Q3 2024 Public Service Enterprise Group Inc Earnings Call
Ladies and gentlemen, thank you for standing by my name is Rob and I'm your event operator today.
I'd like to welcome everyone to today's conference public service Enterprise groups third quarter 'twenty 'twenty four earnings conference call and webcast.
At this time all participants are in a listen only mode.
Later, we will conduct a question and answer session for members of the financial community.
At that time, if you have a question you will need to press star and the number one on your telephone keypad Castro.
Australia a question please press the star and the number two.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
As a reminder, this conference is being recorded today November 4th 2024.
Won't be available for replay as an audio webcast on Pseg's Investor Relations website at H T. T. P. S. Colon forward slash forward slash investor that P. S E G Dot com.
Speaker Change: I would now like to turn the conference over to Carlotta Chan. Please go ahead.
Carlotta Chan: Good morning, and welcome to Pseg's third quarter 2024 earnings presentation on today's call are Ralph will Rosa Chair, President and CEO and Dan Craig Executive Vice President and CFO. The press release attachments and slides for today's discussion are posted on our IR website at.
Speaker Change: <unk> Dot P. S N G dot com and our 10-Q will be filed later today.
Speaker Change: Pseg's earnings release, and other matters discussed during today's call contain forward looking statements and estimates that are subject to various risks and uncertainties. We will also discuss non-GAAP operating earnings which differs from net income as reported in accordance with generally accepted accounting principles or GAAP in the United States. We include.
Speaker Change: Reconciliations of our non-GAAP financial measures and a disclaimer regarding forward looking statements on our IR website and in today's materials.
Speaker Change: Following the prepared remarks, we will conduct a 30 minute question and answer session I will now turn the call over to Ralph with Rosa.
Ralph: Thank you Carlotta good morning to everyone and thanks for joining us on our call to review <unk> third quarter results and update you on two important regulatory filings that we successfully resolved through the settlements that were approved by the New Jersey Board of public utilities last month.
Ralph: Let's start with our financial results.
Ralph: <unk> reported net income of $1 four per share for the third quarter of 2024, bringing results for the first nine months of $2 97 per share.
Ralph: This compares to net income of 27 cents per share and $4 <unk> per share for the third quarter and first nine months of 2023, respectively, which was impacted by the pension lift out that occurred in August of 2023.
Ralph: Our results for the quarter and year to date periods are summarized on slide seven and nine in our webcast slides.
Speaker Change: Pseg's non-GAAP operating earnings were 90 cents per share for the third quarter of 2024 and $2 84 per share for the first nine months of the year.
Speaker Change: This compares to non-GAAP operating earnings of 85 per share and $2 94 per share for the third quarter and first nine months of 2023, respectively.
Speaker Change: As a reminder, our non-GAAP results exclude the items shown on attachment eight and nine which are included in the earnings release.
Speaker Change: Dan will provide a detailed financial review later in the call, but I want to note that the solid operating and financial results. We have posted for the third quarter and year to date period enable us to narrow our original full year 2024, non-GAAP operating earnings guidance from $3 60 to $3 70 per share to a range of $3 64 to $3 68 per.
Speaker Change: Sure.
Speaker Change: This updated and narrowed range reflects the implementation of <unk> new base distribution rates that went into effect on October 15th and PSEG Power's realization of a significant portion of its 2020 for gross margin during the second half of this year.
Speaker Change: On the operating front during the third quarter summer weather in New Jersey returned to normal following the second quarter that was the warmest we've experienced in more than 55 years.
Speaker Change: We have seen the devastating impacts of hurricanes and storms in many parts of the country.
Speaker Change: Fortunately the hurricane season in our service territory has been quiet, thus far and we have been pleased to send mutual aid to some of our southern peers.
Speaker Change: <unk> met its 2020 for summer peak load of 10152 megawatts on July 16, with temperatures of 98 degrees Fahrenheit.
Speaker Change: Transmission and distribution network operated as expected with high reliability and minimal outages.
Speaker Change: At PSEG power, our merchant nuclear fleet continues to perform well supply in new Jersey in the PJM grid with reliable 24 by seven carbon free energy.
Speaker Change: We also continue to pursue long term growth opportunities in nuclear including incremental output and long term contracts up potentially higher prices.
Speaker Change: The attributes of these nuclear facilities is helping to attract new technology based businesses to the state.
Speaker Change: And the results of those long term opportunities would be incremental to Pseg's stated, 5% to 7% long term non-GAAP operating earnings growth rate.
Speaker Change: In October PSEG nuclear began to close down or sell them unit, two which had just completed a 527 day breaker to breaker run to began its scheduled refueling.
Speaker Change: The Salem station also recently received its third consecutive exemplary rating from the Institute for nuclear power operators.
Speaker Change: The peer to peer operations and safety benchmarking group.
Speaker Change: Switching to regulatory activity. We're pleased to have successfully resolved two major regulatory filings last month.
Speaker Change: <unk> base rate case, and the second phase of its clean energy future energy efficiency programs.
Speaker Change: First the <unk> approved <unk> multiparty settlement of its first base electric and gas distribution rate case since 2018 with new rates effective October 15.
Speaker Change: We appreciate the work done by all parties to achieve a balanced settlement that provides recovery of all of our prudent capital investments to reliably serve customers while also preserving affordability.
Speaker Change: The terms of the settlement provides for an additional $505 million in annual revenues, including recovery of previously deferred costs and an incremental flow back of customers of tax benefits due to accelerated deductions and prior federal tax rate changes.
Speaker Change: The updated revenue requirement is based upon its distribution rate base of $17 8 billion.
Speaker Change: Our return on equity of nine 6% and an equity ratio of 55% of total capitalization.
Speaker Change: <unk> was also approved to implement new pension and storm deferral mechanisms going forward.
Speaker Change: This directly addresses one of our key objectives, which has been to increase the predictability of our financial results by reducing variability benefiting both the customer and our shareholders.
Speaker Change: You'll recall back in 2022, we identified three paths to address the accounting impacts of pension costs.
Speaker Change: Combined with a regulatory accounting order, we obtained in 2023, along with a lift out of a portion of the nonregulated pension obligations. This new deferral mechanism will provide for the recovery of annual pension and <unk> expenses and should help to mitigate most of the remaining pension variability going forward.
Speaker Change: The <unk> also approved the settlement of PSC in Gs energy efficiency filings that covers a commitment period from January of 2025 to June of 2027.
Speaker Change: The approval authorizes an investment program of $1 9 billion net of administrative expenses and an additional $1 billion program for customer on bill repayment for purchases of equipment.
Speaker Change: Both programs will be treated as rate base.
Speaker Change: It will be completed through 10 energy efficiency programs over approximately six years.
Speaker Change: The second phase of energy efficiency programs will continue new Jersey's efforts to help all customers save energy reduced utility bills lower carbon emissions and continue our E related job training the focus on lower and middle income communities.
Speaker Change: Customer Bill affordability remains a key focus alongside our energy efficiency and cost containment efforts.
Speaker Change: Following this past distribution base rate increase <unk> retained its favorable bill comparison position versus regional peers on an electric and gas customer bills.
Speaker Change: A typical <unk> residential customer will pay an electric bill consistent with the regional average and continue to have the lowest gas bill in the region.
Speaker Change: In addition, the Btu authorized on October one <unk> gas supply cost reduction.
Speaker Change: Lowering the Bgs S rate from 40, <unk> per therm to 33 per therm.
Speaker Change: In time to help customers during the upcoming winter heating season.
Speaker Change: The bgs's gas cost reduction when combined with the base rate changes that occurred in October lowered the bill impact of the base rate increase for a typical combined electric and gas customer from 7% to an increase of about 5%.
Speaker Change: On the capital investment side <unk> invested approximately $1 billion during the third quarter and is projected to complete 2024 with capital spending of $3 5 billion.
Speaker Change: Slightly higher than planned by about $100 million. This.
Speaker Change: This was driven by higher new business request and he spent.
Speaker Change: Notably within this year's capital expenditures, we are also on budget and on schedule to complete almost all of our Ams installations by year end.
Speaker Change: We continue to forecast Pseg's five years 19 to $22 5 billion capital plan through 2028.
Speaker Change: With the regulated portion representing $18 billion to $21 billion of the total.
Speaker Change: With the energy efficiency settlement approved we will begin commitments under this new program this coming January.
Speaker Change: These energy efficiency investments are already captured in our projections that produced a compounded annual growth rate in rate base of six to seven 5% over the 2024 through 2028 periods.
Speaker Change: Switching to regulated competitive transmission solicitations, the Btu selection of the winner or winners of the prebuilt offshore wind infrastructure is expected by year end.
Speaker Change: We also submitted bids into Pjm's 2024 regional transmission expansion plan window to number one.
Speaker Change: The solicitation took place in September.
Speaker Change: PJM is expected to recommend their preferred solutions in the next few months and then approve the selected projects in February of 2025.
Speaker Change: And as a reminder, none of these potential projects are included in our current capital investment forecast.
Speaker Change: Yes.
Speaker Change: <unk> recently updated slowed study as a part of an annual submission to PJM for use in its load forecast updates.
Speaker Change: Our existing data center peak load currently stands at approximately 350 megawatts and these sites are expected to expand by about 170 megawatts over the next 10 years.
Speaker Change: We have also received formal applications to initiate nearly 400 megawatts of new data center load and inquiries over 200 megawatts of data set of feasibility studies and new business.
Speaker Change: These amounts do not represent firm commitments, but they.
Speaker Change: I provided an indication of the increase in interest.
Speaker Change: Last week <unk>, a data center developer announced plans to invest $1 $2 billion to divert a 280000 square foot facility to build its first data center in New Jersey.
Speaker Change: New Jersey has numerous locations that can be re utilized in a similar fashion and our state's economic development efforts are focused on replicating this activity throughout the state.
Speaker Change: We are aware of the FERC Technical conference and decision on Friday, We will continue to look for clarity on this issue going forward.
Speaker Change: That said, we believe that data center demand will continue to grow and we anticipate the continued desire for carbon free dispatched for power.
Speaker Change: As such at PSEG power, we continue to pursue contracting of our nuclear output at long term attractive pricing with low execution risk that can also help attract new technology based businesses to new Jersey, consistent with state policy and.
Speaker Change: In addition, we are pursuing thermal inefficiency off rates at our Cologne Salem units that could potentially increase their combined output by approximately 200 megawatts and we believe would qualify for the technology neutral tax credits for new carbon free generation.
Speaker Change: Switching to the long island contract as you know our existing operating service agreement and power supply contract with LIFO runs through the end of 2025.
Speaker Change: LIFO began a process on the renewal and extension of both the OSA and fuel management contracts.
Speaker Change: We have submitted our proposals into life as RFP process and anticipate an update on the status of both proposals during the first quarter of 2025.
Speaker Change: So wrapping things up on the quarter today, we are reaffirming our guidance for long term non-GAAP operating earnings growth of 5% to 7% through 2028.
Speaker Change: Which had incorporated an expected balanced rate case outcome consistent with the approved settlement recently implemented.
Speaker Change: The approved the program and uses the threshold price of the nuclear production tax credit to price the output of our nuclear units.
Speaker Change: In closing through the first nine months of the year solid execution is driving our expected results.
Speaker Change: We have settled for regulatory proceedings in the past six months and we are also advancing our five year capital investment plan focused on infrastructure modernization and energy efficiency initiatives.
Speaker Change: PSEG has continued to focus on increasing the predictability of our financial results as we prioritize a solid balance sheet.
Speaker Change: This has enabled us to fund our five year capital investment plan totaling 19% to $22 5 billion.
Speaker Change: Without the need to issue new equity or sell assets and provides the opportunity for consistent and sustainable dividend growth.
Speaker Change: I'd like to close with a thanks to all our employees for all they do what a special shout out to the PSE and G crews, who went to Florida, and Georgia are mutual aid and assist with service restoration after Hurricanes Milton and Helene.
Speaker Change: The mutually network is rather unique in our industry and we are very pleased to reciprocate. The help we received from mutual aid crews after superstorm Sandy.
Speaker Change: I will now turn the call over to Dan to discuss our financial results and outlook in greater detail and will be available for your questions. After his remarks.
Dan Craig: Thank you Ralph good morning, everybody.
Dan Craig: As Ralph mentioned earlier PSEG reported net income of $1 <unk> per share for the third quarter of 2024.
Speaker Change: Compared to <unk> 27 per share in 2023.
Speaker Change: non-GAAP operating earnings were <unk> 90 per share in the third quarter of 2024 compared to <unk> 85 per share in 2023.
Speaker Change: Slide seven and nine detailed the contribution to non-GAAP operating earnings.
Speaker Change: Per share by business segment for the third quarter and first nine months of 2024.
Speaker Change: Slides eight and 10 contain waterfall charts that take you through the net changes.
Speaker Change: For the quarter over quarter and nine month periods.
Speaker Change: And non-GAAP operating earnings per share by major business.
Speaker Change: Starting with <unk>.
Speaker Change: Which reported third quarter net income and non-GAAP operating earnings of <unk> 76 per share for 2024.
Speaker Change: Compared to <unk> 80 per share in 2023.
Speaker Change: The main drivers for both net income and non-GAAP results for the quarter.
Speaker Change: Growth in rate base from higher regulated investments.
Speaker Change: That was more than offset by higher investment related depreciation and interest expense and.
Speaker Change: In advance of the October rate effective date of our distribution rate case approval.
Speaker Change: Compared to the third quarter of 2023.
Speaker Change: Transmission margin was flat due to higher recovery of investment offset by the timing of our formula rate true up.
Speaker Change: Energy efficiency margin was a penny per share favorable on higher investments.
Speaker Change: And distribution margin increased by <unk> <unk> per share.
Speaker Change: Split between energy strong too.
Speaker Change: And the infrastructure Advancement program, our IAP recoveries.
Speaker Change: And the absence of storm cost amortization from a year ago.
Speaker Change: Distribution O&M expense was <unk> <unk> per share unfavorable compared to the third quarter of 2023.
Speaker Change: Primarily due to the timing of spending and higher cyber and it spend.
Speaker Change: Depreciation and interest expense rose by a penny per share and <unk> per share respectively.
Speaker Change: Compared to the third quarter of 2023, reflecting continued growth in investment and higher interest expense.
Speaker Change: Lower pension and <unk> income, resulting from the cessation of OPEC related credits, which ended in 2023.
Speaker Change: Resulted in a penny per share unfavorable comparison to the year earlier quarter.
Speaker Change: Lastly, the timing of taxes recorded through an annual effective tax rate, which nets to zero over a full year.
Speaker Change: And other taxes had a net unfavorable impact of <unk> <unk> per share in the quarter compared to 2023.
Speaker Change: Weather during the third quarter as measured by the temperature humidity index was 5% warmer than normal.
Speaker Change: But 5% cooler than the third quarter of 2023.
Speaker Change: And just as a reminder, weather variations have minimal impact on our utility margin because of the conservation incentive program or <unk> mechanism.
Speaker Change: Which limits the impact of weather and other sales variances positive or negative.
Speaker Change: On electric and gas margins for <unk>.
Speaker Change: <unk> <unk> promote the adoption of its energy efficiency programs.
Speaker Change: The number of electric and gas customers.
Speaker Change: Which is the driver of margin under the Sip mechanism continue.
Speaker Change: Continued to grow by approximately 1% each over the past year.
Speaker Change: On capital spending <unk> invested approximately $1 billion during the third quarter.
Speaker Change: Bringing year to date spend to $2 7 billion.
Speaker Change: For the full year 2020 for our capital spend is expected to total $3 5 billion.
Speaker Change: Slightly higher than our original plan of $3 4 billion based.
Speaker Change: Based on the continued execution of our electric system reliability programs, including energy strong and last mile spend in the IAP.
Speaker Change: Our ongoing gas infrastructure replacement spending as.
Speaker Change: As well as our energy efficiency programs.
Speaker Change: We are reaffirming our 2024 to 2028 regulated capital investment plan of $18 billion to $21 billion.
Speaker Change: As well as our rate base CAGR over the same period of six to seven 5%.
Speaker Change: Moving to PSEG power and other.
Speaker Change: For the third quarter of 2020 for PSEG power and other reported net income of 28 per share.
Speaker Change: Compared to a net loss of 53 per share for the third quarter of 2023.
Speaker Change: The non-GAAP operating earnings were <unk> 14 per share for the third quarter of 2024 compared to non-GAAP operating earnings of <unk> <unk> per share for the third quarter of 2023.
Speaker Change: For the third quarter of 2024, net energy margin rose by <unk> 16 per share.
Speaker Change: Driven by higher re contracting prices at nuclear.
Speaker Change: Which includes the net impact of the nuclear PTC that took effect January one of 2024.
Speaker Change: As a reminder for 2024, we mentioned that we anticipated realizing a significant portion of.
Speaker Change: The increase in the 2020 for gross margin over 2020 threes gross margin.
Speaker Change: During the second half of the year based upon the shape of our underlying hedges.
This differs from last year, when PSEG power realized most of the step up in the annual hedge price in the first quarter of 2023.
Speaker Change: O&M was <unk> <unk> per share unfavorable.
Speaker Change: Mostly driven by higher costs from the Peach bottom units.
Speaker Change: And the absence of a onetime benefit last year.
Speaker Change: Interest expense was <unk> <unk> per share higher.
Speaker Change: Reflecting incremental debt at higher interest rates.
Speaker Change: And taxes and other were a penny per share favorable compared to the third quarter 2023.
Speaker Change: On the operating side the nuclear fleet produced approximately eight one terawatt hours during the third quarter of 2024.
Speaker Change: In line with the year earlier period.
Speaker Change: And ran at a capacity factor of 94, 5%.
Speaker Change: Touching on some recent financing activity.
Speaker Change: As of the end of September PSEG had total available liquidity of $3 4 billion.
Speaker Change: Including $200 million of cash on hand.
Speaker Change: Through September 30 of 2024.
Speaker Change: Cash from operations was strong.
Speaker Change: And our cash collateral balance was below $200 million supporting our strong liquidity position.
Speaker Change: Gcg's variable rate debt at the end of September.
Speaker Change: Consisted of a $1 billion to $5 billion term loan maturing in March of 2025.
Speaker Change: The entirety of which has been swapped to a fixed rate.
Speaker Change: Which mitigates fluctuations in interest rates.
Speaker Change: As of the end of September given our swaps, we had minimal variable rate debt.
Speaker Change: In August <unk> issued $1 1 billion.
Speaker Change: A secured medium term notes for MTS.
Speaker Change: Comprised of $600 million of 485% MTN due August 2000.
Speaker Change: 34.
Speaker Change: $500 million of five 3% MTN due August of 2054.
Speaker Change: A portion of the proceeds were used to repay the $250 million August 15th maturity of 315% MTN.
Speaker Change: Looking ahead, our solid balance sheet supports the execution of Pseg's five year capital spending program.
Speaker Change: Dominated by regulated capex without the need to sell new equity or assets.
Speaker Change: And provides the opportunity for consistent and sustainable dividend growth.
Speaker Change: In closing we are narrowing pseg's full year 2024, non-GAAP operating earnings guidance to $3 64.
Speaker Change: The $3 68 per share.
Speaker Change: From $3 60 to $3 70 per share prior.
Speaker Change: This update reflects pseg's solid results through the first three quarters of 2024.
Speaker Change: And <unk>, new distribution base rates.
Speaker Change: Which took effect October 15th.
Speaker Change: We are also reaffirming our long term, 5% to 7% compound annual growth in non-GAAP operating earnings through 2028.
Speaker Change: Supported by our capital investment programs and our nuclear PTC.
Speaker Change: With the rate case and energy efficiency filings now approved.
Speaker Change: We will look to finalize our annual business planning process.
Speaker Change: Which will position us to update our financial guidance disclosures with our fourth quarter and full year of 2024 earnings release.
Speaker Change: We will introduce Pseg's non-GAAP operating earnings guidance for 2025.
Speaker Change: We will refresh and roll forward, our capital investment plans.
Speaker Change: And we will update our rate base and long term earnings CAGR.
Speaker Change: And discuss the details during our year end call in February of 2025.
Speaker Change: That concludes our formal remarks, and we're ready to begin the question and answer session.
Speaker Change: Ladies and gentlemen, we will now begin the question and answer session for members of the financial community.
Speaker Change: I have a question please press star and the number one on your telephone keypad.
Speaker Change: My question has been answered and you wish to Australia, you're pulling a question may do so by pressing the star and the number two.
Speaker Change: If you're on a speakerphone please pick up your handset before entering your request.
Speaker Change: One moment please for the first question.
Speaker Change: The first question is from Shar <unk> with Guggenheim Partners. Please proceed with your question.
Shar: Hey, good morning, guys. Good morning, Ralph Good morning, Dan will ensure.
Speaker Change: Good morning.
Speaker Change: So just perhaps turning off on the RSA issues at FERC and sort of the risks behind the meter nuclear deals does this kind of change the calculus on your commercial discussions of artificial island does this push the conversations to more conventional deal with transmission interconnections. So any changes would you discuss.
Speaker Change: And is there and do you have the interconnection capacity to present in front of the meter option to a potential counterparty.
Speaker Change: Sure. Thanks, Yeah, So look I'll try to hit on that whole interconnection.
Speaker Change: <unk> issue upfront here, a little bit first of all we think that was a very narrow.
Speaker Change: [noise] decision that was made by FERC.
Speaker Change: So very specific to what was submitted.
Speaker Change: The parties there were not part of that we didn't we were not party to that agreement. So I don't want to talk in a lot of details about it but it has not slowed us down and we will not slow us down for trying to help the state of New Jersey meet their economic development goals.
Speaker Change: There is a lot of different ways to come to a solution I think talent had one solution we've seen constellation with another solution I think each individual customer in each individual site will bring a different.
Speaker Change: Solution to the table, we still think we're very uniquely positioned because of our three unit site.
Speaker Change: And the redundancy that exists there.
Speaker Change: We like the additionality early site permit could provide to somebody else. We liked the additionality then our upgrades are going to provide and we like the additional megawatt hours that we're going to get from our hope Creek facility. When we change the fuel cycle. So there's a lot of things that are a little bit different about our site than others and I think when we can.
Speaker Change: To have more conversations all of those things will come to light and play itself out.
Speaker Change: So it sounds like despite the spur.
Speaker Change: Rejection it doesn't sound like the messaging the conversations anything has changed from before the event happened, yes sure again it's.
Speaker Change: 72 hours or so since that all came out.
Speaker Change: Look I think I think there is a number of different pads, where we can see an ultimate solution come out but for our specific scenario.
Speaker Change: So what I said a couple of minutes ago, you could look you can see somebody in.
Speaker Change: In that proceeding.
Speaker Change: Asking for rehearing.
Speaker Change: And trying to get a different solution are you could see something coming out of the federal I mean, thats a federal the technical conference and what they have going on you could see something coming out is it two or five proceeding.
Speaker Change: At Exelon has or you could see somebody put together our interconnection agreement that there is a little different than the one it exists and it comes out with a solution that the FERC.
Speaker Change: So any of those scenarios are possible.
Speaker Change: It's just.
Speaker Change: I just think we're.
Speaker Change: Dead focused on support in his state of New Jersey's economic development goals.
Speaker Change: And just lastly for me Ralph It's just I don't want to put you in a corner and just ask about timing, but maybe I'll give it a shot.
Speaker Change: Do you have any sense on the timeline and when we've we've had conversations in the past it's been hopefully by this year by the end of this year Governor's obviously, leaving next year. This is an important initiative for him can you just maybe give us a sense on timing and where you are with the discussions. Thanks, yes source that was misunderstood or I misspoke.
Speaker Change: We always have said.
Speaker Change: In our conversations that we would like to get this done during this governor's term heat terms out at the end of next year, obviously there'll be an election in November and different policies will be discussed but.
Speaker Change: We've been focused on that timeline since we've we started the discussions.
Speaker Change: Okay, perfect initiatives and supporting his initiatives, which would make a ton of sense for us.
Speaker Change: Got it and I'm looking forward to that appreciate it you guys in a few days in AR and Florida. Thanks again, thanks sure.
Speaker Change: Our next question is from Nicholas Campanella with Barclays. Please proceed with your question.
Nicholas Campanella: Hey, thanks, so much.
Nicholas Campanella: Good morning so.
Nicholas Campanella: Wanted to ask you when you kind of outlined the prior kind of 5% to 7% growth rate, we talked about it not being linear and as we're kind of getting to the end of the year here. There's been a lot that's happened right like you have.
Nicholas Campanella: New rates in New Jersey, presumably you were under earning your ROE. There. We also kind of have this capacity auction frame can you just kind of talk about how that position to you within that five to seven and any drivers we should kind of consider as we get to 'twenty five. Thanks, Yeah sure I'm, let Dan give you some details there, yes, Nick and I am not going to give it.
Dan Craig: 25% or any particular year's guidance as we step forward I think that range.
Nicholas Campanella: As where we are I do think to your point you are looking at elements that will come into play.
Dan Craig: We had assumed all along we would see the results of this rate case in the second half of the year. So that kind of the timing is as expected and one of the key elements that we looked at for that rate case was being able to fully recover the capital that we have prudently deploy during that period and that was also.
Nicholas Campanella: The rate case came out so I think we got a good outcome and I think it was where we expected it to be.
Nicholas Campanella: But that's been baked into how we've been thinking about where we're going to.
Speaker Change: To your point I do think on capacity.
Speaker Change: It's unfortunate that we do have a delay.
Speaker Change: But we will continue to step through those auctions as we go through time, there's a little bit of a balancing for those auctions. If you think about the auctions may go up and down they do split years right. So you've got a kind of a June to may timeframe, and so to the extent that you see some ups and downs throughout where those auctions may go you will see.
Speaker Change: A moderating effect on the year over year results that we see so I think if you just think about that range of 5% to seven that we've given you are being pretty good shape as you step through the time frame that we've talked about.
Speaker Change: Okay, Great and then I guess, just thinking about like if you were to move.
Speaker Change: Artificial island in front of the meter in any scenario.
Speaker Change: How impactful is that to the to the overall economics is there any kind of level that you would kind of guide to on what a grid charge actually looks like in that region on a dollar per megawatt basis or otherwise I appreciate it.
Speaker Change: Well so couple of things let me, let me go back to the capacity auction for a second and then correctly simpler.
Speaker Change: Sorry to see that the auction proceed right, but we're also happy that PJM.
Speaker Change: PJM is going to take a step back and get that right. So while we filed some comments to that to that effect and.
Speaker Change: It was really just based upon getting the reference unit rate and figuring out. This are more piece that I would encourage you all to take a look at the some of the filings that were made around that RMR.
Speaker Change: Slide that RMR complaint that went in there was some pieces thereabout brand ensures that might be it might be helpful for people to take a look at.
Speaker Change: And then from a pricing standpoint.
Speaker Change: It just takes a look at the transmission rate that exists within the <unk> service territory.
Speaker Change: Just under seven blocks of megawatt hour right now and I think if you step back and look at that full rate on a.
Speaker Change: On a network service basis and netted.
Speaker Change: It really put in context, the amount of dollars that we're talking about here.
Speaker Change: That is at risk in any way shape or form and how whether it's made up in the pricing deal or tax breaks or something else. The the state of New Jersey could still meet its economic goals.
Speaker Change: Okay. That's super helpful. Thanks for the color I'll see you in a few days here. Thank you.
Speaker Change: The next question is from the line of Paul Zimbardo with Jefferies. Please proceed with your question.
Paul Zimbardo: Hi, good morning, Thank you team.
Paul Zimbardo: Hey, Paul basketball.
Paul Zimbardo: If I could follow up on Nick's question, just I don't mean to nitpick, but when you answered do you expect to be within that 5% to 7% CAGR every year on an annual basis, because I know we've talked about that the production tax credits are little lumpy to rate case dynamics. So do you expect to be within that range every year or is that more like a CAGR or we should think of.
Speaker Change: I think you ought to be thinking about it as kind of how the business will run on a go forward could we be in situations, where we could.
Speaker Change: Move around within that period, absolutely Paul but.
Speaker Change: But I think that's a good way to think about as longer term on a CAGR basis.
Paul Zimbardo: Okay understood.
Speaker Change: And then shifting to the transmission side of the house did you give a little scope or quantification of some of the the PGM are kept proposals I saw there was that roughly 400 million Greenfield project in MP side, but just any other perspective, our transmission needs would be helpful. Thanks.
Speaker Change: Yes.
So I think I'd first start by just if you go backwards, we were successful in Maryland and have a project that's moving along there.
Speaker Change: Half referenced on the call.
Speaker Change: And window, one we've got a proposal sitting in front of PJM, that's got a comparably sized.
Speaker Change: Which we'll find out in short order I think what youre going to continue to see Paul.
Speaker Change: Given the other topic, that's that's been kicked around and we will continue to be on the data centers.
Speaker Change: More of these opportunities that will come forward are I think we will analyze them all will try to figure out what makes sense for us.
Speaker Change: To move forward on but I can tell you that we do move forward with some confidence in our ability to.
Speaker Change: To do the work and to put in competitive bids to continue to move forward. The other thing I would say is just.
Speaker Change: As you take a look at the capital program.
Speaker Change: Incremental competitively bid transmission is not in that program.
Speaker Change: So we don't need to be able to win some of these competitive programs to be able to hit the capital budget.
Speaker Change: Yes, very clear thanks, a lot. Thanks.
Speaker Change: Thanks, Paul.
Speaker Change: Our next question's from the line of Jeremy Tonet with Jpmorgan. Please proceed with your question.
Jeremy Tonet: Hi, good morning.
Jeremy Tonet: And in Germany.
Jeremy Tonet: Surprisingly I want to come back to the data center conversation here.
Jeremy Tonet: And just wanted to turn off the gas when you look at the power market opportunities chat.
Jeremy Tonet: Can you talk more about the potential upside related to thermal operates or other opportunities. I think you had mentioned 200 in the past, but that was predicated on a certain pricing outlook and maybe that has changed and so just wondering given everything that we havent front of US now how you think about that.
Speaker Change: No we're still in that 200 range right now.
Speaker Change: Our teams continue to look at what opportunities might be out there and we're going to continue to refine it but we have not moved off that 200 megawatts at this point.
Speaker Change: Got it understood and then just thinking more broadly as well.
Speaker Change: Time to power something your customers.
Speaker Change: Care about the most worried about carbon free in your objectives being to support the New Jersey State economic development here and if it is time to power. That's most important is the FERC delay hurt those conversations.
Speaker Change: No Jeremy I think it's look it's all of the above and it depends upon which customer you're talking through some are really focused on additionality.
Jeremy Tonet: Clean generation standpoint, some are focused on.
Jeremy Tonet: The time to speed the market, there's no doubt about that and then I think you have people that are looking at the reliability of the units and how everyone operates them. So we believe we're in pretty good shape on all three of those factors.
Jeremy Tonet: Factors and that's why we haven't indicated at all that we were backing down.
Speaker Change: Got it understood that's very helpful. Thanks.
Speaker Change: The next question is from the line of their guests Chopa with Evercore ISI, just see with your questions.
Speaker Change: Hey, Deane good morning, and thank you Josh.
Speaker Change: Good morning, Dan Good morning, Hey, just Ralph you kind of.
Speaker Change: It went through the tariff implications of the first quarter and a lot of detail. Thank you for that maybe just address grid reliability. I mean that was one of the things that was brought up.
Speaker Change: In the order you just mentioned it but just maybe a little bit more color as to how do you overcome that this notion of <unk>.
Jeremy Tonet: <unk> power away from the grid and then giving into the data center any color you can share that would be helpful. Thank you.
Speaker Change: <unk> I don't I don't think we could really state anything there with any any.
Jeremy Tonet: Sense of certainty right now <unk> got so many different things that are going on with the topology and the grid.
Jeremy Tonet: Down in that region.
Jeremy Tonet: Brand insurers as an example, so large unit that unit stays on it'll have one impact on the region. If it comes off and we'll have another where TMI ultimately connects into the grid and that region is going to have another impact on it. So I'll begin way ahead of our skis. If I was to tell you exactly.
Jeremy Tonet: What the grid reliability issues are I can tell you. This from a from a stability standpoint on our system overall, we have extra capacity here in New Jersey.
Jeremy Tonet: Because it'll work do we did after the blackout in 2003 and after Superstorm Sandy.
Jeremy Tonet: But I don't want to tell you for sure that there won't be any upgrades that will be needed until I know how a lot of the other generators are going to play out in that in that part of PJM.
Jeremy Tonet: I guess that just is I think important to keep sight of and it came out of some of Friday's discussions.
Jeremy Tonet: You know that the data center stuff in the aggregate is a pretty important element for a whole host of reasons and I know national Securities referenced in.
Jeremy Tonet: It's gonna Com and a lot of the discussions related to whether it's behind the meter in front of the meter it doesn't ultimately change the supply demand needs right.
Jeremy Tonet: And that's been stated numerous times, but I think people can lose sight of that as youre looking at some of the details as to how some of this thing may come to pass at the end of the day you got to have incremental demand and supply is going to be needed to meet it and that's I think where Ralph was taken off from.
Jeremy Tonet: Yes.
Speaker Change: I certainly appreciate that discussion, whether it's fine for behind the meter the supply demand challenges or the supply demand challenges. So thank you for that just maybe can I quickly follow up Ralph I mean, clearly constellation on their earnings call. Just before you had a preference for kind of advocating for these co lo.
Jeremy Tonet: <unk> deals.
Jeremy Tonet: Where do you where do you.
Jeremy Tonet: What's your stance on that would you would you rather preserve the option of having co location.
Jeremy Tonet: Next to your nuclear plants I'm, just trying to figure out if there was a thought process.
Jeremy Tonet: How would you kind of would you be supportive of collocation going forward or how do you how do you think about that.
Speaker Change: So do I.
Speaker Change: I tried to move probably make this too simple for folks as we as we talk about it but I'm sticking to it.
Speaker Change: It's a combination of you know what are you going to charge someone for energy what are you going to charge somebody for transmission and what are you going to charge someone in the way of taxes.
Speaker Change: And the combination of all of the above is the package that any state needs to bring to bear to attract a hyperscale or to the area.
Speaker Change: So you know.
Speaker Change: We have a very healthy.
Speaker Change: Tax.
Speaker Change: Refund plan in place right now that is tax incentives that I think you are in the $700 million range, maybe $500 million range in the state of New Jersey.
Speaker Change: So that's great and would be very very helpful in attracting someone.
Speaker Change: Does it need a little bit of additional kicked on the transmission services maybe.
Speaker Change: Again, it depends upon whether that.
Speaker Change: Data center is going to be someone who is going to be on 24, seven are they going to be able to respond to demand response and get another revenue stream from that solution. So there's multiple multiple ways you can take a look at this and so I don't want to I don't want to lock into Hey, we really want co located over in front of the meter, but I don't want to lock into.
Speaker Change: In front of the meter over co located either its really whats going to bring to bear to solution, that's going to bring that those entities to the state of New Jersey.
Speaker Change: Thank you Ralph I appreciate the discussion thanks again thanks.
Speaker Change: Thanks.
Speaker Change: Yeah.
Speaker Change: The next question is from the line of Michael Sullivan with Wolfe Research. Please proceed with your question.
Michael Sullivan: Hey, good afternoon.
Speaker Change: Michael.
Michael Sullivan: Thank you Ralph.
Michael Sullivan: I appreciate the discussion some of the numbers you put out there just some.
Speaker Change: You all just refreshed your PJM large large load forecast.
Speaker Change: How do we think about what.
Speaker Change: Exelon has out there for <unk>.
Speaker Change: And how that may pertain to anything you're.
Speaker Change: Are suing at artificial island like what would the loan you were trying to work with there be showing up in some of their numbers yet or no.
Speaker Change: No I don't want to comment on what a submitted I don't really have any insight into how they made their calculations. So it kind of be.
Speaker Change: I'd be front running at I will say in general.
Speaker Change: On the PJM footprint, there is quite a bit of load coming in and it's something that we've been talking about for quite some time I think our numbers this year were.
Speaker Change: More in line with what folks might have expected, but that was because we've been yelland for a few years in advance and so I see a couple of the other utilities, especially to our west kind of catching up on that front and I would say from a overall footprint standpoint, I was very happy to see.
Speaker Change: Realistic load forecast that came in but specific to ace I wouldn't want to comment on.
Speaker Change: Okay sure no no worries there and then maybe separately just how we think about.
Speaker Change: Lighter and the.
Speaker Change: The opportunity and I guess rich there will will you know now bye.
Speaker Change: Your year end call to decide whether or not you include that in there and what's just the range of outcomes. They are looking at whether it be.
Speaker Change: Publicly owned or other yeah.
Speaker Change: Yes, I don't think they are going with a publicly owned solution. While we continue to hear is that they're going to stick with the service provider model.
Speaker Change: What we havent risk their seventh to eighth since we've been pretty pretty clear about that over the last six months or so and we should know by the end of the first quarter of next year.
Speaker Change: I would expect sometime in the beginning of the year.
Speaker Change: Because that transition needs to take place by the end of 'twenty five so maybe we can find out something sooner, but my expectation is.
Speaker Change: By the end of the first quarter, we would we would have a pretty good sense of where we stand with that and it.
Speaker Change: A lot of it depends upon how those how.
Speaker Change: How that contracts written in and how aligned it is with some of the Labor Reform Act.
Speaker Change: Goals that were put in place 10 12 years ago now.
Speaker Change: Okay, great. Thanks, Thanks, so much.
Speaker Change: Our next question is from the line of David Arcaro with Morgan Stanley. Please proceed with your question.
David Arcaro: Hey, good morning, Thanks, so much hey, David.
Speaker Change: Thanks for that data on are.
David: Our that update on the new data center demand and just what you're seeing with inquiries and feasibility studies I was wondering.
Speaker Change: Would there be any utility investment opportunities and potential higher capex, given that incremental load that you're seeing.
Speaker Change: Yes, so it's it's not driving us to a different solution.
Speaker Change: As Dan said in his prepared remarks, we're going to roll that forward.
Speaker Change: Our fourth quarter call I haven't seen anything that would require us to build a new transmission line is for sure based upon what exists what are the largest data center.
Speaker Change: Developers the core we have that we mentioned earlier is going on a site of a former pharmaceutical headquarters. So there is some decent facilities, there, but there'll be they'll need to be some upgrades done and how those upgrades are done yet to be determined whether it'll be customer base utility base so but.
Speaker Change: Nothing that I would say is driving an astronomical change in our capital programs.
Speaker Change: And the upshot of that is a reference to the system in the state that it's in and its ability to take on some incremental data center. So that's a net positive.
Speaker Change: Yes, absolutely.
Speaker Change: Absolutely got it thanks, and then I didn't really maybe appreciate the access transmission capacity you might have in the state is there any way you might be able to quantify that as you think about I don't know if its number of megawatts that you could.
Speaker Change: I'll handle without major upgrades.
Speaker Change: Or some of your peers have talked about that transmission capacity. So just wondering if you have any way to frame that yeah. David I would encourage you to take a look at the <unk> analysis is put out by PJM and how that all translates again that changes based upon every year when PJM runs the process.
Speaker Change: From a generator and load standpoint, so that'll be a pretty good indication when that analysis completed as to where the excess capacity exists.
Speaker Change: Okay that works. Thanks, so much thanks David.
Speaker Change: Our next question is from the line of Anthony crowd out with Mizuho Securities. Please proceed with your questions.
Speaker Change: Hey, good morning, Ralph Good morning, Dan Good morning, Anthony welcome to hockey season.
Anthony: Welcome to the hockey season, the weather's right in my voice is a little hoarse.
Speaker Change: Have a kid of my UA team Ralph was also named <unk>.
Speaker Change: He's a little extra attention I don't know if its the name.
Speaker Change: But just just quickly off of also Mike Sullivan question, I mean, the life of contract again seven to eight.
Speaker Change: It's not.
Speaker Change: Incremental instrumental to pegs earnings, but do you think that's going to be more competitive. This go around given how successful. It's worked for you so less whatever 10 years.
Speaker Change: Yeah, I don't want to I don't want to.
Speaker Change: Any any reaction to that could be read as being a little bit too.
Speaker Change: Oregon on the issue I think we've done a great job, we're very proud of the work that we've done there from a safety standpoint from a reliability standpoint and from a customer satisfaction standpoint. So.
Speaker Change: We've done all of that we've met our all of our commitments in.
Speaker Change: And prices have remained.
Speaker Change: Now from an affordability standpoint, where the expectations were so I think we have a very good story to tell.
Speaker Change: Just want to make sure that our story meets the needs of our of lifetime as they as they look forward.
Speaker Change: Great and apologies if you've answered this already.
Speaker Change: On the potential upgrade at Salem have you guys quantified the cost of that and how many megawatts you think you'll get out of it.
Speaker Change: We were talking about 200 megawatts, but I don't know if we've given the latest numbers.
Speaker Change: We will follow up with you Anthony on that we will definitely have it in the in the deck that comes out for Eni.
Anthony Crowd: Great. That's all I had thanks for taking my questions. Thanks.
Speaker Change: Our next questions are from the line of Paul Fremont with Ladenburg Thalmann. Please proceed with your question.
Paul Fremont: Hey, good morning congratulations.
Paul Fremont: I wanted to.
Paul Fremont: To maybe get a little bit more detail on on the core we've lease.
Speaker Change: Has it.
Speaker Change: Has there been any determination in terms of who's going to power of that facility and how many megawatts are going to be needed.
Speaker Change: The power of the facility.
Speaker Change: Yes, I think I think the press release My memory serves me correct. It was about 125 megawatts initially and just going up to over 300.
Speaker Change: Eventually when it is all completed.
Speaker Change: From who theyre going to buy their power I wouldn't I wouldn't comment on that.
Speaker Change: From a utility standpoint, if there was a third party supplier so be it if not we'll be prepared to handle that through the bgs process, but I.
Speaker Change: I have not read anything about who they've contracted with.
Speaker Change: I mean.
Could you be potentially involved in empowering the contract with with the merchant nuclear.
Speaker Change: But we always could be involved we have emerged we have a retail license or we could be involved in that stock but they.
Speaker Change: They have not announced anything and I I would not want to.
Speaker Change: I would not want to estimate or get somewhere what they might be doing.
Speaker Change: And then I guess when you when you work in terms of.
Speaker Change: With the Governor's office trying to bring in.
Speaker Change: Additional.
Speaker Change: Data center.
Speaker Change: Developers into the state are you also working with constellation sort of in partnership with Tiara in partnership with.
Speaker Change: Them in various nuclear plant.
Speaker Change: No so Paul Knight.
Paul Knight: Most of my involvement is at a personal level I E.
Speaker Change: Given my own time to choose New Jersey, which is one of the Governor's economic development arms, and so I worked closely with them on an on their projects and what they may have in a lot of the data center conversations take place between choose New Jersey, and the New Jersey Economic development Authority.
Speaker Change: From a from a <unk> standpoint, our customer operations team works directly with leads come in and when we get requests and then on the power side.
Speaker Change: Dan and his team are looking at it from a commercial operation standpoint so.
Speaker Change: That's where our interactions take place and not necessarily from an enterprise level with the Governor's office.
Speaker Change: Got it.
Speaker Change: Yeah.
Speaker Change: And then lastly in terms of the.
Speaker Change: In terms of the PTC is is there a final interpretation out by the by the DLA in terms.
Speaker Change: How theyre going to account for the Ptc's end market right now.
Speaker Change: I will give that one to Dan.
Speaker Change: Yeah, we're still waiting on rigs from treasury on the exam.
Dan Craig: Our definition of grocery seats fault. So the answer is no.
Speaker Change: So for accounting purposes, how are you how are you handling it.
Speaker Change: Yes. So we are taking our best internal estimate as to where things will land and moving accordingly, we have heard references that.
Speaker Change: It's their intent.
Speaker Change: Move forward on this by the time. This administration is out I don't know whether the election would have anything to do with it I guess, we'll have one data the wait to find out that and maybe a little bit longer to find out a result.
Speaker Change: But the.
Speaker Change: The sense, we get is that it's near term, but we don't have it right now.
Speaker Change: Okay.
Speaker Change: Great. Thank you very much.
Speaker Change: The next questions come from the line of Carly Davenport with Goldman Sachs. Please proceed with your question.
Carly Davenport: Hey, good morning, Thanks for taking the question poorly.
Carly Davenport: Maybe just wanted to start on the nuclear fuel side I think you've updated the commentary that you're now essentially covered through 2027.
Carly Davenport: So as we think about some of the capacity addition announcements that are started we're starting to see in call. It 2028, plus is this timeframe of sort of contracting out two to three years. The way that you plan to manage your fuel purchases going forward or just any thoughts on how you're thinking about that would be helpful.
Carlos: Yes Carlos.
Speaker Change: I think.
Speaker Change: The way to think about it is.
Speaker Change: In light of exactly what you are talking about right the market dynamics.
Speaker Change: I have become a little bit more volatile and we do continue to look out over time.
Speaker Change: So there could be some lengthening of the overall five frames it would depend upon striking the right commercial deal as well right. So we're not going to go out in time just to go out in time, if at the end of the day to the commercial commercial aspects of that deal don't make sense, but.
Speaker Change: I think what you are referencing is.
Speaker Change: Is the volatility that we are seeing in the market in a sensible approach is to look out a little bit further and see what can be done there. So.
Speaker Change: Updates to follow as those deals come to closure.
Speaker Change: Got it okay. That's helpful. Thanks for that and then just a quick follow up I think maybe to Pauls question from earlier on the upgrades when youre, having conversations with potential data center customers are those upright volumes are part of those conversations or is that something that would be kind of incremental.
Speaker Change: Yes, they they are part of it I mean, obviously the aggregate output of the facilities as of interest number one in additionality is of interest as well and so there's <unk>.
Speaker Change: Definitely interest in understanding what the overall facility would look like but I.
Speaker Change: I think as you saw from the Microsoft deal Additionality is also in folks' mind. So it is a that's definitely part of the discussion.
Speaker Change: Got it great. Thanks, so much for the color. Thanks Carla.
Speaker Change: Thank you. Our final question is from the line of Paul Patterson with <unk> Associates. Please proceed with your question.
Speaker Change: Hey, good morning.
Speaker Change: Paul.
Paul Zimbardo: Just sort of to follow up on the on the co location issue. If I was to understand the commentary and everything it sounds like the tax issue.
Speaker Change: It's pretty much resolved by the state of New Jersey, offering tax rates et cetera, and that's just the $7 of transmission costs.
Speaker Change: That in theory would be in play or a portion of that associated with with locating with being behind them either in new Jersey is that the way to think about it that is.
Speaker Change: That is the way to think about it.
Speaker Change: Okay, and then do you have any do you know why the two commissioners declined to participate in the order.
Speaker Change: Yeah, No. We just noted they recuse themselves. So I'd have to refer you back to FERC on that one.
Speaker Change: Okay, and then finally.
Speaker Change: As I'm sure you're aware that the up sea, which J P. P was part of has been making letters back and forth with.
Speaker Change: With PJM correspondence and P threes been responding and what have you about their concerns about the capacity market and the prices. I know you guys are very focused on affordability as you guys outlined today as well.
Speaker Change: Just how do you think I mean, you know with the history of Aercap and everything else.
Speaker Change: You know it seems like we're maybe.
Speaker Change: Getting to a market situation, which we don't see a lot of new generation showing up at least.
Speaker Change: Cogeneration and these high prices.
Speaker Change: How should we think about you know this.
Speaker Change: This apprehension that's being broken.
Speaker Change: You know that's being.
Speaker Change: Voice, but by the.
Speaker Change: State regulators.
Speaker Change: And both consumers and what have you.
Speaker Change: How do you.
Speaker Change: When you see that.
Speaker Change: What kind of.
So let's go through your mind I guess, if you follow what I'm, saying, Yeah I do Paul look I think state regulators are doing exactly what state regulator should do and that's that's looking out for the best students. They can from a customer standpoint I think.
Speaker Change: They're also trying to balance the.
Speaker Change: A reliability issue and and you know I will I.
Speaker Change: I will tend to.
Speaker Change: Lineup both of those issues I will tell you what I worry about is 10 years from now.
Speaker Change: And as this continues to.
Speaker Change: This industry continues to morph.
Speaker Change: I want to make sure that there's enough generation and and I worry that without having a good price signal that as a long term price signals that might not take place.
Speaker Change: So I was we've mentioned earlier in the call and I'll just reinforce here that.
Speaker Change: We thought it was the right thing to do the pause that we want to get the reference unit right. We want to get the RMR contracts treated the right way, but there's a lot of detail behind both of those comments that I, just made and making sure that that's done correctly and then done over a longer period of time in one year price signals I think is where you're going to find the right solution.
Speaker Change: So from an oxy standpoint, I don't I think they're weighing in just when they should and I think that that's pretty well aligned with the same thoughts that we have from a reliability and affordability standpoint.
Speaker Change: Okay. Thanks, a lot much appreciated.
Speaker Change: Thank you there are no further questions at this time I'd like to turn the floor back over to management for closing remarks.
Speaker Change: Yeah. So let me just.
Speaker Change: Takes a couple of seconds here and I certainly understand the respect all the questions. So we cannot co location today.
Speaker Change: Specifically in light of the decision that was handed.
Speaker Change: Hands down from FERC.
Speaker Change: On Friday, but I want to just take a second to focus on the outstanding results that the team put out last quarter.
Speaker Change: And not only from a financial standpoint from an operating standpoint, and the reliability that the utility delivered the reliability that the nuclear units delivered.
Speaker Change: And I think the not to lose sight of the fact, the mutual aid that we were able to support in the southern part of the state combine that with the outstanding results that were achieved.
Speaker Change: With our regulators to find a solution that was both affordable and provided long term reliability for our customers in our base rate case and helps customers.
Speaker Change: Achieve savings in our energy efficiency filing.
Speaker Change: Really sets us up for long term and a very very positive way.
Speaker Change: Understand of the long term solutions for the data center and specifically the output of our nuclear plants is of concern, but again I would put that in the context that we laid out here today and $7 a megawatt hour for transmission rates down and in the artificial island area. So.
Speaker Change: We continue to be very positive looking forward to speaking to everybody at.
Speaker Change: Which time, we'll give you even some more details on all of those things we spoke about so thanks for calling in and look forward to seeing you in Florida.
Speaker Change: Ladies and gentlemen. This concludes today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation.
Speaker Change: Yeah.
Speaker Change: Okay.