Q1 2025 Fortis Inc Earnings Call

Thank you for standing by. This is Michael, the conference operator. Welcome to the Fortis Inc. first quarter 2025 earnings conference call and webcast. As a reminder, all participants are in listen only mode and the conference is being recorded.

After the presentation, there will be an opportunity to ask questions.

Speaker Change: To join the question to you, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then zero. I would now like to turn the conference over to Stephanie Amaimo, Vice President Investor Relations. Please go ahead, Miss Amaimo. I'll be right back.

Stephanie Amaimo: Thank you, Michael, and good morning, everyone. Welcome to Fortis' first quarter 2025 Resolved Conference call.

Speaker Change: I'm joined by David Hutchens, President and CEO , Jocelyn Perry, Executive, VP, and CFO , other members of the Senior Management team, as well as CEOs from certain subsidiaries.

Speaker Change: Before we begin today's call, I want to remind you that the discussion will include forward-looking information, which is subject to the cautionary statement contained in the supporting slideshow.

Speaker Change: Actual results can differ materially from the forecast projections included in the forward looking information presented today.

Speaker Change: non-GAAP financial Measures Reference in our Procriber Marks are reconciled to the related US GAAP financial Measures in our first quarter of 2025 and DNA. Also, unless otherwise specified, all financial information reference is in Canadian dollars. With that, I will turn the call over to David.

David Hutchens: Thank you and good morning, everyone. We are off to a strong start in 2025. During the quarter we delivered safe and reliable service to our customers while successfully executing on our capital plan by investing $1.4 billion in our utility systems.

David Hutchens: Financially, we reported earnings per share of one dollar, representing a seven cent increase over the same quarter last year. And on the regulatory front, we received a constructive outcome in British Columbia on Fortis BC's multi-year rate framework.

David Hutchens: Our 2025 capital plan remains on track, with 27% invested in the first quarter, and with our 26 billion dollar five year capital plan focused on transmission investments at ITC, the resource transition in Arizona, and investments that strengthen our infrastructure and support customer growth across all of our utilities. We are positioned well to deliver on our growth strategy. Thank you very much.

David Hutchens: We expect rate-based to increase by approximately $14 billion to $53 billion by 2029, supporting average annual rate-based growth of 6.5 percent.

David Hutchens: As we advance our five-year capital plan, we are closely monitoring changes in government policies, including tariffs and their potential impacts on inflation, supply chain availability, and general economic conditions.

David Hutchens: Based on our initial assessment, we don't expect significant near-term impacts to our 2025 capital plan.

David Hutchens: In the event tariffs result in higher cost, we would expect to recover the impacts through normal regulatory mechanisms. We will be mindful of the impacts on customer affordability should tariffs result in higher cost that persist over the long term.

David Hutchens: We continue to actively pursue incremental investment opportunities, particularly at ITC and Tucson Electric Power.

David Hutchens: At ITC, the team continues to work on the $3.7 to $4.2 billion US of capital expenditures for MISO LRTP Tranche 2.1 projects located in Michigan and Minnesota where rofers are in effect and for system upgrades in Iowa.

David Hutchens: As a reminder, the majority of these investments for tranche 2.1 are expected beyond 2029.

David Hutchens: While the legislative session proceeds in Iowa, we also continue to advocate for Roe for legislation as part of the governor's energy bill, as there is still time to get it approved before the legislature adjourns.

David Hutchens: Beyond the miceaw LRTP projects, ITC has sizeable opportunities for load interconnections.

David Hutchens: This includes the Big Seater Load Expansion Project, as well as the potential for over 5,000 megawatts of additional load as several proposed data center and economic development projects proceed.

David Hutchens: In Arizona, T.P. continues to work through advanced negotiations for new retail load growth, including a customer with a 300 megawatt initial phase that would use existing and planned capacity and start to ramp in the 2027 timeframe. We expect updates to follow later this year if a final agreement is reached.

David Hutchens: As a reminder, these large customer opportunities will be in addition to the $2.5 billion of incremental investment opportunity associated with UNS Energy's integrated resource plans.

David Hutchens: Additional opportunities are also underway at our other utilities, as we work to build the infrastructure needed to support load growth, improve grid resiliency, and facilitate the interconnection of new energy resources.

David Hutchens: With a long track record of increasing dividends for the past 51 consecutive years, coupled with our low-risk growth strategy, we are committed to our annual dividend growth guidance of 4% to 6% through 2029.

Jocelyn Perry: Now I will turn the call over to Jocelyn for an update on our first quarter financial results.

Jocelyn Perry: Thank you, David, and good morning, everyone. For the quarter, we reported net earnings of $499 million or $1 per common share, $0.7 higher than the first quarter of 2024.

Phi-9, Highlight CPS drivers for the quarter by segment. Good.

Speaker Change: Are US electric and gas utilities provided a two cent increase in EPS?

Jocelyn Perry: Central Hudson contributed 5% of the increase, reflecting rate-based growth and conclusion of the 2024 General Rate Application, which included re-basing of cost, a higher allowed ROE, and a shift in quarterly revenue effect of July 1. [inaudible]

Jocelyn Perry: At UNS Energy, EPS decreased three cents. The decrease was driven by the two cent impact of lower margins on wholesale sales due to market conditions, as well as higher cost associated with rate-based growth, not yet reflected in customer rates. [inaudible]

Jocelyn Perry: ITC contributed a 1 cent increase reflecting rate-based growth, partially offset by higher stock-based compensation and higher finance costs.

Jocelyn Perry: For our Western Canadian Utilities, EPS increased 1 cent, largely driven by rate-based growth.

Jocelyn Perry: Timing of operating cost, a lower allowed ROE of 8.97, effective January 1st, 2025, and the expiration of a PBR efficiency carry-over mechanism at Fortis Alberta, tempered growth, quarter over quarter.

Jocelyn Perry: At our other electric segment, EPS increased one cent due to rate-based growth and higher electricity sales, as well as the timing of quarterly earnings that Newfoundland power related to the approval of cost recovery regulatory mechanisms. I'm sorry, I'm sorry, I'm sorry, I'm sorry, I'm sorry

Jocelyn Perry: And while not shown on the slide, financial results for the corporate and other segment were largely consistent with 2024 as higher stock-based compensation and finance costs were offset by unrealized gains under relative contracts.

Jocelyn Perry: A higher average US to Canadian dollar foreign exchange rate of 1.43 compared to 1.35 in the first quarter of 2024 contributed a 3 cent EPS increase for the quarter.

Jocelyn Perry: And finally, higher weighted average shares lowered EPS by 1 cent driven by shares issued under a dividend reinvestment plan.

Jocelyn Perry: We issued over one billion of debt in the first quarter to repay borrowings and to fund our capital program. With our five-year funding plan intact, the corporation's $500 million ATM program has not been utilized to date and remains available for funding flexibility as required.

Jocelyn Perry: During the quarter, Moody's confirmed the corporation's BAA3 credit ratings and stable outlook, and just last week, DBRS also confirmed our ALO credit rating and stable outlook.

With S&P, we continue dialogue around physical and climate risk.

Jocelyn Perry: In March, S&P reaffirmed Fortis Alberta's A minus credit ratings and revised its outlook from negative to stable, given strengthening credit metrics and progress on wildfire mitigation strategies.

including the implementation of a public safety power shut up or PSPS plant.

Jocelyn Perry: In April , UNS Energy also introduced a PSPS plan for high risk areas within its service territory and we anticipate that Fortis BC will implement a PSPS plan in the coming months.

Jocelyn Perry: In Arizona, we are happy to report progress was made with wildfire legislation, which just passed yesterday and now awaits the governor's signature. This bill should limit liability associated with wildfires in Arizona.

Jocelyn Perry: Overall, Fortis continues to benefit from a strong business risk profile as well as stable and predictable cash flows from our regulated utilities. These key credit strengths, along with our funding plan, support our investment grade credit ratings.

Jocelyn Perry: Turning now to recent regulatory activity, as David noted, in March, Fortis BC received a BCUC decision on its 2025-2027 multi-year rate framework application.

Jocelyn Perry: This constructive decision builds on the previously approved multi-year rate plan and includes a prescribed approach for operating expenses and capital investment.

Speaker Change: In Arizona, TGP plans to follow the rate case this summer that will include a proposal for use of an annual formulae rate adjustment mechanism consistent with the ACC's formula rate policy statement issued in 2024.

Speaker Change: And in New York, settlement negotiations are progressing well in Central Hudson's General Rate Application.

David Hutchens: Once an agreement is reached, Central Hudson will follow joint proposal outlining the settlement, subject to PSC approval. And with that, I'll now turn the call back to David.

David Hutchens: The remainder of 2025, we are focused on executing our capital plan, pursuing incremented regulated growth opportunities, and navigating the volatile macro environments so that we can continue to provide reliable and affordable service to our customers and compelling long-term returns to our shareholders.

David Hutchens: That concludes my remarks. I will now turn the call back over to Stephanie. Thank you, David. This concludes the presentation. At this time I'd like to open the call to address questions from the investment community. Thank you.

Speaker Change: Thank you. We will now begin the question and answer session. To join the question to you, you may press Thor than one on your telephone keypad. You will hear tone acknowledging your request.

David Hutchens: If you are using a speaker phone, please pick up your handset before pressing any keys. Till it's dry your question, please press star then two. We'll pause for a moment as colors join the queue.

Rob Hope: And the first question comes from Rob Hope with Scotiabank. Please go ahead.

Rob Hope: Good morning, everyone. Appreciate the commentary on potentially tariffs having a little impact on the 2025 capital plan. Can you maybe just outline that a little bit more? Is that because of inventory or is that domestic supply chain? Then that could that look different in 2026?

Rob Hope: So, it's a combination of both those things, Rob. Obviously, the shorter-term capital plans that we are executing, we typically have a lot of that material on the ground and ready to go. I still don't think even if you look further out from a longer-term basis that necessarily will have much impact on our capital plan, if anything at all, from an execution standpoint.

Rob Hope: Because, you know, this is, remember, this is not necessarily a supply chain issue yet. And I personally don't think it will get to supply chain constraints. This is more of a cost.

Rob Hope: issue, which of course we are laser focused on to make sure that the cost of implementing those capital plans and what we put in rate basis as cost effective and as affordable as it can possible be for our customers. So it's more from that kind of perspective than it is necessarily the ability to get say the parts and execute the plan. Thank you very much.

Speaker Change: You know, it does feel like some have fallen away, but some have progressed across the continent. You are using increasing certainty that these are you are achieving kind of meaningful milestones on these conversations. Thank you very much.

Speaker Change: I kind of do or die on this on the first customer because there is such a long queue behind it, but we are making very good progress and happy to see the efforts that the team in Arizona is putting towards us. Obviously, I think things are a little bit, you know, slower moving generally industry wide on data centers just because there's a lot of, you know, macro issues and topics that are coming up that I think are putting people a little bit. [inaudible]

A little slower pace on some of these negotiations.

I appreciate that. Thank you.

You bet, Rob.

Speaker Change: And your next question comes from Maurice Choy with RBC. Please go ahead.

Maurice Choi: Thanks and good morning everyone. Just following up on that early comment about the potential higher cost from government policy on foreign trade. Is it fair to say that the formula rate plans at ITC and possibly even at TEP in the future will help offset some of these costs for shareholders? Thank you very much.

Maurice Choi: So, anything possibly central Hudson in the US is probably where the area you might see more frequent rape housing.

Yeah, yeah, Maurice. Thanks for that question. I think it's. [inaudible]

Speaker Change: The normal regulatory mechanisms, and that goes for the same for almost all of our utilities. Those regulatory mechanisms will pass these higher costs through because they're, you know, obviously prudently incurred costs, they're things that are well beyond our control. We'll try to mitigate as much as we can by looking at alternative supply chains and things like that. And, you know, hopefully looking at alternatives, not just the supply chains, but alternative products that we can provide. But all of that goes into the on the other side of the road.

Speaker Change: to the regulatory construct that we have. So we don't see any of that breaking down, but at the end, I gotta say this at least one more time. We have to focus on the impacts that this will have on affordability for our customers, because remember these bills that could go up because of these tariffs or other economic macroeconomic impacts that we might see are on top of what our customers are seeing and the rest of their expenses and bills in their daily lives. We have to focus on the impacts that we might see in our daily lives.

That makes sense. Maybe in a related way. I'm.

Speaker Change: Let's finish off. I wanted to see if you had any thoughts about the bill related to the inflation reduction act that was introduced by Representative Fortichak.

Speaker Change: The bill obviously not only faces out some of the PTC's on ITC's over in solar, but also eliminates the transferability of credit to third party buyers. So what if any impact you see that may have on your companies? So what if any impact you see that may have on your company?

Speaker Change: By partisan support as recognized by many letters that have been sent to the administration from a broad array of Republicans and Democrats supporting the inflation reduction act for all the right reasons. These are investments that we're making in the U.S. specifically in a lot of the red states. Their tax credits that get...

Speaker Change: The benefit goes back to our customers. So again, in that affordability lane that I was just talking about, this is another thing that could help or hurt the affordability story for our customers. I think the view right now is. And, um.

Speaker Change: Is the IRA going to get completely repealed versus will it have maybe some more scalpel type cuts on different parts? That latter, I think, is to be determined. But in the end, I think the spot that we're at. [inaudible]

Speaker Change: And when you look across our portfolio and the investment tax credits and or production tax credits that we have or expect to get are mostly in the safe harbor zone are already been being received. So I don't see any of that getting pulled back. And we happen to be in a pretty good spot across our company, too, where the development that we're doing on renewables, et cetera, is you know, once we get past a couple of battery projects. Thanks.

Speaker Change: Here in Arizona, we end up actually in a bit of a low period. So the anything that's associated with ITCs or PTCs related to tax credits and what their future might be will be determined when we actually design and plan and do RFPs associated with those projects. So we don't seem much of any of an impact here on the front end. [inaudible]

Perfect. Thank you very much.

Ben Pham: Adrian X Question comes from Ben Pham with BMO. Please go ahead.

Speaker Change: Oh, hey, good morning. May you first question on the Canadian election.

Speaker Change: You tell me any potential impact on Fortis and I'm thinking of potential on a transmission side to integration and maybe anything in BC in terms of accelerating any of your projects down there.

Speaker Change: Inter Province type investments. I think that there's an opportunity and an argument for a little bit more of that but haven't really seen or been in any of those conversations as of yet. I think overall the new administration. [inaudible]

Speaker Change: A lot of the natural resources in BC, and we're trying to help develop them over there.

Okay, I've got it, and maybe on the…

Speaker Change: A second question on the funding plan, and I know you're happy to give in revess and program balance sheets and good shapes.

Speaker Change: But when you think about your growth, let's say CapEx is rising, you have quite healthy currency right now, valuation, what's the thought around just relatively attracting this between the status quo versus opportunistic equity offerings? [inaudible]

Speaker Change: Ben, yeah, you're right. We're always looking at this. And as we go through, you know...

Speaker Change: Looking out beyond the next five years, we'll be taking a hard look at, you know, our funding plan. I mean, the one thing that we're keen to do, and I've said this repeatedly, a number of times is, you know, we want to keep our balance sheet where it is, and we certainly don't want to go backwards so as we...

Speaker Change: You know, look to potential future growth opportunities that we'll be looking to keep the balance sheet healthy and...

Speaker Change: You know, whether we go for a discrete equity operating, or ATM, or drip programs, you know, all that depends on how we see the growth coming into play, right? So...

Speaker Change: I think what I can say right now is stay tuned, but the ultimate goal when we think about funding is just to keep our balance sheet on a healthy spot, keep our credit ratings and look at the most efficient way to actually fund the plan going forward.

Okay, very good. Thank you.

Mark Darvey: And your next question comes from Mark Jarvi with CIBC. Please go ahead.

Mark Darvey: Thanks. Good morning. Just coming back to the chat of comments on the day of your comments about being mindful of the impacts on customers. When you think about the businesses, maybe it's specifically ITC and UNS. [inaudible]

Mark Darvey: There's more likelihood that rate-based growth goes higher at ITC, and then at UNS, if costs go higher, you just change the scope of work to manage the rate-based growth and affordability for customers, just kind of viewing how to play that across the different operating subsidiaries.

Mark Darvey: Yeah, it plays out based on, you know, based on their specific capital plans. I mean, there's a lot of investments.

Mark Darvey: We're planning on doing that in Arizona as an example, as we look to exit coal, some of our coal generation, and we're investing in capital plans. That doesn't necessarily have a negative impact from a customer rate perspective because we're reducing the op-ex and replacing it with capital and can keep our customers bills pretty much even. And then, of course, when you look at the...

David Hutchens, Jocelyn Perry

Speaker Change: So, if you had a stand here today, do you have a sense of what transmission cost increased inflation would be, and then does that force my so-to-re-evaluate scope and time in some of the projects?

Speaker Change: Yeah, no, we're in general. I mean, we're a pretty small, ITC is a pretty small percentage of the overall utility bills and in the utility jurisdictions that we serve. It varies from utility to utility, but yeah, we don't have a number for that.

Speaker Change: Okay, and then just coming back to Iowa, a roll for comments you made. Any perspectives in terms of leading the letter from the DOJ and just where it stands with the governor's bill right now and trying to pass that through in the current session.

Speaker Change: I think we had, actually, I'm gonna turn that over to Linda to give a little bit more response to it, but yeah, we got that letter in Iowa and I think the governor had a very good and a strong response supporting the rofer that's in her energy bill. So, Linda, you want to put the pine on that as well?

Speaker Change: And so as we work with our broad utility coalition to put a strong final push, to continue to advocate and hopefully secure passage of the Governor's Energy Bill, we continue to be very actively engaged. Thank you very much.

Speaker Change: And we still remain hopeful that we will see Roefer provisions pass in the coming weeks.

Speaker Change: And if it did not get passed, it doesn't mean that it's the end of the road, potentially cry again next year or whatever legislative session comes up, is that the perspective from your view?

Speaker Change: Another attempt to pass Roefer language yet again next year, but that's too soon to obviously make that call. We've got all eyes on the ball to get the Roefer provisions passed in this legislative session. We've got all eyes on the ball to get the Roefer provisions passed in this legislative session.

Understood. Okay, thanks for the time this one. Yep.

Speaker Change: And your next question comes from Jameson Ward with Jeffries. Please go ahead.

Hi, good morning

Speaker Change: Aaron, hey, I could just expand a little bit on the Arizona question earlier and then one follow-up on the ATM and its use and so on.

Speaker Change: First so regarding that 300 megawatts of new high load factor customers that you're still negotiating with in Arizona, and of course the 600 for 2030 and beyond. Thank you very much.

Speaker Change: Kind of what infrastructure investments might be required beyond what's currently contemplated in your capital plans. So obviously for the 300 and I mentioned the six just because you might have long lead time for. [inaudible]

Speaker Change: Transmission or even different types of generation ahead of 2030 to have it online by then. Is it mostly data centers? Anything you can kind of point us to from margin, etc. would be fantastic.

Speaker Change: Yeah, so out of that, I know the last quarter we talked about this, this huge queue that we have of 10,000 megawatts. The vast majority of that is data centers. There is some manufacturing and some. Um, um,

Speaker Change: Mining and some other large customers in there as well. They are large customers and I'll say they're probably heavily loaded towards the data centers. Obviously there's a lot of these different conversations that are happening at the same time and we're probably not quite ready to talk about what type of

Speaker Change: of load that is yet unless it's Susan will correct me if it's already been public, but I think we'll just kind of keep it at the large high capacity factor customer.

Speaker Change: Scott, and that was really helpful. Thank you. Yeah, the second was so your current funding plan has obviously the drug participation level consistent around 38%. You pointed in the past to CapEx increases as being the likely driving force around additional needing to tap additional equity.

Speaker Change: Just given the current macro backdrop and make it as broad as possible, but any potential changes to dividend tax treatment etc.

Speaker Change: What sort of contingency plans do you have if participation rates were to decline and maybe just generally at what threshold would you consider activating the $500 million ATM program if it's not just for capex increases. [inaudible]

Speaker Change: Just to give us a sense of resiliency of the funding program and that's all I have.

Speaker Change: Yeah, James, our drip program is still quite healthy. We do have, you know, around 38% participation. And so, you know, ultimately, we look at over the five year, over 2.7 billion of equity that was required. The drip actually gives us that. [inaudible]

Speaker Change: And should the participation change, or more not aware of any dividend tax changes as of today that we believe is going to change that participation, but should participation change. I think that's what the ATM is there to do as well, right, that we can tap it. [inaudible]

Speaker Change: We were to see participation like vastly decline, then you know we could expand our ATM program or look at other other options, but we're not seeing any slowdown in our participation for a drip program.

Speaker Change: Terrific. Thank you. Seems like you guys are continuing to be really well positioned. Appreciate you answering the questions.

Thank you.

Patrick Kenney: And your next question comes from Patrick Kenny with National Bank Financial. Please go ahead.

Patrick Kenney: Thank you. Good morning. Just back to BC. It looks like BC Hydro was looking to add some firm, baseball generation in the province. And, uh...

Patrick Kenney: Perhaps has opened the door to looking at, you know, more reliable, I guess more affordable, natural gas fired capacity. Just wondering if this might present any new build opportunities for your electric utility franchise in the province.

Patrick Kenney: Either on an integrated basis or perhaps through partnership. And then I guess for the gas utility as well, depending on where these plants might end up being located. [inaudible]

Speaker Change: Yeah, that's a great question. I'll, I'm going to go all the way over a few time zones west and get Roger DallAntonia or CEO to answer that one because this is a, this is a, this is a lot of real good conversation and opportunities that we're seeing in BC Roger.

Speaker Change: Thanks, David. More in Patrick. Yeah, so on Monday, the government announced a new call for power, and in that call for power, they noted the population growth energy requirements and included capacity. I like the previous call, which is energy only. [inaudible]

Speaker Change: I would say it doesn't have an immediate impact on our electric.

Speaker Change: That could include capacity, it could be transmission interconnected to BC Hydro who may be providing capacity still early to tell. I think what we take out of this.

Speaker Change: Is that given the population growth in the province given the load growth? What we've been saying for quite a while is that an integrated approach.

to dealing with capacity is critical while...

Speaker Change: Renewable Energy on an energy basis maybe relatively cheap capacity isn't and that's where we've seen challenges.

Specialist, Winter Peaking. [inaudible]

system.

Speaker Change: So, I do think we're going to see some opportunity within our own plans, so those are a bit early to tell. Your other question, Patrick, I think you mentioned thermal generation. Thank you for your question.

gas generation in the province. [inaudible]

Speaker Change: Those are plans of not yet been pursued by the provincial government. They're still looking at clean power.

Speaker Change: But I do think, given where the province's general generation might be something that they're going to start looking at, though, nothing has been noted. Thank you.

Okay, that's great color. Thanks for that.

Speaker Change: And then maybe stay in our West Fortis, Albert, just put the lower RLE coming into effect this year.

Speaker Change: I know you're pursuing an appeal there on some of the parameters of PPR 3.0, but just wondering if there might be any other offsets that are being pursued.

Speaker Change: in the medium term here and might be sustained under the existing contract, the Construct, you know, regardless of the decision to come next year.

Speaker Change: from a cost savings perspective. Yeah, we're on the Capitol Front, just either or just to kind of offset the earnings impact that we've seen here today.

Speaker Change: Yeah, I mean, at this point, we don't. We're not changing our capital plan based on that outcome. It's a formulaic ROE now in Alberta, and as that changes, you know, obviously we will adjust as much as we can. We're always looking at ways of reducing our cost. We have a sharing mechanisms there as well. So that's sort of, I would say more. We're, um,

Speaker Change: Nothing that triggers us to take any heroic actions. It was about 30 bits or so of a ROE decrease, and that's well manageable within their plan. Obviously it does impact the earnings a little bit, but overall it's small.

Okay, that's great. I'll leave it there. Thank you.

OK, thank you.

Speaker Change: Once again, if you have a question, please press star then one. Your next question comes from Ross Fowler with Bank of America. Please go ahead.

More indeed, more than Jocelyn, how are you? [inaudible]

Good Ross

Rob Hope: Yeah, so I might have missed it in your prepared comments, David, on the call, so I apologize, but the 300 megawatts of large load, you said that starts and then in 27 and then ramps.

Speaker Change: It's 300 megawatts where we start, or is 300 megawatts where we go? So is it starting at 300 and ramping or is it ramping to 300 as it starts up in 2027?

Speaker Change: So it's, it's, see if I get this exact right, it's starting to ramp in 27 to a 300 megawatt size. So that's a, okay, it's sort of, it's the phase, the first phase is 300 megawatts.

Speaker Change: They have additional phases that they would look at down the road, which is, you know, the additional transmission and generation investments that we need to do that. That's sort of two different.

Speaker Change: Pat's going on here. One is getting the first phase up and operating. The second phase is then also in parallel negotiating what you know phase two, three, and whatever would look like and the time.

Speaker Change: Investments that we would have to do in the level of commitments and and and contractual relationship that we would have to have with this with this customer.

Okay, perfect. And then, Jocelyn, maybe one for you. Thank you.

Speaker Change: You put your credit metrics slide out in the last quarterly deck and it's not in the current quarterly deck. So you can hear a minus where you are on current credit metrics where the thresholds are.

Speaker Change: Yes, so nothing has really changed Ross. I mean, as we look forward, we still have the same forecast. So it's just early in the year and there's no reason why we excluded it from the deck other than we only three months into the year and we have no new information. Okay, thank you.

Speaker Change: FFO dead of just over 12% for the five years. Nothing's changing there.

Ross: Perfect. Thanks, Jocelyn. And then, I guess, the other thing I noticed in the deck is you're still sort of assuming a 1.3 exchange rate, obviously spend, I guess, a lot of volatility is probably an understatement in, in FX lately.

Ross: Do you anticipate waiting to update that until your normal September , so to look forward and roll?

Yeah, I would.

Ross: We've struggled on this one because there's been so much volatility that we thought we were going to update and then we chose just to do it, you know, at the same time that we look forward with our new five-year capital plan, which is usually in the fall.

Ross: And just because there's so much volatility, we've felt that if we change it now, we probably would end up changing it again in the fall. So what we've done is provided the sensitivity to give you a sense for how our capital program would change. So look forward to the updating fall.

Ross: Makes complete sense. Let's not change it 10 times between now here and there so we go forward and hopefully the volatility comes down. Thank you. Thank you very much. Thank you. Thanks.

Richard Sunderland: And your next question comes from Richard Sunderland with JP Morgan. Please go ahead.

Richard Sunderland: Hey, good morning and thanks for the time today. Just have one quick follow up on that Iowa Roe for legislation.

Richard Sunderland: I'm just kind of procedurally, what's to watch for here? Is it, you know, the state needs to pass a budget? First, then the governor's energy bill may get considered, and how to think about that dynamic versus the session kind of being an overtime right now. Like, the session need to keep getting extended after the budget has passed. Thank you.

Yep. Thanks for the question, Richard Linda.

Yes, absolutely. Thank you, Richard. Richard.

Richard Sunderland: Obviously, we don't really have any visibility or insight as to how the session will specifically

Richard Sunderland: In terms of whether the energy bill may be in front of the budget bill or budget bill and then other legislative priorities. So unfortunately, I wouldn't say that there is a specific

Richard Sunderland: We're actively engaged in the legislative arena to push for obviously passage of the bill, but how it unfolds, unfortunately I really can't provide any further insight on. [inaudible] I'm sorry, I'm sorry, I'm sorry, I'm sorry, I'm sorry

Richard Sunderland: No, no. Got it. That's helpful. Maybe I'll just ask one more here then. Just I think earlier there were comments about several weeks as the opportunity here. So is that the expectation that the session will continue for a few more weeks? Yeah.

The various committees in both the House and Senate. It's...

You know, based on prior legislative sessions.

Richard Sunderland: You know, there have been budget bills that have taken, you know, kind of weeks, if you will, to work their way through the process based on amendments and compromises and there have been other budgets.

Richard Sunderland: That have passed fairly quickly, which could be in a matter of a week or days. So, again, it's difficult for us to say or know where exactly the mindset is on the budget. Let's go.

Richard Sunderland: You know, kind of agenda and sort of priorities. So again, we're somewhat at the whims of the legislative leadership and how they might choose to progress in terms of both budget and any other remaining priorities.

Richard Sunderland: Got it. Very helpful context. Thank you. You're welcome. Thank you.

Speaker Change: This concludes the question and answer session. I would like to turn the call back over to Miss Amaimo for any closing remarks.

Stephanie Amaimo: Thank you, Michael. We have nothing further at this time. Thank you everyone for participating in our first quarter conference call. Please contact IR. Should you need anything further and have a great day. Thank you very much.

Speaker Change: This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.