Q1 2025 NorthWestern Corp Earnings Call

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Unknown Executive: Thank you for standing by.

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Eric: My name is Eric and I will be your conference operator.

Eric and I will be your conference operator today.

Eric: At this time, I'd like to welcome everyone to the Northwestern Energy first quarter 2025 financial results webinar. All lines have been placed on mute to prevent any background noise.

Speaker Change: This time I would like to welcome everyone to the <unk>.

Speaker Change: Western energy first quarter 2025 financial results webinar.

Speaker Change: All lines have been placed on mute to prevent any background noise.

Eric: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone screen. If you would like to withdraw your question, press star 1 again.

Speaker Change: After the Speakers' remarks, there will be a question and answer session. If you'd like to ask a question. During this time simply press star followed by the number one on your telephone keypad.

Speaker Change: Would like to withdraw your question.

Speaker Change: Cause star one again.

Travis Meyer: I would now like to turn the call over to Travis Meyer, please go ahead. Thank you, Eric.

Travis Mayer: I would now like turn the call over to Travis Mayer. Please go ahead.

Travis Meyer: Good afternoon, and thank you for joining Northwestern Energy Group's financial results webcast for the quarter-ended March 31, 2005, excuse me, 2025. My name is Travis Meyer, and I'm the Director of Corporate Development and Investor Relations Officer for Northwestern. Joining us on the call today are Brian Bird, President and Chief Executive Officer, and Crystal Lail, Chief Financial Officer. Brian and Crystal will be walking us through the results and providing a little more color on a very solid quarter. Northwestern's results have been released and the release is available on our website at NorthwesternEnergy.com. We also released our 10-Q pre-market this morning.

Travis Mayer: Thank you Eric Good afternoon, and thank you for joining northwestern energy group's financial results webcast for the quarter ended March 31st 2005, excuse me 2025. My name is Travis Meyer and I'm, the director of corporate development and Investor Relations officer for northwestern.

Speaker Change: Joining us on the call today are Brian Bird, President and Chief Executive Officer, and Crystal Lail, Chief Financial Officer, Brian and Crystal ball will be walking us through the results and providing a little more color on a very solid quarter Northwestern's results have been released and the release is available on our website at northwestern energy Dot Com. We also.

Travis Meyer: Please note that the company's press release, this presentation, comments by presenters and responses to your question may contain forward-looking statements. As such, I'll direct you to the disclosures contained in our SEC filings and the safe and second slide of this presentation. Also note that this presentation includes non-GAAP financial measures. Please see the non-GAAP disclosures, definitions, and reconciliations included in the presentation.

Travis Mayer: We used our 10-Q premarket. This morning. Please note that this.

Travis Mayer: The company's press release this presentation comments by presenters and responses to your question.

Travis Mayer: May contain forward looking statements as such I'll direct you to the disclosures contained in our SEC filings and the Safe Harbor provisions included on the second slide of this presentation.

Travis Mayer: Note that this presentation includes non-GAAP financial measures.

Travis Mayer: Please see the non-GAAP disclosures definitions and reconciliations including in the presentation and webcast is being recorded the archived replay will be available shortly after the event and remain active for one year. Please visit the financial results section of our webcast to access the replay.

Travis Meyer: The webcast is being recorded. The archived replay will be available shortly after the event and remain active for one year. Please visit the financial results section of our webcast to access the replay.

Brian Bird: With that, I'll hand it over to Brian Bird for his opening remarks. Thanks, Travis. The recent highlights The court reported gap diluted EPS of $1.25 and non-gap diluted EPS of $1.22. We are affirming our long term rate base and earnings per share growth rate targets of four to six percent. We've completed our debt financing needs for 2025. And again, we'll stress we have no planned equity to finance our current five year capital investment.

Speaker Change: That I'll hand, it over to Brian Bird for his opening remarks, thanks Travis.

Brian Bird: Highlights for.

Brian Bird: For the quarter, we reported GAAP diluted EPS of $1 25, and non-GAAP diluted EPS of $1 22.

Brian Bird: We are affirming our long term rate base and earnings per share growth rate targets of 4% to 6%.

Brian Bird: We've completed our debt financing needs for 2025, and again well stressed we have no planned equity to finance, our current five year capital investment.

Brian Bird: From a dividend declaration standpoint, we declared a 66 per share payable June 30, 2025 dividend to shareholders of record as of June 13, 2025. The Montana rate review is nearing completion. We have a full natural gas settlement reached with major intervenors and a partial electric settlement reached as well, and I think you know the hearing starts on June 9th. And lastly, the Montana legislature has passed wildfire and other constructive bills now pending the governor's approval.

Brian Bird: And the dividend.

Brian Bird: Declaration standpoint.

Brian Bird: Declared a <unk> 66 per share payable June 32025 dividend to shareholders of record as of June 13th 2025.

Brian Bird: The Montana rate reviews nearing completion.

Brian Bird: We have a full natural gas settlement reached with major intervenors in a partial electric settlement reached as well and I think you know the hearing starts on June nine.

Brian Bird: And the lastly, the Montana legislature passed wildfire and other constructive bills now pending the governor's approval.

Brian Bird: As we start presentation day, before we get into the quarterly results, just remind folks of the value proposition for Northwestern, you know, starting with a 5% dividend yield is very, very attractive. As you know, add to that a 4 to 6% EPS growth, great investment, as you know, the next five years over across our total business. provides a 9 to 11% total growth profile. We do believe there are opportunities with data centers and new large load up opportunities. to actually potentially achieve greater than 6% EPS growth. In addition to that, there's FERC regional transmission, incremental generating capacity, and transmission capacity associated with meeting new large load opportunities, which could result in greater than 11% total growth return.

Brian Bird: As we start the presentation before we get into the quarterly results just remind folks of the value proposition for northwestern starting with a 5% dividend yield is very very attractive as you know after that of 4% to 6% EPS growth.

Brian Bird: <unk> investment as you know the next five years old.

Brian Bird: Across our total business.

Brian Bird: Provides a 9% to 11%.

Brian Bird: Growth.

File.

Brian Bird: We do believe there are opportunities with data centers in new large load up opportunities.

Brian Bird: To actually potentially achieve greater than 6% EPS growth.

Brian Bird: <unk> to that Theres, a FERC regional transmission incremental generating capacity and transmission capacity associated with meeting new large load opportunities, which could result in greater than 11% total growth returns.

Crystal Lail: And with that, I am going to pass it over to Crystal to talk about the first quarter. Thank you, Brian, and good afternoon, everyone. Thank you for joining us here in our update. In my comments today, I will cover a few things. Updates since our, we last talked at our year-end earnings call in February, as Brian highlighted, we've been busy. So it's been a busy couple of months. So our first quarter 2025 results, I'll give you more detail on those. Also update you, and Brian mentioned a couple of our financing execution in the last couple of months.

Brian Bird: And with that I am going to pass it over to Crystal to talk about the first quarter.

Crystal Lail: Thank you, Brian and good afternoon, everyone. Thank you for joining us here in our update in my comments today I.

Crystal Lail: I will cover a few things updates since we last talked at our yearend earnings call in February as Brian highlighted we've been busy.

Crystal Lail: So it's been a busy couple of months of our first quarter 2025 results I'll give you more detail on those also update you and Brian mentioned, a couple of our financing execution in the last couple of months also providing a bit more additional insight into our key regulatory proceedings and update you on our 2025 outlook.

Crystal Lail: Also providing a bit more additional insight into our key regulatory proceedings and update you on our 2025 outlook. We delivered a solid first quarter driven by strong margin contributions from both the electric and gas segments and ongoing consistent expense management. Moving to slide seven, this details the drivers of our earnings per share compared to the same period last year. We reported earnings of $1.25 on a gap basis as compared to $1.06 in the first quarter of 2024. These higher earnings were driven by rate recovery and colder weather offset by operating costs, depreciation, and interest expense.

Crystal Lail: <unk> delivered a solid first quarter driven by strong margin contributions from both the electric and gas segments and I'm going to just expense management moving to slide seven does he tells the drivers of our earnings per share compared to the same period last year, we reported earnings of $1 25 on a GAAP basis.

Crystal Lail: On a dollar in the first quarter of 2020 for these higher earnings were driven by rate recovery and colder weather offset by operating costs depreciation and interest expense.

Crystal Lail: Moving to slide eight for a bit more detail on how the margin increase breaks down. New rates, both via interim rates and also final base rates grow 20 cents of margin improvement, which reflects impacts notably in all three of our jurisdictions. We also saw favorable loads of 13 cents during the first quarter here due to both colder weather, customer growth and usage on our system. For more information visit www.fema.gov In addition, we continue to see favorable transition revenues of about $0.05 a contribution in the quarter. I would also note that the PCAM column here, or the non-recoverable Montana electric supply costs, while that looks like a small variance for the quarter, when you think about total impact there, we had a Q1 detriment this year of $2.7 million.

Crystal Lail: Moving to slide eight for a bit more detail on how the margin increase breaks down <unk>.

Crystal Lail: New rates, both via interim rates and also our final base rates drove 20 cents that's margin improvement.

Crystal Lail: Which reflects the impact notably in all three of our jurisdictions.

Crystal Lail: We also saw favorable load.

Crystal Lail: 13 cents during the first quarter here do that colder weather customer growth and usage on our system and.

Crystal Lail: In addition, we continue to see favorable transmission revenues of about five months of contribution in the quarter. I would also note that the P. Chem column here are the non recoverable, Montana electric supply cost well that looks like a small variance for the quarter are when you think about total impact there we had a Q1 detriment this year.

Crystal Lail: I almost said $27 million, which as many of you who follow us know, that's what the total amount would be. The 10% sharing would be the $2.7 million impact of detriment this quarter. And this compared to $3 million of detriment in the prior quarter, so first quarter of 2024. So comparatively, only $300,000 of impact there is slightly favorable. But I would just highlight that we expect to see that as an ongoing trend here in 2025 of headwinds on the PCAM front. Again, costs being above that baseline. And as I'll get into in a little more detail, that remains an open item in our Montana rate review.

Crystal Lail: Our $2 7 million I, almost at $27 million, which as many of you who follow US know that's what the total amount would be the 10% sharing would be the $2 7 million impact of detriment this quarter and that's compared to $3 million of detriment in the prior quarters. The first quarter of 'twenty 'twenty four or so comparatively only 300000 of impact there slightly favorable.

Crystal Lail: But I would just highlight that we expect to see that as an ongoing trend here in 2025 of headwinds on a TTM front again costs being above that baseline and as I'll get into in a little more detail that remains an open item in our Montana rate review.

Crystal Lail: So again, concluding the earnings for the quarter on margin, significant improvement there on the backs of rate recovery really necessary to offset the costs that are already in place. Moving to slide nine, I highlighted already that weather was favorable during the quarter. So weather favorably impacted the first quarter by $0.03. While in the first quarter of 2024, we had milder weather, so it was unfavorable by $0.01. So that's a $0.04 swing between first quarter of 2024 to first quarter of 2025. In addition, in the first quarter of 2024, there was net $0.02 of favorable adjustments that were backed out for other matters during the first quarter of 2024 that were one-time items. So on an adjusted basis, you'll see that our GAAP reported results for the quarter of $1.25, removing again favorable weather for the quarter of $0.03 to adjusted earnings of $1.22.

Crystal Lail: So again, including the earnings for the quarter on margin significant improvement there on the back of the rate recovery really necessary to offset the costs that are already in place.

Crystal Lail: Moving to slide nine I highlighted already that wave whether with favorable during the quarter. So weather favorably impacted the first quarter by refund.

Crystal Lail: In the first quarter of 2024, we had milder weather so was unfavorable by one.

Crystal Lail: <unk> swing between first quarter of 'twenty four to first quarter of 2025.

Crystal Lail: In addition in the first quarter of 2024, there was net to sense of favorable adjustments that were backed out.

Crystal Lail: For other matters during the first quarter of 2024 that were one time items. So on an adjusted basis, you'll see that our GAAP reported results for the quarter of $1 25, removing again favorable weather for the quarter of three <unk> to adjusted earnings of $1 22, and that's the 13th that improvement over the prior year those adjusted earnings were $1 <unk>.

Crystal Lail: And that's a $0.13 improvement over the prior year. Those adjusted earnings were $1.09 in the prior year. And again, on the backs of favorable weather in the first quarter of 2025.

Crystal Lail: <unk> in the prior year and again on the backs of a favorable weather in the first quarter of 2025.

Crystal Lail: Turning to financing activities on slide 10, we are happy to say that during March we priced $500 million of long-term debt in two separate transactions. One was included in our disclosures in the 10-Q detail on these, but 144A transaction and also a smaller first mortgage amount transaction in South Dakota. And with a bit of the volatility in the market, I'm glad to say we had solid investor interest close those out before maybe some of that volatility hit and those transactions successfully address our financing needs for 2025.

Crystal Lail: Turning to financing activities on slide 10, we.

Crystal Lail: We are happy to say that during March we priced $500 million of long term debt in two separate transactions. One was are included in our disclosures in the 10-Q detail on these but a $1 44, a transaction and also a smaller first mortgage bond transactions in South Dakota, and with a bit of the volatility in the market.

Crystal Lail: I'm glad to say, we had solid investor interest to close those out before maybe some of that volatility hit and those transactions successfully address our financing needs for 2025. So in addition to that I would also note that we are consistent with our solid earnings performance in Q1, our cash flows match that so you'll see that our oh did that metrics on it.

Crystal Lail: So in addition to that, I would also note that we, consistent with our solid earnings performance in Q1, our cash flows match that. So you'll see that our FFO to debt metrics on a consolidated basis closed out the quarter just above our 14% threshold. And again, remaining focused on building cushion there to where we want to be from a long-term basis. But again, closing out our financing needs for 2025, and we feel good about having that work done.

Crystal Lail: Holiday to basically close out the quarter, just above our 14% threshold and again remaining focused on building cushion there to where we want to be from a long term basis, but again closing out our financing needs for 2025, and we felt good about having that work done.

Crystal Lail: So with slide 11, I will transition from talking about the financials for a regulatory update. So you all know the follow-up that we submitted settlements in the Montana Rate Review here recently, and it was a partial settlement in the electric case with the remaining key contested issues related to the revenue requirement for the Yellowstone generating station facility and also the PCAM base. But we were able to reach a settlement on the base transition, distribution, and base generation costs. And of course, that was significant investment for us and on customers' behalf. Importantly, underlying that settlement, it maintains our existing electric ROE and also our as-filed capital structure.

Crystal Lail: Slide 11, I will transition from talking about the financial for a regulatory update.

Crystal Lail: So you all know that if all of us that we submitted settlements and the Montana rate review here recently and it was a partial settlement in the electric case with the remaining key contested issues related to the revenue requirement for the Yellowstone generating station facility and also the P. Chem base, but we were able to reach a settlement on the Bay.

Crystal Lail: Transmission distribution and based generation costs and of course that was significant investment broth and non customer's behalf.

Crystal Lail: Importantly, underlying that settlement it maintains our existing electric ROE and also our as filed capital structure.

Crystal Lail: The slide here gives you significant detail and I think there's more in the appendix on what that settlement looks like and also importantly the bookends of the intervener position. So again, the contestant matters detailed as the Yellowstone revenue requirement and also the Keycamp Base. And this slide gives you the bookends of what that looks like.

Crystal Lail: The slide here gives you.

Crystal Lail: Detailed I think theres more in the appendix on what that settlement look like and also importantly, the book ends of the intervenor positions. So again the contestant matters.

Crystal Lail: Detailed as the Yellowstone revenue requirement and also the cause.

Crystal Lail: TTM base and this slide gives you the bookends of what that looks like notably.

Crystal Lail: Notably, Even with the partial settlement, and if you include our position on those contested issues, the average bill impact is just over 4% to our customers. In addition, with the reduction in PCAM, so putting Yellowstone into base rates and reducing PCAM, the supply mechanism related to that, it's an overall reduction in customer bills. So we feel really good with our position going into hearing to make that known to both the Commission and others, the value customers are receiving on the backs of that facility.

Crystal Lail: Even with the partial settlement and if you include our position on those contested issue. The average bill impact is just over 4% to our customers.

Crystal Lail: In addition, with the reduction in pecan, so putting yellowstone into rate base rate and reducing P. M. The supply mechanism related to that it's an overall reduction in customer bills. So we feel really good with our position going into hearing to make.

Crystal Lail: That known to both the commission and others the value customers are receiving on the backs of that facility.

Crystal Lail: Moving to slide 12 to talk about the gas settlement. It is a full settlement and it has a slight increase in ROEs of 9.55 in the prior case to 9.6 in this one and our as-filed capital structure. The average bill impact from this gas case is approximately 9% maintaining rates below the national average.

Crystal Lail: Moving to slide 12 to talk about the gas settlement. It is a full settlement and.

Crystal Lail: It has a slight increase in ROE east of 95 five in the prior case to 96 in Atlanta.

Crystal Lail: <unk> capital structure.

Crystal Lail: The average bill impact from this cascade of approximately 9% maintaining rates below the national average.

Crystal Lail: For these dockets, a hearing is scheduled in June, and we expect to implement rates in May. Following a hearing, a briefing schedule will be established with a final order, we believe likely in late Q3 to potentially early Q4.

Crystal Lail: Four of these dockets. The hearing is scheduled in June and we expect to implement rates in may following a hearing a briefing schedule. We established with a final order we believe likely in late Q3 to potentially early Q4.

Crystal Lail: Concluding my comments on the regulatory front and moving to our outlook slide here on slide 13. We have, we believe we've made significant progress in 2025. And this provides a foundation for advancing critical customer objectives, while balancing the importance of reliability and affordability to our customers, as well as the important part of delivering to our shareholders and supporting our long term growth outlook.

Crystal Lail: Concluding my comments on the regulatory front and moving to our outlook slide I.

Crystal Lail: Here on Slide 13, we have we believe we've made significant progress in 2025 and this provides the foundation for advancing critical customer objectives, while balancing the importance of reliability and affordability to our customers as well as the important part of delivering to our shareholders and supporting our long term growth outlook.

Crystal Lail: We are affirming, and I think Brian mentioned this up front, our long-term earnings and rate-based growth outlook, but as we've previously discussed, we don't expect to provide 2025 earnings guidance until conclusion of a hearing in the Montana Rate Review. However, we also wanted to be proactive in sharing how the timing impacts of that may affect our quarterly distribution of earnings in 2025. And obviously, many of you already have expectations out there for us for where you think our 2025 will land. And as noted in the regulatory update, we expect to implement updated rates in Montana in May versus, of course, incurring what is already a full year cost associated with those new investments.

Crystal Lail: We are affirming and I think Brian mentioned this upfront of our long term earnings and rate base growth outlook, but as we've previously discussed we don't expect to provide 2025 earnings guidance until conclusion of a hearing and the Montana rate review.

Crystal Lail: However, we also wanted to be proactive in sharing how the timing impact of that may affect our quarterly distribution of earnings in 2025, and obviously many of you already have expectations out there for us for where you think our 2025 will land and as noted in our regulatory update we expect to implement updated rates in Montana in may versus.

Crystal Lail: Of course, incurring what is already a full year of costs associated with those new investments.

Crystal Lail: This causes more of our quarterly distribution to be weighted in the second half of the year. As a result, we expect our second quarter to be a lower contribution to overall earnings than you would typically expect from us. And we have provided an indication of that earnings distribution here for the second quarter of 2025 to be approximately 10% contribution to the full year. I would also note that the first quarter was solid and slightly ahead of what would have been our expectation.

Crystal Lail: This causes more of our quarterly distribution to be weighted in the second half of the year.

Crystal Lail: As a result, we expect our second quarter to be a lower contribution to overall earnings than you would typically expect for Ma.

Crystal Lail: And we have provided an indication of that earnings distribution here in the second for the second quarter of 2025 to be approximately 10% contributors.

Crystal Lail: Contributors contribution to the full year I would also note that the first quarter was solid and slightly ahead of what would have been our expectation.

Crystal Lail: So let me conclude my comments here and the outlook discussion by reinforcing our confidence in delivering on our earnings and rate-based growth commitments over the long term, which moves us to slide 14. Thanks, Crystal.

Crystal Lail: So let me conclude my comments here and the outlook discussion by reinforcing our confidence in delivering on our earnings and rate base growth commitments over the long term, which moves us to slide 14.

Crystal Lail: And this is the capital slide you've seen before from US our five year capital plan and expected investments on our customers' behalf. We updated this in February and the five remains the same as to what you've seen before so we are affirming our capital plan and on track for execution here in 'twenty, five and again as Brian highlighted leading in this the size to need no equity, but also keeping.

Reliability and affordability for our customers in mind, so with that I will turn it back to Brian.

Brian Bird: We had two main objectives going into this legislative session in 2025 and two bills that we wanted sponsored was a wildfire bill and a transmission bill. We're pleased to report that we've had success in both of those efforts and the Montana wildfire bill is something we're extremely excited about. It's a significant risk for the company and all Western utilities. This bill, which passed through the House and Senate, unanimous bipartisan support, sitting on the governor's desk, believed to be signed. And so we feel extremely good about this.

Brian Bird: Thanks Crystal.

Brian Bird: We had two main objectives going into this legislative session in 2025, and two bills that are we wanted sponsored wildfire bill.

And a transmission bill.

Brian Bird: Pleased to report that you've had success in.

Brian Bird: And both of those efforts and.

Brian Bird: The Montana wildfire Bill something we're extremely excited about as a significant risk for the company in all Western utilities, This bill which passed through the house and Senate unanimous bipartisan support.

Brian Bird: Sitting on the Governor's desk.

Brian Bird: We provide tremendous protection, which I'll talk about in a second, but we believe this is one of the strongest wildfire bills in the country from a state perspective. There's no strict liability. It confirms strict liability cannot be applied to utility operations related to wildfire. legal protections. There's a rebuttable presumption utility acted reasonably if it substantially followed an MPSC approved wildfire mitigation plan for wildfire ignited, what was ignited. From a damages perspective, as we'd expect. at any time. There's property damage and fire control costs. We'd be responsible for those economic damages.

Brian Bird: I believe to be signed and so we feel extremely good about this.

Brian Bird: <unk> tremendous protection, which I'll talk about the second but we believe this is one of the strongest wildfire bills.

Brian Bird: From a state perspective.

Brian Bird: Theres no strict liability if confirmed strict literally cannot be applied to utility operations related to wildfire.

Brian Bird: Legal protections Theres, a reportable presumption.

Utility acted reasonably substantially filed an M PSC approved wildfire mitigation plan.

Brian Bird: Wildfire ignited.

Brian Bird: It was excited for damages perspective.

Brian Bird: As we'd expect.

Brian Bird: At any time.

Brian Bird: There's property damage and fire control costs.

Brian Bird: We'd be responsible for those.

Brian Bird: But one thing we were extremely concerned about is where we've seen in other states where we've seen non-economic and punitive damages assigned. In this case for us, non-economic damages can only be applied if there's bodily injury or death occurs. Impunities can only be applied where there's clear and convincing evidence of gross negligence or intent. We feel very, very good about this and we really appreciate the state and all the parties we work with, co-ops and all parties associated with getting this done. We'd like to think this will come off the governor's desk relatively soon with a signature.

Brian Bird: Economic damages, but one thing we were we were extremely concerned about this where we've seen in other states, where we've seen non economic and punitive damages of shine in this case for us noneconomic damages can only applied be applied.

Brian Bird: If theres bodily injury or death occurs imperatives can only be applied where there's clear and convincing evidence of gross negligence or intent.

Brian Bird: We feel very good about this and we really appreciate the states and all the parties will work with co ops and all parties associated with getting this done.

Brian Bird: We'd like to think this will come off.

Brian Bird: So excited about where that sits and feel really good about legislative session on that item alone.

Brian Bird: The Governor's desk here relatively soon with a signature so excited about where that sits.

Brian Bird: But we also had some success from the transmission perspective. As you're well aware, many states have a Certificate of Public Convenience in Necessity, CPCN. We now have established the means to be able to get a CPCN for our large transmission work and at our request. And also there's some timelines associated with approvals for getting a CPCN and actually the cost recovery of that. Prudency will still be at hand in terms of when the project is complete and appropriate cost recovery.

Brian Bird: And feel really good about legislative session on that item alone, but we also had some good success from a transmission perspective.

Brian Bird: As Youre well aware many states have a certificate of public convenience and necessity and C. P. C N.

Brian Bird: We are now have established that needs to be able to get a C. P. C N.

Our large transmission work and at our request.

Brian Bird: And also there's some timelines associated with approvals.

Brian Bird: We're getting a CP CN and are actually either cost recovery of that prudency, you'll still be at hand in terms of when the project is complete and appropriate cost recovery.

Brian Bird: But this is a great step in the right direction and I think this, everyone knows, it's extremely important from a build-out and being able to serve customers nationwide is to be able to have better means and more assurance around transmission build-out. So really, really happy with the outcomes of our legislative session here in 2025.

Brian Bird: This is a great step in the right direction and I think everyone knows this extremely important from a build out and being able to serve customers nationwide just feel much better means and more assurance around transmission build out so really really happy with.

Brian Bird: Moving on and slide 18, just reasoning, nothing really has changed on coal strip, but I think it's extremely important to talk about the importance of coal strip. The no-cost acquisition of the incremental pieces from both Avista and Puget. It certainly provides energy independence for the state and improves our reliability and certainly integrity. It moves our portfolio from a short capacity position to a long capacity. And obviously with a zero upfront cost that maintains affordability while insulating customers from volatile capacity and energy market prices. That increased ownership, and I think you might recall when we talked about this the very first time, we were very concerned about being, as a 15% owner, having, you know, other state policies drive the likelihood that the plant could be shut down.

Brian Bird: It comes of our legislative session here in 2025.

Brian Bird: Moving on Slide 18, just reason nothing really has changed on Colstrip I think it's extremely important to talk about the importance of colstrip.

Brian Bird: The no cost of acquisition of the incremental pieces from bulk of Vista and Puget.

Brian Bird: It certainly provides energy independence for the state and improves our reliability and certainly integrity.

Brian Bird: Moves our portfolio for short capacity position to a long capacity.

Brian Bird: And it's and obviously with a zero upfront cost it maintains affordability, while insulating customers from volatile capacity and energy market price.

Brian Bird: That increased ownership and I think you might recall when we talked about this the very first time.

Brian Bird: We were very concerned about being as a 15% owner having other state policy is dry.

Brian Bird: Now at 55% ownership, we can protect our existing ownership in Colster and provide Montana control to keep the plant open beyond the Washington, Oregon mandated closure deadline. and Significant Capacity Surplus provides opportunity for new large load customers spreading fixed costs over more kilowatt hours, lowering and stabilizing the cost per unit for all our customers. I'd also point out here, I think you may have seen, and we certainly press-released it, there's been some good outcomes from the EPA that also gives us more time to address masks and other issues at the Coal Strip facility and what I'd argue is a more realistic timetable to make decisions for the long-term health of Coal Strip and ultimately give us potentially more time to make decisions for the ultimate closure of Coal Strip.

Brian Bird: The likelihood.

Brian Bird: That could be shut down now at 55% ownership, we can protect our existing ownership.

Brian Bird: In culture.

Brian Bird: Provide montana control to keep the plant open beyond the Washington, Oregon mandated closure deadlines.

Brian Bird: And significant passenger surplus.

Brian Bird: The opportunity for new large load customers spreading fixed costs over more kilowatt hours.

Brian Bird: And stabilizing the cost per unit for all our customers, but I'd also point out here I think you may.

Brian Bird: They have seen recently press released it theres been some good outcomes from the EPA that also gives us more time to address mass and other issues.

Brian Bird: Agriculture facility and what I'd argue as a more realistic timetable.

Brian Bird: To make decisions for the long term health of Colstrip, and ultimately give us potentially more time the decisions for the ultimate closure of pull stripping as we like to think that could be certainly in the late 2000 <unk> in the 2000 fourteens, depending on economic commercially available resources to replace it.

Brian Bird: And as we like to think that could be certainly in the late 2030s and the 2040s, depending on economic, commercially available resources to replace it. And we believe in Coal Strip long-term, be it Coal Strip Coal Plant or whatever is there to replace it, we want to do at or around Coal Strip. The far right on this page shows our existing ownership, then the incremental 592 megawatts from the Abyssinian Puget Sound. Collectively, those would be larger than the average load in Montana, but certainly substantially less than our peak load. But obviously, we have a full portfolio of resources.

Brian Bird: We believe in culture of long term.

Brian Bird: Cultural coal plant or water or is there to replace it we wanted to do at Colstrip.

Brian Bird: Colstrip the far right on this page shows our existing ownership than the incremental 592 megawatts from the ambition.

Brian Bird: Collectively those would be larger than the average load in Montana, but certainly substantially less than our peak load.

Brian Bird: And again, remind folks in Montana, we're currently at over 60% carbon free, but our all of the above approach and this incremental coal strip allows us to be, as I mentioned earlier, not only energy independent, but protects our customers from those peak days when the wind's not blowing and the sun's not necessarily shining.

Brian Bird: But obviously, we have a full portfolio of resources and again remind folks in Montana, we're sitting currently at over 60% carbon free but.

Brian Bird: Are all of the above approach in this incremental upholstery allows us to be as I mentioned earlier, not only energy independence that protects our customers from those peak days.

Brian Bird: So really excited about what's happening at Coal Strip and how it can help our customers and us from a planning perspective going forward to certainly support economic development in the state.

Brian Bird: When the wins not blowing the Sun's not necessarily shining so really excited about what's happening at colstrip and how it could certainly help our customers.

Brian Bird: And us from a planning perspective going forward certainly support economic development in the state.

Brian Bird: Speaking of economic development, large load customers with a full portfolio and now being long capacity, we have the ability to serve some large load customers.

Speaking of economic development large load customers with a full portfolio and now have being long capacity, we have the ability to serve large large load customers.

Brian Bird: Starting out in Montana, as you know, we find LOIs with SABI and Atlas. And as up to the right, you can see how those megawatts are expected to grow over time. We're in a letter of intent with those parties at this point in time. And we continue to work on various aspects to ultimately get to contracts with these parties. Hopefully sometime in the second quarter or third quarter to get that to have that happen. And we expect to serve those two customers under existing Montana tariffs.

Brian Bird: Starting out in Montana as you know, we signed an LOI with.

Brian Bird: Savi and Atlas and is off to the right you can see how those megawatts are expected to grow over time or in a letter of intent.

Brian Bird: With those parties at this point in time, and we continue to work on various aspects to ultimately get to contracts with these with these parties.

Brian Bird: Hopefully sometime in the second quarter third quarter to get that to have that happen.

Brian Bird: And we expect to serve those two customers under existing Montana tariffs.

Brian Bird: In addition to that, we are actually working with quite a few other parties at various stages of development in both Montana and South Dakota. And even though we have incremental capacity from Coal Strip, remember that as a regulated utility, these customers are receiving our full portfolio, not just resources off of Coal Strip. So again, 60% carbon free in Montana. In South Dakota, in addition to having to add resources like we would in Montana, but above and beyond our first two announced data centers, in South Dakota, we already have a deviated rate tariff that could certainly help us there in a means for quicker recovery.

Brian Bird: In addition to that we are actually working with quite a few other parties.

Brian Bird: <unk> stages of development in both Montana, and South Dakota.

Brian Bird: And.

Brian Bird: Even though we have incremental capacity from colstrip.

Brian Bird: Remember that we as a regulated utility these customers will be receiving our full portfolio not just resources off of colstrip, So again, 60% carbon free.

Brian Bird: Montana.

Brian Bird: In South Dakota.

Brian Bird: Two.

Brian Bird: To having to add resources like we would in Montana or above and beyond our first two announced data centers.

Brian Bird: In South Dakota, we already have deviated grace rate tariff that could certainly help us there and a means for quicker recovery.

Brian Bird: Montana would have to work on incremental tariffs associated with anything beyond SABI and Atlas at this point in time.

Brian Bird: Tanner, what would have to work on incremental tariffs associated with anything beyond <unk> and Atlas at this point in time, so really excited about that opportunity, but definitely a lot of work yet to do.

Brian Bird: So really excited about that opportunity, but definitely a lot of work yet.

Brian Bird: Lastly, not much more to report on the regional transmission opportunities. We continue to work with Grid United and the other utilities looking at that opportunity and also with Grid United on opportunities with working with us to move power out of southwest Montana. Those discussions continue, working ultimately to get further down the contracting process.

Brian Bird: Lastly, not much more to report on the regional transmission opportunities. We continue to work with bridging I didn't whether utilities looking at that opportunity and also.

Brian Bird: With with United on opportunities with working with us to move power out of southwest Montana.

Brian Bird: Those discussions continue working and ultimately to get further down the contracting process.

Brian Bird: One thing I guess I would also mention is we've announced in the past, as have others, you know, there was a $700 million GRIP financing associated with this project, and I think that's still in question, $70 million of which would be used for the coal transmission system upgrade. I would say one thing I would argue about what the federal government is doing at this point in time, I also think they see the opportunity that transmission provides to all resources. and also to keep customers bills as low as possible longer term in order for us to move power around in between markets.

Brian Bird: One of the thing I guess I would also mention is we've announced in the past is as have others.

Brian Bird: $700 million grip.

Brian Bird: Financing associate with this project and I think Thats still in question 70 million of which would be used for the transmission for excuse me the colstrip transmission system upgrade.

Brian Bird: I would say one thing I would argue about what the federal government is doing at this point in time.

Brian Bird: I also think they see the opportunity of that transmission provides to all resources and also to keep customers' bills as low as possible longer term in terms of in order for us to move power around in between markets. So I think there's quite a bit of support for transmission and I'd like to think that the script financing will be looked upon favorably and we will.

Brian Bird: So I think there's quite a bit of support for transmission. And I'd like to think that the script financing will be looked upon favorably. And we will continue to work with others to certainly try and achieve that for this project.

Travis Meyer: And with that, that concludes our comments, and we'll turn it back to Mr. Meyer to drive the Q&A process. Yeah, we'll open it up for questions, Eric.

Brian Bird: Continuing to work with others to certainly try to achieve that for this project.

Speaker Change: And with that that concludes our comments and I will turn it back to Mr. Meier to drive the Q&A, Brian I will now open it up for questions there.

Eric: At this time, I would like to remind everyone in order to ask a question, please press star followed by the one on your telephone key.

Speaker Change: At this time I would like to have me and everyone in order to ask a question. Please press star followed by the one on your telephone keypad.

Nicholas Campanella: First question comes from the line of Nicholas Campanella with Barclays. Please go ahead. Hey, good morning or good afternoon. Hey, Nick. Hi, Nick. Hopefully, I'm coming through. Yeah. Hey, hope everything's good. So just on the on the tariff proceeding, it sounds like you are having conversations with customers other than the ones that you've identified so far. And just how long do you think the tariff proceeding could go for?

Speaker Change: The first question comes from the line of Nicholas Campanella with.

Speaker Change: Barclays.

Speaker Change: Please go ahead.

Speaker Change: Hey, good after.

Speaker Change: It is.

Speaker Change: And.

Speaker Change: Hopefully I'm coming through yes, Hey, hope everything so just thoughts on the tariff preceeding. It sounds like you are having conversations with customers other than the ones that you've identified so far and just how long do you think that proceeding could.

Nicholas Campanella: And is that, you know, You need that to be finished before you announce anything incremental here on the data center side, I guess. Thanks.

Speaker Change: Could go for and is that.

Speaker Change: Do you need that to be finished before you announce anything incremental here on the on the datacenter side I guess thanks.

Brian Bird: I think I put it to you in this in this context, Nick, you know, we have five levels, if you will, of process for data centers. And let me just tell you the five real quick. And there's a data center request, There's a high level assessment, there's a contractual estimate, a completed contract, and then construction. Those are your five. We are at various stages of the first three with parties. So on your data center request, there's currently nine parties, this is between both Montana and South Dakota, that are in the very early stages, you know, they provided a data center request, if you will.

Nick: I think I put it to you in this in this context, Nick you know we.

Nick: We have five levels, if you will process for Datacenters and let me just tell you the five real quick.

Nick: As a datacenter request.

Nick: At a high level assessment was a contract fuel estimate a completed contract and then construction. Those are your five we are in various stages of the first three with parties. So on your datacenter request. There is currently nine.

Nick: Parties. This is between both Montana and South Dakota.

Brian Bird: For more information visit www.fema.gov And in addition to that, there are three parties that are currently in what's called a high level assessment. They've gotten past the request. We've shared information between the two parties and we're moving on to a high-level assessment. And there are two parties, the LOI parties, ATLAS and SABE, that are in the contractual estimate. We are doing transmission service agreement studies to calculate total costs, if at all necessary, to finalize the contract. Once those studies are completed, we believe we'll get those two parties to a contract sometime in the second quarter, hopefully by the end of the second quarter, but could go into the July time period as well.

Nick: Or in the very early stages.

Nick: They provided a datacenter request if you will.

Nick: And in addition to that there are three parties that are currently in the what's called the high level assessment.

Nick: We've gotten past the request we shared information between the two parties and we're moving on to a high level assessment.

Nick: And there are two parties the LOI parties.

Nick: Listen to save you that are in the contractual estimate we're doing transmission service agreement studies to.

Nick: To calculate total cost if you will necessary to finalize the contract.

Nick: Once those studies are completed we believe we will get those two parties to a contract sometime.

Nick: Sometime in the second quarter, hopefully by the end of the second quarter, but could go into the July time period as well so those studies take some time.

Brian Bird: So the studies take some time. And so once those get resolved, we believe we can get to contracts with those two parties. But as you heard also, there are 12 other parties at various levels prior to that. I'm sure there are a lot of folks, a lot of utilities talking to many different parties in that process. So hard to say on those in the early stages. And obviously, in the queue, ATLAS and SABE, we have a full portfolio to serve those two customers. We'd have to build generation for folks that come in behind those.

Nick: And so once those get resolved we believe we can get the contracts as opposed to parties, but as you heard also there are 12 other parties at various levels prior to that I'm sure. There are a lot of folks a lot of utilities talking to many different parties in that process. So.

Nick: Hard to say on those in the early stages.

Nick: And obviously in the queue at this and say, there's we have a full portfolio to serve those two customers we have to build generation.

Crystal Lail: And I don't know if, Krista, you have anything to add there. Yeah, just layering on, and Nick, your question as to the tariff under which we literally serve them and how do we move forward. So today, we have an existing tariff that we believe these initial ones, and Brian was talking about the process, were unique and being long energy. So we can serve them under that. And the important part of that is underlying our current rate design is that commercial and industrial customers subsidize residential. So I know that's not the everywhere, but that exists today.

Nick: For folks that come in behind Us and I don't know, Chris we have anything to add but yeah, just layering on and Nick to your question as to the tariff under which we literally serve them and how do we move forward. So today, we have an existing character. We believe these initial ones then Brian was talking about the process. We're unique in being long energy. So we can serve them under that and the important part.

Nick: That is underlying our current rate design is that commercial and industrial customers subsidize residential so I know that's not the same everywhere, but that exist today and we will continue outside of our as we continue through this rate case that underlying rate design. That's there. So we believe we can serve them under our existing to Europe, and then in a future filing.

Crystal Lail: And we'll continue outside of, or as we continue through this rate case, that underlying rate design sits there. So we believe we can serve them under existing tariff. And then in a future filing, we certainly think there's modifications that can make that even better, and then lay the foundation for what Brian was alluding to there as to when you get past the megawatts we have available today and need to build or have incremental infrastructure investment, that there likely could be modifications to the tariff there to further continue to protect the other customers, even though those protections already exist today.

Nick: We certainly think there's there's modifications that can make that even better and then lay the foundation for what Brian was alluding to there as to when you get past the megawatts we have available today.

Nick: And need to build or have any.

Nick: Incremental infrastructure investment that they are likely could be modifications to the tariff there to further continue to protect the other customers, even though those protections already exists today and that would be in an upcoming filing but again I would just say we believe we can serve them under our existing tariffs that those tariffs will continue through this rate review.

Crystal Lail: And that would be in an upcoming filing. But again, I would just say we believe we can serve them under existing tariffs, that those tariffs will continue through this rate review to provide subsidization quite handily of the residential customer group. And that's obviously a large load can be good broadly for the system in that regard, and that we can sign them up as it is today. But Brian alluded to the process we're working through to get them there. And I think, again, reiterate, South Dakota, a tariff's already established, and we can move forward there. Yeah, I was talking about Montana.

Nick: To provide subsidization quite candidly is a residential customer group.

Nick: And that's obviously a large load can be good broadly for the system in that regard and that we can find them up as it is today, but Brian alluded to the process, where we're breaking through to getting there and I think again reiterate South Dakota.

Crystal Lail: I should say that. And in Montana, Chris was absolutely right.

Nick: Sorry.

Nicholas Campanella: There's going to be some work that needs to be done from the tariff development for further data centers beyond the first two in Montana. Okay, that's all helpful context. I appreciate that. And then, you know, thanks for the info on the quarterly distribution.

Speaker Change: Stablish then we can move forward there that theres, probably I was talking about Montana, I would say that in Montana, Chris was absolutely right theres going to be some work that needs to be done from a tariff development.

Nick: Further data size beyond the first two in Montana.

Speaker Change: Yeah.

Speaker Change: Okay. That's all helpful context, I appreciate that and then thanks for the info on the quarterly distributions.

Brian Bird: I guess just kind of taking into account you had a good start to the year, you have this, you know, partial settlement that's out there, if that's approved, do you kind of still see yourself within that four to six percent EPS range as we think through 25? Nick, that is a very nice way of asking about our 25 guidance that we haven't given you a specific range on. I'll acknowledge that and the only thing I would just say is on the long term I would expect that we would stay within that 4 to 6 percent range but also acknowledging that we've had some years here where we didn't hit it that it may not be entirely linear and we'll update you more after the hearing.

Speaker Change: I guess, just kind of taking into account you had a good start to the year.

Speaker Change: You have this.

Speaker Change: Settlement that's out there if that's approved do you still see yourself within that 4% to 6% EPS range as we think through 'twenty five.

Speaker Change: Yeah.

Speaker Change: NEC that has a very nice way of asking about our 25 guidance that we haven't given you a specific range on I'll acknowledge that and the only thing I would just say is on the long term.

Speaker Change: I would expect that we would stay within that 4% to 6% range, but also acknowledging that we've had some years here, where we didn't hit it but it may not be entirely linear and we'll update you more after the hearing.

Nicholas Campanella: All right. Hey, thanks. Thanks Nick.

Speaker Change: Alright. Thanks.

Chris Ellinghaus: The next question comes from the line of Chris Ellinghaus with Siebert-Williams Schenck & Company.

Nick: Thanks, Nick.

Speaker Change: The next question comes from the line of Chris <unk>.

Chris Ellinghaus: See you everybody. Hi Chris. A couple of esoteric questions to start with. Did I detect that you changed the electric average customer counts and was that really just lighting portion and you know what was that all about? I believe, so Chris, as usual, you know as well, and so Travis is feeding me this answer currently, and I believe lighting is correct. Chris, it was just a, it was really boiled down to the way we were counting our street lighting districts and the new system we have that handles that. And so, yes, it was, we still saw our kind of one and a half-ish percent customer growth, but beyond that, it was the street lighting.

Chris: Williamson can company.

Speaker Change: Thank you very much.

Speaker Change: Yeah.

Speaker Change: Hi, Chris.

Speaker Change: A couple of esoteric questions to start with did I detect that you changed the electric.

Speaker Change: Average customer accounts.

Speaker Change: Is that really just lighting portion and what was that all about.

Speaker Change: I believe so Chris as usual you know as well and so Travis are feeding me this answer.

Speaker Change: I believe lighting is correct Chris It was just it was really boils down to the way we were accounting our street lighting districts and the new system, we have and handle that and so yes. It was we still saw kind of one five ish percent customer growth, but beyond that it was the street lighting.

Chris Ellinghaus: And also, I was a little surprised by this, and maybe I just didn't detect this, but your average historic heating degree days in Montana actually went up. Has it actually been getting colder in Montana the last few years? I would, that average is over the long term, Chris, so I don't know that there's anything changing there. There's nothing changed in our methodology that I'm aware of. Methodology is the same. We do use a rolling 10-year average, and so that may have worked up over the last 10 years. I haven't drilled in deep enough to know if we had a real warm year fall off, but...

Okay.

Speaker Change: And also I was little surprised by this.

Speaker Change: Maybe I just didn't detect this but.

Speaker Change: Average historic heating degree days in Montana actually went up has it actually been getting colder in Montana the last few years.

Speaker Change: I would that averages over the long term, Chris So I don't know that Theres anything changing there there's nothing changed in our methodology that I'm Moira methodology is the same we do use a rolling 10 year average and so that may have worked up over the last 10 years.

Brian Bird: It may have moved up slightly. Either a warm year rolled off or something recent was cold. Yeah.

Speaker Change: Haven't drilled in deep enough to know if we had a real warm year fall off but.

Speaker Change: It may have moved up slightly.

Speaker Change: Either a warm.

Speaker Change: Warm year rolled off for <unk>.

Chris Ellinghaus: It certainly sounds like you've got a lot in the queue for possibilities. You know, and you can't tell us today when some of those things might get, you know, at least to the LOI stage, but do you have a sense of You know, when you might need to begin the process. of advancing sub-due capacity, and do you have any kind of sense of what that magnitude might be for long-term planning purposes? Yeah, I'll start, I'll work backwards. You're not going to see us talk megawatts until we have LOIs, right? I am really nervous about counting chicks before they hatch, as they say.

Speaker Change: Something in recent was colder.

Speaker Change: Yes.

Speaker Change: So.

Speaker Change: It certainly sounds like you've got a lot in the Q4 possibilities.

Speaker Change: <unk>.

Speaker Change: No.

Speaker Change: You can't tell us today, when some of those things might yet.

Speaker Change: At least to the LOI stage, but do you have a sense of.

Speaker Change: When you might need to begin the process.

Speaker Change: Advancing some new capacity and do you have any kind of sense of what that magnitude might be for long term planning purposes.

Speaker Change: Yeah, I'll start I'll work backwards youre not going to see us talk megawatts until we have LOI right.

Brian Bird: But I think what we'd like to do is have a real good idea. I talked about those three layers in the process. And as we continue to think about our resource planning perspective, I mean, we're going to work with these parties. Obviously, time is of the essence. And we're going to work with these parties to meet their needs as best we can from a timing perspective. So we could get at things pretty quickly, but we want to make sure not. protect the company but protect our customers. We don't want to get ahead of our skis in terms of starting too far down the process in terms of resources until we know people are lined up, signed up with contracts with parties.

Speaker Change: Hey, I'm really nervous about counting chickens before they hatch as they say.

Speaker Change:

Speaker Change: I think what we'd like to do is have a real good idea I talked about those three players are in the process and as we continue to think about our resource planning perspective.

Speaker Change: I mean, we're going to work with these parties, obviously time is of the essence.

Speaker Change: And we're going to work with these parties to meet their needs as best we can.

Speaker Change: From a timing perspective, so we could get at things pretty quickly, but we want to make sure not just for the company, but protect our customers.

Speaker Change: We don't want to get ahead of our skis in terms of starting too far down the process in terms of resources until we know we're lined up signed up with contracts with parties. So.

Brian Bird: So, Chris, you won't see us front running numbers here. Okay, fair enough.

Speaker Change: Chris you won't see us front running numbers here.

Brian Bird: So you sort of alluded to, you know, the long-term replacement of coal strip for whatever the next commercially available, you know, capacity is. I presume that the only real long-term commercial capacity that you'd be waiting for is nuclear. Is, in your view, at Coal Strip, is there an adequate space? at the plant to sort of contemporaneously construct a replacement capacity while maintaining coal strip, you know, in the future. Is there just enough? Yeah, I, Chris, let's just say this. at or around coal strip, there's adequate, we'll call sections, as they say. I grew up in Wisconsin, we talked acres, we talked about sections.

Speaker Change: Okay fair enough.

Speaker Change:

Speaker Change: So you sort of alluded to.

Speaker Change: <unk> term replacement of coal strip for whatever the mix commercially available.

Speaker Change: Capacity is I presume.

Speaker Change: On the real long term commercial.

Speaker Change: Capacity.

Speaker Change: You'd be waiting for nuclear.

Speaker Change:

Speaker Change: In your view at Colstrip is there an adequate space.

Speaker Change: Its a plan to sort of contemporaneously construct.

Speaker Change: A replacement.

Speaker Change: <unk>, while maintaining colstrip.

Speaker Change: In the future or is there just enough.

Speaker Change: Acreage there to be able to do that and sort of just flip the switch.

Speaker Change: Yeah.

Chris: Chris Let's just say this.

Chris: At or around Colstrip, there is adequate.

Brian Bird: in Montana. There's adequate land. for I'd argue a gas plant, a coal plant, or both near or around our transmission facilities in Montana. Gas or nuclear? Gas or nuclear. What did I say? I did say coal. The gas or nuclear. Thank you, Travis. Uh, there's, there's plenty of coal already there. Gas, uh, or nuclear. Thank you. Um, at or around, uh, coal.

Chris: Recall sections as they say.

Speaker Change: I grew up in Wisconsin were you talked acres, we talked about sections.

Chris: In Montana, there is adequate land.

Chris: Sure I'd argue a gas plant a coal plant or both near around our transmission facilities in Montana gas or nuclear or gas or nuclear what did I say cool I did see coal to gas or nuclear thank you Travis.

Chris: Plenty of coal already there gas or nuclear thank you.

Brian Bird: So, and matter of fact, I'll be at Coal Strip on Friday.

Speaker Change: At or around Colstrip.

Brian Bird: They're having a study that's been done by one of the labs talking about nuclear at Coal Strip. And so they'll be presenting at Coal Strip to the community.

Chris: So and matter of fact.

Chris: B at Colstrip on Friday, they're having a study.

Chris: It's been done by a member of the labs talking about nuclear coal strip and so they will be presenting at colstrip to the community and so that's the long term solution, Chris obviously federal government decides that we don't have adequate time, and we need to close down.

Brian Bird: And so that's the long-term solution, Chris. Obviously, if federal government decides that we don't have adequate time and we need to close down Coal Strip sooner, let's say in the early 2030s, well, I think we've said this before, we're likely to have to replace that plant with natural gas. And so longer term, we're gonna look at nuclear. That's, as you know, that's something closer to the 2040s. But if we have to do something sooner, we're gonna look at natural gas. And the issue being here, we're certainly gonna continue to think about renewables and storage, don't get me wrong, but to replace a plant like that from a base load perspective, we have to look at like-kind type resources.

Chris: Colstrip sooner lets say in the early 2000, <unk> well I think we've said this before we're likely to have to replace that plant with natural gas and so longer term, we're going to look at nuclear that's as you know, it's something closer to the 20 <unk>.

Chris: But if we have to do something sooner, we're going to look at natural gas.

Chris: And the issue being here, we're certainly going to continue to think about renewables and storage. So don't get me wrong, but to replace a plant like that from a baseball perspective.

Brian Bird: And unfortunately, as we sit here today, it's natural gas. And there may be other technologies beyond nuclear we can look at, but as we sit here today, we think SMRs make a ton of sense.

Chris: We have to look at lifetime.

Chris: Type resources and unfortunately, as we sit here today its natural gas.

Chris: And there where there may be other technologies.

Chris Ellinghaus: Great.

Chris Ellinghaus: One more question on SB 301. The 300 days makes a lot of sense in terms of the strategic approval process for a CPN. 90 day cost prudency review seems kind of short.

Chris: Nuclear we can look at that as we sit here today.

Speaker Change: Yes from ours makes a ton of sense.

Chris: Okay great.

Speaker Change: One more question.

Chris: 301.

Chris:

Chris: Yes.

Chris: 300 days makes a lot of sense in terms of sort of the strategic approval process.

Uh huh.

Brian Bird: Is there any Is there any portion of the bill that allows for any kind of overlapping of the approval process or does it have to be after the first 300-day process is over? Or can you just do the sort of intervener education process throughout that? I think the 90 days is appropriate, and I think primarily from a prudence perspective. I'm expecting that that really comes into play if there's any overages associated with the project. And so I think that timing's appropriate. I don't think there's any overlapping that comes into play here with those two timetables.

Chris:

Chris: Maybe Jay.

Chris: Prudency review seems short.

Any.

Chris:

Chris: Okay.

Speaker Change: Is there any portion of the build that allows for any kind of overlapping of the approval process or does it have to be.

Chris: After the first 300 day process is over.

Speaker Change: And.

Speaker Change: Can you just do the sort of.

Speaker Change: Intervenor education process wrong with that.

I think the I think the 90 days is.

Speaker Change: Is appropriate and I think primarily from a prudent perspective im expecting that that really comes into play if theres any overages associated with it with the project.

Brian Bird: So I think they're appropriate.

Speaker Change: So I think that timing is appropriate I don't think theres any overlapping that comes into play here with those two timetables. So.

Chris Ellinghaus: Okay. All right.

Chris Ellinghaus: Thanks a bunch. Appreciate the clarity. Thanks Chris.

Brian Bird: And Chris, we're not going to build any coal plants, just so you know. Gotcha.

Speaker Change: Think they're appropriate.

Okay, alright, thanks, so much I appreciate the clarity.

Speaker Change: Thanks, Chris.

Speaker Change: Chris we are not going to build any coal plants, just so you know.

Brian Bird: I will now turn the call over to Brian Bird for closing remarks. Please go ahead. I understand from Travis, we have no further questions. I appreciate everyone's attendance here and staying abreast of what's happening at Northwestern. We feel like it's been a very good effort in terms of the regulatory front to negotiate a full settlement on gas and partial settlement on electric. I think it's been a great outcome. We've got a great legislative outcome, feel real good about the first quarter, as we sit here today. And so real excited about how things look in force from the remainder of the year.

Speaker Change: Got you.

Yeah.

Brian Bird: I will now turn the call over to Brian <unk> for closing remarks. Please go ahead.

Travis: I understand for Travis.

Speaker Change: No further questions I appreciate everyone's attendance here and staying abreast of what's happening at northwestern we feel like it's been a very good.

Speaker Change: In terms of the regulatory front to negotiate a full settlement on gas and partial settlement on electric.

I think it's been a great outcome, we've got a great legislative outcome feel real good about the first quarter.

Eric: So thanks, everybody.

Speaker Change: We sit here today and so real excited about how things are looking for us for the remainder of the year.

Ladies and gentlemen, this concludes today's call. Thank you all for joining and you may now disconnect.

Speaker Change: So thanks everybody.

Speaker Change: Ladies and gentlemen, this concludes today's call. Thank you all for joining and you may now disconnect.

Speaker Change: Yeah.