Q2 2025 Canadian Utilities Ltd Earnings Call

Thank you for standing by. This is the conference operator. Welcome to the second quarter, 2025 results conference call and webcast for Canadian utilities limited 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 to join the question queue. You may press star then 1 on your telephone keypad,

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I would now like to turn the conference over to Mr. Colin Jackson, Senior vice, president Financial operations. Please go ahead Mr. Jackson.

Thank you and good morning everyone.

We are pleased to join us for the Canadian utilities second quarter 2025 conference call on the line. Today, we have Bob miles, chief executive officer Canadian utilities Limited.

And Katie, Patrick, Executive Vice President, Chief Financial and investment officer.

Before we move into today's remarks would like to take a moment to acknowledge the numerous traditional territories and homelands on which our Global facilities are located today. I am speaking to you from our AKO Park, head office in Calgary, which is located in the treaty 7 region.

This is the ancestral territory. As a black Confederacy comprised of the citica, the chi and The Pagani Nations, the tsuut'ina nation and the Stony nakota Nations, which include the Chiki Bears, Paw and good Stony First Nations. I also want to recognize that the City of Calgary is home to the matei nation of Alberta districts, 5 and 6.

During our second quarter, we proudly celebrated National indigenous History Month in Canada time to honor the stories achievements and resilience of indigenous peoples.

May we continue to respect and celebrate the diverse history, languages and culture of indigenous peoples beyond the month of June.

Today, you will hear from Bob, who will deliver opening comments along with key developments within our AO Energy Systems and Echo Empower businesses.

And then you'll hear from Katie who will discuss our Q2 Financial results.

Following today's remarks, the committee and utilities team will take questions from the investment community.

Please note that a replay of the conference call a copy of the presentation in today's transcript will be available on our website at Canadian utility's.com following the call

The materials can be found in the investor section under events and presentations.

Today's remarks will include forward-looking statements that are subject to important risks and uncertainties.

For more information on these risks and uncertainties, please refer to our filings with the Canadian securities regulators.

During today's presentation, we may refer to certain non-gaap and other Financial measures including adjusted earnings and adjusted earnings per share. These measures do not have any standardized meaning under IFRS

Similar measures presented with other entities.

Please refer to our filings with the Canadian Security Regulators for more information.

And with that, I'll turn the call over to Bob for his opening remarks. Thanks, Colin, and good morning, everyone. Thank you for joining us today.

Let's begin with our largest asset Atco Energy Systems, which includes our Alberta utilities.

As we strategize and execute on our plans, through 2027, we expect growth to be predominantly driven by projects in our transmission businesses. In addition to pursuing efficiencies across all of our utilities,

our growth plan is the largest Capital plan on which our company has ever embarked and encompasses a robust project pipeline, including the central East, transfer out project, and the Yellowhead pipeline project, these combined with other future opportunities including those, we expect to be directly assigned by the iso, sets us up to deliver significant growth for our share owners, and investors over the long term.

We look forward to sharing our plans Beyond 2027 and we'll update our 3-year Capital forecast in our year-end disclosures.

Now jumping into our current major projects, our Central East, transfer out.

Project or Sido is well into the construction phase and remains on track to be completed in mid 2026.

This 280 million project upgrades and and strengthens the transmission system in central East, Alberta to the rest of Alberta's, interconnected Electric System, improving the reliability, and reducing congestion in this area.

We are proud of this project and the impact it will have on our customers across Alberta.

Sido is essential for integrating additional renewable energy resources and enhancing the reliability of the transmission system.

As Alberto's energy landscape continues to evolve, it's crucial we invest in projects that address our provinces changing energy needs enhancing Alberta's energy infrastructure while enabling A modernized system that can readily accommodate generation.

We also continue to see positive momentum on our $2.8 billion Yellowhead pipeline project.

The impact of this project cannot be understated without the yellow head pipeline. We believe there will be a shortfall of gas delivery on Alberta system due to compa capacity, constraints.

At already 90% contracted the Yellowhead pipeline will serve communities, across Alberta, strengthening the province's, natural, gas Network, and supporting Alberta's, growing industrial sector including petrochemicals and refining.

As I have indicated previously, with construction, set to begin in 2026, the Yellowhead pipeline will deliver long-term economic benefits, including 24,000 jobs by 2028 20 billion dollars in Investments and will contribute 3.9 billion dollars annually to Alberta's. GDP,

Regarding our needs application, for the LED pipeline project. We expect to hear back from the AUC in August of this year. We will then file our facilities application in Q4

as we move through the regulatory process for Yellowhead, our teams are proactively working through the procurement process for key project materials, including the sourcing of our steel pipe

Moving to the regulatory front in 2024, the Alberta Utilities Commission issued its decision on Phase 1 of the second generation of the performance-based regulation or pbr2 framework review the AUC claimed that the distribution businesses failed to quantify or attribute all efficiency gains under pbr2, to specific project, programs or initiatives.

We disagree and our appeal. With the Alberta Court of Appeal, is expected to be heard in the first half of 2026.

In May 2025 the AUC issued a second decision related to pbr2. Reopener proceeding involving a refund to customers following this Phase 2 decision. We submitted a review and variance and a permission to appeal, the AUC and Alberta Court of Appeal last month.

TBR incentivizes utilities to reduce costs while maintaining safe and reliable service and then share these cost savings with customers.

With that, we are extremely disappointed with the pos position announced by the AUC and we fundamentally disagree with its recent decisions. We are the only utility in Alberta to reduce distribution costs. During the pbr2. Regulatory term, delivering more than 500 million dollars of savings and distribution costs, which customers are already benefiting from Over the 2023 to 2028 period.

As we move forward we we remain focused on being a leader in advocating for a fair affordable and efficient Regulatory and business environment in Alberta.

Before we jump into the other parts of the business, I want to take a moment to address the current Wildfire situation in certain parts of our service territory.

Currently. There are over 50 active wildfires across Alberta.

Addressing wildfires as a collaborative effort. And I want to thank everybody who continues to support these efforts, including our team members, First Responders businesses government, and local authorities who are working around the clock, to keep our community safe. At this time, we remain focused on the safety of our employees.

And communities where we operate? Well, there's been no impact material impact to our assets. We continue to work with all parties to ensure the safety of the communities and to take proactive measures including Wildfire mitigation and fireproofing of our infrastructure.

We have an ambitious Capital program and are committed to building a resilient Energy System that can withstand the impacts of extreme weather related events including wildfires.

As part of our, our plan and spend a, a focus continues to be on Wildfire mitigation investing in a robust energy system, includes resilient Hardware such as composite polls and undergrounding.

This protects our assets and the communities where we operate and having a stable reliable and resilient power grid has never been more important.

Now, moving to our Atco and power business.

Starting with our hydrogen development at the Atco hardland, hydrogen Hub or ah3. As we call it, we are optimistic on recent policy developments, including Bill C5, which includes the building Canada Act.

The this act aims to reduce project approval duplication between Federal and provincial governments with a 1 Project 1 review approach. We believe this is a positive step in the right direction, accelerating the regulatory process for National interest projects and signaling signaling investor confidence.

We continue to engage in conversations with key stakeholders including Federal and provincial governments. To ensure our project is seen both as a nation building project priority and part of Canada's ambition to be an energy superpower.

We get along with our identified strategic Partners, remain committed to advancing the development of this project. Once the regulatory framework is in place to ensure their production and transport of ammonia economically to Asia. And any other consuming Nations we await a final decision by all level levels of the Canadian government to enable both the approvals for transport and the economic Frameworks to move forward with this project.

For our storage and Industrial water segment. Gas storage remains a fundamental asset to Atco and power looking at our history. Since 2021. We have more than doubled, our capacity from 52 ped to 117, pedag and expect to see our piranha Revenue in 2025, more than triple.

From that of 2021.

We would like to acknowledge both our commercial, our project, and our operational teams for this performance and the results achieved to date.

Within Alberta, we continue to see strong fundamentals with increased demand for storage stemming from the start of the LNG exports and continued development of further export volumes in the coming years. The increased demand from additional gas power generation, and other industrial demand within Alberta.

Opportunities for Atco and power to achieve further growth in storage capacity and revenues Beyond Alberta.

Our storage facilities are highly contracted next year and positions us well to repeat this record performance that we saw in 2026.

Or sorry that we've seen in 2025, we have made final investment decisions to expand our existing storage capacity by approximately 10% through further well-developed and facility Improvement. Projects with expected inservice dates 2026.

Over the next year, we will evaluate further expansion opportunities including possible pool extensions. At both our current and Alberta Hub, natural, gas storage facilities.

in addition to these organic opportunities, we will continue to review inorganic growth available to complement our storage portfolio, both within Alberta, and in other jurisdictions,

With that, I'll pass the call to Katie to discuss her Kate or Q2 Financial results.

Thanks Bob and good morning everyone.

Looking at our second quarter performance for Canadian utilities as a whole we delivered positive earnings growth year-over-year.

We achieved adjusted earnings of 121 million or 45 cents per share up from 117 million for the same period in 2024.

This was despite significant headwinds including a reduction in our Roe. For our Alberta utilities, conclusion of the efficiency, carryover mechanism or ECM and challenges in renewable generation. More of which I'll touch on in a moment.

Actual Energy Systems, delivered adjusted, earnings of 116 million in the quarter $4 million, higher year-over-year.

Over 6 million dollars of headwinds faced from the reset. In our allowable Roe in conclusion of the ECM for our distribution utilities, we still delivered growth within Energy Systems

this performance was driven by growth and rate base our cross, our utilities and cost efficiencies

It has been a great start to the year at Energy Systems with with earnings up over 4% year-over-year.

In 2025, we will generate quality earnings but expect fully full year. Earnings growth to be more moderate at year end.

Impacted in, part by positive tax. Efficiencies that we had in the second half of 2024

Moving to Echo and Power.

Hours for the quarter.

Although earnings were down year-over-year, this was primarily due to a challenging wind environment in Alberta and the higher compensation. We received in the prior year, period related to turbine. Availability guarantees at our 40, mile Wind Facility.

Excluding these events the Empower business performed. Well as strong earnings growth was delivered within natural gas storage.

As Bob outlined earlier, we have strong fundamentals at our natural gas storage assets, and we plan to further capitalize on the opportunities available in the coming years.

At to Australia delivered, a just earnings of 21 million in Q2. This is $4 million or 24% higher than the same period last year.

As a reminder on January 1st, 2025 actual gas, Australia, moves to operate under the Sixth access Arrangement or aa6, which has a higher Roe of 8.23%.

at Australia continues to execute, its strategy and be a provider of stable cash generation while driving consistent earnings for cul

In the financing and other segments adjusted earnings with $200 higher compared to the same period in 2024.

This was mainly due to the timing of some corporate expenses.

As I outlined at the beginning. Our po, our business performance performed very well achieving positive earnings for the quarter despite penguins

we can continue to actively monitor our cash generation, which will be used in combination with external funding to finance our enhanced Capital program,

Year to date our cash flows from operating activities increased by 105 million year-over-year to 1 billion dollars.

This demonstrates growth within within our businesses, yielding additional cash flow, which in turn allows us to increase Capital spending and investment in the business.

Year to date our Capital expenditures, increase by 145 million year-over-year to 783 million.

Of the funding required for system upgrades and maintenance to our existing infrastructure, along with investments into the growth projects that Bob highlighted earlier.

Our strong start to the year positions us well to deliver the financial plan we set for ourselves in 2025.

Currently we remain focused on finding efficiencies across our organization and continuing to execute on our strategy to generate long-term value for all stakeholders, including share owners.

Prepare for marks, I will now turn the call back to Colin.

Thank you. Thank you Katie. Thank you. Katie and Bob.

In the interest of time, we ask that you limit yourself to 2 questions. If you have additional questions you are, welcome to rejoin the queue.

I will now turn it back to our conference coordinator for questions.

Thank you. We'll now begin the question and answer session to join the question queue. You may press star then 1 on your telephone keypad. You'll hear a tone acknowledging your request. If you're using a speaker phone, please pick up your handset before pressing any keys to withdraw your question. Please press star then to

once again, anyone with a question can press star, then 1 at this time,

Our first question is from Rob, hope with Scotia Bank. Please go ahead.

In the prepared remarks, you mentioned the potential for inorganic growth, uh in other jurisdictions on the gas storage side, uh maybe more, broadly, how are you thinking about inter inorganic growth across the business and you know what geographies would be of most interest to you?

Hi. Rob here. Yeah. We're, we're, we're absolutely interested in looking at inorganic growth, for sure, and our gas storage business. We we'd be interested in looking at gas storage opportunities across North America. As as you know we're very comfortable with the environment in Alberta but we believe in the the fundamentals of gas storage and we think there's great opportunities across North America. So we're we're definitely interested in that.

Uh with regards to other inorganic opportunities, you know, we continue to look at opportunities across our Midstream sector so that would be in you know, the other complimentary areas of of our gas storage. So NGL storage, we'd look at that as well. And then we continue to look at opportunities in generation but I would say the generation opportunities are more tied to the things not in the renewable space and more in the you know gas

Require generation. We we'd continue to look at that opportunity as well. And then of course, we're always interested in our utility space but that's we've got enough growth in our current Province so we're we're probably not going to look at inorganic in the utility space right now.

The next question is from Ben fam, with BMO, please. Go ahead.

I think so. Maybe some the storage uh,

I just thought of things with your update. Thanks for that. Can you?

Remind us uh, with your existing storage business. Is it is mostly a a contracted

The revenue model versus the the seasonal spreads that maybe some other players have been engaging in.

Then I'd say it's both. We we actually do enter into longer term contracts. I mean that that is you know, definitely a key part to our business, but we also in addition to that we we do look to do you know day-to-day deals as well which you know tie back to the the daily spreads and you know so it's it's a combination of both and obviously our objective is to maximize our Revenue opportunities.

Okay, got it. Um,

And then, uh, I know you've been mentioning on the, the financing side with First Nations, monetization that I think that's in reference to the yellow head.

Can you talk about?

The progression so far on that funding initiative. And then is it is it also maybe more expensive to, to even monetization of existing?

you totally assets, you have

You.

uh, to have broad relationships with those communities, I would say specifically in reference to Yellowhead,

We are progressing those discussions, we are, you know in the early stages of meeting with many of the communities, on starting to discuss the Partnerships Arrangement. Um you know we won't we don't have any definitive terms as yet and we all we will keep everyone updated as we continue that dialogue with the, the, um, indigenous communities. But there are certain interests, you know, it's a great project.

For Alberta and there's lots of interest in participating.

and, and it sounds like just the way that the the policy is said with the loan guarantees and

The kind of infrastructure bank it's more it's more limited to newer projects. Is that correct?

Well, maybe I'll can I jump in? Then I I would say that we've we've looked at both if you if you look at our solar projects that we have here in Calgary, you know, we constructed those projects and then we partnered with indigenous communities to become owners in those assets after they were built. So we continue to always look at opportunities where we can partner with those with different indigenous communities. Um, Yellowhead is a very large project and so obviously there's a lot more focus on that right now and as Katie said, we're making some good progress. We have

You know, informed the AUC of that process as well. So it's just, uh, it's obviously a much larger opportunity.

Okay, understood. Thank you.

Apologies. The next question is from Maurice. Choy with RBC, please. Go ahead.

Thank you and good morning everyone. Uh, just want to follow up on uh, a previous comment about inorganic growth. Uh, you mentioned non-renewables. So let's let's assume for now. It's Gas part Power Generation. Um, the do you mean you're looking at an organic growth relating to these type of Assets in Alberta? Or are you kind of referencing that you might be open to us deals as well?

Sorry, Maurice just so. So all clear. Did you say just with regards to generation or all inner Gran organic growth outside. Alberta. Sorry just so I'm clear.

This generation.

This generation. Um I mean our our Focus, I'd say priority Focus would be looking at generation in Alberta we just feel a lot more.

I guess comfortable understanding the marketplace here with regards to our current generation. But if the right opportunity came along outside, Alberta, we we would definitely evaluate and consider it as well. I would say outside Alberta though, my my view is more looking at opportunities in the gas storage space.

Got it. And and I guess when you think about the size um of these type of deals, if these ever do emerge, how do you think about funding these recognizing that there's a funding need associated with Yellowhead, particularly next year.

yeah, I mean, I think

um,

experience, you know, we've talked a lot about our finance and strategy and we continue to progress on that including, uh, specifically the need for Yellowhead. Um, we do as we saw in the quarter, we did access the capital markets for long-term debt at Cu. Uh, and there was very strong demand for that product. Um, so I think we have a multitude of different financing sources should be choose to access them and obviously each project or initiative that we would look at would be judged against, um, you know, its ability to be appeared to for shareholders and how we can. Um make sure that we do that through the combination of financing sources. We have

And if I could just finish off with, uh, just on a project front, particularly on hydrogen, i i i quite like the, uh, timeline. You've laid out on slide 64 sitio and yellow head. So I wonder whether or not you could, you know, paint a similar timeline for the hydrogen project. And I know you mentioned in your prepared remark that you're waiting for

Finn, final decisions by all governments on approvals and transport and economic frameworks. So if you could just help us understand, you know,

Quarter by quarter play, or maybe half a half-year play. What should we expect on this project?

By rail, is it? It really is coming down to our ability to work with government to to address the ammonia by rail situation and getting everyone in agreement that we can. We can transport ammonia by Rail and do it, you know, efficiently and, and mostly cost efficiently. So without that, there really won't be an opportunity to to develop that in, in Canada, unfortunately. So we're working closely with government to try to get that in place. And so, you know, I'd like to think that we can get that done. If it's going to get done in the next 6 months.

so, in other words in 2025,

Gotcha. Um, is there any any bottlenecks or complications on the

On the export terminal side, or, uh, is that all pretty clear? What the solution is?

No, I I I believe that there's the terminal is definitely interested in and expanding for ammonia. It really comes down to the the rail getting ammonia by rail in place.

And a lot of interest, you know, not to go into the details in too much on it but there's a lot of interest in the Asian market to Source ammonia from Canada, but we just have to be able to show that we can actually provide get the get the product to Asia.

Understood, thank you very much.

The next question is from John Mold. With TD Cohen, please go ahead.

I want to hear everybody on uh on Echo and power and and mainly Renewables but also on gas fired power just just giving your your prior comments in the Q&A.

Yeah, we may have some line of sight on a more normalized power price in. Alberta given the potential for large loads. Later in the decade at what point, you know, do you start to get more active on development in anticipation of of that rebound and renewals? How does uncertainty around, you know, tear and the direction of those credits play into that investment decision and then on the gas side, what? What kind of a barrier do the clean electricity regulations? Represent to, you know, spending real effort on that in your minds.

Yeah. And that's a big, a big question. Um, I I I believe that the, the long-term outlook for, for power prices in this province is very attractive.

And so, but with in saying that there's still is a lot of uncertainty, with the restructured energy market and how that's going to to play out. There's also uncertainty around the transmission regulation, and with regards to congestion, and the policies that are going to be put in place here. So we still need to see more certainty on that before we make any any really large investments in The Province on generation and I think not to speak for others. But I think that's probably shared by by many players as well. And so so those are the first things we really need to see happen. We we are a believer in in gas. We think gas will be here for a long time. And so we're, we're very committed to our our gas Investments here and with regards to expanding and developing some of our renewable opportunities in this province and we do have some opportunities to do that. We really need to see a lot.

More certainty around the electricity.

Structure here before we would do that.

Okay, great, thanks for that. And then maybe just 1 on Luma, can can you provide some insight into your ongoing discussions with, with stakeholders in Puerto Rico around that contract?

Yeah, I'm sure John, um, the, the situation in Puerto Rico is, I believe everyone is committed. I could tell you, we're committed to improving the electricity situation in, in the, on the island. Um, however, the it's, it's really, it's rather complicated. When we look at the current conflict, currents difficulties. We have with the, the current political environment there. And so, we need to continue to work on that which we are or our partner, you know, Quant and ourselves are are probably, you know, dealing with that daily. And there definitely is a a need for a significant investment.

To to improve the system and and we're committed to being the partner to do that, but it's uh, it's definitely. There's a lot more work to be done on the political side down there as well.

The next question is from Mark jarvey with CIBC Capital markets. Please go ahead.

Yeah, thanks. Good morning, everyone. We're just coming back to the hydrogen hub project. You talked about maybe clarity on the rail in six months. I'm just curious if the window is shrinking here on the opportunity, like in terms of your engagement with the customers. Are they going to look to other markets? I'm just curious if it takes longer than six months, does this opportunity pass you by then in terms of exports?

Yeah. Mark, you know, my beliefs on hydrogen. Um, I I am a believer in it. I think it's a great opportunity for not only ourselves but for our country as you and I have discussed a few times.

I think 1 of the things that happened is the the customers in the Asian market. They really see this as 3, 3 different sources 1 of the Middle East. The second 1 is the Gulf Coast. The third 1 is Canada and in all 3 locations, there's uncertainty right now as to the availability of Supply, as well as the price of of the supply. So I do think we have this window of of of an opportunity to actually execute on this, but we have to move quickly. Otherwise, the Asian market will will contract elsewhere and we will have lost it as you have said. So um I do think there is a

shortly know that we we have to to execute

And then your comments about the rail and both cost and safety. If you had to rank one or the other, is it more the safety? And just, in terms of who bears the risk of any issues in terms of spillage, is that bigger than the cost or are they pretty equal?

I I would say they're I don't know if they're exactly equal Mark, but they're both important and, you know, even if we solve the safety side and the risk assessment that we, you know, and we want to operate safely as well. We're I think we're all committed to doing that but even if we do that, you know, the the rail improvements that we that, you know, the industry wants to make, you can't have 1 Project pay for all those

You know those improvements and that's the challenge we have is is that we need more than just 1 Project to to proceed. We believe there will be more. We're interested in building more than just 1 project and but it's it's the first 1 that you know we need to figure out how to make that work.

Okay, so it's good to both.

And then coming to the funding, um, conversation and potential, sell down the Yellowhead. How, how would you think about?

The likelihood of issuing Equity at this point, that was something you considered there was minority, sell Downs Partnerships.

Are. Do you feel like you're getting enough traction on Partnerships and sell Downs that issuing Equity is very remote at this point or just sort of how you're weighing those different opportunities?

Uh, yeah, thanks. It's uh, it's Katie. I think that we are. Um, so the the Partnerships and the indigenous Partnerships

um certainly wouldn't solve the entire external need that we have, but we're very confident in our ability to get to get that done. And that will help with some of the, the funding required for the project. Um, we're not going to take, we're not taking Equity completely off the table. We there could be equity for a number of different reason reasons, including Yellowhead and other growth opportunities that we have. That said, I think we do have a path, um, a path to use, you know, some of our balance sheet funding that we have available um to to fund this project in particular. Um, but we're going to monitor. What's the best um, cost of capital and the best option for shareholders, over the coming year to finance that project,

And then, can you kind of frame how much of the project I'm talking about, Yellowhead? You'd be willing to sell down.

Up to 49% like is it like more like more like a 15 20% stake? That you'd look to sell down? Yeah.

Yeah, we're not looking we're not looking for at the top end of what you were saying there. I think it's more in around the 30% range so we'd be looking to to sell down on that from the, from the indigenous partnership perspective.

Okay, great. Thanks, everyone.

Once again, if you have a question, please press star then 1.

Our next question is from Patrick Kenney with National Bank Financial. Please go ahead.

Thank you. Good morning, everyone. Um,

Just on the uh the growing narrative and you know overall support around developing Canada's resources and infrastructure in the Northern Territories and regions. I was just curious. If you know you're starting to look at um some larger scale opportunities either.

Um, some new regulated or unregulated projects. It's a bit of an open-ended question, I guess, just in terms of what role you expect to play in developing Canada's North over the coming years.

Patrick, I work I think you know at go our organization we're very committed to the north and you know, and that goes along with our commitments to indigenous communities as well and our Partnerships with them. So we we are looking at a number of opportunities in the north, but I would say that would probably be more interactive side of our business than on the Canadian utilities side of the business. We do have an, you know, electric business in the north. We do have some gas Midstream facilities in the north as well that we are. We would look to continue to grow those as the opportunities arise. But we think Northern Canada is a is a great opportunity for our atar organization and you know, Katie I think you'd you'd agree with that as well as we look at some of the opportunities that were were pursuing ac across our group of companies.

Absolutely, and certainly something we can probably we can discuss on the echo. Call in terms of some of the opportunities we we are seeing up in the north. Um, you know, we have a strong presence from the echo project business as well. Uh, it's just generally, uh, a long-term history in the North

Okay, thanks for that. Um, and this 1's, probably for you Katie as well. Um,

Just on the PBR to reopen her. And I guess, you know, some of the disputes with the AUC coupled with the heightened Focus around.

needing to mitigate you know Wildfire risks just wondering if your discussions with the rating agencies are you know leading to any requirement to build a little bit more cushion on any of your credit metrics or um yeah just any update you have their

yeah, I mean, you know,

Strong credit rating at a minus. Um, obviously as we go through some of this build through Yellowhead, we will see some pressure on our credit metrics during that Greenfield build time. But that is a temporary situation. Um, you know, the PBR.

Reopener, we view that as a temporary, as we said the temporary, um, use of cash, um, because we are confident in our ability to win on Appeal on that. So, I, I mean, I think, you know, the radiances are aware of all these issues and we are currently, uh, in, for our annual review with them. Um, but we, you know, we still feel very confident in the strength of our balance sheet. Um,

And our our credit rating.

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

This concludes the question and answer session. I'd like to turn the conference back over to Mr. Colin Jackson for any closing remarks.

Thank you daen.

And thank you all for participating. Today, we appreciate your interest in Canadian utilities and we look forward to speaking with you again soon.

This brings to a close today's conference call, you may disconnect your lines, thank you for participating and have a pleasant day.