Q3 2024 Black Hills Corp Earnings Call
Okay.
Operator: Good day and thank you for standing by. Welcome to the Q3 2024 Black Hills Corporation Earnings Conference Call. At this time, all participants are in a listen-only mode.
Speaker Change: Good day and thank you for standing by welcome to the Q3 2020 for Black Hills Corporation Earnings Conference call. At this time all participants are in a listen only mode. Please be advised that today's conference is being recorded after the speaker's presentation there'll be a question and answer session to ask a question. Please press <unk>.
Operator: Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question and answer session. To ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.
Star one one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again I would not like to hand, the conference over to your speaker today Saudia is director of Investor Relations.
Sal Diaz: I would not like to hand the conference over to your speaker today, Sal Diaz, Director of Investor Relations. Thank you.
Sal Diaz: Good morning and welcome to Black Hills Corporation's third quarter 2024 earnings conference call. You can find our earnings release and materials for our call this morning on our website at www.blackhillscorp.com under the investor relations heading. Before we begin today, we would like to note that Black Hills will be attending the Edison Electric Institute's Financial Conference on November 10th through November 12th. Our leadership team will be meeting with investors and analysts at the conference and the investor presentation will be posted on our website prior to the event.
Saudia: Thank you.
Saudia: Good morning, and welcome to Black Hills Corporation's third quarter 2024 earnings Conference call.
Saudia: You can find our earnings release and materials for our call. This morning on our website at Www Dot Black Hills Corp, Dot com under the Investor Relations heading.
Saudia: Before we begin today, we would like to note that Black Hills will be attending the Edison Electric Institute Financial Conference on November 10th through November 12.
Saudia: Our leadership team will be meeting with investors and analysts at the conference and the industrial presentation will be posted on our website prior to the event.
Sal Diaz: Leading our quarterly earnings discussion today are Lynn Evans, President and Chief Executive Officer, Kimberly Nooney, Senior Vice President and Chief Financial Officer, and Marne Jones, Senior Vice President, Utilities. During our earnings discussion today, comments we make may contain forward-looking statements as defined by the Securities and Exchange Commission, and there are a number of uncertainties inherent in such comments. Although we believe that our expectations are based on reasonable assumptions, actual results may differ materially. We direct you to our earnings release, slide two of the investor presentation on our website, and our most recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission for a list of some of the factors that could cause future results to differ materially from our expectations.
Saudia: Leading our quarterly earnings discussion today are Linn Evans, President and Chief Executive Officer Kim.
Saudia: Kimberly Nooney senior Vice President and Chief Financial Officer, and mining Jones, Senior Vice President utilities.
Saudia: During our earnings discussion today comments, we make may contain forward looking statements as defined by the Securities and Exchange Commission and there are a number of uncertainties inherent in such comments.
Saudia: Although we believe that our expectations are based on reasonable assumptions actual results may differ materially.
Saudia: We direct you to our earnings release slide two of the Investor presentation on our website and our most recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission for a list of some of the factors that could cause future results to differ materially from our expectations.
Sal Diaz: I will now turn the call over to Lynn Evans. Lynn?
Speaker Change: I will now turn the call over to Linn Evans Lynn.
Lynn Evans: Thank you, Sal.
Lynn Evans: Good morning. And thank you all for joining us today. I'll begin my comments with a brief overview of the quarter. Kimberly will provide our financial update. And Marnie will provide more detail on our team's operational performance and our strategic progress.
Speaker Change: Thank you Sal good morning, and thank you all for joining US today I'll begin my comments with a brief overview of the quarter Kimberly will provide our financial update.
Saudia: Marty will provide more detail on our team's operational performance and our strategic progress.
Lynn Evans: starting on slide three. I'm pleased with our progress on our customer-focused strategy, which is reflected in new margins and the advancement of our growth projects. As a team, we delivered excellent service to our customers. continue to execute on our financial targets and advance our regulatory and growth initiatives. We continue to deliver on our commitment to provide our customers with safe and reliable service during the quarter, including dependable energy delivery through near peak demand levels for our South Dakota electric system. Despite unplanned generation outages, total availability for our fleet remained above the industry standard with 98% availability for our natural gas units and 95% total availability across our generation facilities.
Saudia: Starting on slide three.
Marty: I'm pleased with our progress on our customer focused strategy, which is reflected in new margins and the advancement of our growth projects as a team we delivered excellent service to our customers continue to execute on our financial targets and advanced our regulatory and growth initiatives.
Saudia: We continued to deliver on our commitment to provide our customers with safe and reliable service during the quarter.
Saudia: Including dependable energy delivery through near peak demand levels for our South Dakota Electric system.
Saudia: Despite unplanned generation outages total availability for our fleet remained above the industry standard, but 98% availability for our natural gas units and 95% total availability across our generation facilities.
Lynn Evans: We also took the opportunity to bring forward and complete some future major maintenance on units that experienced unplanned outages. The reliability we delivered to our utility customers this quarter was excellent. Our focus on reliability is delivering value for all of our customers and is a key value driver in attracting new customers to our service territory. During the third quarter, we announced our plans to serve MEDA's first data center in Cheyenne, Wyoming, starting in the 2026 timeframe. As we look to the future, we are excited to serve demand for hyperscalers with our capital light model and continue to receive inbound requests to expand load beyond Cheyenne.
Saudia: We also took the opportunity to bring forward and complete some future major maintenance on units had experienced unplanned outages. The reliability, we delivered to our utility customers. This quarter was excellent.
Saudia: Our focus on reliability is delivering value for all of our customers and is a key value driver in attracting new customers to our service territories.
Saudia: During the third quarter, we announced our plans to serve met its first data center in Cheyenne, Wyoming, starting in the 2026 timeframe.
Saudia: As we look to the future. We are excited to serve demand for hyper scaler with our capital light model and continue to receive inbound request to expand load beyond Cheyenne.
Lynn Evans: We remain on track with our $800 million capital plan for the year. Our ongoing capital investment plan is critical to delivering upon the commitments we made to serve our customers and communities safely, reliably, and cost-effectively. This includes our Ready Wyoming Electric Transmission Expansion Project, which strategically interconnects our Wyoming and South Dakota transmission systems, enhancing the resiliency and capacity of our regional energy infrastructure. Notably, this will benefit our customers with cost stability and expanded energy market access. Maintaining our solid financial position remains a focus. We reached key milestones in our financial plan as we achieved our debt to capitalization target to maintain our triple B plus or equivalent credit rating.
Saudia: We remain on track with our $800 million capital plan for the year, our ongoing capital investment plan is critical to delivering upon our commitments, we made to serve our customers and communities safely reliably and cost effectively.
Saudia: This includes already Wyoming electric transmission expansion project with strategically Interconnects, our Wyoming, and South Dakota transmission systems, enhancing their resiliency and capacity of our regional energy infrastructure.
Saudia: Notably this will benefit our customers with cost stability and expanded energy market access.
Saudia: Maintaining our solid financial position remains a focus we reached key milestones in our financial plan as we achieved our debt to capitalization target to maintain our triple b plus or equivalent credit rating.
Lynn Evans: Our team completed our major financing needs for the year as we execute our strategy in funding our customer focus growth.
Saudia: Our team completed our major financing needs for the year as we execute our strategy and funding our customer focused growth.
Lynn Evans: During the third quarter, we advanced our regulatory initiatives. We received approval of new customer rates for Arkansas gas, which were implemented in October. We achieved a settlement for our rate review request at Iowa Gas, which is pending commission approval, and we continue through the regulatory process for new rates at Colorado Electric. We're currently targeting a cadence of three to four rate reviews annually driven by our investments to serve our customers growing energy needs.
Saudia: During the third quarter, we advanced our regulatory initiatives.
Saudia: We received approval of new customer rates for Arkansas gas, which were implemented in October.
Saudia: We achieved a settlement for a rate review request at Iowa gas, which is pending commission approval.
Saudia: And we continue through the regulatory process for new rates at Colorado Electric.
Saudia: We're currently targeting a cadence of three to four rate reviews annually driven by our investments to serve our customers growing energy needs.
Lynn Evans: will remain confident in our financial outlook provided on slide four. We're on track to deliver on our earnings guidance range of $3.80 to $4 per share as originally issued in February. Our financial performance for the quarter and year to date were in line with our expectations as we successfully mitigated the impacts of mild weather, unplanned generation outages, and increased insurance expense. We entered the peak heating season with new rates or interim rates in place at four of our six gas utilities this year. Looking ahead, our strong growth opportunities and continued execution of our initiatives gives us confidence in achieving our long-term four to six percent EPS growth target.
Saudia: We remain confident in our financial outlook provided on slide four.
Saudia: We're on track to deliver on our earnings guidance range of $3 80 to four.
Saudia: $4 per share as originally issued in February.
Saudia: Our financial performance for the quarter and year to date were in line with our expectations as we successfully mitigated the impacts of mild weather unplanned generation outages and increased insurance expense.
Saudia: We entered the peak heating season, with new rates or interim rates in place at four of our six gas utilities this year.
Saudia: Looking ahead, our strong growth opportunities and continued execution of our initiatives gives us confidence in achieving our long term, 4% to 6% EPS growth target.
Lynn Evans: Slide five displays our current five-year capital investment plan. Over our five-year plan period, we expect to invest $4.3 billion. In 2026, our $1.3 billion forecast includes generation investments resulting from our recent electric resource plan. As contracts are negotiated, timing of these investments will be updated.
Saudia: Slide five displays our current five year capital investment plan.
Saudia: Over our five year plan period, we expect to invest $4 $3 billion in 2026 or 1.3 billion forecast includes generation investments, resulting from our recent electric resource plans.
Saudia: As contracts are negotiated timing of these investments will be updated.
Lynn Evans: Marne will cover the status of our resource plans and her business subject. In 2027 and 2028, we anticipate incremental opportunities to be added to our plan as we gain more clarity around timing, costs, and the energy needs of our customers, as indicated by the green arrows above the chart.
Saudia: Marty will cover the status of our resource plans in her business update.
Saudia: In 2027, and 2028, we anticipate incremental opportunities to be added to our plan as we gain more clarity around timing costs and the energy needs of our customers as indicated by the green arrows above the chart.
Lynn Evans: As a reminder, at our fourth quarter earnings call in February, we will provide our 2025 earnings guidance and an updated capital forecast through 2029.
Saudia: As a reminder, at our fourth quarter earnings call in February we will provide our 2025 earnings guidance and an updated capital forecast through 2029.
Lynn Evans: Slide six provides a summary of our hyperscale data center and blockchain growth opportunities. For more than a decade, we have successfully served Microsoft's data center energy needs through a capital light market energy procurement model. Our innovative tariff is instrumental in enabling a win-win of efficiently procuring market energy while providing a return in lieu of new generation investment. We continue to expect earnings from this type of customer to grow EPS contribution from 5% in 2023 to more than 10% of total EPS by 2028.
Saudia: Slide six provides a summary of our hyperscale datacenter and blockchain growth opportunities for.
Saudia: For more than a decade, we have successfully served Microsoft's datacenter energy needs through a capital light market energy procurement model.
Saudia: Our innovative tariff is instrumental and enabling a win win of efficiently procuring market energy, while providing a return in lieu of new generation investment.
Saudia: We continue to expect earnings from this type of customer to grow EPS contribution from 5% in 2023 to more than 10% of total EPS by 2028.
Lynn Evans: In summary, before I turn the call over to Kimberly, I'm pleased with our strategic progress. Our service territories are stable and growing, with strong electric and gas investment opportunities. Our financial position is solid, and we are executing on regulatory recovery as we pursue our growth initiative.
Speaker Change: In summary, before I turn the call over to Kimberly I'm pleased with our strategic progress our.
Speaker Change: Our service territories are stable and growing with strong electric and gas investment opportunities our financial position is solid and we are executing on regulatory recovery as we pursue our growth initiatives.
Kimberly Nooney: With that, I'll turn the call over to Kimberly for our financial update. Kimberly?
Speaker Change: With that I'll turn the call over to Kimberly for our financial update Kimberly.
Kimberly Nooney: Thank you, Lynn, and good morning, everyone. As Lynn mentioned, third quarter results were in line with our expectations, and we are on track to deliver on our earnings guidance and financial targets for the year. We completed our key financing activities and achieved our net debt to capitalization target of 55 percent. We are executing on our strategy to deliver on the financial commitment we made to grow our compounded annual EPS growth rate by 4 to 6 percent. Despite mild weather and other unexpected cost pressures this year, we are delivering new margins and managing our costs to achieve our financial objectives.
Kimberly: Thank you Lynn and good morning, everyone as.
Kimberly Nooney: As Lynn mentioned third quarter results were in line with our expectations and we are on track to deliver on our earnings guidance and financial targets for the year.
Kimberly Nooney: We completed our key financing activities and achieved our net debt to capitalization target of 55%.
Speaker Change: We are executing on our strategy to deliver on our financial commitment we made to grow our compounded annual EPS growth rate by 4% to 6%.
Saudia: Despite mild weather and other unexpected cost pressures. This year, we are delivering new margins and managing our costs to achieve our financial objectives.
Kimberly Nooney: Slide eight shows third quarter EPS drivers compared to the same period last year. We reported $0.35 per share compared to $0.67 per share in Q3 2023. New margins were offset by higher operating expenses, unplanned generation outages, lower off-system sales, and prior year one-time benefits. We delivered $0.16 of new margins, including new rates and rider recovery of $0.10 per share from our electric utilities, $0.05 from our gas utilities, and $0.01 per share of customer growth and usage. These positive margin drivers offset unplanned generation outages, lower off-system sales, and a prior year benefit from insurance proceeds. O&M increased $0.23, comprised of $0.15 from higher insurance premiums, employee costs, and outside services.
Saudia: Slide eight shows third quarter EPS drivers compared to the same period last year.
Saudia: We reported <unk> 35 per share compared to 67 per share in Q3 2023.
Speaker Change: Your margins were offset by higher operating expenses.
Saudia: Planned generation outages lower off system sales and prior year onetime benefits.
Saudia: We delivered 16 cents of new margin, including new Res and rider recovery of 10 cents per share from our electric utilities.
Saudia: <unk> from our gas utilities and.
Saudia: <unk> per share of customer growth and usage.
Saudia: These positive margin drivers offset unplanned generation outages lower off system sales and a prior year benefit from insurance proceeds.
Saudia: <unk> increased 23 cents comprised of 15.
Saudia: From higher insurance premiums employee costs and outside services.
Kimberly Nooney: $0.03 of expenses associated with unplanned generation outages. and Five Cents due to a prior year gain on sale of land to a data center company. Interest expense increased five cents per share, driven primarily by higher interest rates, while new shares lowered EPS by two cents. Depreciation expense increased 5 cents per share due to new assets placed in service. Side 9 displays the earnings drivers year-to-date through Q3 2024. Through three quarters, we delivered a total of $0.57 per share of new margins, driven by the successful execution of our strategy. These new margins include $0.35 per share of new rates and rider recovery from our gas utilities and $0.17 from our electric utilities, which includes data center demand.
Saudia: <unk> expenses associated with unplanned generation outages.
Saudia: And <unk> due to a prior year gain on sale of land to a data center customer.
Saudia: Interest expense increased <unk> <unk> per share driven primarily by higher interest rates, while new shares lowered EPS by Tucson.
Saudia: Depreciation expense increased <unk> <unk> per share due to new assets placed in service.
Saudia: Slide nine displays the earnings drivers year to date through Q3 2024.
Saudia: Through three quarters, we delivered a total of 57 per share of new margins driven by the successful execution of our strategy.
Saudia: These new margins include 35 per share of new rates and rider recovery from our gas utilities and.
Saudia: In 17 from our electric utilities, which includes data center demand.
Kimberly Nooney: Additionally, we continued to experience customer growth and increased usage, which contributed $0.05 per share of margin. This margin growth was partially offset by lower off-system sales, unplanned generation outages, and a prior year benefit from insurance proceeds. We experienced mild weather in our jurisdictions with 14 cents of unfavorable EPS year-to-date compared to the same period last year. compared to normal, where there was $0.11 unfavorable. As natural gas commodity prices moderated and became more stable in 2024, we recognized a mark-to-market benefit of $0.03 per share year-to-date, year-over-year. Moving to O&M, I'm extremely pleased with our team success in managing our expenses below our projected 3.5% year-over-year increase to mitigate mild weather, unplanned generation outages, and rising insurance costs.
Saudia: Additionally, we continued to experience customer growth and increased usage, which contributed <unk> <unk> per share of margin.
Saudia: This margin growth was partially offset by lower off system sales.
Saudia: Planned generation outages and a prior year benefit from insurance proceeds.
Saudia: We experienced mild weather in our jurisdictions with 14th of unfavorable EPS year to date compared to the same period last year.
Saudia: Compared to normal weather was 11 unfavorable.
Saudia: As natural gas commodity prices moderated and became more stable in 2024, we recognized a mark to market benefit of <unk> <unk> per share year to date year over year.
Saudia: Moving to O&M I'm extremely pleased with our team's success and manage our expenses below our projected three 5% year over year increase to mitigate mild weather unplanned generation outages and rising insurance costs.
Kimberly Nooney: O&M increased $0.10 or 1.8% year-to-date compared to the same period last year. O&M expense benefited EPS by $0.09 per share, which was offset by $0.05 from unplanned generation outage expenses and $0.14 of prior year benefits related to gains on the sales of assets and land. Throughout the year, we have prudently managed expenses and expect our annual O&M cost increase in 2024 to be no more than 2.5% over 2023. Financing costs included a $0.10 impact from new shares issued and $0.07 of interest expense driven by higher interest rates. Depreciation and amortization expense drove 12 cents of increase due to new assets placed in service.
Saudia: O&M increased 10 cents or.
Saudia: Our one 8% year to date compared to the same period last year.
Saudia: O&M expense benefited EPS by <unk> <unk> per share, which was offset by five cents from unplanned generation outage expenses.
Saudia: And 14th of prior year benefits related to gains on the sales of assets and land.
Saudia: Throughout the year, we have prudently managed expenses and expect our annual O&M cost increase in 2024 to be no more than two 5% over 2023.
Saudia: Financing costs included a <unk> <unk> impact from new shares issued and <unk> of interest expense driven by higher interest rates.
Saudia: Depreciation and amortization expense drove 12 of increased due to new assets placed in service.
Kimberly Nooney: Income tax was higher due to a prior year benefit from a Nebraska state income tax rate decrease.
Saudia: Yeah.
Saudia: Income tax was higher due to a prior year benefit from our Nebraska state income tax rate decrease.
Kimberly Nooney: In summary, excluding prior year one-time events, Our strong margin growth and prudent O&M expense management more than offset mild weather, lower off-system sales, unplanned generation outages, and financing and depreciation costs incurred for the growth investments to serve our customers' energy needs. Our strategic execution is delivering reoccurring earnings growth, excluding prior one-time benefits of $0.32 per share. Year-to-date EPS grew 4% compared to the same period last year.
Saudia: In summary, excuse.
Saudia: Excluding prior year, one time events are.
Saudia: Our strong margin growth and prudent O&M expense management more than offset mild weather lower off system sales.
Saudia: Planned generation outages and financing and depreciation costs incurred for the growth investments to serve our customers energy needs.
Saudia: Our strategic execution is delivering reoccurring earnings growth.
Saudia: Excluding prior one time benefits of <unk> 32 per share year to date EPS grew 4% compared to the same period last year.
Kimberly Nooney: Further details on year-over-year changes can be found in our earnings release and 10-Q to be filed with the SEC later today. Turning to slide 10, which depicts our solid financial position through the lens of credit quality, capital structure, and liquidity. We continue to reduce our net debt to total capitalization ratio and improve other key credit metrics in our commitment to maintain our triple B plus credit quality target. During the quarter, we issued $109 million of new equity under our at the market equity program, which included a block equity trade. As a result, we have issued a total of $182 million year to date, which is within our planned equity issuance range of $170 million to $190 million for 2024.
Saudia: Further details on year over year changes can be found in our earnings release and 10-Q to be filed with the SEC later today.
Saudia: Turning to slide 10, which depicts our solid financial position through the lens of credit quality capital structure and liquidity.
Saudia: We continue to reduce our net debt to total capitalization ratio and improved other key credit metrics and our commitment to maintain our triple B plus credit quality targets.
Saudia: During the quarter, we issued $109 million of new equity under our at the market equity program, which included a block equity trade.
Saudia: As a result, we have issued a total of $182 million year to date, which is within our planned equity issuance range of $170 million to a $190 million for 2024.
Kimberly Nooney: Our liquidity remains strong at quarter end with $729 million of availability under our revolving credit facility. We repaid our $600 million notes that matured in August and we are evaluating timing and options for refinancing our next maturity of $300 million in early 2026. Slide 11 illustrates our industry-leading dividend track record of 54 consecutive years. We anticipate growing our dividend at a rate comparable to earnings growth. A dependable and increasing dividend is an important component of our strategy for delivering long-term value for our shareholders.
Saudia: Our liquidity remains strong at quarter end was $729 million of availability under our revolving credit facility.
Saudia: We repaid our 600 million dollar notes that matured in August and we are evaluating timing and options for refinancing our next maturity of $300 million in early 2026.
Saudia: Slide 11 illustrates our industry, leading dividend track record of 54 consecutive years.
Saudia: We anticipate growing our dividend at a rate comparable to earnings growth.
Saudia: A dependable and increasing dividend is an important component of our strategy for delivering long term value for our shareholders.
Marne Jones: I will now turn the call over to Marne for our business update. Thank you, Kimberly, and good morning, everyone.
Saudia: I will now turn the call over to Marty for our business update.
Marty: Thank you Kimberly and good morning, everyone.
Marne Jones: I'll start my comments on slide 13. As Lynn mentioned, we continue to demonstrate our strong culture of operational excellence during the third quarter. We upheld our reputation for industry-leading electric reliability, as reflected recently by EEI, with all three of our electric utilities in the top quartile of reliability for the three-year average through 2023. And while reliability is critically important to our customers, it also supports our growing data center demand. During the quarter, we also advanced our plans for new generation resources to serve growth and meet our Colorado Clean Energy Plan requirements, all while maintaining strong reliability and enhancing our resilience.
Marty: I'll start my comments on slide 13.
Saudia: Lynn mentioned, we continued to demonstrate our strong culture of operational excellence during the third quarter.
Saudia: Upheld our reputation for industry, leading electrical liability as reflected recently by EI with all three of our electric utilities in the top quartile of reliability for the three year average through 2023.
Saudia: And while the reliability is critically important to our customers. It also supports our growing data center demand.
Saudia: During the quarter, we also advanced our plans for new generation resources to serve growth and meet our Colorado clean energy plan requirements, all while maintaining strong reliability and enhancing our resiliency.
Marne Jones: I'm also proud to share that last week the U.S. Department of Labor awarded Black Hills with the Hire Vets Medallion Award for the fifth consecutive year. This award recognizes organizations with exemplary efforts in recruiting, employing and retaining our nation's veterans. We value our veteran colleagues and the dedication and leadership they bring to our team and culture.
Saudia: I'm also proud to share that last week. The U S Department of Labor awarded Black Hills with the higher Vets Medallion award for the fifth consecutive year.
Saudia: This award recognizes organizations with exemplary efforts in recruiting employee and retaining our nation's veterans we value our veteran colleagues and the dedication and leadership they bring to our team and culture.
Marne Jones: On slide 14, I'll provide a status update on our rate reviews. We continue to reach constructive results during the quarter. In Arkansas, we received approval for new rates effective in October. The approved settlement allowed $25.4 million of new annual revenue, which includes a return on equity of 9.85% based on 46% equity. In Iowa, we reached a settlement for a rate review request. Pending approval by the Iowa Utility Commission, the confidential settlement allows $15 million of new annual revenue based on a 7.21% weighted average cost of capital. The settlement provides for implementation of final rates in the first quarter of 2025, which will replace the interim rates.
Saudia: On slide 14, I'll provide a status update on our rate reviews, we continue to reach constructive results during the quarter in Arkansas, We received approval for new rates effective in October.
Saudia: The approved settlement allowed at $25 4 million of new annual revenue, which includes a return on equity of 985% based on 46% equity.
Saudia: In Iowa, we reached a settlement for a rate review request.
Saudia: Pending approval by the Iowa Utility Commission the confidential settlement allows $15 million of new annual revenue based on a 721% weighted average cost of capital.
Saudia: The settlement provides for implementation of final rates in the first quarter of 2025, which will replace the interim rates.
Marne Jones: Our other active rate review is for Colorado Electric. We received answer testimony from the interveners in October, and we will respond with rebuttal testimony due later this week. Our hearing on this docket is scheduled for December.
Saudia: Our other active rate review is for Colorado Electric we received answer testimony from the Intervenors in October and we will respond with rebuttal testimony. Due later this week are hearing on this docket is scheduled for December.
Marne Jones: Slide 15 outlines our wildfire management and risk mitigation plans. We have been successful in reducing risk with our multi-layered approach through asset programs, integrity programs, and operational response, which is detailed in our wildfire mitigation plan available on our website. We continue to engage stakeholders, including community and local agencies, regulators, legislative bodies, and our industry peers to define, review, and advance our wildfire management and mitigation plans, including our Public Safety Power Shutoff Program, or PSPS, which we expect to formalize in the first half of 2025.
Saudia: Slide 15 outlines our wildfire management and risk mitigation plans we.
Saudia: We have been successful in reducing risks with our multi layered approach to asset program.
Saudia: Tegra <unk> programs and operational response, which is detailed in our wildfire mitigation plan available on our website.
Saudia: We continue to engage stakeholders, including community and local agencies regulators legislative bodies, and our industry peers to define review in advance our wildfire management and mitigation plans, including our public safety power Shutoff program or PSP.
Saudia: Which we expect to normalize in the first half of 2025.
Marne Jones: Moving on to slide 16, our largest active capital project is our Ready Wyoming Transmission Project. The 260-mile line is being constructed on schedule, and we are tracking to place and service our first segments later this year. The project is expected to be completed by year-end 2025. The investment for this project will be recovered through our Wyoming Transmission Rider as segments are placed in service.
Saudia: Moving on to slide 16, our largest active capital project is already Wyoming transmission project.
Saudia: The 260 mile line is being constructed on schedule and we are tracking to placement service. Our <unk> segments. Later this year the.
Saudia: The project is expected to be completed by year end 2025.
Saudia: The investment for this project will be recovered through a whammy transmission rider segments are placed in service.
Marne Jones: Slide 17 provides an update on our Colorado Clean Energy Plan. Yesterday, the Colorado Commission deliberated and verbally authorized 100 megawatts of utility-owned solar. 50 megawatts of utility-owned battery storage and a 200 megawatt solar PPA. With the recent deliberations, we expect a final written commission decision before year end, and we expect to initiate contract negotiations with the selected counterparties following the written decision.
Saudia: Slide 17 provides an update on our Colorado clean energy plan yesterday, the Colorado Commission deliberated and verbally authorized 100 megawatts of utility owned solar.
Saudia: 50 megawatts of utility owned battery storage and a 200 megawatt solar PPA.
Saudia: With the recent deliberations, we expect a final written commission decision before year end and we expect to initiate contract negotiations with the selected Counterparties following the written decision.
Marne Jones: Slide 18 outlines our South Dakota electric resource plan. We continue to pursue 100 megawatts of utility-owned generation that will cost-effectively and reliably serve our customers. We are targeting an in-service date in the second half of 2026 for 100 megawatts of dispatchable natural gas fire generation. We filed a pre-application notice with the South Dakota PUC during the third quarter and plan to request a Certificate of Public Convenience and Necessity from the Wyoming PSC and a permit to construct from the South Dakota PUC in early 2025.
Saudia: Slide 18 outlines our South Dakota Electric resource plan, we continue to pursue 100 megawatts of utility owned generation that will cost effectively and reliably serve our customers we.
Saudia: We are targeting an in service date in the second half of 2026 for 100 megawatts of dispatch of <unk> natural gas fired generation.
Saudia: We filed a pre application notice with the South Dakota PUC during the third quarter and plan to request a certificate of public convenience and necessity from the Wyoming PSC and a permit to construct from the South Dakota PUC in early 2025.
Lynn Evans: With that, I will turn the call back over to Lynn. Thank you, Marnie. Once again, our team made strong progress on our strategic initiatives as we invest in safe, reliable and resilient energy delivery for our customers. We continue to execute our regulatory plan and aggressively pursue our strategic growth opportunities, including serving data center and blockchain load growth.
Speaker Change: With that I will turn the call back over to Lynn.
Speaker Change: Thank you Marni once again, our team made strong progress on our strategic initiatives as we invest in safe reliable and resilient energy delivery for our customers.
Lynn: We continue to execute our regulatory plan and aggressively pursue our strategic growth opportunities, including serving datacenter and blockchain load growth.
Lynn Evans: Finally, I want to express my sincere appreciation to the Black Hills team for effectively and efficiently serving our customers while managing through unexpected challenges of the year.
Lynn: Finally, I want to express my sincere appreciation to the Black hills team for effectively and efficiently serving our customers while managing through unexpected challenges of the year and with that we'll be happy to take your questions.
Operator: And with that, we'll be happy to take your questions. Thank you. As a reminder, to ask a question, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. One moment for questions.
Speaker Change: As a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, one moment for questions.
Andrew Weisel: Our first question comes from Andrew Weisel with Scotiabank. You may proceed.
Lynn: Okay.
Speaker Change: Our first question comes from Andrew Weisel with Scotiabank you May proceed.
Andrew Weisel: Hi, good morning, everyone. My first question is, you mentioned the unplanned outages a couple times there. Can you give a little more detail on what exactly were the issues and what was the O&M impact to earnings?
Andrew Weisel: Hi, good morning, everyone.
Andrew Weisel: My first question is you mentioned the unplanned outages a couple of times. There can you give a little more detail on what exactly were the issues and what was the O&M impact to earnings.
Marne Jones: Good morning, Andrew. This is Marne, and thanks for the question. I'll get us kicked off, and I'll let Kimberly jump in on the financial side of it.
Andrew Weisel: Good morning, Andrew This is marni and thanks for the question I'll get us kicked off and I'll, let Kimberly jump in on the financial side of it so.
Marne Jones: This quarter, we had a rollover. Last quarter, we announced that we had a couple of outages driven by some components that failed. And one of those outages just rolled over into the early part of Q3. And so that was the impact. There was no additional outages this quarter.
Andrew Weisel: This quarter, we had a rollover last quarter, we announced that we had a couple of outages driven by some components.
Andrew Weisel: That failed.
Andrew Weisel: And one of one of those outages just rolled over into the early part of Q3, and so that was the impact there was no additional outages this quarter.
Kimberly Nooney: And I'll turn it over to Kimberly from the financial impact side of it.
Kimberly Nooney: Now I'll turn it over to Kimberly from the financial impact side of it.
Kimberly Nooney: Yeah, are you asking for the quarter or for the year, Andrew? Both, if you can hear that. Yeah, they're on the slides that you can look at. I believe it's three cents and five cents respectively. But when you look at it in total, you include the impact from the margin side as well. And so if you look at the slides, you can see the collective both from the margin impact and the O&M impact from the unplanned outages. Hopefully that will get you what you need.
Kimberly Nooney: Yeah.
Kimberly Nooney: Are you asking for the quarter for the year Andrew.
Speaker Change: Both if you can share that.
Speaker Change: Yes, they're on the slides that you can look at I believe it's <unk> and <unk>, respectively, but when you look at it in total you include the impact from the margin side as well and so if you look at the slides you can see the collective both from the margin impact and the O&M impact from the unplanned outages hopefully that will get you what you need.
Andrew Weisel: Perfect. Yep, great. I appreciate that.
Speaker Change: Perfect Great I appreciate that.
Andrew Weisel: And then along those lines, I believe you're reiterating the guidance for the year you mentioned those negatives and you're mitigating that with some better than expected O&M trends.
Andrew Weisel: And then along those lines I believe you are reiterating the guidance for the year, you mentioned those negatives and you're mitigating that with some better than expected O&M trends are you able to come and we're within the range you might be trending high middle or low end.
Andrew Weisel: Are you able to comment where within the range you might be trending high middle or low end? Great question, Andrew. No, we don't comment on where we're at in the range, just the fact that we have reaffirmed the range and we expect to achieve the financial objectives that we've laid out for the year.
Speaker Change: Great question, Andrew No, we don't comment on where we're at in the range.
Speaker Change: The fact that we have reaffirmed the range and we expect to achieve the financial objectives that we've laid out for the year.
Andrew Weisel: Okay, fair enough.
Andrew Weisel: Next is a high level question.
Speaker Change: Okay fair enough mix at a high level question and I realize it's only been a little more than 24 hours since we've known the election results, but you guys are very well positioned in terms of crypto and bitcoin and blockchain and all of that and obviously president elect Trump has made it clear that he supports those industries and we've seen a huge spike in the price of crypto.
Andrew Weisel: And I realize it's only been a little more than 24 hours since we've known the election results. But you guys are very well positioned in terms of crypto and Bitcoin and blockchain and all that. And obviously, President-elect Trump has made it clear that he supports those industries. And we've seen a huge spike in the price of crypto.
Lynn Evans: Any early level thoughts on what the incoming administration might mean for that industry and how you and your service territory might be uniquely positioned to dollars?
Speaker Change: Any early level thoughts on what the incoming administration might mean for that industry and how you and your service territory might be uniquely positioned to benefit.
Lynn Evans: Andrew, this is Linn. Thank you for that question. We appreciate it. I'd like to, I guess I like our strategy because it's really focused on our customers and what's best for our customers with respect to how we help them grow, serve their energy needs. And so we, I would say we're fairly agnostic to what federal policy might be in that regard. However, you know, our states certainly have a lot of say in our policy and how we serve our customers. That's where we tend to focus the most, but I think your sentiment is indeed right and correct.
Speaker Change: Andrew This is Lee and thank you for that question, we appreciate David like I.
Speaker Change: I guess I like our strategy, because it's really focused on our customers and what's best for our customers with respect to how we help them grow that serve their energy needs and so I would say, we're fairly agnostic to what federal policy might be in that regard. However, our states certainly have a lot to say and our policy on how we serve our.
Speaker Change: So that's where we tend to focus the most but I think your sentiment is indeed, right and correct. We've been serving data centers for more than a decade, we're particularly good at it and we think that yes. It could have benefit for us going forward are we know what will happen going forward.
Lynn Evans: We've been serving data centers for more than a decade. We're particularly good at it and we think that, yes, it could have benefit for us going forward, or we know it will for having going forward.
Lynn Evans: Okay, you said data centers, I think you meant these other customers though, right? I did. Yeah, it's just in general, we treat them all largely the same, we have different tariffs for each one. But we understand that reliability is critical to them. The service quality we provide them is critical, etc. So we kind of serve them all kind of the same way, if you will, but obviously different different forms of tariffs and things of that nature.
Speaker Change: Okay. You said data centers I think you meant these other customer though right I did it is just in general we treat them all largely the same we have different tariffs are each one but we understand that our reliability is critical to them and the service quality that we provide them critical et cetera. So we can serve them all kind of the same way if you will but obviously differ.
Speaker Change: Different forms of tariffs and things of that nature.
Andrew Weisel: That makes a lot of sense.
Speaker Change: That makes a lot of sense. Thank you very much.
Andrew Weisel: Thank you very much. Thank you, Andrew.
Speaker Change: Thank you Andrew Thank you Andrew.
Andrew Weisel: Thank you.
Andrew Weisel: Thank you.
Chris Ellinghaus: Our next question comes from Chris Ellinghaus with SWS.
Speaker Change: Our next question comes from Chris <unk> with Swf's you May proceed.
Chris Ellinghaus: He may proceed everybody. How are you?
Speaker Change: How are you.
Chris Ellinghaus: Lynn, you've sort of persistently talked about the upside from the large load customer Is there any kind of cadence to what you're expecting?
Speaker Change: Good Chris Lynn.
Speaker Change: Lynn.
Speaker Change: <unk>.
Speaker Change: Persistently talked about the upside.
Speaker Change: The large loan customers.
Speaker Change: Any kind of.
Speaker Change: Cadence to what you're expecting.
Chris Ellinghaus: You know, are there particular years you're expecting new loads? Can you give us any sort of insights on that?
Speaker Change: Are there particular years, you're expecting new loads can you give us any sort of insights on that.
Lynn Evans: Yeah, thank you, Chris, for that question. The beauty of having served one of our what I'll call our anchor tenants for over a decade is we understand their cadence. They inform us where they're headed, and they meet those measurements just kind of lockstep. So that goes very well for us. So it's actually kind of relatively smooth with the data center we're serving currently.
Speaker Change: Yes. Thank you Chris for that question the beauty of having served one of our what I'll call our anchor tenants for over a decade as we understand their cadence they were they inform us where they're headed and they meet those measurements.
Speaker Change: Lockstep, so that goes very well for us so it's actually kind of a relatively smooth with a data center. We're serving currently we announced last quarter. They come on the end of 2026, and so that will be.
Lynn Evans: We announced Meta last quarter. They come on the end of 2026. And so that will be, they'll come on kind of gradually as well. So I think that's the beauty, frankly, of these data centers that we're serving is that they come on, and then they have a cadence as they grow and as they expand. And I can tell you that they have bought land around Cheyenne, et cetera. So we see expansion going on for some time.
Speaker Change: They'll come on kind of gradually as well so I think thats. The beauty frankly of these call set of data centers that we're serving is that they come on and then they have a cadence as they grow and as they expand and I can say I can tell you that they have bought land around Cheyenne et cetera. So we see expansion going on for some time are you seeing.
Chris Ellinghaus: Are you seeing any sort of acceleration given the investment in AI computing at this point? I don't know if we've seen acceleration. We've seen stronger interest in terms of the inbound calls that we take.
Speaker Change: Any sort of acceleration given the investment in AI computing at this point.
Speaker Change: I don't know if we've seen acceleration we've seen stronger interest in terms of the inbound calls that we take.
Lynn Evans: And, you know, historically for us, Cheyenne has been such a great place for a data center, still is, because of the fiber optic network that is very rich in the Cheyenne region. My understanding is with the AI, it's less fiber-dependent, and so we're actually encouraged by the possibility of having data centers, particularly AI centers, in other parts of our service territory, and then bringing our skill set that we've gained over the last decade, we think that can give us an advantage.
Speaker Change: And.
Speaker Change: Historically for US Cheyenne has been such a great place for Datacenters still is because of the fiber optic network that is very rich the Cheyenne region.
Speaker Change: And my understanding is with the AI this less fiber dependent and so we're actually encouraged by the possibility of having data centers, particularly AI centers in other parts of our service territory than bringing our skill set that we've gained over the last decade, we think that can give us an advantage.
Chris Ellinghaus: Does the new intertie also factor into that? Didn't quite understand, the new, the AC-DC tie, I'm sorry? Yeah.
Speaker Change: The new enter tie also factor into that.
Speaker Change: Didn't quite understand like the new entered the AC DC tie them seller, yes.
Lynn Evans: Accurate and further reliability thinking. It certainly impacts our reliability thinking, it always does for any kind of a customer, yes. It gives us some flexibility to take energy back and forth across the two separate grids. You know, the grid boundary is right here in Rapid City, so we're accustomed to that and know how to deal with that.
Speaker Change: Or are there reliability thinking.
Speaker Change: It certainly impacts our reliability thinking it always does for any kind of a customer yes. It gives us some flexibility to take energy back and forth across this through two separate grids. The grid boundary is right here at rapid city. So we're accustomed to that and know how to deal with that okay.
Lynn Evans: The upsides to the CapEx slide, have you got any color that you want to add to that in terms of the types of investments that you're thinking about? The types of investments tend to be right down the center of the fairway for us. We use the golf analogy. Transmission on both electric and gas side. We have perhaps some gas storage opportunities. We've got, frankly, more capital projects than maybe you could argue that our customers could afford. So it's always a balance of what's best for a customer, what allows us to serve them effectively and cost effectively, and then make sure we generate that return for the shareholder.
Speaker Change: The upsides to the Capex slide.
Speaker Change: You got any color that you want to add to that in terms of the.
Speaker Change: Types of investments that Youre thinking about.
Speaker Change: The types of investments tend to be right down the center of the fairway for US we use the golf analogy transmission on both the electric and gas side, we haven't perhaps some gas storage opportunities we've got.
Speaker Change: Frankly more capital projects then.
Speaker Change: You could argue that our customers could afford so it's always a balance of what's best for our customer what allows us to serve them effectively and cost effectively and then make sure we generate a return for the shareholder.
Chris Ellinghaus: OK. Kimberly, can I ask the guidance question a little differently? Given third quarter results and where the range is, sort of suggest a pretty strong fourth quarter.
Speaker Change: Okay. Thanks, Kimberly can I ask.
Speaker Change: The guidance question a little differently.
Speaker Change: Given third quarter results.
Speaker Change: The range is sort of suggest a pretty strong fourth quarter.
Kimberly Nooney: Can you address any of the sort of bigger issues that you are expecting to drive the fourth quarter? And is that O&M number for the year, you know, part of that factor? Yeah. So when you think about our full year, you know, you look back at Q1 and Q2, our O&M was actually favorable comparative to the prior year quarters. And so we've been managing O&M, you know, our year started out with pretty mild weather. And, you know, that that's continued. And so that's really how we're focused on managing O&M to cover unplanned outages, address some of the insurance expense increases that we've experienced.
Speaker Change: Can you address any of the <unk>.
Speaker Change: Sort of bigger issues that you are expecting to drive the fourth quarter and as is that O&M number for the year part of that factor.
Speaker Change: Yes, so when you think about our full year.
Speaker Change: You look back at Q1, and Q2, our O&M was actually favorable comparative to the prior year quarters, and so we've been managing O&M in our year started out with pretty mild weather.
Speaker Change: And you know that.
Speaker Change: That's continued and so that's really how we're focused on managing O&M to cover unplanned outages address some of the insurance expense increases that we've experienced and so as you look forward, we're really trying to manage that O&M as we started the year. It was about a three 5% year over year increase that we planned for that with some of these what I would call <unk>.
Kimberly Nooney: And so as you look forward, we're really trying to manage that O&M. As we started the year, it was about a three and a half percent year over year increase that we planned for. But with some of these, what I'd call unexpected challenges with weather, insurance, et cetera, that's really how we're focused on managing it right now, as well in making sure we're really diligent and how we think about our capital investments.
Speaker Change: Unexpected challenges with weather insurance et cetera, that's really how we're focused on managing it right now as well and making sure. We're really diligent in how we think about our capital investments I'm, sorry capital investments on behalf of our customers. So.
Kimberly Nooney: I'm sorry, capital investments on behalf of our customers. So I think the guidance that we've given you here should help you achieve how we're thinking about that four to six percent growth and how we're thinking about earnings guidance for the year.
Speaker Change: The guidance that we've given you here should help you achieve how we're thinking about that 4% to 6% growth and how we're thinking about earnings guidance for the year and Chris. This is Lynn I could not be more proud of how our team has stepped up in an incredible way very laser focused on how we control costs for behalf of customers and then provide the share holders that returned as well. So I just want to take a moment to say a big.
Lynn Evans: And Chris, this is Len. I could not be more proud of how our team has stepped up in an incredible way, very laser focused on how we control costs for behalf of customers and then provide the shareholders that return as well. So I just want to take a moment to say a big shout out to our team and how focused they've been and how helpful they've been this past year and going into the fourth quarter.
Speaker Change: Got out to our team and how focused they are bad and how helpful. They've done this past year and going into the fourth quarter.
Marne Jones: I don't recall who, it was probably Martin, I'm not sure. Somebody mentioned that you took advantage of the outages to do some longer term maintenance. Does that have an effect on, say, 2025 or what period was some of that maintenance O&M drawn forward from?
Speaker Change: I don't recall, who it was probably Martin.
Speaker Change: I'm not sure.
Speaker Change: Somebody mentioned that you took advantage of the outages to do some longer term.
Speaker Change: Maintenance does that have an effect.
Speaker Change: 2025.
Speaker Change: What period was some of that maintenance O&M drawn forward.
Marne Jones: Yeah, this is Marnie. So, you know, when we do have these larger outages, where we're opening up more of the machine, it's an opportunity to pull forward some of that maintenance. Typically, you're looking out, you know, one to two years of pulling that forward.
Speaker Change: Yes. This is Marty so when we do have these larger outages were open for opening up more of the machine, it's an opportunity to pull forward some of that maintenance.
Speaker Change: Typically youre looking out.
Speaker Change: One to two years of pulling that forward.
Chris Ellinghaus: Okay, I knew it was you. It really, you know, it's really dependent on what we find when we open that up. Okay. Um, okay. I appreciate it.
Speaker Change: Okay.
Speaker Change: It's really dependent on what we find when we open that up okay.
Speaker Change: Okay I appreciate it thanks for the color.
Chris Ellinghaus: Thanks for the caller.
Operator: Thank you, Chris.
Chris: Thanks, Chris.
Operator: Thank you, and as a reminder, to ask a question, please press star 1-1 on your telephone.
Speaker Change: Thank you and as a reminder to ask a question. Please press star one on your telephone.
Julien Dumoulin-Smith: Our next question comes from Julien Dumoulin-Smith with Jefferies, you may proceed. Hi, it's Brian Russo on for Julien.
Speaker Change: Our next question comes from Julien Dumoulin Smith with Jefferies. You May proceed.
Speaker Change: Hi, it's Brian Russo on for Julien.
Brian Russo: Hey, Brian. Hi.
Speaker Change: Hi, Brian Hi.
Brian Russo: Hey, is there any opportunity, given your commentary around these data center growth, the 5% of current EPS contribution growing to 10% by 2028? Is that really just the anchor tenant? And also the meta project announced a month or two ago? Or is there more projects that are driving that now?
Speaker Change: Is there any opportunity given your commentary around these data centric growth.
Speaker Change: 5%.
Speaker Change: Current EPS contribution growing to 10% by 2028 is that really just the anchor tenant.
Speaker Change: And also the meta project announced.
Speaker Change: Month, or two ago or is there more.
Speaker Change: Projects that are driving that now.
Kimberly Nooney: Yeah, Brian, this is Kimberly. A couple comments there. I would generally say it's an anchor tenant. It includes Microsoft and Meta. But as you know, Marnie mentioned, those and Lynn mentioned, those data center loads continue to evolve over time. They're, you know, Lynn mentioned the land that they're purchasing. So there are future opportunities. But at this point, we're focused on that five to 10% growth. We, you know, obviously work with both Meta and Microsoft to, you know, evaluate what their forecasts are.
Kimberly Nooney: Yeah, Brian This is Kimberly a couple of comments there.
Speaker Change: I would generally say, it's an anchor tenant it includes Microsoft <unk> matter, but as Marnie mentioned.
Kimberly Nooney: Those and Lynn mentioned, those datacenter loads continue to evolve over time there.
Kimberly Nooney: Lynn mentioned the land that they are purchasing so there are future opportunities, but at this point, we're focused on that 5% 10% growth.
Kimberly Nooney: Obviously work with both matter and Microsoft <unk>.
Kimberly Nooney: And we will be updating that as we go in to Q4 and announce that all of our, you know, capital and earnings guidance in February.
Speaker Change: Evaluate what their forecasts are and we will be updating that as we go in <unk>.
Speaker Change: Q4 and announced that.
Speaker Change: All of our <unk>.
Speaker Change: Capital and earnings guidance in February the one other thing I'd note is we are getting additional inbounds not just in Wyoming and.
Kimberly Nooney: The one other thing I'd note is we are getting additional inbounds, not just in Wyoming, including, you know, conversations that we're having both in Colorado and South Dakota. So that will also inform, you know, our future EPS growth as we continue to partner with, you know, potential other data centers in our territory.
Speaker Change: Conversations that we're having both in Colorado and South Dakota. So that will also inform our future EPS growth as we continue to partner with potential other datacenters in our territory.
Brian Russo: Yeah, that was actually going to be my next question.
Speaker Change: Yes that is actually going to be my next question outside of Wyoming, Colorado. These cut.
Brian Russo: Outside of Wyoming, a lot of these customers you mentioned are very active in the Dakotas and Colorado as well.
Speaker Change: Customers you mentioned are very active.
Speaker Change: Dakota, and Colorado as well will you look to set up some sort of a similar kind of <unk> tariff structure.
Brian Russo: Will you look to set up some sort of a similar kind of LPCS or BCIS tariff structure that, you know, that these customers are receptive to that in Wyoming, in these other states?
Speaker Change: At.
Speaker Change: Yes.
Speaker Change: These customers are receptive.
Speaker Change: To that in Wyoming in these other states.
Lynn Evans: Brian, this is Lynn. Thanks for that question. I'd say the answer is maybe we we pride ourselves in doing what we think is really good for customers and shareholders.
Speaker Change: Brian This is Lynn thanks for that question I'd say the answer is maybe we pride ourselves in doing what we think is really good for customers and shareholders. So we'll be flexible we have lots of different way of multiple tariffs. So we could use multiple avenues that we can serve them.
Lynn Evans: So we'll be flexible. We have lots of different we have multiple tariffs that we could use multiple avenues that we can serve them. And for us, because of our size and our ability to be agile, we can modify and do what we think is well does well for the customer, but making sure we also protect the shareholder. So that's my approach to that.
Speaker Change: And for us because of our size and our ability to be agile, we can modify and do what we think is well does well for the customer, but making sure. We also protect the shareholder so that's in my approach to that.
Brian Russo: Okay, thank you very much.
Speaker Change: Okay. Thank you very much.
Brian Russo: Thank you, Brian. Thank you.
Speaker Change: Thank you Brian.
Lynn Evans: I would now like to turn the call back over to Lynn Evans for any closing remarks. Well, good morning again, and thank you for joining us today. And especially thank you for your interest in Black Hills. We'll be seeing a number of you starting this weekend at EEI, so please travel safe. We'll look forward to engaging with you there. And once again, I want to say a sincere thank you to the Black Hills team. Just really appreciate how all of us have stepped up this year to make sure we serve our customers and our shareholders excellently.
Speaker Change: Thank you I would now like to turn the call back over to Linn Evans for any closing remarks.
Linn Evans: Well good morning, again, and thank you for joining us today and especially thank you for your interest in Black Hills will be seeing a number of you starting this weekend at EI. So please travel safe, we'll look forward to engaging with you there and once again I would say.
Linn Evans: Sincere. Thank you to the Black Hills team just really appreciate that all of US have stepped up this year to make sure we serve our customers and our shareholders excellently and you've done that so thank you. So much encourage everybody have a black hills energy safe day.
Lynn Evans: And you've done that. So thank you so much. Encourage everybody to have a Black Hills Energy Safe Day.
Operator: Take care.
Linn Evans: Sure.
Operator: Thank you.
Speaker Change: Yes.
Operator: This concludes the conference. Thank you for your participation. You may now disconnect.
Speaker Change: Thank you. This concludes the conference. Thank you for your participation you may now disconnect.
Speaker Change: Okay.
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