Q3 2024 Duke Energy Corp Earnings Call
Operator today following today's presentation, there will be a Q&A session. You May Register for a question by pressing star followed by one on your telephone keypad I will now hand, you over to your host today are being masked singer Vice President of Investor Relations at Duke Energy Abby. Please go ahead.
Okay.
[inaudible]
[music].
Abby: Thank you Felicia and good morning, everyone welcome to Duke Energy's third quarter 2024 earnings review and business update.
Leading our call today is Lynn good chair and CEO, along with Terry Sudairis, President and Brian to buoy CFO.
Today's discussion will include the use of non-GAAP financial measures and forward looking information.
Yeah.
Speaker Change: Hello, everyone and welcome to the Duke Energy third quarter 2024 earnings call. My name is Felicia and I'll be your operator today.
Actual results may differ from forward looking statements due to factors disclosed in today's materials and in Duke Energy's SEC filings.
Speaker Change: During today's presentation there'll be a Q&A session. You May Register for a question by pressing star followed by one on your telephone keypad.
Abby: The appendix of today's presentation includes supplemental information along with a reconciliation of non-GAAP financial measures.
Speaker Change: I'll now hand, you over to your host today, Mark Zinger, Vice President of Investor Relations at Duke Energy Abby. Please go ahead.
Lynn: With that let me turn the call over to Lynn.
Lynn Good: Thank you and good morning, everyone.
Lynn Good: Before I get into the third quarter results I wanted to take a moment and recognize the extraordinary hurricane season that we've responded to this year, we've had three consecutive hurricane.
Thank you Felicia and good morning, everyone.
Welcome to Duke Energy's third quarter, 2024 earnings review and business update.
Speaker Change: Leading our call today is Lynn good chair and CEO, along with Terry Sudairis, President and Brian to buoy CFO.
Speaker Change: Helene and Milton.
Speaker Change: Egypt was devastated parts of our communities and my heart goes out to all of those who were directly impacted by these catastrophic storms, especially those who lost loved ones homes or businesses.
Today's discussion will include the use of non-GAAP financial measures and forward looking information.
Speaker Change: Harry will provide further details on our restoration efforts in a moment and Brian will share cost estimates on plans for cost recovery later in the call but.
<unk> results may differ from forward looking statements due to factors disclosed in today's materials and in Duke Energy's SEC filings.
Speaker Change: But I want to first commend our employees and utility partners, many of whom were personally affected by the devastation for their remarkable response, our field teams rose to the challenge working around the clock to restore outages as safely and quickly as possible and our customer care Representatives corporate responders community relations managers in state <unk>.
The appendix of today's presentation includes supplemental information along with the reconciliation of non-GAAP financial measures.
Lynn: With that let me turn the call over to Lynn.
Speaker Change: Thank you and good morning, everyone.
Before I get into the third quarter results I wanted to take a moment and recognize the extraordinary hurricane season that we've responded to this year, we've had three consecutive hurricane.
Speaker Change: Other than offices worked tirelessly to keep customers and policymakers informed.
Speaker Change: I'd also like to thank our state and local leaders, including Governor Cooper Governors of Santos and Governor at Masters and officials and our emergency operation centers for their partnership and coordination I could not be more proud of our teammates and our partners for their unwavering commitment to our customers and communities.
Helene and Milton.
Egypt was devastated parts of our communities and my heart goes out to all those who were directly impacted by these catastrophic storms, especially those who lost loved ones homes or businesses.
Harry will provide further details on our restoration efforts in a moment and Brian will share cost estimates and plans for cost recovery later in the call but.
Speaker Change: It is important to note that our regulators and policymakers recognize the extraordinary efforts of our company responding to these events and the feedback we have received has been overwhelmingly positive.
But I want to first commend our employees and utility partners, many of whom were personally affected by the devastation for their remarkable response, our field teams rose to the challenge working around the clock to restore outages as safely and quickly as possible and our customer care Representatives corporate responders community relations managers in the state.
Speaker Change: We recognize that our work is not done on it will take time for some of our communities to get back on their feet and will be with them every step of the way.
Speaker Change: Turning to quarterly results on slide five today, we announced adjusted earnings per share of $1 62 for the third quarter compared to $1 94 last year.
<unk> offices worked tirelessly to keep customers and policymakers informed.
Speaker Change: Ryan will discuss results in more detail, but I wanted to highlight a few things influencing those comparisons as you know 2023 was impacted by historically weak weather early in the year and mitigation in the second half of the year significant mitigation efforts positively impacted third quarter 2023 results.
I'd also like to thank our state and local leaders, including Governor Cooper Governors of Santos and Governor at Masters and officials and our emergency operation centers for their partnership and coordination I could not be more proud of our teammates and our partners for their unwavering commitment to our customers and communities.
It's important to note that our regulators and policymakers recognize the extraordinary efforts of our company responding to these events and the feedback we have received has been overwhelmingly positive.
Speaker Change: Third quarter of 2024 includes the full impact of Hurricane Debbie and the mobilization of resources for Hurricane Helene elite and Milton will impact the fourth quarter and for both storms were working with preliminary cost estimates, which we will finalize by year end.
We recognize that our work is not done on it will take time for some of our communities to get back on their feet and will be with them every step of the way.
Speaker Change: Hurricane costs are largely deferred or capitalized. However, there are a few exceptions and there's no recovery mechanism for lost revenues.
Turning to quarterly results on slide five today, we announced adjusted earnings per share of $1 62 for the third quarter compared to $1 94 last year.
Speaker Change: As a result and based on what we know today, we are reaffirming our 2024 guidance range trending to the lower half we are actively pursuing mitigation measures some of which will naturally occur because of the resources devoted to the storms and others, we will trigger through controlled spending through the balance of the year and we will look for every opportunity.
Speaker Change: Ryan will discuss results in more detail, but I wanted to highlight a few things influencing those comparisons as you know 2023 was impacted by historically weak weather early in the year and mitigation in the second half of the year significant mitigation efforts positively impacted third quarter 2023 results.
Speaker Change: Without compromising our commitment to safety and to our customers.
Third quarter of 2024 includes the full impact of Hurricane Debbie and the mobilization of resources for Hurricane and believe our latest Milton will impact the fourth quarter and for both storms were working with preliminary cost estimates, which we will finalize by year end.
Speaker Change: As we look ahead to 2025 and beyond we have strong momentum driven by our track record of constructive regulatory outcomes, including a recent IRB approvals in the Carolinas.
Speaker Change: As well as our robust growth in our attractive jurisdictions. These.
Speaker Change: These tail wins give us confidence in our long term outlook and we are reaffirming our 5% to 7% EPS growth rate through 2028 off the midpoint of our 2024 range.
Hurricane costs are largely deferred or capitalized. However, there are a few exceptions and there's no recovery mechanism for lost revenues.
As a result and based on what we know today, we are reaffirming our 2024 guidance range trending to the lower half we are actively pursuing mitigation measures some of which will naturally occur because of the resources devoted to the storms and others, we will trigger through controlled spending through the balance of the year and we will look for every opportunity.
Speaker Change: And with that I'll hand, the call over to Kerry.
Kerry: Thank you Lynn.
Kerry: Let me begin on slide six with our response to the historic storm season, we faced over the last few months the devastation in parts of our service territories, including my hometown of Asheville, North Carolina was unlike anything we've experienced before over.
Without compromising our commitment to safety and to our customers.
Kerry: The three hurricanes, we assembled more than 20000 resources from across the U S and Canada and restored approximately $5 5 million outages and some of the harshest conditions.
As we look ahead to 2025 and beyond we have strong momentum driven by our track record of constructive regulatory outcomes, including a recent IRB approvals in the Carolinas.
Kerry: In August Hurricane Debbie <unk> service territories near the Big Bend region of Florida, as a category one storm.
As well as our robust growth in our attractive jurisdictions. These.
Kerry: The system, then made its way north through our Carolinas service territories, bringing high winds heavy rain and causing outages for 700000 customers, we were prepared and restored more than 90% of our customers within 24 hours.
These tail wins give us confidence in our long term outlook and we are reaffirming our 5% to 7% EPS growth rate through 2028 off the midpoint of our 2024 range.
Kerry: And with that I'll hand, the call over to Kerry.
Speaker Change: Thank you Lynn let me begin on slide six with our response to the historic storm season, we faced over the last few months the devastation in parts of our service territories, including my hometown of Asheville, North Carolina was unlike anything we've experienced before.
Kerry: One month later Helene a category four hurricane made landfall on September 26, and impacted every one of our service territories from Florida to Indiana.
Kerry: Storm brought record breaking rainfall and flooding created land slides and washed out roads and towns and total Helene led to approximately $3 5 million outages with the hardest hit areas of Western North Carolina, Upstate South Carolina, and the barrier islands of Florida, requiring significant infrastructure rebuild.
Over the three hurricanes, we assembled more than 20000 resources from across the U S and Canada and restored approximately $5 5 million outages and some of the harshest conditions.
In August Hurricane Debbie entered our service territories near the Big Bend region of Florida as a category one storm. The system then made its way north through our Carolinas service territories, bringing high winds heavy rain and causing outages for 700000 customers, we were prepared and restored more than 90% of our customers.
Kerry: Less than two weeks after Helene Hurricane Milton our category three hurricane made landfall near Sarasota, Florida.
Kerry: The storm affected the majority of our customers in the state and led to over 1 million outages.
Kerry: Petersburg in Tampa Bay areas experienced the worst of the storm with rainfall of up to 16 inches and extensive wind damage. We restored nearly 600000 customers in 48 hours and 95% of all customers within four days.
Within 24 hours.
One month later Helene a category four hurricane made landfall on September 26, and impacted every one of our service territories from Florida to Indiana.
The storm brought record breaking rainfall and flooding created land slides and washed out roads and towns and total Helene led to approximately $3 5 million outages was the hardest hit areas of Western North Carolina, upstate pharma and the barrier islands of Florida, requiring significant infrastructure rebuild.
Kerry: Our success in responding to storms of this magnitude is due to our strategic preparation ahead of the storms near constant communication with customers and stakeholders and most importantly, the tireless work of our employees and utility partners. Each of our 27000, Duke energy employees has a storm roll and the response effort.
Less than two weeks after Helene Hurricane Milton our category three hurricane made landfall near Sarasota, Florida. The storm affected the majority of our customers in the state and led to over 1 million outages.
Kerry: Is truly all hands on deck.
Kerry: I want to specifically recognize those on the front lines, our crews who worked night and day to restore power no matter how hard.
Kerry: For example to Duke energy line workers hike through miles of difficult terrain to restore power to the Asheville Veterans Hospital follow in Hawaii.
Kerry: And this is just one.
Kerry: Aerobic example of hundreds throughout our response.
Kerry: Our team's dedication and commitment along with close coordination with local state and federal agencies allowed us to make progress faster than we expected.
Kerry: Another key to our successful response was the grid hardening investments we've deployed across the system.
Kerry: Last year alone, we invested more than $4 billion to hide harden, our and modernize the grid.
Kerry: This included targeted underground ing poll upgrades to steel and concrete in coastal areas and self healing technology. These investments helped avoid nearly 550000 customer outages and saving 7 million hours of total outage time across all three storms.
Kerry: Going forward, we will continue to invest in these critical infrastructure assets with grid investments accounting for half of our five year 73 billion capital plan.
Kerry: Turning to slide seven I will share progress on our near and long term strategic priorities in the Carolinas, we were pleased to receive constructive approvals on our Carolinas resource plan earlier. This month, the North Carolina Utilities Commission issued an order November 1st accepting our settlement with public staff and other parties and it's <unk>.
Kerry: <unk> and on Monday, The public Service Commission of South Carolina issued a directive of proving our IRB and recommended portfolio. We expect an order by November 26.
Kerry: These timely commission approvals allow us to advance our near term investments, while maintaining our share commitment to preserving reliability and affordability as we meet our state's growing demand for power.
Kerry: In Indiana last week, we filed an updated RFP after an extensive stakeholder engagement process. Our preferred scenario was designed to balance reliability of service and customer affordability plans for natural gas assets renewables and battery storage also add diversity to our generation resources in the state.
Kerry: As in all jurisdictions, there will be a robust review of all planned resource additions.
Kerry: We expect to file a certificate of public convenience and necessity for new and expanded gas generation at Cayuga station in early 2025.
Kerry: Shifting to Florida in August the commission approved our settlement.
Kerry: Agreement with unanimous support the three year multiyear rate plan allows for timely recovery of grid solar and battery investments new rates will be effective in January.
Kerry: We also reached a comprehensive settlement and our Piedmont natural gas North Carolina rate case in September resolving all matters in the proceeding investments will focus on federal safety regulations, enhancing the customer experience and providing safe reliable natural gas service, we expect an order in January of 2025.
Kerry: With these outcomes, we've settled or received approval for approximately $80 billion of rate base investments across eight rate cases since the start of 2023, we have multiyear rate plans in place and our largest jurisdictions through the end of 2026, which smooth rate impacts to customers.
Kerry: And provide line of sight to growth.
Kerry: These outcomes support essential critical infrastructure investments acknowledged the rising cost of capital through higher Roe's and allow us to meet our customers' demands for affordable reliable and increasingly clean energy now and into the future.
Speaker Change: With that let me turn the call over to Brian.
Brian: Thanks, Harry and good morning, everyone as.
Brian: As shown on slide eight our third quarter reported and adjusted earnings per share were $1 60, and $1 62, respectively.
Kerry: This compares to reported and adjusted earnings per share of $1 59, and $1 94 last year.
Kerry: Within the segments electric utilities, <unk> infrastructure was down nine cents.
Kerry: O&M was higher in the quarter largely due to unplanned hurricane restoration costs from Debbie and Helene.
Kerry: Results were also impacted by lost revenue from storm related outages and evacuations.
Kerry: As expected growth from rate increases in riders were partially offset by higher depreciation and interest expense.
Kerry: Moving to gas utilities and infrastructure results were down <unk> <unk> compared to last year.
Kerry: Mainly due to higher interest expense and depreciation on a growing asset base.
Kerry: And finally, the other segment was down 19.
Kerry: Primarily due to planned to our planned higher effective tax rate, which reflects tax efficiency efforts realized in 2023 or 2024 effective tax rate is tracking in line with our full year guidance of 12% to 14%.
Kerry: Turning to storms are preliminary total cost estimate for the three hurricanes between two four to $2 9 billion for the year and.
Kerry: And we recognized approximately $750 million in the third quarter.
Kerry: Most of these costs will either be deferred for future recovery or related capital projects to rebuild portions of the system.
Kerry: We are advancing cost recovery strategies to establish mechanisms and have a long track record of constructive outcomes.
Kerry: We're targeting rider recovery in Florida, beginning in early 2025, and receipt of securitization proceeds in the Carolinas by the end of next year.
Kerry: Looking ahead to the remainder of 2024, we expect fourth quarter adjusted EPS to be higher than last year due to growth from rate increases in the electric and gas segments and higher sales volumes.
Speaker Change: And as Lynn mentioned, we have cost agility initiatives underway to reduce spending which will drive O&M lower in the fourth quarter compared to last year.
Kerry: We've outlined our fourth quarter drivers in the appendix of the presentation.
Kerry: With these drivers in mind, we are reaffirming our 2024 guidance range of 585% to 610.
Kerry: Based on what we know today, we are trending to the lower half of the range, primarily due to storm impacts, including restoration costs and loss revenues from record customer outages.
Kerry: Moving to slide nine.
Kerry: Third quarter weather normal volumes increased one 1% versus last year, driven by strong commercial volumes and residential customer growth.
Kerry: In the Carolinas, we've added approximately 75000 residential customers year to date, roughly 10000 more than the same period last year.
Kerry: And in Florida, We've added nearly 30000 residential customers also outpacing last year.
Kerry: We continue to see robust economic development activity and in the past month have signed letter agreements for two gigawatts of data centers.
Kerry: These agreements are emblematic of conversations we are having with large customers all around our service territories and represent continued advancement of projects in our pipeline.
Kerry: As a result, we've increased the high end of our 2028 economic development forecast to up to 20000 gigawatt hours of incremental load.
Kerry: This represents a 2000 gigawatt hour increase since our second quarter update.
Kerry: As a reminder, we take a risk adjusted approach as we evaluate which economic development opportunities to include in our forecast.
Kerry: In the near term, we continue to see a slower rebound in certain industrial sectors.
Kerry: We are in frequent dialogue with our largest customers and they continue to signal expectations for a recovery, but the timing has shifted into 2025.
Kerry: Additionally, as with any extreme weather period third quarter weather normal volumes likely reflects some impact from the major storms.
Kerry: Overall, we're seeing steady improvement in our rolling 12 month volumes and are trending toward our 2020 for load growth target of 2%.
Kerry: And over the long term, we see load growth at the top end of our one 5% to 2% CAGR through 2028 with annual load growth accelerating in 2027, and 2028 as large economic development projects come online.
Kerry: Turning to slide 10, we have provided key growth drivers for 2025.
Kerry: We've executed an active regulatory calendar over the past two years that has yielded constructive outcomes and positioned us well as we head into next year.
Kerry: Beginning with the electric segment in Florida, we will implement the new multi year rate plan with an updated 10, 3% ROE in January.
Kerry: In the Carolinas, we will implement the second year of the North Carolina multiyear rate plans and see a full year impact from the <unk> South Carolina rate case.
Kerry: And in the Midwest, We expect the Indiana rate case to be effective in March.
Kerry: Finally, we will see retail sales growth from economic development and population migration. In addition to increases in rider revenues.
Kerry: And the gas segment, we will see growth from Pete from the Piedmont, North Carolina rate case integrity management investments and customer additions.
Kerry: We will provide 2025 earnings guidance in February along with updated load growth expectations, and our refresh capital and financing plans.
Kerry: As we signaled we expect our capital plan to increase as we move further into the energy transition.
Kerry: We also expect capital to increase in the near term as a result of a higher pace of customer additions and refresh cost estimates for generation investments that ramp up in the remainder of the decade.
Kerry: We are well positioned for the opportunities presented by this unprecedented demand growth and we will take a balanced approach to funding the incremental capital supporting our growth rate and balance sheet strength.
Kerry: Moving to slide 11.
Kerry: We've made significant progress on credit supportive initiatives the constructive regulatory outcomes, we have achieved with increasing ROE and timely recovery of investments have driven considerable improvement in our operating cash flow.
Kerry: And in October we efficiently monetize nearly $200 million of energy tax credits that will benefit customers over time.
Kerry: We expect additional transactions in the fourth quarter.
Kerry: We've collected over $3 billion of deferred Gil since 2023 and are on track to be at a normal level by year end.
Kerry: We've also completed over 80% of our planned 500 million equity issuances through the drip and ATM programs, having priced $400 million year to date.
We are well positioned for the opportunities presented by this unprecedented demand growth and we will take a balanced approach to funding the incremental capital supporting our growth rate and balance sheet strength.
Kerry: As I mentioned earlier, we will pursue storm cost recovery through established mechanisms in our states, including securitization in the Carolinas and our storm rider in Florida, we.
Moving to slide 11.
We've made significant progress on credit supportive initiatives the constructive regulatory outcomes, we have achieved with increasing ROE and timely recovery of investments have driven considerable improvement in our operating cash flow.
Kerry: We expect a temporary credit impact in 2024 and are targeting 14% <unk> to debt in 2025 100 basis points above our Moody's downgrade threshold.
Kerry: And reports issued in October both Moody's and S&P concurred that the impacts from the storm will not have any long term credit implications.
Speaker Change: And in October we efficiently monetize nearly $200 million of energy tax credits that will benefit customers over time.
Kerry: As we demonstrated over many years, our commitment to our current credit ratings and our strong balance sheet will continue to be a top priority as we execute our growth objectives.
Speaker Change: We expect additional transactions in the fourth quarter.
Speaker Change: We've collected over 3 billion of deferred Gil since 2023 and are on track to be at a normal level by year end.
Kerry: Turning to slide 12, we operating constructive growing jurisdictions and the fundamentals of our business remains strong.
Speaker Change: We've also completed over 80% of our planned 500 million equity issuances through the drip and ATM programs, having price $400 million year to date.
Kerry: Our track record of regulatory execution has us well positioned to achieve our long term, 5% to 7% growth target through 2028.
As I mentioned earlier, we will pursue storm cost recovery through established mechanisms in our states, including securitization in the Carolinas and our storm rider in Florida.
Kerry: Which combined with our attractive dividend yield <unk>.
Kerry: Provide a compelling risk adjusted return for shareholders.
Speaker Change: We expect a temporary credit impact in 2024 and are targeting 14% <unk> to debt in 2025 100 basis points above our Moody's downgrade threshold.
Speaker Change: With that we will open the line for your questions.
Kerry: Yeah.
Speaker Change: Thank you if you'd like to ask a question. Please press star followed by one on your telephone keypad now.
Speaker Change: And reports issued in October both Moody's and S&P concurred that the impacts from the storm will not have any long term credit implications.
Speaker Change: The first question comes from Shar <unk> from Guggenheim Partners. Please go ahead. Your line is now open.
Speaker Change: As we demonstrated over many years, our commitment to our current credit ratings and our strong balance sheet will continue to be a top priority as we execute our growth objectives.
Speaker Change: Hey, guys good morning.
Turning to slide 12, we operating constructive growing jurisdictions and the fundamentals of our business remains strong.
Speaker Change: Good morning.
Speaker Change: Good morning morning.
Speaker Change: Let me just start on overall credit.
Our track record of regulatory execution has us well positioned to achieve our long term, 5% to 7% growth target through 2028.
Speaker Change: Post storms you guys are still I guess above your downgrade thresholds for 25, where are you right now and what is the <unk> impact from the storms and then on the tax credit monetization side. It's obviously a key source of <unk> for you you guys have guided to a monetization figure this year around $3 million to $500 million. Thank you Brett.
Combined with our attractive dividend yield provides.
Provide a compelling risk adjusted return for shareholders.
Speaker Change: With that we will open the line for your questions.
Yes.
Speaker Change: Thank you if you'd like to ask a question. Please press star followed by one on your telephone keypad now.
Speaker Change: And is about to do you expect to hit the range and we're within the range as the market kind of slower to develop so just an overall credit question would be great. Thanks.
Speaker Change: Brian why don't you take that certainly good morning, Shar. So on the credit I mentioned that the storm storm costs are going to temporarily impact our credit and 2024 and as we recover these costs through established mechanisms and 25 that will be resolved and.
Speaker Change: The first question comes from Shar <unk> from Guggenheim Partners. Please go ahead. Your line is now open.
Speaker Change: Hey, guys good morning.
Speaker Change: Good morning.
Speaker Change: Good morning morning.
Speaker Change: Just let me just start on overall credit.
Speaker Change: As we think about where we're tracking on 2024 I would view it in the low in the high <unk> is where we plan on landing.
Speaker Change: Post storms you guys are still I guess above your downgrade thresholds for 25, where are you right now and what is the <unk> impact from the storms and then on the tax credit monetization side. It's obviously a key source of <unk> for you you guys have guided to a monetization figure this year around $3 to $500 million. Thank you Brett.
Speaker Change: And that has some of the financing impacts from $2 $5 billion of storm cost that we expect that we incurred in 2024.
Speaker Change: On the tax credit monetization, we completed $200 million, so far and we have.
Speaker Change: And is about to do you expect to hit the range and we're within the range as the market kind of slower to develop so just an overall credit question would be great. Thanks.
Speaker Change: Contracts in place that we plan on closing in the next month to get to the.
Speaker Change: Top half of that range that we signaled earlier this year. So I'd say, we're tracking right in line with our expectations and really all of the credit positive.
Brian why don't you take that certainly good morning, Shar. So on the credit I mentioned that the storm storm costs theyre going to temporarily impact our credit and 2024 and as we recover these costs through established mechanisms and 25 that will be resolved and.
Speaker Change: Initiatives that we had underway rate cases going to into effect fuel recovery monetizing tax credits all of those are tracking at or above our targets for the year. So we feel really good about where we stand on credit and Thats why we have a lot of confidence in our 2025 credit outlook.
As we think about where we're tracking on 2024 I would view it in the low in the high <unk> is where we plan on landing.
Speaker Change: Sure the only thing I forgot if hybrids and of course then in carpet.
Speaker Change: And that has some of the financing impacts from $2 $5 billion of storm cost that we expect that we incurred in 2024.
Speaker Change: Yes, I was just going to say, we've all startling conversation initially yes as you would expect we've been in conversation with the agencies and they are completely comfortable with the plan. We have demonstrated successful in collecting firm cost in both Florida and the Carolinas. So as Brian said, we are on track with every element and we will execute as you would expect.
Speaker Change: On the tax credit monetization, we completed $200 million, so far and we have.
Contracts in place that we plan on closing in the next month to get to the <unk>.
Speaker Change: Top half of that range that we signaled earlier this year. So I'd say, we're tracking right in line with our expectations and really all of the credit positive.
Speaker Change: That's it.
Speaker Change: Yes.
Speaker Change: Got it.
Speaker Change: Brian It's the storms didn't happen where would your metrics be versus the the high 13% range you are now.
Speaker Change: earlier this year. So I'd say we're tracking right in line with their expectations and really all the credit positive initiatives that we had underway, rate cases going into effect, fuel recovery, monetizing tax credits, all those are tracking at or above our targets for the year. So we feel really good about where we stand on credit and that's why we have a lot of confidence in our 2025 credit outlook.
Speaker Change: Initiatives that we had underway rate cases going to them and to affect fuel recovery monetizing tax credits all of those are tracking at or above our targets for the year. So we feel really good about where we stand on credit and Thats why we have a lot of confidence in our 2025 credit outlook.
Speaker Change: Yes storms didn't happen we'd be at 14 14 plus.
Speaker Change: Okay.
Speaker Change: And then I know, obviously, we're heading into the typical bigger update on the year end call, but just want to get a sense on sort of a load environment. I mean, you guys are still running the 152% figure, which doesn't really jive with what's been going on around the country. So you know a lot of your peers have jumped ahead and revise our load growth figures. They are quantifying the impact.
Speaker Change: Sure the only thing I forgot if I put some sort of spin in closet.
Speaker Change: Oh, Yes, I was just going to say, we follow startling conversation initially, yes as you would.
We've been in conversation with the agencies and they are completely comfortable with the plan. We have demonstrated successful in collecting firm cost in both Florida and the Carolinas. So as Brian said, we are on track with every element and we will execute as you would expect.
Speaker Change: And it's actually hitting their numbers.
Speaker Change: You did slightly as you highlighted uptick the economic development figures I guess, maybe just a little bit of that from a trend perspective, what we should expect from Duke are you seeing similar trends as what we're seeing around the jurisdictions and do you expect it to potentially be accretive to your numbers. Thanks.
Yes.
Speaker Change: Got it.
Ryan it's the storms didn't happen where would your metrics be versus the high 13% range you are now.
Speaker Change: So I think it's a great question and one we've.
Speaker Change: Yes storms didn't happen we'd be at 14 14 plus.
Speaker Change: We've kept our CAGR of one 5% to 2% long term on load growth.
Okay.
Speaker Change: Signaling returning to the top end of that range and we'll update it in February and we are trending at the top end and we expect that range to move as weak as we look to next year, a sharp because the economic development opportunities are not slowing down and they are very sizable we mentioned.
Speaker Change: I know obviously, we're heading into the typical bigger update on the year end call, but just wanted to get a sense on sort of the load environment. I mean, you guys are still running the one and five 2% figure, which doesn't really jive with what's been going on around the country. So a lot of your peers have jumped ahead and revise their load growth figures there quantifying the impacts in it.
Speaker Change: You mentioned the two Gigawatts signed.
Speaker Change: In this quarter.
Actually hitting their numbers.
Speaker Change: Thats just an example of many conversations that are going on that shore up our pipeline and expand it and so you should expect the load growth.
Speaker Change: You did slightly as you highlighted uptick the economic development figures I guess, maybe just a little bit of that from a trend perspective, what we should expect from Duke are you seeing similar trends as what we're seeing around the jurisdictions and do you expect it to potentially be accretive to your numbers. Thanks.
Speaker Change: As we roll the plan forward and we will get bring that up in February with a fulsome update.
Speaker Change: Im sorry Im sorry.
Speaker Change: Alright.
Speaker Change: Okay.
Speaker Change: So I think it's a great question and one we've.
Speaker Change: Yes.
Speaker Change: We talk CAGR.
Speaker Change: Compound annual growth rate, but as you look at 27% and 28 as depicted on the chart we are seeing acceleration.
We've kept our CAGR of one 5% to 2% long term on load growth in signal.
Signaling returning to the top end of that range and we'll update it in February and we are trending at the top end and we expect that range to move as weak as we look to next year, a sharp because the economic development opportunities are not slowing down and they are very sizable.
Speaker Change: So we'll continue to provide visibility on this and of course you can watch. These every step of the way. They also included discounted them because we are trying to be conservative recognizing that some of these projects.
Speaker Change: Then the shift to the right. So we are introducing a bit of that as well and we will continue to update.
Mitch mentioned, the two Gigawatts signed in this quarter.
Speaker Change: Alright got it so.
Speaker Change: It's just an example of many conversations that are going on that shore up our pipeline and expand it and so you should expect the load growth to go up as we roll the plan forward and we will get bring that up in February with a fulsome update.
Speaker Change: No no and I was just there was just a follow up on what you. Just said is so there is some accretive opportunities.
Speaker Change: I guess above your current range potentially is that has that kind of the message.
Speaker Change: I think thats right Shar and if you look at the chart you can see it.
Speaker Change: I'm sorry, Peter go ahead, sorry.
Sorry.
Speaker Change: In 2728.
Yes.
Speaker Change: Yes.
We talk CAGR.
Speaker Change: And the projects that we're talking to customers about today.
Compound annual growth rate, but as you look at 27% and 28 as depicted on the chart we are seeing acceleration.
Speaker Change: So up in late 2728 and ramp.
Speaker Change: And the balance of the decade, so youre going to see that as kind of.
So we will continue to provide visibility on this and of course you can watch. These every step of the way. They also include a discounted them because we are trying to be conservative recognizing that some of these projects.
Speaker Change: Burst of activity that we'll be signing contracts that will come to reality in 27, 28, 29, when we see acceleration of load growth.
The shift to the right. So we are introducing a bit of that as well and we will continue to update.
Speaker Change: Okay perfect. Thank you guys. So much soon a couple of days.
Sorry.
Speaker Change: Thank you Jonathan.
So.
Speaker Change: No no and I was just there was just a follow up on what you. Just said is so there is some accretive opportunities.
Speaker Change: The next question comes from Julien Dumoulin Smith from Jefferies. Please go ahead.
Speaker Change: I guess above your current range potentially is that has that kind of the message.
Speaker Change: You've got games word here.
Shar: I think thats right Shar and if you look at the chart you can see it sitting in 2728.
Speaker Change: How are you.
Speaker Change: Yeah, Hey, James here.
Speaker Change: Hey, Hi, we're looking forward to seeing you.
Speaker Change: Yes, I would just add the projects that we're talking to customers about today.
Speaker Change: This weekend.
Speaker Change: A quick question on <unk>.
Speaker Change: <unk> to debt.
So up in late 2728 and ramp.
Speaker Change: <unk>.
Speaker Change: Obviously, when the first hurricane hit you talked about 10 basis points of impact.
The balance of the decade, so you're going to see that as kind of.
Burst of activity that we'll be signing contracts that will come to reality in 27, 28, 29, when we see acceleration of load growth.
Speaker Change: Yes.
Speaker Change: Got the negatives there that I think are either people will ask about or you've kind of been addressing I'd like to talk about the tax credit monetization instead.
Speaker Change: Okay perfect. Thank you guys. So much soon a couple of days.
Speaker Change: You monetize $200 million last month in October you mentioned expecting to monetize more by the end of 2024, how should we think about that potential monetization in terms of the size. The discount that you are seeing and just for comparability purposes, and how impactful do you think it could be.
Speaker Change: Thank you Jonathan.
Speaker Change: The next question comes from Julien Dumoulin Smith from Jefferies. Please go ahead.
Hi, guys, you've got James Ward here.
Speaker Change: By year end <unk> to debt and then.
Speaker Change: How are you.
James: Hey, James.
Speaker Change: As a follow on.
Speaker Change: Hey, Hi, we're looking forward to seeing you.
Speaker Change: Into next year.
This weekend.
Speaker Change: My question. Thank you.
Speaker Change: Yes, a quick question on <unk> to debt.
Speaker Change: Very good Julien this is Brian I'll take that so.
Speaker Change: Uh huh.
Speaker Change: Obviously, when the first hurricane hit you talked about 10 basis points of impact.
Speaker Change: What we're seeing in the tax credit market, it's deepening and the discounts that we're being able to realize on our tax credits are very attractive so think about mid nineties.
Yeah.
Speaker Change: Got the negatives there that I think are either people will ask about or you've kind of been addressing I'd like to talk about the tax credit monetization instead.
Speaker Change: Even even slightly above so I think there's a line of taxpayers that are looking to reduce their tax bill and they're lining up to get high quality credits from from good credit quality sellers right. So.
Speaker Change: You monetize $200 million last month in October you mentioned expecting to monetize more by the end of 2024, how should we think about that potential monetization in terms of the size. The discount that you are seeing and just for comparability purposes, and how impactful do you think it could be by.
Speaker Change: Sure.
Speaker Change: We did $200 million in the past month, and we've geared up our process to close the rest of this year and the size that we were targeting coming into the year Julian was around $3 million to $500 million, where we're trending to the upper upper part of that range right.
By year end <unk> to debt and then.
As a follow on just sort of into next year.
Speaker Change: The market has been it's been growing and deepening and we've not seen any hesitation by buyers and what that equates to is about 40% to 60 basis points in the <unk> to debt.
Speaker Change: My question. Thank you.
That's very good Julien this is Brian I'll take that so.
What we're seeing in the tax credit market, it's deepening.
Speaker Change: Alright and.
And the discounts that were being realized on our tax credits are very attractive so think about mid nineties.
Speaker Change: A big chunk of that is nuclear tax credits and Theres also some solar ptc's inside of that.
Speaker Change: Even even slightly above so.
Speaker Change: That figure and as we look to next year, we will have more of a both more nuclear more solar and so you see it being accretive to the <unk> for a few years to come.
There's a line of taxpayers theyre looking to reduce their tax bill.
Turning out to get high quality credits from from good credit quality sellers right. So.
Speaker Change: Gotcha.
We did $200 million in the past month, and we've geared up our process to close the rest of this year and the size that we were targeting coming into the year Julian was around 3% to $500 million, we're trending to the upper upper part of that range right and the market has been it's been growing and deepening.
Speaker Change: A quick follow up there should we be assuming for the 40 to 60.
Speaker Change: Solar in there as well, but for the nuclear PTC is should we treat them as all being monetized. So whatever your assumption is that we're modeling in for next year and so I guess in the 2030 as well obviously you get the reversal and youre not getting that benefit anymore and just the way the market.
And we've not seen any hesitation by buyers.
Speaker Change: As you amortize them back to customers, but for the next few years should it be one for one.
What that equates to is about 40 to 60 basis points in the <unk> to debt alright.
Speaker Change: Alright and.
Speaker Change: Get them monetize them is that the right way to think about it.
A big chunk of that is nuclear tax credits and Theres also some solar ptc's inside of.
Speaker Change: Solar or is there another nuance.
Speaker Change: No that's the right way to think about it Julien yes.
That figure and as we look to next year, we will have more of both more nuclear more solar and so you see it being accretive to the <unk> for a few years to come.
Speaker Change: Hey, Julien you may recall, we.
Speaker Change: Have set forth.
Speaker Change: Some pretty creative method of retaining these credits for a period of time, and then amortizing them to customers over a four year period, and so that amortization is very modest and 25% and 26 and then we will get on a path of amortizing about 25% of them as generated 28 forward. So all of that is.
Gotcha.
Speaker Change: Just a quick follow up there should we be assuming for the 40 to 60.
Speaker Change: Other than that as well.
Nuclear PTC is should we treat them as all being monetized. So whatever your assumption is that we're modeling in for next year and so I guess in the 2030 as well, obviously, you get the reversal and they're not getting that benefit anymore.
Speaker Change: <unk> and our five year plan in credit and it's one of those incredible opportunities that not only strengthens credit, but lowers the price of our product to customers in a way that I think is really helpful to our growth plans.
As you amortize them back to customers, but for the next few years should it be one for one you.
Speaker Change: <unk> got them monetize them is that the right way to think about it while solar or is there another nuance.
Speaker Change: Absolutely definitely makes sense and a final point on the amortization could you remind us if that.
Julien: No that's the right way to think about it Julien yes.
Speaker Change: Green via the second settlement for sure for D C, but just for South Carolina, and then four D P.
Speaker Change: Kind of where where does that stand in terms of being formalized I think we're all using that for your assumption.
Speaker Change: From the initial <unk>.
Speaker Change: And second settlement, but is that.
Speaker Change: Has that been further made concrete I guess.
Speaker Change: And let us provide you with an update on that but North Carolina is memorialized in South Carolina, We're deferring.
Speaker Change: The credits for consideration in the future I think the North Carolina message, though is a good planning assumption for the Carolinas and we can get you more details on those specifics Julien is that would be helpful.
Speaker Change: Yeah offline. Thank you. Thanks, so much. Thank you very much we appreciate the color.
Speaker Change: Yes.
Speaker Change: The next question comes from Nick Campanella from Barclays. Please go ahead.
Nick Campanella: Hey, good morning, Thanks for taking my questions.
Speaker Change: Good morning, Nick.
Speaker Change: Good morning, it's great to see Moody's supportive here and I know that there's been really constructive effort on the ground with local constituents as well in dealing with the storm.
Speaker Change: I guess you did preview in your prepared remarks, there's going to be higher capital coming in the near term, Brian and just wondering how youre thinking about the need to pull forward.
Speaker Change: Any equity at all you do seem confident on the year over year to 25 as well, but just wanted to check on that thanks.
Speaker Change: Nick we have $500 million of equity in our capital plan and our financing plan today per year and the five year plan.
Speaker Change: In February will come up with the with our new capital plan, which signal will be higher and there'll be some in the near term and some because 2029 is going to be much larger than 2024.
Speaker Change: We'll have our full opening financing plan at that point and provide how we're going to fund that plan right now I would not say malaney additional equity.
Speaker Change: But I would say on the equity yes.
Speaker Change: As we expand capital we will finance it in a balanced way.
Speaker Change: I think we've given a range of 30% to 50% of equity related to new and incremental capital. So I think that's the planning assumption.
Speaker Change: It would be appropriate.
Speaker Change: That's great.
Speaker Change: And then someone else come up on an earnings call, but more of the season is just new nuclear and I know that you had some exploratory frameworks, whether it's for <unk> or otherwise announced a few quarters ago.
Speaker Change: Could you just maybe talk about how you see do participating in new nuclear whether it's kind of large scale or small scale at the end of the decade that'd be helpful. Thanks.
Speaker Change: Yeah. Nick this is Harry I'll take that question.
Speaker Change: A lot of promise in <unk>, our customers and stakeholders are very supportive of our states. Appreciate the economic development that it provides for the communities that we serve.
Speaker Change: And recently some of our large tech companies are showing great interest in new nuclear.
Speaker Change: At the same time, it's a decision we continue to closely evaluate.
Speaker Change: To make sure that it's in the best interest of our customers and our investors as we move forward in.
Speaker Change: In our current RFP plans that just got approved both North Carolina, and South Carolina approved the early development activities and we will continue to follow their lead as we move forward, but any decision as we move forward, we'll have to address three key items. The first one is the first of the con risk that exists.
Speaker Change: Really around the maturity of the technology the supply chain. The second item is cost overrun protection to protect our investors and our customers and then our third is to make sure that we can protect our balance sheet for making these investments. So we will continue to work with our commissions as we look forward to making a decision there.
Speaker Change: Hey, I appreciate it and I'll see you guys say it thank you.
Speaker Change: Thank you.
Speaker Change: Next question, we have comes from their guests <unk> Chopra from Evercore ISI. Please go ahead.
Speaker Change: Hey, good morning team, thanks for giving your time.
Speaker Change: Just hey, Brian Hey, good morning, Brian.
Speaker Change: Can I just ask you to clarify what is the earnings impact.
Speaker Change: The combination of restoration costs and lost revenues.
Speaker Change: From the three Hurricanes, what does that impact in 2024.
Speaker Change: Yes.
Speaker Change: You could think about it we plan for storms in a year, but we don't plan for the historic storm season, we just experienced in the past two months and.
Speaker Change: The restoration cost that would lead to the O&M in the P&L a few cents of that as well as a few cents of lost revenues, because we had $5 5 million customers out for multiple days so.
Speaker Change: That's how I think about a few cents each on the O&M for the storm costs, Larry Brekke kind of out of bounds with what our normal level would be and the lost revenues.
Speaker Change: So I would point to if you look at the drivers for the third quarter you see us.
Speaker Change: With O&M greater than third quarter of 'twenty, three that's largely impacted by storm expense.
Speaker Change: Then we look at the fourth quarter the majority of that.
Speaker Change: Or.
Speaker Change: A large amount of restoration for leases in the fourth quarter as well as Milton all of Hilton and so the revenue expected revenue impact from how this will impact the fourth quarter as well so when we look at it in total.
Speaker Change: Both of these things that are really driving.
Speaker Change: So to be below target in the range that you should know.
Speaker Change: Many times, we will do everything we can to mitigate this.
Speaker Change: And that's the posture that we're assuming here for the fourth quarter and.
Speaker Change: And have a high degree of confidence that we will constrain the hurricane impact to 2024, and so our optimism around 2025 and the growth that this company offers to investors remains unchanged.
Speaker Change: That's very helpful. Thank you and maybe just talking to that growth then I think of that.
Speaker Change: The Q2 call and obviously.
Speaker Change: Earlier today, you'd reaffirmed the 5% to 7% when the Q2 call I just want to be clear you talked about perhaps getting to the higher end of that 5% to 7% EPS growth at the backend of the plant is that still sort of the way you're you're projecting that growth.
Speaker Change: To trend.
Speaker Change: Yes, Gerrick asked it's really that's a good question and it's really consistent with the conversation. We just had with shar around load growth. So when you look at 27% and 28 and that chart that sort of has a bit of a slope to it and you see us deeper into the energy transition with increasing capital that's what we're pointing to is.
Speaker Change: The potential we have to get higher in the range. So we're working hard in that direction and believe we've got the potential and the constructive regulatory outcomes that we've been delivering time and time again really underpins our confidence.
Speaker Change: Okay. Thank you again for taking my questions.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Next question comes from Anthony <unk> from Mizuho. Please go ahead.
Speaker Change: Hey, good morning, Good morning, Brian Good morning, Harrie I want to leave you out apologies.
Speaker Change: I guess just quickly.
Speaker Change: Just ask <unk> question, which I think followed up on <unk> question and you talked about.
Speaker Change: At the end of the decade, maybe leaning towards the higher end of the EPS CAGR any thoughts with the load growth and also when you look at these.
Speaker Change: Historic storms, maybe widening credit cushion that you guys have and maybe using the load growth.
Speaker Change: Enhance earnings growth of making a wider question.
Speaker Change: Beyond the 150 basis points Youre working on now.
Speaker Change: Anthony It's a good question and something we spend a lot of time thinking about and we'll be working in that direction. I think he also planning for some more contingency around storms in our annual planning will also be a part of that so as you would expect us to do we learn from every one of these events in 2024 will be no exception.
Speaker Change: And just one follow up and I don't know if you quantified it just you're talking about additional maybe minute mitigation measures for the fourth quarter.
Speaker Change: Has the company quantified what they expect from a normal run rate too.
Speaker Change: Pull out of fourth quarter.
Speaker Change: Yes, we haven't quantified something specifically Anthony and I.
Speaker Change: We want you to know that there is a ton of work going on but we're only about two weeks past hurricane.
Speaker Change: So we're working and when we talk about our range and the expectation we've set for the full year that implies that we are going to keep going and we actually believe that the quantification of the mitigation could put us in a position where O&M is lower than 23, but I don't.
Speaker Change: Want to get any more specific than that given where we are.
Speaker Change: And the process.
Speaker Change: Great. Thanks for taking my question and then I'll see you guys in Hollywood.
Speaker Change: Thank you. Thank you see you Anthony.
Speaker Change: The next question comes from Jeremy Tonet from Jpmorgan. Please go ahead.
Speaker Change: Hey, Good morning, this is actually Ian Kelly on for Jeremy.
Speaker Change: Okay.
Speaker Change: I just wanted to dive into that.
Speaker Change: Hey, How's it going.
Speaker Change: Wanted to dive into the two gigawatts of incremental data center growth a bit further was.
Speaker Change: This comprised of several large single or multiple customers and then could you confirm whether Microsoft land acquisition in North Carolina is embedded in this forecast or maybe incremental here.
Speaker Change: Ian It's a good question is the two the two gigawatts.
Speaker Change: Now this work is confidential so we're not going to share the customer information, but I will say when we signed letter agreement.
Speaker Change: What that means is the customer has a site identified and land secured either through options or purchased and.
Speaker Change: What happens next is that we would negotiate with that customer over the next eight to 10 12 months on the energy service agreement and that codifies, what the contract will be between serving that customer and what that customer.
Speaker Change: We'll pay for its energy and so you would expect all of these details to come out over the over the next year.
Speaker Change: <unk>.
Speaker Change: I mentioned in my prepared remarks. This is implementing of of what we're seeing across the board, where we're talking to many customers in this arena and I'm not going to talk specifically about Microsoft's acquisition of land that was.
Speaker Change: In an article recently, but we're.
Speaker Change: We are having talks with many customers and they are very serious about siding there their datacenters and the Carolinas, specifically because in the Carolinas over half our energy carbon free nuclear and Thats very attracted to the data centers. So.
Speaker Change: We see this as a great great opportunity for us and we're seeing it come to reality as we signed agreements like this.
Speaker Change: Got it that's helpful. Thanks, and then maybe just any thoughts on how election results could impact our resource mix and generation portfolio, maybe specifically regarding coal plant retirements or renewables additions and then could you talk about any industries that could be impacted in your territory by maybe manufacturing issue.
Speaker Change: And do you have any incremental load growth in your forecast from this.
Speaker Change: Yeah, I'll take that one.
Speaker Change: Digesting election results and looking at both federal and state I think congratulating Linda extend congratulations to president Trump.
Speaker Change: On his work and railroad forward to working with his administration on our task of delivering affordable reliable power I think the U S economy will be a focus and a priority of his and our industry plays an incredibly important role. So as we look at what we're doing here in the Carolinas and also Indiana and Florida.
Speaker Change: Putting infrastructure in place in order to serve economic development and believe there are lots of opportunities to work together and similarly with our states. We had seen given us hurdle elections, one in Indiana, when North Carolina.
Speaker Change: <unk> in both states are people, we know well you'll understand the important role that the utility plays and investing in infrastructure and driving growth and so we're anxious to work with those administrations as well and.
Speaker Change: I think our conviction around delivering affordable and reliable energy is something that will resonate in our states and also at the federal level.
Speaker Change: I appreciate the color there and then just maybe one more if I could.
Speaker Change: And could you just quantify roughly per year, how much and transferability youre, saying.
Speaker Change: On the energy tax credits.
Speaker Change: Yes, correct.
Speaker Change: Yes.
Speaker Change: We signaled 40 to 60 basis points of episodes that improvement from these <unk>.
Speaker Change: Tax credit sales in 2024, and that equates to about $3 million to $500 million.
Speaker Change: Monetize tax credits in a year and so you could think about it in that kind of range for the next several years.
Speaker Change: Got it I appreciate all the color there I'll leave it there thanks.
Speaker Change: Thank you.
Speaker Change: The next question comes from Carly Davenport from Goldman Sachs. Please go ahead. Your line is now open.
Speaker Change: Hey, Good morning, guys. This is actually John Miller on for Cory. Thanks for taking my question.
Speaker Change: Maybe to start on the Indiana, our ERP could you maybe talk about what's new in that updated filing and then kind of what the total opportunity there it looks like now.
Speaker Change: Yeah, I'll take that one John.
Speaker Change: We filed our RFP last week.
Speaker Change: Indiana, we've been working with stakeholders for many months on that plan.
Speaker Change: It really is transitioning our kind of yoga plant to gas.
Speaker Change: Adding storage and solar really diversifying the fuel supply we have in Indiana.
Speaker Change: And also working through our Gibson facility and what we're going to do there in the future. So very broad stakeholder support for our plans.
Speaker Change: Following the CPC in at the Cayuga plant at the beginning of next year and expect to be moving forward with the.
Speaker Change: The plan and the RFP is.
Speaker Change: As we progress into next year.
Speaker Change: Got it that's helpful and then maybe on the Carolinas RP with.
Speaker Change: North Carolina order deferring some natural gas to next year.
Speaker Change: For the next resource plan I guess, one when in 2025 do you expect to file that resource plan and then how should we think about the size of it will be a smaller filing or could it be similar in size to the outstanding resource plan.
Speaker Change: So we're very pleased that we got the <unk> approved earlier last week and this week, both the North Carolina, and South Carolina, very constructive orders. It really allows us to move forward with our near term actions that we have in both states.
Speaker Change: We will be following updates to those plans next year with don't anticipate a tremendous difference.
Speaker Change: What we're planning we're really focused on those near term actions and advancing the items that we've put in place there very constructive work with stakeholders as we move forward, we have our <unk> for some of the gas generations that we expect to hear back from by the end of the year as well to proceed with those construction.
Speaker Change: <unk> projects at person County.
Speaker Change: Got it thats helpful. Thanks.
Speaker Change: Yes.
Speaker Change: We have no further questions. So I'll hand back the call to Lynn good for closing remark.
Lynn Good: Great well. Thank you all and we'll see you in a couple of days looking forward to the EI Financial conference I want to thank you for your questions and for your investment in Duke Energy talk soon thank you.
Lynn Good: Yes.
Speaker Change: Thank you everyone. This concludes today's call you may now disconnect your lines.