come in the state. Great. Thanks.

Operator: Great, thanks. I'll leave it there. Congratulations on a great quarter.

Speaker Change: Great. Thanks, I'll leave it there congrats on a great quarter.

Operator: I'll leave it there. Congrats on the great quarter. Thanks. Thanks, Robin. And you don't have to tell Jeremy that I missed Analysis last name. I'll keep on that.

Operator: Thanks. Thanks Robin. And you don't have to tell Jeremy that I mispronounced his last name. I'll keep it between us.

Robyn: Thanks Robyn.

Jeremy Bryan Tonet: You don't have to tell Jeremy that I mispronounced his last name.

Ami: I'll keep on Ami.

Operator: Thank you.

Robyn: Yes.

Robyn: Thank you.

Jamieson Ward: We're going to take our next call from Jameson Ward. Now at Jeffries. And Jameson. Thank you. The double mute again. I love that phone so that it would be clear. That's my bad name. Thank you. I just wanted to ask, with the Yellowstone County Generating Station coming online, how should we think and knowing that you're, of course, filing the case, how should we think about the timing delay between when you will likely stop AFU DC and when it will enter rates. And specifically because you mentioned before that you might do the 270 day kind of maximum weight period and then implement full rates, is that the latest that we should see is up from the filing of the application or kind of what's the gap there when we're trying to figure out the leg relative to losing AFU DC.

Operator: Thank you. We're going to take our next call from Jamieson Ward, now at Jeffrey's, and Jamieson.

Speaker Change: Take our next call from Jameson Award.

Operator: Now at Jeffrey's, and Jamieson.

Jamieson Alexander Ward: In all at Jefferies.

Jamieson Alexander Ward: And Jameson.

Jamieson Alexander Ward: The double mute again. I love it. I'm on the phone so that it would be clearer. That's my bad there. Hey.

Speaker Change: The double mute again, I love their phones, so that it would be clearer.

Jamieson Alexander Ward: That's my bad there.

Jamieson Alexander Ward: Hey, guys.

Jamieson Alexander Ward: Hey.

Jamieson Alexander Ward: I just wanted to ask, with the Yellowstone County Generating Station coming online, and knowing that you're, of course, filing the case, what should we think about the timing delay? between when you will likely stop AFUDC and when it will enter rates, and specifically, because you mentioned before that you might do the 270-day kind of maximum wait period and then implement full rates. Is that the latest that we should see? Is that from the filing of the application? Or kind of what's the gap there when we're trying to figure out the lag relative to

Speaker Change: I just wanted to ask with.

Yellowstone County, generating station coming online.

Speaker Change: How should we think and knowing that you are of course following the case.

Speaker Change: How should we think about the timing delay.

Speaker Change: When when you will likely stop if you do see and when it will enter rates and specifically because you mentioned before that you might do the 270 day.

Speaker Change: Kind of maximum wait period, and then implement full rates is that the latest that we should see is that from the filing of the application or kind of what's the gap there when we're trying to figure out the lag relative to losing a few D C.

Brian B. Bird: Hey Jamieson, before Crystal answers that question, there's been a lot of changes this quarter for you as well, so I'm very happy to hear from you. Crystal, go ahead.

Crystal Lail: Hey, Jameson, before Crystal answers that question. There's been a lot of changes this quarter for you as well. So we're welcome here from your crystal. Go ahead. But one thing that didn't change, Jameson, is double mute is always a problem, but you're calling yourself a re-recovering Yellowstone. So I'll give you two pieces for that. And one of the things I didn't cover in my comments tonight is too granular because I know you all love to read the hundreds of pages of our filing. Is re-requested a bridge rate. And what that bridge rate does and maybe it clears like a make it is say that there's cost today and our PCAM mechanism that are indeed actually higher than the cost of recovering Yellowstone.

Speaker Change: Hey, Jamie send before Crystal answers that question Theres been a lot of changes this quarter for you as well so we're allowing.

Speaker Change: I'm going to hear from you Chris will go ahead.

Crystal Dawn Lail: But one thing that didn't change, Jamieson, is double mute is always a problem. But your question is, how are we recovering Yellowstone? So I'll give you two pieces of that. And one of the things I didn't cover in my comments to not get too granular, because I know you all love to read the hundreds of pages of our filing, is that we requested a bridge rate. And what that bridge rate does, and maybe as clear as I can make it, is say that there are costs today in our PCAM mechanism that are indeed higher than the cost of recovering Yellowstone.

Jamieson Alexander Ward: But one thing that didn't change Jameson is the Devil is always a problem but.

Crystal: We're cautious copper recovering Yellowstone so I'll give you two pieces to that and one of the things I didn't cover in my comments to not get too granular because I know you all love to read hundreds of pages of our filing is we requested a bridge right.

Crystal: And what that burn rate doesn't maybe of players that can make it as say that theres cost today in our pecan mechanism that are indeed actually higher than the cost of recovering Yellowstone leave asks when we seek interim rates, which we've asked for a October one that the commission also authorized that bridge right, which was satisfied a part of the PJM and data.

Crystal Lail: We've asked when we seek interim rates, which we've asked for by October 1st, that the commission also authorized that bridge rate, which was set aside of part of the PCAM and say that's no under subject to sharing. And would instead cover the cost of that Yellowstone facility till we get to final rate, thus the bridge. And as final rates, obviously, the outcome of the holistic decision and approval of capital and all those things would occur. So your question is, we'll turn off AFUBC, and what will happen with that gap. The bridge rate we expect to cover that.

Crystal Dawn Lail: We've asked when we seek interim rates, which we've asked for by October 1st, that the commission also authorize that bridge rate, which would set aside a part of the PCAM and say that's no longer subject to sharing, and would instead cover the cost of that Yellowstone facility till we get to final rates. That's the bridge. And at final rates, obviously, the outcome of the holistic decision and approval of capital and all of those things would occur.

Speaker Change: I wonder subject to sharing and what is that cover the cost of that Yellowstone facility till we get to final rate that's the bridge.

Speaker Change: And then final rates, obviously, the outcome of the holistic decision and approval of capital and all of those things would occur. So your question is will turn off F. E. D C and what will happen with that gap. The bridge right. We expect to cover that and in my comments I did note that our.

Crystal Dawn Lail: So your question is, we'll turn off AFUDC, and what will happen with that gap, the bridge rate, we expect to cover that. And in my comments, I did note that our, and work with intervenors in the commission on your comment on the 270 days; that is the statutory date. And we noted on the slide there that we would be able to implement final rates. Obviously, the commission had a lot going on with our last case.

Crystal Lail: And in my comments, I did note that our director. Guidance for the year assumes some rate relief recovery, including interim rate relief. And that's certainly a key piece of that. A key point of that is the bridge rate that we've asked for. But from a customer perspective, the thing I would tell you there is even with that, the market prices have come down and that he came for customers would still see somewhat of a reduction from an interim rate perspective. But that interim rate application as filed would allow us to begin to recover the cost of that while we work through the details of the case and work with interveners and the commission. To your comment on the 270 days, that is the statutory date.

Guidance for the year, assuming some rate relief recovery, putting interim rate relief and that's certainly a key piece of that and keep linker that is the bridge right that we've asked for but from a customer perspective. The thing I would tell you. There is even with that the market prices have come down and that PJM for customers would still see somewhat of a reduction from an interim rate perspective, but that.

Speaker Change: Interim rate application as filed would allow us to begin to recover the cost of that while we work through the details of the case and work with Interveners and the commission here.

Speaker Change: Comment on the 270 days that is the statutory data and we noted on the slide there that we would be able to implement final rates. Obviously the commission had a lot going on with our last case. It was a significant case and it took quite some time to adjudicate that even from the distance between which Lee reached a settlement with the key interveners there and final outcomes that we serve.

Crystal Lail: And we noted on the slide there that we would be able to implement final rates. Obviously, the commission had a lot going on with our last case. It was a significant case, and it took quite some time to adjudicate that even from the distance between which we reach a settlement with the key interveners there and final outcome. So we certainly anticipate if we haven't reached the final outcome by that date, that we would implement rates in that 270-day time frame.

Crystal Dawn Lail: It was a significant case, and it took quite some time to adjudicate that, even from the distance between which we reached a settlement with the key intervenors there and the final outcome. So we certainly anticipate if we haven't reached a final outcome by that date.

Speaker Change: We anticipate.

Speaker Change: If we haven't reached the final outcome by that date that we would implement rates in that 270 day timeframe.

Jamieson Ward: Perfect. Thank you very much. I appreciate that. Yeah, I know a comment of lots of changes in the quarter of very quickly.

Jamieson Alexander Ward: Perfect. Thank you very much. I appreciate that. Yeah, I know a comment about lots of changes in the quarter. I'll very quickly throw this as an aside, expecting kid number two in seven or eight days, and then movers pick up our stuff to move us to Houston in about 30. So I could...

Speaker Change: Perfect. Thank you very much I appreciate that.

Operator: [inaudible]

Yeah, and then a comment of lots of changes in the quarter.

Speaker Change: Very quickly services on our side.

Jamieson Ward: Throw this as an aside: expecting kid number two in seven or eight days, and then movers pick up our stops and move us to Houston in about 30. So I couldn't agree more with you on lots going on. Congrats, congrats. Thank you. I appreciate it.

Speaker Change: And number two in seven or eight days, and then movers pick up our stocks move into Houston and about 30. So.

Speaker Change: No.

Speaker Change: I Couldnt agree more with you on what's going on.

Speaker Change: Congrats.

Speaker Change: We're happy to hear that.

Jamieson Alexander Ward: Thank you; I appreciate it. The last question I've got is just relating to the election. With the upcoming changes to the Montana PSC, let's just assume that Jennifer Fielder keeps her seat. So, fine, that leaves two districts turning over. Seems like a bit of a unique situation, since the other two districts' Republican candidates are both state senators, so they're very politically experienced. But more than that, and I would be interested in hearing the thoughts you have here on both of them joining the commission, especially since you've been in front of one of them when he was a previous PSC commissioner from 2005 through 2012.

Speaker Change: Thank you I appreciate it.

Anthony Crowdell: The last question I've got is just relating to the election. The step coming changes to the Montana PSC. Let's just assume that Jennifer Fielder keeps your seat. So find that leads to districts turning over. It seems like a bit of a unique situation since the other two districts' Republican candidates are both state senators, so they're very politically experienced. But more than that, and it would be interesting hearing the thoughts you have here on both of them joining the commission, especially since you've been in front of one of them when he was a previous PSC commissioner from 05 through 2012.

Speaker Change: The last question I've got is.

Speaker Change: Just relating to the election.

Speaker Change: Just the upcoming changes to the Montana PSC.

Speaker Change: Let's just assume that Jennifer filter keeps your seat so that leaves two districts turning over.

Speaker Change: Seemed like a bit of a unique situation since the other two districts Republican candidates are both state senators, so theyre very politically experienced but more than that.

Speaker Change: There would be interested in hearing your thoughts you have here on on both of them joining the commission, especially since you've been in front of one of them when he was.

Speaker Change: Previous PSC Commissioner from <unk> through 2012.

Brian Bird: Yeah, I would say this first of all, I think Commissioner Builders definitely going to be back. She's running on a pose. So that's good news, certainly from a consistency standpoint. So we know we know we'll have three in the same commissioners back to and again, the assuming Republicans win in both districts, two and three. Yes, Commissioner More or Certainly is an experienced commissioner, and we'll be back if he wins. And Jeff Walburn, obviously serving in the Montana legislature, is well versed on issues in the industry. And so we are, regardless of who comes out, having some consistency of three of the five is certainly helpful.

Brian B. Bird: Yeah, I would say this. First of all, I think Commissioner Fielder is definitely going to be back. She's running unopposed, so that's good news, certainly from a consistency standpoint, so we know we'll have three of the same commissioners back again and again, assuming Republicans win in both districts two and three. Yes, Commissioner Mohler is certainly an experienced commissioner and will be back if he wins. And Jeff Welburn, obviously, serving in the Montana legislature is well versed on issues in the industry.

Speaker Change: Yes, I would say is first of all I think commissioner builders definitely going to be back. She is running unopposed. So that's good news certainly from a consistency standpoint.

Speaker Change: So we know we know we'll have three in the same commissioners back to and again, assuming Republicans win in Boston districts, two and three yes Commissioner <unk> certainly is an experienced commissioner and we'll be back if he if he wins and Jack Walburn, obviously, serving and the Montana.

Speaker Change: <unk> is well versed on issues in the industry and so we are regardless of who comes out.

Brian B. Bird: And so, regardless of who comes out, having some consistency in three of the five is certainly helpful. And regardless of who wins, our biggest job is to try to educate. This is because these are tough positions.

Speaker Change: Some consistently consistency of three of the five is certainly helpful and regardless of who wins our biggest job is to try to educate the this is a these are tough positions. These.

Brian Bird: And regardless of who wins, our biggest job is to try to educate. These are tough positions; these commissioners, they got to learn a lot about the energy space in a short period of time. And I think the people have done a really nice job. We just got to make sure the new candidates certainly come up to speed as quickly as they can. They're going to be dealing with a rate review as soon as they sit in their seats. And so, regardless of who wins, we're going to be certainly there to help as best we can to provide any information they need to be successful.

Brian B. Bird: These commissioners are going to learn a lot about the energy space in a short period of time, and I think the people have done a really nice job. We just got to make sure the new candidates certainly come up to speed as quickly as they can. They're going to be dealing with a rate review as soon as they sit in their seats, and so regardless of who wins, we're going to be there to help as best we can to provide any information they need to be successful.

Speaker Change: Commissioners they got to learn a lot about the energy space in a short period of time and I think the people have done a really nice job. We just got to make sure. The new candidates certainly come up to speed as quickly as they can they're going to be dealing with a rate review as soon as they sit in their seats and so regardless of who wins, we're gonna be certainly there to help as best we can to provide.

Speaker Change: Any information they need to be successful.

Anthony Crowdell: District. Understood.

Operator: Okay. That's all I've got. Thank you very much.

Speaker Change: Understood that's all I've got.

Anthony Crowdell: That's all I've got. Thank you very much.

Speaker Change: Thank you very much.

Operator: Good luck in seven days. Thanks, Amitant. Thank you. Thanks, take care.

Operator: Good luck in seven days. Thanks, Jamieson. Thank you.

Speaker Change: Their lack of seven days, thanks to Amazon. Thank you.

Thanks take care.

Alex Mortimer: All right. Our next question in the queue comes from Alex Mortimer at Mozovo. Alex. Hi, good afternoon. Thank you for the time. Good afternoon. Thank you. So you mentioned potential pollution control equipment for a call strip. Can you quantify what those costs might look like just in terms of scale? Yeah, I think the, and again, this is an estimate, but for the full plant, be approximately 400 million. And so we have 55% of the overall complex, thinking on the 200 to 250 million dollar range investment. Understood.

Operator: All right, our next question in the queue comes from Alex Mortimer.

Speaker Change: Alright, our next question in the queue comes from Alex <unk> Alex.

Operator: Alex Mortimer at Mizzou Hall.

Alexander Mortimer: Hi, good afternoon. Thank you for your time.

Alex: Hi, good afternoon. Thank you for the time.

Operator: Good afternoon. Thank you.

Alex: Good afternoon. Thank you.

Alexander Mortimer: So you mentioned potential pollution control equipment for coal strip. Can you quantify what those costs might look like just in terms of scale?

Alex: So you mentioned potential pollution control equipment for Colstrip can you quantify what those costs might look like just in terms of scale.

Brian B. Bird: Yeah, I think the, and again, this is an estimate, but for the full plant, it will be approximately $400 million. And so we have 55% of the overall complex, thinking on the $200 to $250 million range investment.

Speaker Change: Yeah, I think the and again is this is.

Speaker Change: An estimate but for the full plant.

Speaker Change: <unk> be approximately $400 million and so if we have 55% of the overall complex thinking on the $200 million to $250 million range investments.

Alexander Mortimer: Understandable. And maybe one for you, Crystal?

Crystal Dawn Lail: I think another 50 basis point improvement in FFO to debt this quarter. I think you're now about 80 basis points above that stated 14% target. Where do you maybe see this settling? Is there a desire for an additional cushion above that 14% level? Or, I guess, where do you maybe see things leveling out?

Crystal: Understood and then maybe one for you crystal.

Crystal Lail: And then maybe one for you, Crystal. I think another 50 basis point improvement in FFO to debt this quarter. I think you're now about 80 base points above that stated 14% target. Where do you maybe see this settling? Is there a desire for an additional cushion above that 14% level? Or I guess where do you maybe see things leveling out? That's a great question. And here's what I would say broadly about that. I think the events of the last couple of years and what you've seen impact on utility balance sheets from storm impacts and other items. Having a bit of cushion is significant and being able to continue to serve customers and provide liquidity when you need it the most and do that in an affordable manner.

Speaker Change: Another 50 basis point improvement and I have a photo of that this quarter. I think you are now about 80 basis points above that stated 14% target.

Speaker Change: Where do you maybe see this settling as their desire for an additional cushion above that 14% level or I guess, where do you maybe see things leveling out.

Crystal Dawn Lail: Yeah, that's a great question. And here's what I would say broadly about that. I think the events of the last couple of years and what you've seen impacts on utility balance sheets from storm impacts and other items, having a bit of cushion is significant and being able to continue to serve customers and provide liquidity when you need it the most and do that in an affordable manner. So we certainly want to have some cushion.

Speaker Change: Yes, that's a great question and here's what I would say broadly about that I think the events over the last couple of years and what you see an impact on utility balance sheets from storm impact and other items.

Speaker Change: Having a better cushion is significant and being able to continue to serve customers and provide liquidity when you need it the most and do that and affordable manner. So we certainly want to have some cushion so being above 14% is definitely where we want to be we want to be in a position of strength with our balance sheet to be able to do what we need to do.

Crystal Lail: So we certainly want to have some cushion. So being above 14% is definitely where we want to be. We want to be in a position of strength with our balance sheet to be able to do what we need to do. So I won't give you an exact basis point, but I would tell you that we are holding in very quickly on where we want to be and keeping ourselves from cushion to whether adverse events and significantly, again, lots of utilities have seen these. But when you're serving customers in your peak, the volatility in the supply markets, which were attempting to reduce for our customers, have been significant to balance sheets, but also the volatility and what may happen with access to capital markets, etc.

Crystal Dawn Lail: So being above 14% is definitely where we want to be. We want to be in a position of strength with our balance sheet to be able to do what we need to do. So I won't give you an exact basis point, but I would tell you that we are honing in very quickly on where we want to be and keeping ourselves some cushion to weather adverse events. And significantly, again, lots of utilities have seen these, but when you're serving customers and you're at peak, the volatility in the supply markets, which we're attempting to reduce for our customers, has been significant to balance sheets, but also the volatility and what So we feel good about where we are at but also good about making sure we maintain that cushion.

Speaker Change: So I won't give you an exact basis points that I would tell you that.

Speaker Change: We are holding in very quickly on where we want to be and keeping ourselves some cushion to weather adverse events and significantly again lots of utility does he needs, but when you're serving customers in Europe peak the volatility in the supply markets, which were attempting to reduce for our customers have been significant the balance sheet, but also the volatility in.

Speaker Change: And what may happen with access to capital markets et cetera, always having room. There. So we feel good about where we're at.

Crystal Lail: Always having room there. So we feel good about where we're at, but also good about making sure we maintain that cushion. Understood.

Christian: That also got about making sure we maintain that cushion Christian.

Alexander Mortimer: And finally, just directionally, how should we think about, as we look towards, you know, 2025 guidance, the lumpiness of earnings, which I think has been, you know, well discussed over the last couple calls, as you work through regulatory proceedings, etc. How should we think about maybe the glide path of earnings into 2025? Within that, you know, four to six long-term growth rates?

Speaker Change: Understood and then finally, just directionally, how should we think about as we look towards 2025 guidance.

Crystal Lail: And then finally, just directionally, how should we think about, as we look towards 2025 guidance, the lumpiness of earnings? I think has been well discussed over the last couple calls, as you work through regulatory proceedings, etc. How should we think about maybe the glide path of earnings into 2025 within that, you know, four to six long-term growth rate? Well, Alex, you're making me lose bets over here because I said it's too soon to talk 25, and I may have heard from a couple of others on this call that we would like to get the questions.

Speaker Change: The Lumpiness of earnings I think has been well discussed over the last couple of calls.

Christian: You work through regulatory proceedings cetera, how should we think about maybe the glide path of earnings into 2025.

Speaker Change: Within that four to six long term growth rate.

Crystal Dawn Lail: Well, Alex, you're making me lose bets over here because I said it's too soon to talk about 25, and I may have heard from a couple others on this call that they would like to get the question, so here we are. To your point on the lumpiness, one of the things that we alluded to in our rate filings is that we indicated getting back to consistency of delivering on our earnings and being within that four to six is right along the path of regulatory outcomes.

Speaker Change: Well, Alex you're making me lose that's over here because I said, it's too soon to talk 25, and I may have heard from a couple of others on this call that we would likely get the questions. So here we are to your point on the Lumpiness one of the things that we alluded to on our rate filings as.

Crystal Lail: So here we are. At your point on the lumpiness, one of the things that we alluded to in our rate filings is we've indicated getting back to consistency of delivering on our earnings and being within that four to six is right through the path of regulatory outcomes. Your question getting to 2025 guidance, obviously, what we just filed is incredibly critical to that. So we'll update you once we get into, you know, coming out of Q3 here, how those proceedings are advancing and how we're thinking about 2025. But those are certainly critical to being able to continue to deliver in a more consistent manner.

Speaker Change: We've indicated getting back to a consistency of delivering on our earnings and being within that board effects is right for their half of regulatory outcomes here.

Crystal Dawn Lail: Your question getting to 2025 guidance, obviously, what we just filed is incredibly critical to that, so we'll update you once we get into, you know, coming out of Q3 here, how those proceedings are advancing, and how we're thinking about 2025, but those are certainly critical to being able to continue to deliver in a more consistent manner. I will acknowledge that, as a Smith cap, being quite as consistent as maybe some of the larger caps is a little harder, but we're working to reduce the lumpiness. But again, we'll have more updates for you as we can close out Q3 and begin to prosecute these rate cases with our intervenors and commissions giving clarity and visibility into how those are progressing.

Speaker Change: Your question getting to 2025 guidance, obviously, what we just filed is incredibly critical to that so we will update you. Once we get into you know coming out of Q3 here how those proceedings are advancing and how we're thinking about 2025, but those are certainly critical to being able to continue to deliver in a more consistent manner I will acknowledge as is.

Crystal Lail: I will acknowledge as a Smith cap being quite as consistent as maybe some of the large gaps is a little harder, but we're working to reduce the lumpiness. But again, we'll have more updates for you as we can close out Q3 and be in to prosecute these right cases with our interveners and commissions and have some clarity and visibility into how those are progressing. Perfect. Look forward to the update, and congrats on great quarter. Thank you. Thanks, Alex.

Speaker Change: Mid cap being quite as consistent as maybe some of the large caps is a little harder, but we're working to reduce the lumpiness, but again, we'll have more updates for you as we close out Q3 and began to prosecute these rate cases with our intervenors in commissions and how some <unk>.

Speaker Change: Clarity and visibility into how those are progressing.

Operator: Perfect, look forward to the update, and congratulations on a great quarter. Thank you.

Speaker Change: Perfect look forward to the update and congrats on a great quarter.

Speaker Change: Thank you. Thank you thanks, Alex.

Anthony Crowdell: Next in the queue looks like, Anthony. Anthony must have thought you missed the question. We have Anthony Crowdell from Azul. Yeah, hi. He just, I don't know, could you guys hear me? Yeah, sure. Alex had missed one, but maybe he was just smart enough not to ask this. So I'll try to school it out. And it's related to the little cold strip addition again. If I look at the regulatory jurisdiction that you have in Montana, you know, if I look at RRA, I think they rated a second from the bottom or maybe towards the bottom.

Operator: Next in the queue looks like Anthony must have thought you missed a question. We have Anthony Crowdell from Mizzou. Yeah, hi, he just, I don't know, can you guys hear me? Yeah, we sure can, Anthony.

Speaker Change: Next in the queue looks like Anthony Anthony mother must have thought you Mystic question and we have Anthony crowd L from Mizuho.

Anthony Christopher Crowdell: Yeah, Hi, he just I don't know can you guys hear me.

Alex: And as Alex said.

Speaker Change: This one.

Anthony Christopher Crowdell: But maybe he was just smart enough not to ask this, so I'll try to smooth it out. And it's related to the coal strip addition again. If I look at the regulatory jurisdiction that you have in Montana, you know, if I look at RRA, I think they rated a second from the bottom, or maybe towards the bottom. And the thought process of... You seem like you're adding generation that's not going to benefit, like the invested, like your investors, your shareholders, you kind of maybe actually doing the opposite of you're adding additional generation where there could have been a rate-based opportunity in a state that maybe hasn't treated you as well as some of the other states you guys operate in.

Speaker Change: But maybe he was just smart enough not to ask this so I'll try to smooth it out.

Speaker Change: And it's related to the low Colstrip addition, again.

Speaker Change: If I look at the regulatory jurisdiction that you have in Montana, if I look at our our E. I think de rated.

Second from the bottom or or or maybe towards the bottom.

Brian Bird: And the thought process of, you seem like you're adding generation that's not going to benefit, like you invested, like your investors, your shareholders, you kind of maybe actually doing the opposite of you're adding additional generation where there could have been a rate based opportunity in a state that maybe has treated you, not as balanced as some of the other states you guys operate in. And I get, I guess that's the question of just the thought process there that even get more exposure of zero rate base investment for a state with regulation. I think politely, if I use the word challenging, that may be very polite.

Speaker Change: And.

Speaker Change: The thought process of it.

Speaker Change: You seem like you're adding generation that's not.

Speaker Change: Going to benefit.

Speaker Change: Like the invested like your investors your shareholders you kind of may be actually doing the opposite of your adding additional generation.

Speaker Change:

Were there could've been a rate base opportunity.

Speaker Change: As state that maybe has treated you not is <unk>.

Speaker Change: Balanced as some of the other states you guys operate in.

Anthony Christopher Crowdell: And I guess that's the question of just the thought process there, to even get more exposure of zero rate-based investment for a state with regulation. I think politely could, if I use the word challenging, that may be very polite.

Speaker Change: I guess I guess, that's the question of just the thought process there to even get more exposure.

Speaker Change: Zero rate base investment.

Speaker Change: For our state with regulation.

Speaker Change: Politely, if I use the word challenging that may be very bright.

Brian B. Bird: I would say this. First of all, I'm going to push back, you know, maybe RRAs are a little sticky like ROEs are.

Brian Bird: I would say that's, first of all, I'm going to push back; you know, maybe RRA is a little sticky, like ROEs are. I mean, I think you look at recent outcomes out of the Montana Commission; I think they've been very supportive with what we're trying to do. And I think there's an alignment between what we're trying to do from a reliability and affordability standpoint with what the Commission's trying to accomplish. I'd also say, in my 20 years here, when people make go out of the way to bash the Montana Commission, it's the same commission that approved the hydro resources.

Speaker Change: I would say this first of all I'm going to push back you know maybe are as well.

Speaker Change: So sticky like Roes are I mean I think.

Brian B. Bird: I mean, when you look at recent outcomes out of the Montana Commission, I think they've been very supportive of what we're trying to do. And I think there's an alignment between what we're trying to do from a reliability and affordability standpoint with what the commission is trying to accomplish. I'd also say in my 20 years here, when people may go out of their way to bash the Montana Commission, it's the same commission that approved the hydro resource.

Speaker Change #100: You look at recent outcomes out of the Montana Commission I think they've been very supportive with what we're trying to do and I think there's an alignment between what we're trying to do from a reliability and affordability standpoint with what the commission is trying to accomplish I'd also say in my 20 years here when people May go out of the way to Bash The Montana Commission.

Speaker Change #101: <unk>, it's the same commission that approved the hydro resources.

Brian B. Bird: And we, and from our perspective, if you look at the history, there have been some very good outcomes from that commission. I think what we saw in terms of, and I've said this on a previous call, the support we've had from the commission, the legislature, and the governor, we think we're doing the right things for customers, and at the end of the day, that's going to be the right thing for you guys as shareholders.

Brian Bird: And we, and from our perspective, if you look at the history, there's been some very good outcomes from that commission. I think what we saw in terms of, and I've said this on a previous call support we had, the Commission, the Legislature and the Governor, we think we're doing the right things for customers. And at the end of the day, that's going to be the right thing for you guys as shareholders. I think another thing to think about the amount of T&D investment we had at this company is extremely high. And, like I said earlier on this call, we think we're going to need support to invest in more transmission.

Speaker Change #101: And from our perspective, if you look at the history. There's been some very good outcomes from that Commission I think what we saw in terms of and I've said this on a previous call support we have commissioned the legislature and the Governor we think we're doing the right things for customers and at the end of the day, that's going to be the right thing for you guys as shareholders.

Brian B. Bird: I think another thing to think about is the amount of T&D investment we have at this company is extremely high. And like I said earlier on this call, we think we're going to need support to invest in more transmission, and if that alignment stays in place, guess who's going to support that investment in transmission? And so I feel very, very good about the environment we're operating in right now, regardless of what our RAs say. And again, I think if we continue to do the best thing for our customers, I think you guys are going to be rewarded as shareholders. So great it is.

Speaker Change #101: I think the other thing to think about the amount of T&D investment. We have at this company is extremely high and like I said earlier on this call. We think we're going to need support and invest in more transmission and if that alignment stays in place guess who's going to support that investment in transmission and so I feel very very good.

Operator: So, great. Thanks for taking the follow-up. Thank you, Anthony. All right, and with that, we've exhausted our time.

Brian Bird: And if that alignment stays in place, guess who's going to support that investment in transmission? And so I do a very, very good job about the environment we're operating in right now, regardless of what RRA says. And again, I think if we continue to do the best thing for our customers, I think you guys are going to be rewarded as shareholders, too.

Speaker Change #101: The environment, we're operating in right now regardless of what our our Acs and again I think if we continue to do the best thing for our customers.

Speaker Change #101: I think you guys are gonna be rewarded as shareholders too.

Brian Bird: So great. Thanks for taking the follow up. Thank you, Anthony. All right. And with that, we've exhausted our queue, Brian. Hey, I just, and again, this is the strategic moment. I think I actually appreciate that question, Anthony, and all seriousness. And when I say anything with Anthony, it's hard to always say, in all seriousness, it's always fun to chat with Anthony.

Speaker Change #102: Oh, great. Thanks for taking the follow up.

Speaker Change #103: Thanks Anthony.

Speaker Change #104: Alright, and what that we've exhausted our Q Brian.

Operator: Hey, I just, and again, this is a strategic moment. I think I actually appreciate that question, Anthony, in all seriousness. And when I say anything with Anthony, it's hard to always say in all seriousness. It's always fun to chat with you, Anthony.

Speaker Change #105: Hey, I, just and again this is the strategic moment I think I actually appreciate that question Anthony.

Speaker Change #106: In all seriousness and when I say anything with Anthony it's hard to always say in all seriousness.

Speaker Change #106: It's always fun to chat with you Anthony I think this is a critical time for this company.

Brian Bird: I think this is a critical time for this company. There'll be; there can be people disappointed from the shareholder perspective. There could be people disappointed from the environmental perspective. That's not lost in us here at Northwestern in terms of what we're doing. But again, we alone have an obligation to serve our customers. And on the coldest days of the year and the hottest days of the year, we have to serve them. And at this low cost, we are doing the right thing for them, which allows enough headroom for us to do other things that we need to do to serve those customers.

Brian B. Bird: I think this is a critical time for this company. There could be people disappointed from the shareholder perspective. There could be people disappointed from the environmental perspective.

Speaker Change #107: There'll be there can be people disappointed from the shareholder perspective, there could be people disappointed from an environmental perspective, that's not lost on us here at northwestern in terms of what we're doing but again, we alone have an obligation to serve our customers and on the coldest days of the year and the hottest days of the year, we have to serve them and at this.

Brian B. Bird: That's not lost on us here at Northwestern in terms of what we're doing. But again, we alone have an obligation to serve our customers. And on the coldest days of the year and the hottest days of the year, we have to serve them. And at this low cost, we are doing the right thing for them, which allows enough room for us to do other things that we need to do to serve those customers. And with that, I want to thank you all for your participation today. Take care.

Speaker Change #107: Low cost we're doing the right thing for them, which allows enough headroom for us to do other things that we need to do to serve those customers and with that I want to thank you all for your participation today take care.

Brian Bird: And with that, I want to thank you all for your participation today. Take care. Good Bye!

Speaker Change #107: Okay.

Speaker Change #107: Goodbye.