Q4 2024 Ameren Corp Earnings Call
Greetings and welcome to Ameren Corporation fourth quarter 2024 earnings Conference call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.
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.
It is now my pleasure to introduce your host Andrew Kirk Senior Director Investor Relations and corporate modeling for Ameren Corporation.
Speaker Change: Thank you Mr. Kirk you may begin.
Speaker Change: Thank you and good morning on the call with me today are Marty Lyons, our chairman President and Chief Executive Officer, and Michael Main our senior Executive Vice President and Chief Financial Officer, as well as other members of the Ameren management team. This call contains time sensitive data that is accurate.
Speaker Change: Only as of the date of today's live broadcast and redistribution of this broadcast is prohibited.
Speaker Change: We have posted a presentation on the ameren investors dot com homepage that will be referenced by our speakers as noted on page two of the presentation comments made during this conference call may contain statements about future expectations plans projections financial performance and similar matters.
Speaker Change: Which are commonly referred to as forward looking statements. Please refer to the forward looking statements section in the news release, we issued yesterday as well as our SEC filings for more information about the various factors that could cause actual results to differ materially from those anticipated now here's Marty.
Marty Lyons: Thanks, Andrew Good morning, everyone and thank you for joining US. This morning, we will discuss 2024 financial results recap events and accomplishments and look ahead to 2025 and beyond.
Marty Lyons: What you'll hear is that the ameren team's collective efforts produced strong results operationally and financially in 2024.
Marty Lyons: And just as important the team accomplished strategic goals that position our company to provide higher levels of satisfaction for our customers and strong returns for our shareholders in the years ahead.
Marty Lyons: In 2025, we are again set up to deliver strong results, but also to take meaningful steps towards enabling our communities to benefit from significant economic development opportunities those.
Marty Lyons: Those opportunities offer direct investment in our states, bringing jobs and incremental tax revenue.
Marty Lyons: And for Amarin as we discuss our plans today it means sales growth and the need to accelerate capital investments to meet the energy needs driven by that industrial demand star.
Marty Lyons: Starting on page four.
Marty Lyons: We continue to be guided by our three pillar strategy to invest in rate regulated infrastructure to enhance regulatory frameworks and advocate for responsible energy policy and optimize our operating performance.
Marty Lyons: This strategy has served us well for the last decade, and we will remain focused on solid execution year in and year out to maximize value for our customers communities and shareholders.
Marty Lyons: With that let me summarize our 2020 for performance on page five.
Marty Lyons: I'm pleased to say that we accomplished all of our key business objectives outlined at this time last year and on this page.
Marty Lyons: Importantly, we strategically invested approximately $4 $3 billion in energy infrastructure secured timely regulatory approvals for future investment and prudently managed our operating costs, while delivering reliable energy service.
Marty Lyons: And yesterday, we announced 2024 adjusted earnings of $4 63 per share compared to earnings of $4 38 per share in 2023.
Marty Lyons: This result was above our 2024 adjusted earnings guidance midpoint.
Marty Lyons: Turning to page six which highlights the benefits of the investments we are making for our customers.
Marty Lyons: The successful execution of our strategy continues to drive improved reliability and strong customer service, while keeping customer rates low in comparison to the national and Midwest averages.
Marty Lyons: Further our ongoing infrastructure investments improve grid resilience as demonstrated by the performance of our system during severe winter storms in early January of this year.
Marty Lyons: Despite challenging conditions, our grid improvements prevented over $3 5 million minutes, a potential outage time across our service territories in Missouri and Illinois.
Marty Lyons: Importantly, we had no issues on the more than 250 miles of power lines that have already been updated through Ameren Missouri's Smart energy plan.
Marty Lyons: On page seven we.
Marty Lyons: We summarize our strong performance for shareholders over time.
Our goal like we've said in the past is to deliver at the midpoint or higher within our earnings guidance range.
Marty Lyons: Our weather normalized adjusted earnings per share it risen at an approximate 7.6% compound annual growth rates since 2013, while our annual dividends paid per share have increased approximately 68%.
Marty Lyons: This has driven a strong total return of nearly 250% for our shareholders over the same period, which was significantly above utility index averages.
Marty Lyons: Moving to page eight as we look to the opportunities ahead.
Marty Lyons: In 2025, our focus will be on continuing to provide safe reliable service to our customers at competitive rates, while bringing additional growth opportunities to our states.
Marty Lyons: We will do this first and foremost by investing approximately $4 $2 billion in electric natural gas and transmission infrastructure to bolster the safety security reliability and responsiveness of the energy grid.
Further we are focused on enhancing our generation plants to meet customers' needs, achieving constructive regulatory outcomes and advocating for policies that enhance reliability and resource adequacy as well as attracting new businesses to our communities.
Marty Lyons: As always while we work to accomplish these objectives, we will remain focused on operating as efficiently and effectively as possible.
Moving to page nine for an update on our long term growth outlook.
Marty Lyons: We continue to expect 2025 earnings to be in a range of $4 85 per share to $5 <unk> per share.
Marty Lyons: The midpoint of this range represents approximately 7% earnings per share growth compared to our adjusted 2024 earnings results.
Marty Lyons: Building on the execution of our strategy and track record of strong earnings growth, we expect to deliver 6% to 8% compound annual earnings per share growth from 2025 through 2029, using the midpoint of our 2025 guidance of $4 95 per share as the base.
Marty Lyons: We're excited about the robust sales growth and energy infrastructure investment opportunities in front of us.
Marty Lyons: Which strengthened our confidence in our ability to deliver strong long term earnings growth.
Marty Lyons: I'll speak more about those things in a moment.
Marty Lyons: In addition to growing earnings per share last week Ameren Board of directors approved a quarterly dividend increase of approximately 6%.
Resulting in an annualized dividend rate of $2 84 per share.
Marty Lyons: This represents our <unk> consecutive year of increasing our dividend, which reflects continued confidence by Ameren board of directors and our business outlook and management's ability to execute our strategy.
Marty Lyons: Looking ahead, we expect to grow our dividend in line with our long term earnings per share growth expectations and for our dividend payout ratio to range from 55% to 65% of earnings per share.
Marty Lyons: And bind these elements support our strong total shareholder return proposition.
Turning to page 10 for more on the foundation of our earnings outlook.
Marty Lyons: Our strong long term earnings growth expectation is driven by robust rate base growth, reflecting investment in energy infrastructure included in Ameren, Missouri's Smart energy plan, which incorporates its preferred resource plan ammar.
Marty Lyons: Ameren, Illinois multiyear rate plan and projects awarded to Amarin in MISO is long range transmission planning.
Marty Lyons: Today, we're rolling forward, our five year investment plan and as you can see we expect to grow our rate base at a nine 2% compound annual rate from 2024 through 2029.
Marty Lyons: This robust rate base growth is driven by a 20% increase in our five year capital plan compared to the previous capital plan laid out last February primarily reflecting accelerated generation needed to serve our updated sales growth expectations.
Marty Lyons: Now turning to page 11 for more detail on the growth opportunities in Missouri, driving a significant increase in our capital plan.
Marty Lyons: We expect tremendous opportunities for economic growth over the next five to seven years.
Marty Lyons: Our region's economy spans multiple sectors from aviation biotechnology chemicals financial services beverage and food manufacturing life in plant sciences to healthcare and logistics and a variety of other manufacturing concerns and increasingly it is an attractive location for data centers.
Marty Lyons: Based on our robust economic development pipeline, we are now expecting our weather normalized retail sales to increase approximately five 5% compounded annually from 2025 through 2029 compared to our prior plan expectations of flat to up.
Marty Lyons: Half a percent.
This sales growth expectation is consistent with the notice we filed with the Missouri Public Service Commission of our intention to update our preferred resource plan there.
Marty Lyons: That plan assumes approximately 500 megawatts of load growth by the end of 2027.
Marty Lyons: Total of one gigawatt by the end of 2029, and one five gigawatts by the end of 2032.
Marty Lyons: Since our third quarter earnings call, we assigned additional construction agreements with data center developers for one five gigawatts of new load to be interconnected to our transmission system, bringing our total to approximately one eight gigawatts.
Marty Lyons: These construction agreements are subject to acceptance of a modified industrial tariff under which new customers would receive energy service.
Marty Lyons: Earlier this week, we submitted the necessary transmission load requests related to these agreements to MISO for expedited project review and expect approval in April.
Marty Lyons: Further we are actively working to propose a modified tariff for large industrial customers, including data center customers and we expect to file for approval of the tariff with the Missouri Public Service Commission by the second quarter.
Marty Lyons: While there is no deadline for commission approval, we are optimistic we'd receive a decision and that the tariff would be in effect before the end of the year.
Marty Lyons: We remain aligned with key stakeholders across the state and our efforts to attract new businesses to the region, our economic development pipeline beyond our current construction agreements remains robust and we will continue to pursue each opportunity vigorously to maximize value for our customers and communities.
Marty Lyons: As the Green shading on our slide indicates a range of sales growth outcomes could ultimately occur.
Marty Lyons: But based on our planned generation resource build out we expect to have the capacity to serve two gigawatts of new demand by 2032 and even more thereafter.
Marty Lyons: Moving then to page 12 for an update on Missouri's generation plants.
Marty Lyons: Considering the significant sales growth potential the lead time needed to construct new generation and other key considerations Ameren, Missouri notified the Missouri PSC that we are changing the preferred resource plan in our September 2023, IR P, which lays out generation our generation plan for the next 20 years.
Marty Lyons: As mentioned our new preferred plan is designed to serve one five gigawatts of additional demand by 2032 and as I mentioned it provides for a range of outcomes the.
Marty Lyons: The key objectives of our resource planning remain the same a balanced mix of resources to provide reliable lowest cost and cleaner energy for our customers.
Marty Lyons: Our preferred plan calls for acceleration and expansion of natural gas generation and battery storage acceleration of solar generation investment potential extension of the life of our Sioux Energy Center by up to three years and investment in additional nuclear generation by 2040.
Marty Lyons: In total the change in preferred plan represents the addition of two three gigawatts of generation capacity by 2035, and when factoring in updated cost for all planned resources represents approximately $7 billion of increased investment by 2035 compared to the 2023 ERP.
Marty Lyons: Our execution of this investment plan will lay the foundation for reliable economic expansion in Missouri.
Marty Lyons: For further details on the differences between the preferred resource plan from the 2023, our ERP and.
Marty Lyons: And new 2025 preferred resource plan see page 31 of this presentation.
Marty Lyons: Turning to page 13 for an update on the new generation recently placed in service or under development.
Marty Lyons: This past year was just the start to the robust generation portfolio additions.
Marty Lyons: Three new solar facilities totaling 500 megawatts and representing approximately $1 billion of investment were placed in service during the fourth quarter of 2024 as planned.
Marty Lyons: Combined the three facilities are expected to generate energy sufficient to power 92000 homes annually and we continue to execute our ERP. We have another 200 megawatts of approved generation currently under construction.
Marty Lyons: And we expect to file a request with the Missouri PSC for approval of additional generation and battery energy storage in the coming months.
Marty Lyons: Moving now to page 14 for a transmission update.
Marty Lyons: In December MISO approved a nearly $22 billion tranche, two one portfolio, which is expected to provide significant reliability and capacity benefits for the region.
Marty Lyons: MISO was already selected amarin to lead one $3 billion worth of these critical grid infrastructure projects in Missouri and Illinois.
Marty Lyons: The portfolio also includes $6 5 billion of projects, which will be opened for competitive bid of which approximately $1 8 billion are in Illinois.
Marty Lyons: We believe we are well positioned to compete for all of these opportunities as we have a strong track record of developing and operating cost effective and high quality transmission infrastructure.
Marty Lyons: MISO and its transmission owners will continue to assess the current long range transmission future scenarios to support our region's energy needs in the years ahead.
Marty Lyons: This analysis is expected to be followed by development of the tranche 2.2 project portfolio.
Marty Lyons: Moving to page 15 for a legislative update.
Marty Lyons: In January the Missouri Legislative session began several bills are currently under consideration, including the power predictability and reliability Act. The Missouri first transmission Act proposed modifications to integrated resource planning and the opportunity for future test year regulatory frameworks for natural gas and water.
Marty Lyons: Utilities.
Marty Lyons: While these bills are at various stages in the legislative process. They collectively demonstrate <unk> commitment to enabling a reliable and efficient energy future and supporting economic growth and job creation within our communities.
Marty Lyons: Ameren will remain actively engaged with policymakers and key stakeholders in the months ahead to advocate for constructive energy policy.
Marty Lyons: Turning to page 16 for an update on our 10 year investment pipeline.
Marty Lyons: Looking ahead, we have a robust pipeline of investment opportunities of over 63 billion.
Marty Lyons: That will deliver significant value to all of our stakeholders by making our energy grid more reliable stronger and smarter in.
Marty Lyons: In addition, these investments will support many thousands of jobs within our local economies.
Marty Lyons: Of course constructive energy policies that support robust investment in energy infrastructure will be critical to meeting our region's energy needs and delivering on our customers' expectations.
Marty Lyons: Turning now to page 17 to sum up our value proposition.
Marty Lyons: We remain convinced that the execution of our strategy in 2025 and beyond we will continue to deliver superior value to our customers and shareholders.
Marty Lyons: Our earnings growth expectations are driven by strong compound annual rate base growth of nine 2% and strategic allocation of infrastructure investment to each of our business segments based on their regulatory frameworks.
Marty Lyons: <unk> in Amarin presents an attractive opportunity for those seeking a high quality utility growth story.
Marty Lyons: Combined our strong long term, 6% to 8% earnings growth plan and an attractive and growing dividend result in a compelling total return story further we have a strong track record of execution and an experienced management team.
Marty Lyons: I am confident in Ameren <unk> team's ability to execute our investment plans and other elements of our strategy across all four of our business segments again. Thank you all for joining us today and I'll now turn the call over to Michael.
Michael Main: Thanks, Marty and good morning, everyone.
Michael Main: I'll begin on page 19 of our presentation with our 2024 earnings results.
Michael Main: Yesterday, we reported 2024 adjusted earnings of $4 63 per share compared to earnings of $4 38 per share in 2023.
Michael Main: Our 2024 earnings exclude two charges totaling 21 per share.
Michael Main: The first is related to the MSR settlement approved by the U S District Court for the Eastern District of Missouri for the Rush Island Energy Center.
Michael Main: The second is related to the federal energy regulatory Commission's order on base return on equity.
Michael Main: On page 20, we summarized key drivers impacting adjusted earnings with each segment.
Michael Main: Our strong 2024 adjusted earnings results were largely driven by our strategic infrastructure investments.
Michael Main: In addition, weather normalized retail sales grew approximately 2% across Ameren, Missouri, with 2%, one, 5% and 3% growth in our residential commercial and industrial classes respectively.
Michael Main: Notably industrial sales continue to remain robust driven largely by growth from customers in the manufacturing and technology sectors.
Michael Main: This year sales growth reflects the strong economy and across our service territory, which will serve as a solid foundation for our future potential growth.
Michael Main: Our focus remains on balancing necessary investments with prudent cost management support both system reliability and customer affordability.
Michael Main: At the beginning of last year, we set an ambitious goal to hold O&M expenses flat given the importance of cost control and managing customer rate impacts.
Michael Main: Proud to report that we've made significant strides in this area.
Michael Main: Importantly at Ameren, Missouri, when excluding the onetime MSR charge all in O&M expenses were down $12 million year over year.
Michael Main: As we navigate the current economic landscape, we expect our proactive cost management and strategic investments will continue to drive operational efficiencies and keep our customer rates below the national and Midwest averages.
Michael Main: Moving to page 21 to cover our regulatory progress made in the fourth quarter.
Michael Main: In December the Missouri, PSC staff recommended a $398 million annual revenue increase in our 2020 for Ameren, Missouri Electric rate review.
Michael Main: The difference between our request of $446 million and staffs recommendation is primarily driven by staff proposed return on equity of 974% versus our request of $10 two 5%.
Michael Main: And treatment of high Prairie Energy center, partially offset by estimated off system sales.
Michael Main: Fuel costs, which will be subject to true up in regulatory recovery mechanisms.
Michael Main: The equity ratio will be updated to use the capital structure as of December 31, 2024.
Michael Main: Sir rebuttal entre a direct testimony will be available later today.
Michael Main: As we have in the past we will seek to work through these and other differences with intervenors over the coming weeks.
Michael Main: Evidentiary hearings are scheduled to begin in mid March and the decision from the Missouri PSC is expected by May with new rates effective by June 1st.
Michael Main: Turning to page 22 for an update on our regulatory proceedings in Illinois.
Michael Main: In December the Illinois, Commerce Commission or ICC issued orders in two of our pending Illinois rate reviews.
Michael Main: The ICC approved a revised grid plan and the corresponding multiyear rate plan or <unk> for 2024 through 2027 for a cumulative revenue increase of $309 million versus our request for an increase of $332 million.
Michael Main: These annual revenues reflect our recoverable costs average rate base of $4 $8 billion by 2027 and as anticipated no change in the $8 seven 2% return on equity.
Investments in the energy grid under this multi year plan as expected reserves safety reliability and the day to day operations of our system, while also making progress towards of the clean energy transition.
Michael Main: We're pleased to have an ICC approved grid plan through 2027, which provides clarity on the work ahead.
Michael Main: In addition, the ICC approved our request for a $158 million reconciliation adjustment in the final electric distribution reconciliation of 2020 threes revenue requirement.
Michael Main: The full amount will be collected from customers in 2025, replacing the prior reconciliation adjustment of $110 million that was collected during 2024.
Michael Main: New rates from the 2023 reconciliation in 2024 through 2027 MRP were effective at the end of last year.
Michael Main: Moving now to page 23 for an update on the Illinois gas regulatory matters.
Michael Main: In January Ameren, Illinois, natural gas distribution requested $140 million annual base rate increase based on a 10, 7% return on equity a 52% equity ratio and a $3 3 billion average rate base during our future 2026 test year.
Michael Main: An ICC decision is required by early December with rates expected to be effective in December 2025.
Michael Main: Turning to page 24, we look ahead to our company wide capital plan for the next five years.
Michael Main: Here, we provide an overview of our $26 $3 billion of planned capital expenditures for 2025 through 2029 by business segment, which support our consolidated nine 2% compound annual rate base growth expectations.
Michael Main: As Mark highlighted we have a robust capital investment opportunities ahead of us.
Michael Main: The five year infrastructure investment plan, we are releasing today represents a 20% increase over our investment plan issued last year.
Michael Main: This increase includes additional generation reflected in Ameren, Missouri's smart energy plan, including the new preferred resource plan and the Ameren, Illinois and <unk>.
Speaker Change: <unk> order.
Speaker Change: As you can see on the right side of this page we are continuing to allocate capital consistent with the allowed return on equity under each regulatory framework.
Speaker Change: Page 32 in the appendix of this presentation provides a summary of the Ameren Missouri's Smart energy plan now filed with the Missouri, PSC, which outlines capex by year over the next five years.
Speaker Change: Turning to page 25 here, we outline the expected funding sources for the investments noted on the prior page. We expect continued growth in cash from operations as investments are reflected in customer rates.
From a tax perspective, we expect to generate significant tax deferrals, driven primarily by the timing differences between financial statements depreciation reflected in customer rates and accelerated depreciation for tax purposes.
Speaker Change: We will continue to advocate along with others in our industry to retain clean energy tax credits for the benefit of our customers.
Speaker Change: From a financing perspective, we expect to continue to issue long term debt to fund a portion of our cash requirements to.
Speaker Change: To maintain a strong balance sheet, while we fund our robust investment plan, we expect to issue approximately $600 million of equity each year from 2025 through 2029, a portion of which we expect to be issued through our dividend reinvestment and employee benefit plans.
Speaker Change: These actions are expected to maintain our strong balance sheet and credit ratings.
Speaker Change: Turning to page 26 for further details on our 2025 financing plan.
Speaker Change: To fund a portion of the four two.
Speaker Change: $2 billion of investment in 2025, we expect debt issuances totaling $500 million.
Speaker Change: $650 million and $750 million at Ameren, Missouri, Ameren, Illinois, and Ameren parent respectively.
Speaker Change: In addition, as of today, we've entered into forward sales agreements for $265 million of common stock issuances.
Speaker Change: Under our at the market equity distribution program to address a portion of our 2025 equity needs.
Speaker Change: We expect to settle these by the end of the year.
Speaker Change: Moving to page 27 of our presentation for our 2025 earnings guidance.
Speaker Change: Today, we are affirming our 2025 diluted earnings per share guidance range of $4 85 per share to $5 <unk> per share the midpoint of which represents approximately 7% growth compared to our 2024 adjusted earnings results.
Speaker Change: These earnings drivers summarized on this page we remain largely consistent with those discussed on our third quarter earnings call.
Speaker Change: We expect our disciplined cost management hold operations and maintenance expenses to around a 1% compounded annual growth rate over the five year plan.
Finally, turning to page 28, we remain confident and excited in our long term strategy, which we expect will continue to drive consistent superior value for all of our stakeholders.
Speaker Change: We have strong investment opportunities to benefit our customers and attract and support new business. We expect strong earnings per share growth driven by robust rate base growth disciplined cost management, and our strong customer growth pipeline as.
Speaker Change: As we've said before we have the right strategy the right team and the right culture to capitalize on opportunities to create value for our customers and shareholders.
Speaker Change: We believe this growth will compare favorably with the growth of our peers.
Speaker Change: Further ameren shares continue to offer investors an attractive dividend in total we have an attractive total shareholder return story.
Speaker Change: That concludes our prepared remarks, we now invite your questions.
Speaker Change: At this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad.
Speaker Change: A confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the queue.
Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.
Speaker Change: Our first question comes from Shar <unk> with Guggenheim Partners. Please proceed with your question.
Speaker Change: Hey, guys good morning.
Speaker Change: Good morning Shar.
Speaker Change: Good morning, Marty.
Speaker Change: Maybe just Marty if you can dig into the growth profile a little more. So you are now just over 9% rate base CAGR, you've got this new sales number with one gig by 2009 equities largely the same can you speak to how close you are to the top end of six to eight at this point are we another 29% <unk>.
Speaker Change: Scalar deal away from <unk>, 8%.
Marty Lyons: Yeah sure Hey.
You've got some of the building blocks that we laid out for you today I'm pretty excited about the sales growth that we outlined on slide 11.
Marty Lyons: Very much excited about the capital plan that we laid out on slide 24, and it's backed up by the new ERP changes that we've put forward that are on slide 12. So a lot of good building blocks and like you said, we've provided the financing assumptions as well so hopefully I've given you and everybody else. Some good building blocks to build out your model.
Marty Lyons: I guess I would say with respect to the EPS growth. We've said before that our goal is to deliver at or above the midpoint and we really mean that year in and year out as we look ahead over the next five years.
Marty Lyons: As we pointed out earlier, we certainly do have a history of doing that as well really delivering within the upper end of that guidance range as we look out over the next five years and you kind of.
Marty Lyons: <unk> talked.
Marty Lyons: <unk> talked about this a little bit we see that sales growth sort of occurring over time and it really starting in late 2026 and into 2027, you see on that chart on slide 11, 500 megawatts expected by the end of 2027 and as you point out.
Marty Lyons: A gig of additional demand by the end of 2029, so it sort of ramps up in the mid to late parts of of this.
Marty Lyons: This period.
Marty Lyons: <unk> with our rate base growth, we certainly don't give that to you year by year, but as you look at that slide 12 that I referenced with the updated ERP.
Marty Lyons: You can see where some of the investments are going to.
Marty Lyons: Come into service in order to serve that load and again.
Marty Lyons: Mid to back end loaded over this five year period. So look I think those are some of the building blocks and Theres certainly a number of steps that need to take place to bring all these sales growth expectations to fruition and get this generation built but based on the plans. We've laid out today, we would expect to deliver near the upper end of.
Marty Lyons: The range in the mid to latter part of the plan.
Sean: Hey, Sean.
Marty Lyons: The only thing I might add to that too is and I think it's sort of imply with Marty saying if you look at that long term capital plan to we were at 55 plus billion dollars.
Marty Lyons: Out there over the next 10 years, obviously, we updated that with this preferred.
Marty Lyons: Resource plan that was just filed this morning and updated that to 63 plus billion. So again I think it just speaks to the longevity of the pipeline in the plan.
Marty Lyons: No.
Marty Lyons: Very well stated.
Speaker Change: And then just the resource plan update can you just help us sensitize a little more on the scenarios. The preferred plan is $1 five gigs by 2032, so that's our baseline, but how much of capacity headroom is there and the resource mix. If you wind up going beyond that or are we looking at more generation capital would it be backfill.
Speaker Change: Retirement extensions Repowering et cetera, thanks, guys.
Speaker Change: Yes.
Speaker Change: If you look at the.
Speaker Change: <unk> update that we filed today.
Speaker Change: And a lot of ways that reflects what in the short term in the next five years, we think can realistically get done and what you see there is mostly acceleration of things that we had in our prior plan.
Speaker Change: And we've talked about this before the acceleration of renewable investments battery storage.
Speaker Change: <unk> in gas fired generation.
Speaker Change: <unk>.
Again, when we look at that opportunity that we have to build that generation out. We believe that we could serve that two gigawatts that we have outlined on slide 11 by 2032 and even more thereafter. So we're really excited today to have the almost one eight gigawatt.
Speaker Change: Lots of construction agreements in place today.
Speaker Change: Last quarter, we provided sort of a sales funnel if you will that.
Speaker Change: Talked about tens of thousands of megawatts of potential new demand across Missouri and Illinois.
Speaker Change: I'll still true today, we're excited about that.
Speaker Change: As we outlined in our plans today that.
Speaker Change: Again in the ERP, we believe we can serve the load that's been signed up with the construction agreements.
Speaker Change: We're also continuing to engage with.
Speaker Change: Potential developers of data centers in Missouri, and Illinois.
Speaker Change: And we're going to continue to court that interest like I said, having the opportunity to serve more.
Speaker Change: Even with this these plans that we've laid out today so.
Speaker Change: I think that's all good I'm on Illinois had just mentioned that while it's not stated in the slides here we have several projects in the engineering review stage in Illinois.
Speaker Change: Some attractive development sites there just like there are in Missouri, and some some good state incentives. So we're doing all we can in each state to help businesses connect to the grid and grow in.
Speaker Change: Grow the communities the economies that we serve.
Speaker Change: Perfect.
Speaker Change: It's a tailwind congrats guys I appreciate it fantastic.
Speaker Change: Our next question comes from direct copra with Evercore. Please proceed with your question.
Speaker Change: Hey, Deane good morning had Valentine's day.
Deane: Same to you and your gas good good to hear from you.
Deane: Thank you well equipped shut at your IR team.
Deane: The reconciliation as crisp as always in.
Deane: Makes my job a lot easier listen two questions.
Deane: On the balance sheet.
Hi.
Deane: The cap the cap line is about 20% higher the equity you would say maybe just what are you tracking on that going forward that and <unk>.
Deane: Are you positioned strongly with this with this capital plan to be the only one or are we thinking about <unk> to just stop there.
Speaker Change: Good morning, Youre, making Andrew Smile over here by the way inter geis nice shout out to him. So he is happy to hear that Hey look as we've talked in the past we feel good about our balance sheet. We've been very proactive over time issuing equity I think we've continued to protect and support the balance sheet and a really conservative way.
Speaker Change: As I sit here today and looking out over the five year plan, we absolutely feel that.
Speaker Change: Equity here will support the <unk> Triple B, plus I mean, we're at or above that 17% threshold that Moody's has said and thats really obviously the downgrade threshold that we have for US just to remind you that S&P. We're at 13% works. So we're probably closer to the upgrade threshold. Then we are the downgrade threshold, given where we maintain a metric.
Speaker Change: But again as we sit here today and what we have from a funding perspective, we feel very very good about it.
Speaker Change: Got it okay excellent and then maybe just a lot of upside.
Speaker Change: <unk>.
Speaker Change: Investment opportunities on the MISO side on on the IRB, maybe can you just help reconcile what is in the five year plan and then what are the quantum of opportunity if theres a way to size the.
Speaker Change: The capital amount, which which is truly upside and not yet in the capital plan as you know where I'm going with this.
Speaker Change: Yes, let me, let me start with the transmission piece and Marty can certainly chime in here as well I mean, I think the probably the easiest way to think about it is we had about $5 billion and in this in the in the overall tenure pipeline associated with <unk>.
Speaker Change: And so about $2 billion of that was in this first five years, which has been allocated to us as part of those.
Speaker Change: That first tranche, one plus those competitive projects that we won so that's that.
Speaker Change: First piece and then you got a remaining $3 billion that you were filling out and that has been $1 3 billion awarded to US here in tranche two and so then we obviously you have these competitive projects that we indicated about $6 $5 billion worth of projects that we're going to bid on to fill out that piece. So.
Speaker Change: I think the way to think about it there is clearly upside with respect to some of those competitive projects today and how we think about that $5 billion.
Marty Lyons: That's in there so marty anything to add on the transmission side.
Marty Lyons: Transmission side I would just say overall as we think about the capital plan, we feel like its conservative and achievable as you look at the other elements of the capital plan on slide 24.
Marty Lyons: In Missouri, what we've done is look to align the generation spending there with the updated ERP, we filed today, the Illinois electric distributions aligned with the outcome of the multiyear grid rate plan that we had last year.
Marty Lyons: The Illinois gas spending is aligned with our 2023 gas rate review as well as the pending gas rate review and Michael just discussed transmission. So we've aligned all of those things I would note that.
Marty Lyons: Ameren, Missouri non generation spending down a little bit from what we had in our last five year plan and.
Marty Lyons: I'd say that overall.
Marty Lyons: Despite the increase in spending that you're seeing in investments youre seeing in Missouri.
Marty Lyons: Conservatism baked baked into those numbers as we think about the five year plan. So I think it's I think it's.
Marty Lyons: Conservative it's achievable, but it is aligned with those things, Michael and I talked about.
Marty Lyons: Excellent I appreciate the discussion thank you.
Marty Lyons: Take care.
Speaker Change: Our next question comes from Nicholas Campanella with Barclays. Please proceed with your question.
Nicholas Campanella: Hey, good morning, Thanks for the update and taking my questions today.
Speaker Change: You bet, Hey, so when I look across the portfolio Theres, just a lot of tailwind whether it's <unk>.
Speaker Change: Missouri rate review seems like it's gone off to a solid start and I know that this legislation this year youre kind of laying the framework for.
Speaker Change: Potentially more data centers to come into your territories.
Speaker Change: If you were to have success here, let's just say you kind of move into the high scenario load growth range.
Speaker Change: You do have to kind of accelerate capital and the plan is there a point at which you would kind of a value like reevaluate the growth rate or do these opportunity to kind of extend that premium six to eight offering.
Speaker Change: Yeah. Thanks for the question and you're right. There are a number of tailwind that we've got today I mean, we're very excited for.
Speaker Change: Our communities and for our customers as we think about some of the economic development opportunities that we're seeing in Missouri, and Illinois, and as you mentioned for us.
Speaker Change: It certainly means op.
Speaker Change: Opportunities to invest to support those businesses to help grow those businesses and an impact our sales and we are pleased that.
Speaker Change: In Missouri in particular, there's good alignment I believe with stakeholders to really go after some of these economic development opportunities and provide some of the regulatory tools and mechanisms and outcomes to be able to support the continued investment in growth in our community. So I think that's all all good.
Speaker Change: As you think about our growth rate over time.
Speaker Change: Certainly our objective is going to be to maximize that growth rate.
Speaker Change: As we think about the invest.
Speaker Change: Investments that are needed through time, we're not going to constrain it is another way to put it.
Speaker Change: And answer I think to the first question, we got though as we think about the next five years still feel like this 6% to 8% growth guidance is the right guidance.
Speaker Change: Again, as I said earlier in the short term.
We will be at or above that midpoint, but as we see that load growth occurring later in the five year period as we see the rate base growing later in that five year period as I said before we do expect to deliver near the upper end of the range in the mid to latter part of the plan as we go through time.
Speaker Change: These.
Speaker Change: No tailwind continue and should.
Speaker Change: The growth even accelerate further.
Speaker Change: Certainly reevaluate the overall earnings per share growth range as I said, we certainly don't want to constrain it in any way.
Speaker Change: That's super helpful. I appreciate that.
Speaker Change: I'm, sorry to make you repeat yourself a little bit on what's in the plan versus not but just.
Speaker Change: You mentioned that you have capacity to serve two gigawatts of demand or youre working towards capacity to serve two gigawatts of demand by 2032. It does seem you have like one eight under construction so I just.
No.
Speaker Change: What youre doing freeing up additional capacity to attract an additional two gigs. So if you were to have an additional.
Speaker Change: Demand you'd have to do more capex for that or does this kind of is this plan and this capex plan create that capacity for you I just wanted to understand that.
Speaker Change: Yeah no. Thanks for the question I'll try to clarify.
Speaker Change: We look at some of this load.
Speaker Change: It ramps up over time, and so even when you think about that one eight gig.
Speaker Change: It's going to ramp up over some period of time based upon the customers' needs.
Speaker Change: And so the plan that we laid out today the.
Speaker Change: Resource plan that we laid out as I said.
Speaker Change: We think that would support the ability to serve our full two gigawatts by 2032, but even more after that and so as that load grows we can not only serve that two gigs by 2032, but even more so after that and look if there is.
Speaker Change:
Speaker Change: Demand will continue to explore ways to serve even beyond that.
Speaker Change: So again, we're not constraining ourselves but.
As we look at this next five years with the investments we've outlined are the things that we do believe we can realistically achieve and support that load growth that I just talked about.
Speaker Change: Alright, Thank you very much.
Speaker Change: For anyone who had wanted to ask a question. Please press star one and go back into the queue and we will continue with our Q&A session.
Speaker Change: Our next.
Speaker Change: Comes from Carly Davenport with Goldman Sachs. Please proceed with your question.
Carly Davenport: Hey, good morning, Thanks, so much for taking the questions. Maybe just two quick ones from me first on the sales growth outlook can you just help us put that five 5% CAGR into that context of sort of the total pipeline that youre seeing in Missouri, or maybe said another way can you just talk about how you sort of risk the pipeline to come out too.
Speaker Change: Five 5% level over the course of the new five year plan.
Speaker Change: Yeah, I'll see what color I can provide on that when you look back on the <unk>.
Speaker Change: Through Q3 call in that funnel you know, we've talked about tens of thousands of megawatts of potential demand, 75% of that from data centers and about 65% of that Missouri, So significant demand.
Speaker Change: But whats happened through time, as we work with different developers in terms of.
Speaker Change: Transmission access.
Speaker Change: <unk>.
Speaker Change: And as I said earlier about one point.
Speaker Change: Five gigs of new construction agreements have been signed on top of the ones that we had when we talked last in Q4. So.
Speaker Change: And we've really been trying to.
Speaker Change: Take those and in terms of in a fair and equitable way in terms of the orders that they came in and have asked for interconnection.
Speaker Change: And that's where we are today now I'd put it all in sort of scale terms I mean, two gigs if we're serving two gigs by the end of 2032 that represents about a 45% increase in Missouri sales. So.
Carly Davenport: So pretty significant but as I said earlier Carly. This is what we've got today given the construction agreements that we've got signed given the.
Carly Davenport: Tariff discussions we have going on with the end users.
Carly Davenport: And we look at the again the generation that we can accelerate.
Carly Davenport: Deliver within this time period.
Carly Davenport: We think a gig and a half is a good point estimate.
Carly Davenport: But again.
Carly Davenport: It could be greater as we think about.
Carly Davenport: The sales by 2032.
Carly Davenport: It's Michael just a little finer point I mean, I think the comments that we've made previously about this first 250 megawatts I think still stands you know we've talked about that being online by the end of 2026.
Marty Lyons: And as Marty said, it kind of ramps in over time.
Speaker Change: 500 by the end of 2007, and then you get to the gig by the end of 2029.
Speaker Change: Only thing I might add in addition to this I mean, I think we're coming off of a good foundation as well as I indicated in my talking points. We ended the year at just a little bit right right at about 2% growth.
Speaker Change: And it was across all classes, 2% on the residential side a percent and a half on the commercial and then a really robust 3% on the industrial side.
Speaker Change: And we're forecasting additional growth in 'twenty five relative to 'twenty four as well. So I mean, I think again it gives us good backdrop, just what we're talking about here in terms of the foundation.
Speaker Change: Great I appreciate all that color that's really helpful. And then maybe just on the updated IOP in Missouri I know you mentioned in your opening remarks that you did have some some new nuclear longer data and of course, you know about 2040 reflected in that new filing.
Speaker Change: It's a big focus of the market. So could you just talk a little bit about kind of how you envision that new capacity is that more focused on opportunities around <unk> or something more like an AP 1000.
Speaker Change: Yes, Thanks, Carl and Youre right. Its long dated when we look out to 2040 timeframe looking at adding new nuclear and we talked about that balanced energy portfolio, we see in the in the future and when you look out to say 2045.
Speaker Change: What we see is.
Speaker Change: About 70% dispatch will resources now with nearly 40% nuclear a little over 30% gas and then about 30% of our energy coming from renewables. So that's what we're sort of looking towards when we look very very long term.
Speaker Change: And of course, we've got experience with nuclear our Callaway plant here in Missouri.
Speaker Change: Served our customers well for the past 40 years, and we expect it to continue for the next 40 years.
Speaker Change: That said I would say as we sit here today.
Speaker Change: We really haven't put a stake in the ground in terms of what technology would make the most sense for us in terms of a nuclear technology.
Speaker Change: Certainly when you look at the megawatts that we have in there for new nuclear about 1500, you've got a.
Speaker Change: For a range of options as you mentioned in terms of technology.
Speaker Change: But what we're really looking to do over the next.
Speaker Change: Three years to five years is to devote resources internally to monetary and studying these.
Speaker Change: Technology is closely exploring perhaps what activities.
Speaker Change: B pre.
Prudent to take.
Speaker Change: That would say be technology, agnostic, which might include things like construction permitting and alike.
Speaker Change: See in the next few years.
Speaker Change: Any material financial commitment.
Speaker Change: As it relates to new nuclear as you say, it's sort of long dated.
Speaker Change: But we do think that's part of our energy future as we look out to a balanced portfolio in Missouri.
Speaker Change: Great. Thanks, so much for the answers I appreciate your time you bet.
Speaker Change: Our next question comes from Julien Dumoulin Smith with Jefferies. Please proceed with your question.
Speaker Change: Hey, good morning team how are you guys doing great.
Speaker Change: Great Julien how about you.
Speaker Change: Great.
Speaker Change: Happy Friday.
Speaker Change: With that said you guys I mean, just a remarkable update here across the board whether it's the minimal.
Speaker Change: Limited incremental equity great roll forward of the rate base here I mean really what's left to address on the call. Here is as you think about regulatory lag in front of you in this investment cycle can you speak to that a little bit here and what you are facing if theres any kind of timing issues, obviously, you're emphasizing being at the upper end of the plan in the back half of the years can.
Speaker Change: You speak to maybe any kind of earned ROE expectations, and maybe marry that up against expectations in how to frame and sensitize any potential legislative outcome here.
Speaker Change: You spoke to some of them and grief earlier, but maybe just kind of square that up if you will and setting the expectations on the cadence of earnings through the five year period too.
Marty Lyons: Let me start on the regulatory lag and then Marty can come in and talk about the legislative process I mean, Julien as you know we've always.
Marty Lyons: Manage these businesses prudently tried to earn as close to our allowed it's possible I mean, if you kind of look at where we are on a historical basis.
Marty Lyons: Someplace in excess of 10% kind of across the overall portfolio of different returns.
Marty Lyons: And as you said I mean, we're going to continue to be thoughtful about this obviously you have rate reviews and other things you've got to be thoughtful about from a timing perspective, and so that goes into how we think about projects and mark berch and his team do a really good job just thinking about when those are going to need to be in place from a cutoff date et cetera, just again to make sure that we're maximizing.
Marty Lyons: The returns are minimizing any regulatory lag and then the other thing that we've obviously done in addition to all of this which I think is just a good practice in general as we've managed our overall O&M costs really really well.
Marty Lyons: We talked about this as the beginning of the year I mean, we went through another process of kind of looking at spans and layers doing a lot of benchmarking looking up and down the P&L. We've made significant investments in technology over the past five six years, we're continuing to start see some of that benefit from a productivity standpoint today both back off.
Marty Lyons: And in the field, which I think is helpful being very thoughtful.
Marty Lyons: Full about as we turn to have turnover in the.
Marty Lyons: The replacement, we put back into the business et cetera. So I think all of that has served us well.
Marty Lyons: It obviously manifests itself in having O&M be down $12 million, which I indicated in the talking points year over year, which I think is good in this environment, because we want to be doing everything we possibly can to try to minimize the impact of this transition. So that's why I would say that about that from a regulatory lag perspective, Marty can certainly add in there.
Speaker Change: Talk about the legislative piece too, yes, I thought that was good Michael.
Speaker Change: I think Julian as you go through time, we'll have to.
Speaker Change: Adjust and think through the timing of our rate reviews as Michael mentioned for a variety of factors, but again some of it is going to be really getting better visibility in terms of how some of the sales growth is going to occur through time.
Speaker Change: Refined timing on some of the.
Speaker Change: You know I'll call. It Chunkier in service dates on some of the elements of our integrated.
Resource plan and those things will help to refine or a regulatory timing as well as thoughts on regulatory lag, but you did mention.
Speaker Change: Legislation in Missouri, there are a number of legislative initiatives that are progressing as you know the legislative session. Just recently kicked off and goes through I think may 16th of this year, so quite a bit of time, but we outlined on slide 15, a number of.
Speaker Change: Various pieces of legislation that are sort of percolating and some of them are familiar to things we've talked about in the past like really extension of of of Pizza. As you think about some of these generation investments, we want to make getting that sunset pushed out in time.
Speaker Change: It's really helpful to us gives us greater visibility in terms of.
Speaker Change: The regulatory framework and certainty through time extending that to include natural gas generation again, we've got that built into our plan.
Speaker Change: These things are important in terms of supporting this economic development this investment in generation.
Speaker Change: You see other things like the Missouri first transmission Act really making sure that we can get transmission built quickly.
Speaker Change: Have good import export capability in our region again supports economic growth and then you see some of the other things that are percolating changes to the integrated resource planning.
Speaker Change: Allowing quip in rate base for for new natural gas generation or other energy centers, you see forward test years for natural gas and water.
Speaker Change: So I think some good constructive things that.
Speaker Change: Would be again incrementally supportive of investment in the state and incrementally supportive of broader economic growth and development in the state and so.
Speaker Change: Active consideration on this.
Speaker Change: As long way to go.
Speaker Change: But we have recently seen some.
Speaker Change: Senate action on that in particular is a consolidation of a number of these bills into one bill with Senate Bill four so I'd encourage you.
Speaker Change: To continue to monitor these will certainly continue as well as others to actively engage but but I think so.
Speaker Change: <unk> discussion that are about things that would be supportive of investment and economic growth in our state. So thanks.
Speaker Change: Excellent guys best of luck.
Speaker Change: It's a real pleasure to see whats coming together Alright, you guys take care you too Julien see you soon.
Speaker Change: Our next question comes from Anthony crowd, all with Mizuho. Please proceed with your question.
Anthony Crowd: Hey, good morning, guys. Thanks for the update hopefully just two quick questions. One is I think on slide 31.
Speaker Change: Kudos to Andrew again, if you do a great job of breaking it out just wondering two.
Speaker Change: <unk> thousand 30 F 600 megawatts of gas.
Speaker Change: 800 more than your original plan, we hear it or seen it papers the challenges procuring new gas fired generation just anything you'd add on the ability to add that generation and I have one follow up.
Speaker Change: Yes.
Speaker Change: This is Michael look we feel good about that addition, I mean, we've taken steps along the way.
Speaker Change: In Missouri to make sure that we can procure what we needed to to get this online given the importance of it given the significance of what we're seeing from a supply chain perspective. So I think we've mentioned this before but I think those steps have served us well and we should be in good shape to bring US online is still a lot of work to do but.
From a critical component standpoint.
Speaker Change: We are we're set.
Speaker Change: Yeah.
Speaker Change: Great and then on the S&P rating just.
Speaker Change: If you could just give me the numbers I missed it to the earlier question on I think you said you are closer to the upgrade threshold would you mind just those numbers again.
Speaker Change: Yeah, our downgrade threshold that S&P is 13%.
Speaker Change: And so we've been certainly north of 17 or above.
Speaker Change: They're on that calculation and so I don't know exactly what the upgrade threshold is but it's.
Speaker Change: Much closer to that than we are the downgrade threshold. That's the point I guess I was trying to make.
Speaker Change: Great. Thanks, so much for taking the questions and congrats on a great update.
Speaker Change: Anthony.
Speaker Change: Yes.
Speaker Change: Our next question comes from Bill <unk> with UBS. Please proceed with your question.
Bill: Hi, good morning.
Speaker Change: Building.
Speaker Change: Question on <unk>.
Speaker Change: The large low tariff that youre going to be filing can you just share some details around that.
Speaker Change: And with low commitments for a set period of time is there an expectation that this is new load that's going to be having a neutral impact or potentially beneficial impact to existing customers.
Speaker Change: Any color you can share on that filing.
Yes Bill.
Bill: I'd say, it's premature to say exactly how it's going to be structured but you're.
Bill: Hitting on the right points, we're actively working with some of the prospective customers to finalize the tariff.
Bill: Say discussions are going well, but you're right I mean typical contract items things like revenues to cover cost the cost to serve.
Bill: Tenure of contract minimum takes exit provisions credit provisions I mean, these are the things that.
Bill: We're focused on.
Bill: Okay.
Bill: But.
Bill: The point to be that.
Bill: Existing customers would be held would be neutral to two large load coming on.
Bill: At a minimum yes, yes, okay.
Bill: And then just on the Missouri rate case, I think Theres a settlement window coming up next week.
Bill: I know you've got hearings.
Bill: I said for middle of March but.
Speaker Change: Any update on how you're feeling around maybe a possibility of settling the rate case in this upcoming window.
Bill: Yeah.
Bill: Bill It's Michael again, I think as I indicated on the call itself I mean, I think we sit in a good spot at this point in terms of the differences between us versus staff I think we indicated.
Bill: The last update we were at.
446 versus $3 98 from staff and so most of that is being driven by ROE either at $9 74, and we're at 10 in a quarter and then there is an issue associated with this high Prairie wind play. So I think ultimately we always look to try to final construct a way to get these these settled.
Bill: You can never guarantee that but I think we sit in a good spot to continue to have some constructive conversations here over the coming weeks and we'll see what time brings us.
Speaker Change: Okay, alright, great. Thanks very much.
Speaker Change: Our next question comes from Jeremy Tonet with J P. Morgan Chase. Please proceed with your question.
Jeremy Tonet: Hi, good morning, and a very happy Valentine's day to all.
Speaker Change: Same to you Michael has got his picture on today as he is ready to go.
Speaker Change: Great to see great to see I was just wondering if I go to the financing plan a little bit the $4 4 billion the increase in Capex, yet only $300 million of incremental equity you haven't seen that from all your peers out there I'm just wondering if you could talk a bit more about the specific drivers here that while you are minimized.
Speaker Change: Additional equity issuance here is there any shaping of capex over the five year plan and how that impacts our financing considerations.
Speaker Change: No Jeremy look I think it's more of a product just how we manage this over time right. We came into this kind of super cycle of Capex and a really strong position, we've always protected the balance sheet again, we liked our ratings, where they had been historically and so I think thats really probably the difference here is we just as we worked into it.
Speaker Change: Some continued room, if you went back and looked over time, we were certainly in excess of even those downgrade thresholds of where we are today, but as we look over the next five years as I mentioned earlier, we feel good that we're going to be at or above that 17%, which is really the threshold metric for us on the Moody's side.
Speaker Change: Got it great to see what are being conservative on the balance sheet can do for you it makes sense.
Speaker Change: And maybe just one last one if I could circling back to legislation.
Speaker Change: These items represent upside to your plan any way to size the magnitude of earnings and cash flow benefits from possible legislation here.
Speaker Change: I think these are really things that.
Speaker Change: Ken.
Speaker Change: Create a win win for customers and shareholders as we think about executing the capital plans that now that we've got in.
Speaker Change: I think in large respect.
Speaker Change: Go a long way simply to helping us to earn closer to our allowed return as we deploy the capital.
Speaker Change: Got it great. Thank you for that see you next month in Denver.
Speaker Change: You bet.
Speaker Change: Yeah.
Speaker Change: Our next question comes from David Paz with Wolfe Research. Please proceed with your question.
Speaker Change: Good morning, David.
Speaker Change: Good morning.
Speaker Change: Sorry, I think my questions, mostly been answered, but maybe just a little more.
Speaker Change: <unk> question here.
Speaker Change: I know you said that you expect to be within the 6% to 8% EPS growth target each year.
Speaker Change: And then the upper end in the latter half of the planning period.
Speaker Change: But do you see any specific headwinds that puts you below the mid point say next year in 2026 before that sales growth kicks in and if so what are those.
Speaker Change: No David I wouldn't say there are any specific headwinds with respect to being at the midpoint or higher as we look at next year, but but again I think the point I was trying to make because when you look at some of that sales growth again, and Michael I think underscore. This we really see that ramping up late 'twenty six into 2027 and then beyond.
Speaker Change: And you can look at also to the some of the rate base growth, which occur sort of again mid to latter part, but no I wasn't trying to suggest that.
Speaker Change: Next year, we would be expecting to sort of missed that mark.
Speaker Change: Got it okay. Thank you.
Speaker Change: Alright, David.
Speaker Change: Hey, I think we're going to have to wrap it up for today, we've got some other business we have to attend to this morning.
Really appreciate all the interest we have on the call. This morning.
Speaker Change: Lots of great questions and dialogue.
Speaker Change: I think you can tell that we're very energized by the opportunities ahead to power growth for our communities and for our shareholders and so with that please be safe and we look forward to seeing many of you at upcoming conferences.
Speaker Change: This concludes today's conference you may disconnect your lines at this time and we thank you for your participation.