Q4 2025 Algonquin Power & Utilities Corp Earnings Call

March 6, 2026

Speaker #1: Is on mute to prevent any background noise. 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 1 on your telephone keypad.

Speaker #1: I will now turn the conference over to Mr. Brian Chin, Vice President of Investor Relations. Please go ahead.

Speaker #2: Thank you, Operator, and good morning, everyone. Thank you for joining us for our fourth quarter and full year 2025 earnings conference call. Joining me on the call today will be Rod West, Chief Executive Officer; and and Rob Stefani, Chief Financial Officer; who will share prepared remarks.

Speaker #2: Other members of the management team are also available to answer your questions during the Q&A portion of the call today. To accompany today's earnings call, we have a supplemental webcast presentation available on our website, algonquinpower.com.

Speaker #3: 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 *1 on your telephone keypad.

Speaker #2: Our financial statements and management discussion and analysis are also available on the website as well, as on Cedar Plus and Edgar. We would like to remind you that our discussion during the call will include certain forward-looking information and non-GAAP measures.

Speaker #3: I will now turn the conference over to Mr. Brian Chin, Vice President of Investor Relations. Please go ahead.

Speaker #1: Go ahead

Speaker #2: Thank you . Operator . And everyone . Thank you for joining us for our fourth quarter good morning , full year 2025 earnings conference call .

Brian Chin: Thank you, operator. Good morning, everyone. Thank you for joining us for our Q4 and full year 2025 Earnings Conference Call. Joining me on the call today will be Rod West, Chief Executive Officer, and Rob Stefani, Chief Financial Officer, who will share prepared remarks. Other members of the management team are also available to answer your questions during the Q&A portion of the call today. To accompany today's earnings call, we have a supplemental webcast presentation available on our website, algonquinpower.com. Our financial statements and MD&A are also available on the website as well as on SEDAR+ and EDGAR. We would like to remind you that our discussion during the call will include certain forward-looking information and non-GAAP measures. Actual results could differ materially from any forecast or projection contained in such forward-looking information.

Speaker #2: Joining me on the call today will be Rod West, Chief Executive Officer, and Rob Stefani, Chief Financial Officer, who will share prepared remarks.

Speaker #2: Other members of the management team are also available to answer your questions during the Q&A portion of the call. To accompany today's earnings call, we have a supplemental webcast presentation available on our website, as well as our financial statements and Management Discussion and Analysis for Algonquin Power & Utilities Corp.

Speaker #2: Certain material factors and assumptions were applied in making the forecast and projections reflected in forward-looking information. Please note and review the related disclaimers located on slide 2 of our earnings call presentation at the investor relations section of our website at algonquinpower.com.

Speaker #2: are also available on the website , as well as . Sedar and Edgar . We would on remind you that our discussion during the call will include certain forward like to and non-GAAP measures .

Speaker #2: Please also refer to our most recent MD&A on Cedar Plus and Edgar and available on our website for important additional information on these items.

Speaker #2: Actual results could differ materially from any forecast or projection contained in such forward-looking information. Additionally, all net earnings information to be discussed today is for continuing operations and is attributable to the common shareholders of Algonquin. Certain material factors and assumptions were applied in making the forecasts and projections reflected in forward-looking information.

Speaker #2: On the call this morning, Rod will provide a business update and Rob will follow through with details of our financial results. We'll then open the line for questions.

Brian Chin: Additionally, all net earnings information to be discussed today is for continuing operations and is attributable to the common shareholders of Algonquin. Certain material factors and assumptions were applied in making the forecasts and projections reflected in forward-looking information. Please note and review the related disclaimers located on slide 2 of our earnings call presentation at the investor relations section of our website at algonquinpower.com. Please also refer to our most recent MD&A on SEDAR+ and EDGAR and available on our website for important additional information on these items. On the call this morning, Rod will provide a business update, and Rob will follow through with details of our financial results. We'll open the line for questions. We kindly ask that you restrict your questions to 2 and re-queue if you have any additional questions to allow others the opportunity to participate.

Speaker #2: We kindly ask that you restrict your questions to 2 and then requeue if you have any additional questions to allow others the opportunity to participate.

Speaker #2: And with that, I'll turn things over to Rod.

Speaker #2: Please note and review the related disclaimers located on slide two of our earnings call presentation at the Investor section website at ALGONQUIN POWER & UTILITIES CORP.

Speaker #3: Thanks, Brian, and good morning, everyone. Thanks for joining us. 2025 was a turning point for Algonquin. We delivered strong results, improved earned returns, made substantial operational and regulatory progress, and meaningfully strengthened our balance sheet.

Speaker #2: . Please of our refer to our most recent MDA on Sedar and Edgar , and available on our website for important additional information on these items .

Speaker #2: On the call this morning, Rod will provide a business update and Rob will follow through with details of our financial results. We'll then open the line for questions.

Speaker #3: And those results reflect something broader: Algonquin is a different company today than it was a year ago. We are more focused and more disciplined, and to each other and to our stakeholders, more accountable.

Speaker #2: We kindly ask that you restrict also questions to two and then requeue . If you have any additional questions to allow others , the opportunity to participate And with that , I'll turn things over to rod .

Speaker #3: We have sharpened our strategy, assembled an experienced leadership team, and laid the foundation. For sustained performance culture. In short, we're advancing toward our goal of becoming a premium pure-play regulated utility.

Brian Chin: With that, I'll turn things over to Rod.

Speaker #2: Thanks ,

Speaker #3: Brian , and good morning , everyone . Thanks for joining us 2025 was a turning point for Algonquin . We delivered strong results , improved , earned returns , made substantial operational and regulatory progress , and meaningfully strengthen our balance sheet .

Rod West: Thanks, Brian. Good morning, everyone. Thanks for joining us. 2025 was a turning point for Algonquin. We delivered strong results, improved earned returns, made substantial operational and regulatory progress, and meaningfully strengthened our balance sheet. Those results reflect something broader. Algonquin is a different company today than it was a year ago. We are more focused, more disciplined, and to each other and to our stakeholders, more accountable. We have sharpened our strategy, assembled an experienced leadership team, and laid the foundation for a sustained performance culture. In short, we're advancing toward our goal of becoming a premium pure-play regulated utility. Turning to slide 5, I'll begin my remarks today by walking through our accomplishments in 2025. We delivered full-year net earnings per share of $0.27 and adjusted net EPS of $0.34, which exceeded the top end of our guidance range by $0.02.

Speaker #3: Turning to slide 5, I'll begin my remarks today by walking through our accomplishments in 2025. We delivered full-year net earnings per share of 27 cents and adjusted net EPS of 34 cents.

Speaker #3: And results reflect something broader. Algonquin is a different company today than it was a year ago. We are more focused, more disciplined, and to each other and to our stakeholders, more accountable. We have sharpened our strategy, assembled an experienced leadership team, and laid the foundation for a sustained performance culture.

Speaker #3: Which exceeded the top end of our guidance range by 2 cents. These results demonstrate that our back-to-basic strategy. Is driving measurable improvements in our underlying fundamentals.

Speaker #3: And as we've discussed before, becoming a premium utility starts with getting the fundamentals right. Since I joined Algonquin, we focused on first improving operational discipline.

Speaker #3: short , we're advancing toward our In goal of becoming a premium , pure play regulated utility Turning to slide five . I'll begin my remarks today by walking through our accomplishments in 2025 .

Speaker #3: To improve customer outcomes. And driving efficiencies. By bending our cost curve. And second, strengthening regulatory strategy execution through more proactive stakeholder engagement. All to drive more constructive and timely outcomes.

Speaker #3: We delivered full-year net earnings per share of $0.27 and adjusted net EPS of $0.34, which exceeded the top end of our guidance range by $0.02.

Speaker #3: These results demonstrate that our back to basics strategy is driving measurable improvements in our underlying fundamentals . And as we've discussed before , becoming a premium premium utility starts getting the fundamentals right .

Rod West: These results demonstrate that our back to basics strategy is driving measurable improvements in our underlying fundamentals. As we've discussed before, becoming a premium utility starts with getting the fundamentals right. Since I joined Algonquin, we focused on, first, improving operational discipline to improve customer outcomes and driving efficiencies by bending our cost curve. Second, strengthening regulatory strategy execution through more proactive stakeholder engagement, all to drive more constructive and timely outcomes. Our 2025 results provide recent evidence of that focus. We reduced operating expense as a percentage of gross revenue from approximately 38% in 2024 to roughly 36% in 2025. We achieved constructive regulatory outcomes across a range of proceedings, and we improved our earned ROE from 5.5% in 2024 to approximately 6.8% in 2025.

Speaker #3: Our 2025 results provide recent evidence of that focus. We reduced operating expense as a percentage of gross revenue by approximately from approximately 38% in 2024.

Speaker #3: Since I joined Algonquin, we focused first on improving operational discipline to improve customer outcomes, and driving efficiencies by bending our cost curve. And second, strengthening regulatory strategy execution through more proactive stakeholder engagement.

Speaker #3: To roughly 36% in 2025. We achieved constructive regulatory outcomes across a range of proceedings. And we improved our earned ROE from 5.5% in 2024 to approximately 6.8% in 2025.

Speaker #3: All to drive more constructive and timely outcomes. Our 2025 results provide recent evidence of that focus. We reduced operating expense as a percentage of gross revenue from approximately 38% in 2024 to roughly 36% in 2025.

Speaker #3: We also made progress this year in strengthening our balance sheet. We use net proceeds from the sale of our renewable business, excluding our hydro assets.

Speaker #3: To retire approximately $1.6 billion of debt. Materially improving our cap structure and financial flexibility. And finally, we continue to simplify the company and the story both through portfolio actions.

Speaker #3: We achieved constructive regulatory outcomes across a range of proceedings, and we improved our earned ROE from 5.5% to approximately 6.8% in 2025.

Speaker #3: And by reducing complexity inside the regulated platform. While we clearly have much more work to do. This was a good start. And we carry that momentum into 2026.

Speaker #3: We also made progress this year in strengthening our balance sheet . We used net proceeds from the sale of our renewable business , excluding our hydro assets , to retire approximately $1.6 billion of debt , materially improving our cap structure and financial flexibility .

Rod West: We also made progress this year in strengthening our balance sheet. We used net proceeds from the sale of our renewable business, excluding our hydro assets, to retire approximately $1.6 billion of debt, materially improving our cap structure and financial flexibility. Finally, we continued to simplify the company and the story, both through portfolio actions and by reducing complexity inside the regulated platform. While we clearly have much more work to do, this was a good start, and we carry that momentum into 2026. Looking ahead to 2026 on slide 6, our priorities build directly on what we've achieved over the last 12 months. Operationally, cost discipline remains a core priority. As we transition to a more commodity-aligned structure and centralizing shared services around cost and value, we expect to capture additional efficiencies and drive consistency across our gas, water, and electric portfolio.

Speaker #3: Looking ahead. To 2026 on slide 6. Our priorities build directly on what we've achieved over the last 12 months. Operationally, cost discipline remains a core priority.

Speaker #3: As we transition to a more commodity-aligned structure and centralizing shared services around cost and value. We expect to capture additional efficiencies. And drive consistency.

Speaker #3: And finally, we continue to simplify the company and the story, both through portfolio and by reducing complexity inside the regulated platform. While we clearly have much more work to do, this was a good start and we carry that momentum into 2026.

Speaker #3: Across our gas, water, and electric portfolio. As we undertake these efforts. We're also implementing a centralized capital projects team to improve our execution performance and reducing risk.

Speaker #3: Looking ahead to 2026 on slide six , our priorities build directly on what we've achieved over the last 12 months Operationally , cost discipline remains a core priority as we transition to a more commodity aligned structure and and centralizing shared services around cost and value .

Speaker #3: At the same time, we're focused on improving the safety and reliability of our system. Supporting positive customer outcomes and maintaining affordability. Across all of our jurisdictions.

Speaker #3: To drive better customer experiences. We've been making improvements across our end-to-end process design. Focusing on the moments that matter most to our customers. This includes more accurate billing.

Speaker #3: We expect to capture additional efficiencies and drive consistency across our gas, water, and electric portfolio as we undertake these efforts. We're also implementing a centralized capital projects team to improve our execution, performance, and reduce risk.

Rod West: As we undertake these efforts, we're also implementing a centralized capital projects team to improve our execution performance and reducing risk. At the same time, we're focused on improving the safety and reliability of our system, supporting positive customer outcomes, and maintaining affordability across all of our jurisdictions. To drive better customer experiences, we've been making improvements across our end-to-end process designs, focusing on the moments that matter most to our customers. This includes more accurate billing and better delivery of information during any kind of disruption. From a regulatory standpoint, we're pleased to receive approval of our settlement in Empire Electric Missouri's rate case in January this year. We're working there to see the rates implemented, which remain subject to evaluation of specific customer metrics.

Speaker #3: And better delivery of information during any kind of disruption. From a regulatory standpoint, we're pleased to receive approval of our settlement. In Empire Electric Missouri's rate case in January this year.

Speaker #3: At the same time, we're focused on improving the safety and reliability of our system, supporting positive customer outcomes, and maintaining affordability across all of our jurisdictions.

Speaker #3: We're working there to see the rates implemented, which remains subject to evaluation. Of specific customer metrics. We were also glad to resettlement agreements at New England Gas.

Speaker #3: To drive better customer experiences . We've been making improvements across our end to end process designs . Focusing on the moments that matter most to our customers .

Speaker #3: CalPico Electric. And Arizona Litchfield Park Water and Sewer. And look forward to advancing them towards approval and implementation. I'll speak to each rate case in a bit more detail shortly.

Speaker #3: This includes more accurate billing and better delivery of information during any kind of disruption . From a regulatory standpoint , we're pleased to receive approval of our settlement in Empire Electric , Missouri's rate case in January this year We're working there to see the rates implemented , which remains subject to evaluation of specific customer metrics .

Speaker #3: Finally, at the corporate level, we've recently onboarded key leaders, including Rob, as our new CFO. Pete Norgio as our new chief operating officer and Kristen Von Fischer as our new chief human resources officer.

Speaker #3: Our execution against these priorities underpins our financial outlook. For 2026, we're pleased to reaffirm our earnings guidance. The driver supporting this year's guidance range are well defined and we're confident in our ability to execute.

Speaker #3: We were also glad to reach settlement agreements at New England Gas Calpico Electric and Arizona . Litchfield Park Water and Sewer , and look forward to advancing them towards approval and implementation I'll speak to each rate case in a bit more detail shortly Finally , at the corporate level , we've recently onboarded key leaders , including Rob , as our new CFO , Pete Najo as our new chief Operating officer , and Kristen Von Fischer as our new chief human resources officer Our execution against these priorities underpins our financial outlook for 2026 .

Rod West: We were also glad to reach settlement agreements at New England Gas, CalPeco Electric, and Arizona Litchfield Park Water and Sewer, and look forward to advancing them towards approval and implementation. I'll speak to each rate case in a bit more detail shortly. Finally, at the corporate level, we've recently onboarded key leaders, including Rob as our new CFO, Pete Norgeot as our new Chief Operating Officer, and Kristin von Fischer as our new Chief Human Resources Officer. Our execution against these priorities underpins our financial outlook. For 2026, we're pleased to reaffirm our earnings guidance. The drivers supporting this year's guidance range are well-defined, and we're confident in our ability to execute.

Speaker #3: Relative to where we were last June. We now expect our effective tax rate in 2027. To be in the mid to high 20s percent range as compared to the previously anticipated low to mid 20s percentage range.

Speaker #3: We're continuing to evaluate tax strategies to optimize the tax rate, but expect the majority of the benefits from those strategies to be realized after 2027.

Speaker #3: We're pleased to reaffirm our earnings guidance. The supports for this year's guidance range are well defined, and we're confident in our ability to execute relative to where we were last June.

Speaker #3: This largely results in an updated expected adjusted net EPS range for 2027. Of 38 to 42 cents. With an executive team that brings deep utility experience now in place.

Rod West: Relative to where we were last June, we now expect our effective tax rate in 2027 to be in the mid to high 20s% range as compared to the previously anticipated low to mid-20s% range. We're continuing to evaluate tax strategies to optimize the tax rate, expect the majority of the benefits from those strategies to be realized after 2027. This largely results in an updated expected adjusted net EPS range for 2027 of $0.38 to $0.42. With an executive team that brings deep utility experience now in place, in addition to the aforementioned tax optimization work, we're focused on disciplined execution and constructive regulatory engagement to position the business to deliver sustainable earnings growth over the long term, while also looking for additional opportunities to bridge the gap caused by the tax rate relative to last June.

Speaker #3: We now expect our effective tax rate in 2027 to be in the mid- to high-20% range, as compared to the previously anticipated low- to mid-20% range.

Speaker #3: In addition to the aforementioned tax optimization work. We're focused on disciplined execution. And constructive regulatory engagement to position the business. To deliver sustainable earnings growth over the long term.

Speaker #3: While also looking for additional opportunities to bridge the gap. Caused by the tax rate relative to last June. Turning to slide 7. While there is more to be done to bring resolution to a number of key rate cases, we're seeing the benefits of our regulatory and stakeholder engagement approach.

Speaker #3: By prioritizing earlier dialogue to identify areas of common ground. As well as advancing more pragmatic filings, we've been able to achieve settlement agreements. We expect these agreements will deliver reasonable regulatory outcomes that benefit our customers and allow us to recover investment.

Speaker #3: In our systems. Efficiently. Let me walk through our key recent proceedings. In January this year, the Missouri Public Service Commission approved our settlement agreement.

Rod West: Turning to slide seven. While there is more to be done to bring resolution to a number of key rate cases, we're seeing the benefits of our regulatory and stakeholder engagement approach. By prioritizing earlier dialogue to identify areas of common ground, as well as advancing more pragmatic filings, we've been able to achieve settlement agreements. We expect these agreements will deliver reasonable regulatory outcomes that benefit our customers and allow us to recover investment in our systems efficiently. Let me walk through our key recent proceedings. In January this year, the Missouri Public Service Commission approved our settlement agreement for Empire Electric, which is our largest operating utility.

Speaker #3: For Empire Electric. Which is our largest operating utility. This authorizes a $97 million revenue increase after we meet customer metric performance requirements. For three consecutive months.

Speaker #3: With an additional potential $13 million of annual revenue increase based on meeting further performance requirements. Starting in the second half of 2026. In California, we received a proposed decision at CalPico Electric.

Speaker #3: Adopting the proposed settlement agreement, which provides for a 48.6 million revenue increase. Retroactive to January 2025. In ROE allowed ROE of 975. And an equity ratio of 52.5%.

Rod West: This authorizes a $97 million revenue increase after we meet customer metric performance requirements for 3 consecutive months, with an additional potential $13 million of annual revenue increase based on meeting further performance requirements starting in the second half of 2026. In California, we received a proposed decision at CalPeco Electric, adopting the proposed settlement agreement, which provides for a $48.6 million revenue increase retroactive to January 2025. An ROE allowed ROE of 9.75 and an equity ratio of 52.5%. We are awaiting a final decision. In Massachusetts, we reached a settlement for New England Natural Gas, which calls for a $45.3 million revenue adjustment, of which approximately $17.9 million is non-Gas System Enhancement Plan revenue, with 2 additional step-ups in rate base in subsequent years.

Speaker #3: We are awaiting a final decision. In Massachusetts, we reached a settlement for New England Natural Gas, which calls for a 45.3 million revenue adjustment, of which approximately 17.9 million is non-gas system enhancement plan revenue.

Speaker #3: With two additional step-ups in rate base. In subsequent years. The settlement includes an allowed ROE of 9.3% and an equity ratio of approximately 52.9%.

Speaker #3: And our rates stay out. The rate case stay out through October 31. Of 2029. We've requested a commission order by the end of this month.

Speaker #3: In Arizona, just this week, we filed a proposed settlement for Litchfield Park Water and Sewer. The settlement, which was reached with the Arizona Corporation Commission staff.

Speaker #3: Calls for a 15.3 million revenue adjustment and an ROE allowed ROE of 9.75%. With a 54% equity ratio. Hearings are scheduled. For late March of this year.

Rod West: The settlement includes an allowed ROE of 9.3% and an equity ratio of approximately 52.9%, and a rate case stay out through 31 October 2029. We've requested a commission order by the end of this month. In Arizona, just this week, we filed a proposed settlement for Litchfield Park Water and Sewer. The settlement, which was reached with the Arizona Corporation Commission staff, calls for a $15.3 million revenue adjustment and an allowed ROE of 9.75% with a 54% equity ratio. Hearings are scheduled for late March of this year.

Speaker #3: And finally, in Kansas. We filed a rate case at Empire Electric in December, requesting a 15.8 million base rate adjustment, which represents a net requested increase of 12.5 million.

Speaker #3: With a three-year phase in for gradual adjustment. Slide 8 helps put all of this in context. Over the past year, we have steadily resolved rate cases across multiple jurisdictions.

Speaker #3: Advancing from filing to constructive resolution. To implementation of rates. As we look ahead, we now have line of sight to resolving a significant portion of the remaining requested revenue adjustments this year.

Rod West: In Kansas, we filed a rate case at Empire Electric in December requesting a $15.8 million base rate adjustment, which represents a net requested increase of $12.5 million with a 3-year phase-in for gradual adjustment. Slide 8 helps put all of this in context. Over the past year, we have steadily resolved rate cases across multiple jurisdictions, advancing from filing to constructive resolution to implementation of rates. As we look ahead, we now have line of sight to resolving a significant portion of the remaining requested revenue adjustments this year, which will inform our forward earnings trajectory. Turning to Slide 9, we are fortunate to operate in high-quality jurisdictions that have attractive regulatory mechanisms. This includes tracker mechanisms, multiyear rate plans, forecasted test years, and formula rate structures.

Speaker #3: Which will inform our forward earnings trajectory. Turning the slide 9, we're fortunate to operate in high-quality jurisdictions that have attractive regulatory mechanisms. This includes tracker mechanisms, multi-year rate plans, forecasted test years, and formula rate structure.

Speaker #3: These regulatory mechanisms underpin the majority of the expected rate base growth between now and 2028. Building on this foundation. Recent legislative and regulatory developments across our states are supporting enhanced investment recovery.

Speaker #3: Recent advances in Missouri, Arizona, New Hampshire, and Oklahoma are further strengthening our regulatory frameworks with the adoption of future test years. CWIP for new gas generation.

Speaker #3: Plant and service accounting and consideration of formula rates. Overall, these developments reinforce the constructive regulatory environments in which we operate. With that, I'll turn it over to Rob to walk through our financial update for the quarter and year-end.

Rod West: These regulatory mechanisms underpin the majority of the expected rate base growth between now and 2028. Building on this foundation, recent legislative and regulatory developments across our states are supporting enhanced investment recovery. Recent advances in Missouri, Arizona, New Hampshire, and Oklahoma are further strengthening our regulatory frameworks with the adoption of future test years, CWIP for new gas generation, plant and service accounting, and consideration of formula rates. Overall, these developments reinforce the constructive regulatory environments in which we operate. With that, I'll turn it over to Rob to walk through our financial update for the quarter and year-end. Rob joined the company just this past January, on 5 January. Many of our analysts and investors may already know Rob from his time as CFO of Southwest Gas Holdings.

Speaker #3: Rob joined the company just this past January on January 5th. Many of our analysts and investors may already know Rob from his time as CFO.

Speaker #3: Of Southwest Gas Holdings. He also previously served as CFO and treasurer of Pico Energy. The Philadelphia-based electric and gas utility subsidiary of Exelon. Rob joins a strong team of experienced utility executives in the C-suite.

Speaker #3: And as we continue to build our utility platform. Rob's utility leadership experience, strategic skill set. And financial expertise will be leveraged to build a strong foundation for the company.

Speaker #3: As we solidify our strategy and execute on our path to becoming a premium utility. So again, Rob, and for my last time formally welcoming you.

Rod West: He also previously served as CFO and Treasurer of PECO Energy, the Philadelphia-based electric and gas utility subsidiary of Exelon. Rob joins a strong team of experienced utility executives in the C-suite. As we continue to build our utility platform, Rob's utility leadership experience, strategic skill set, and financial expertise will be leveraged to build a strong foundation for the company as we solidify our strategy and execute on our path to becoming a premium utility. Again, Rob, and for my last time formally welcoming you, I'll hand the call over to you.

Speaker #3: I'll hand the call over to you.

Speaker #2: Thanks, Rod, and good morning, everyone. I've been immersed in my first two months at Algonquin. And I'm excited to partner with Rod and the leadership team here to build a premium utility through disciplined execution across the organization.

Speaker #2: With that, I'll turn to our results on slide 11. We reported full-year gap net earnings of $208 million, compared to 54.8 million in 2024.

Speaker #2: Full-year adjusted net earnings were $258.8 million, up approximately 17% from $221.6 million in 2024. For the fourth quarter, gap net earnings were $29.4 million, compared to a net loss of $110.2 million in the fourth quarter of 2024.

Rob Stefani: Thanks, Rod. Good morning, everyone. I've been immersed in my first two months at Algonquin, and I'm excited to partner with Rod and the leadership team here to build a premium utility through disciplined execution across the organization. With that, I'll turn to our results on slide 11. We reported full year GAAP net earnings of $208 million, compared to $54.8 million in 2024. Full year adjusted net earnings were $258.8 million, up approximately 17% from $221.6 million in 2024. For Q4, GAAP net earnings were $29.4 million, compared to a net loss of $110.2 million in Q4 2024. These strong results reflect the progress we are making to deliver steady, predictable earnings.

Speaker #2: These strong results reflect the progress we are making to deliver steady, predictable earnings. I'll now discuss the drivers behind this improvement as I walk through our adjusted net EPS results.

Speaker #2: On slide 12, we provide our fourth quarter 2025 adjusted net EPS walk to common shareholders. Fourth quarter adjusted net EPS to common was 6 cents per share, which was flat year over year.

Speaker #2: On the top line, the increase in adjusted net earnings was primarily driven by 10.3 million from the implementation of new utility rates at Belco Electric, Midstates Gas, Peach State Gas, Missouri Water, New York Water, and several of our Arizona Water and Sewer Systems.

Rob Stefani: I'll now discuss the drivers behind this improvement as I walk through our adjusted net EPS results. On slide 12, we provide our Q4 2025 adjusted net EPS walk to common shareholders. Q4 adjusted net EPS to common was $0.06 per share, which was flat year-over-year. On the top line, the increase in adjusted net earnings was primarily driven by $10.3 million from the implementation of new utility rates at BELCO Electric, Midstates Gas, Peach State Gas, Missouri Water, New York Water, and several of our Arizona water and sewer systems. Moving to interest expense, we realized a $17.9 million reduction reflecting the pay down of debt using proceeds from both the sale of the renewable energy business and the sale of our ownership stake in Atlantica.

Speaker #2: Moving to interest expense, we realized a 17.9 million reduction, reflecting the paydown of debt using proceeds from both the sale of the renewable energy business and the sale of our ownership stake in Atlantica.

Speaker #2: This has been a consistent positive driver throughout the year, and a direct result of our balance sheet strengthening efforts. Operating expenses and depreciation were modestly higher by 6.1 million, driven by fourth quarter costs associated with the targeted relief initiative.

Speaker #2: For customers, agreed to as part of our Empire Electric Missouri settlement. Full-year basis operating expenses were essentially flat. These benefits were offset by the removal of 10.9 million in Atlantica dividend income, which impacts the corporate group, as well as a 7.3 million write-off related to the CalPico solar project that was discontinued.

Rob Stefani: This has been a consistent positive driver throughout the year and a direct result of our balance sheet strengthening efforts. Operating expenses and depreciation were modestly higher by $6.1 million, driven by Q4 costs associated with the targeted relief initiative for customers agreed to as part of our Empire Electric Missouri settlement. Full year basis operating expenses were essentially flat. These benefits were offset by the removal of $10.9 million in Atlantica dividend income, which impacts the corporate group, as well as a $7.3 million write-off related to the CalPeco solar project that was discontinued. Taxes were flat year-over-year.

Speaker #2: Taxes were flat year over year. Moving on to slide 13. Full-year adjusted net EPS attributed to common was 34 cents per share, up from 30 cents per share in 2024, representing approximately 13% growth.

Speaker #2: This exceeded the top end of our previously stated guidance range by 2 cents per share, driven by accelerated realization of our operating expense savings, lower depreciation expense, resulting from authorized deferrals, and tax adjustments.

Speaker #2: Let me walk through the key drivers in more detail. New utility rates contributed 41.6 million of benefit from approved rate implementations across several gas, water, and electric systems throughout the year.

Rob Stefani: Moving on to slide 13, full year adjusted net EPS attributed to common was $0.34 per share, up from $0.30 per share in 2024, representing approximately 13% growth. This exceeded the top end of our previously stated guidance range by $0.02 per share, driven by accelerated realization of our operating expense savings, lower depreciation expense resulting from authorized deferrals, and tax adjustments. Let me walk through the key drivers in more detail. New utility rates contributed $41.6 million of benefit from approved rate implementations across several gas, water, and electric systems throughout the year. We saw $13.9 million of favorable weather, predominantly at our Empire Electric system. In addition, we benefited from $11.9 million in depreciation deferrals. These factors were partly offset by the costs associated with the targeted relief initiative at Empire and CalPeco write-off mentioned previously.

Speaker #2: We saw a 13.9 million of favorable weather, predominantly at our Empire Electric system. In addition, we benefited from 11.9 million in depreciation deferrals. These factors were partly offset by the costs associated with the targeted relief initiative at Empire and CalPico write-off mentioned previously.

Speaker #2: We also recognized a 15.9 million hydro group tax adjustment that was largely recognized in the first half of the year from the hydro reorganization completed in connection with the sale of the renewable energy business.

Speaker #2: Interest expense declined by 81.1 million, reflecting the paydown of debt using proceeds from the sale of the renewable energy business completed in January 2025.

Speaker #2: And the prior sale of our Atlantica ownership stake. The removal of 76.3 million in dividend income from the sale of an ownership stake in Atlantica was a single largest headwind for the year.

Speaker #2: As a reminder, the repayment of debt using the Atlantica sale proceeds contributes to the interest expense savings across both the regulated services group and the corporate group.

Rob Stefani: We also recognized a $15.9 million hydro group tax adjustment that was largely recognized in the first half of the year from the hydro reorganization completed in connection with the sale of the renewable energy business. Interest expense declined by $81.1 million, reflecting the pay down of debt using proceeds from the sale of the renewable energy business completed in January 2025, and the prior sale of our Atlantica ownership stake. The removal of $76.3 million in dividend income from the sale of an ownership stake in Atlantica was the single largest headwind for the year. As a reminder, the repayment of debt using the Atlantica sale proceeds contributes to the interest expense savings across both the regulated services group and the corporate group, which partially offsets the lost dividend income.

Speaker #2: Which partially offsets the lost dividend income. We also absorbed a higher effective tax rate in common share dilution from the mandatory underlying shares, as approximately 77 million common shares were issued, upon the settlement of the purchase contracts.

Speaker #2: In 2024. The regulated services group growth was driven by the combination of new rate implementations, favorable weather, lower interest expense, and the depreciation deferral benefits, partially offset by higher operating expenses and the solar project discontinuation.

Speaker #2: Turning to slide 14, we are updating our three-year regulated utility capital expenditure outlook, now totaling approximately $3.2 billion from 2026 through 2028. This includes approximately $800 million in 2026, ramping to $1.1 billion in 2027, and approximately $1.3 billion in 2028.

Rob Stefani: We also absorbed a higher effective tax rate and common share dilution from the mandatory underlying shares, as approximately 77 million common shares were issued upon the settlement of the purchase contracts in 2024. The Regulated Services Group growth was driven by the combination of new rate implementations, favorable weather, lower interest expense, and the depreciation deferral benefits, partially offset by higher operating expenses and the solar project discontinuations. Turning to slide 14, we are updating our three-year regulated utility CapEx outlook, now totaling approximately $3.2 billion from 2026 through 2028. This includes approximately $800 million in 2026, ramping to $1.1 billion in 2027, and approximately $1.3 billion in 2028. Cash flow from the business and existing cash balances are expected to internally fund approximately 65% to 70% of the capital investment requirements.

The removal of $76.3 million in dividend income from the sale of an ownership stake in Atlantica was the single largest headwind for the year. As a reminder, the repayment of debt using the Atlantica sale proceeds contributes to interest expense savings across both the Regulated Services Group and the Corporate Group, which partially offsets the lost dividend income.

We also absorbed a higher effective tax rate in common share. Dilution from the mandatory, uh, underlying shares is approximately 77 million. Common shares were issued upon the settlement of the purchase contracts.

Speaker #2: Cash flow from the business and existing cash balances are expected to internally fund approximately $65 to 70% of the capital investment requirements. This capital plan is focused on reliably serving our customers with investments in safety, reliability, and service across our electric, gas, and water systems.

In 2024.

Speaker #2: As you can see on the slide, the capital spend is expected to be diversified across our commodity types. Our large capital expenditure plan supports our strong organic regulated utility growth proposition.

The regulated Services Group growth was driven by the combination of new rate implementations, favorable weather, lower interest expense, and the depreciation deferral benefits, partially offset by higher operating expenses, and the solar project is continuing to slide 14. We are updating our 3-year regulated utility capital expenditure outlook, now totaling approximately $3.2 billion from 2026 through 2028.

Speaker #2: As Rod highlighted, across our jurisdictions, mechanisms exist to pursue recovery via capital trackers formula rates and other inter-rate case mechanisms. I'd note that the 2025 capital expenditures totaled approximately $604 million down from approximately $757 million in 2024, with a decrease primarily due to investment in our integrated customer solution platform, which was largely completed in 2024.

This includes approximately $800 million in 2026, ramping to $1.1 billion in 2027, and approximately $1.3 billion in 2028.

Rob Stefani: This capital plan is focused on reliably serving our customers with investments in safety, reliability, and service across our electric, gas, and water systems. As you can see on the slide, the capital spend is expected to be diversified across our commodity types. Our large capital expenditure plan supports our strong organic regulated utility growth proposition. As Rod highlighted, across our jurisdictions, mechanisms exist to pursue recovery via capital trackers, formula rates, and other intra-rate case mechanisms. I'd note that the 2025 capital expenditures totaled approximately $604 million, down from approximately $757 million in 2024, with the decrease primarily due to investment in our integrated customer solution platform, which was largely completed in 2024. In terms of rate base, year-end 2025 rate base was approximately $8.2 billion, up from $7.9 billion at year-end 2024.

Cash flow from the business and existing cash balances are expected to internally fund approximately 65% to 70% of the capital investment requirements.

Speaker #2: In terms of rate base, year-end 2025 rate base was approximately 8.2 billion, up from 7.9 billion at year-end 2024. We expect our rate base to grow to approximately 8.5 billion by the year-end 2026, 9 billion by the year-end 2027, and approximately 9.7 billion by year-end 2028.

Trackers, formula rates, and other integrated case mechanisms.

Speaker #2: Representing a compound annual growth rate of nearly 6% from 2025 year-end through 2028. On slide 15, our balance sheet was meaningfully strengthened following the completion of the sale of the renewables business in January of 2025.

I note that the 2025 capital expenditures totaled approximately $604 million, down from approximately $757 million in 2024, with the decrease primarily due to investment in our integrated customer solution platform, which was largely completed in 2024.

Speaker #2: We used approximately $1.6 billion of net proceeds to pay down debt. Combined with proceeds from the sale of our Atlantica ownership stake, we have significantly improved our credit profile.

Rob Stefani: We expect our rate base to grow to approximately $8.5 billion by the year-end 2026, $9 billion by the year-end 2027, and approximately $9.7 billion by year-end 2028, representing a compound annual growth rate of nearly 6% from 2025 year-end through 2028. On slide 15, our balance sheet was meaningfully strengthened following the completion of the sale of the renewables business in January 2025. We used approximately $1.6 billion of net proceeds to pay down debt. Combined with proceeds from the sale of our Atlantica ownership stake, we have significantly improved our credit profile. Total debt stands at approximately $6.5 billion. After adjusting for equity credited on our hybrid debt, Empire securitization bonds, and preferred equity, our adjusted net debt profile supports our current credit ratings.

Speaker #2: Total debt stands at approximately $6.5 billion. After adjusting for equity credit on our hybrid debt, Empire Securitization Bonds, and preferred equity, our adjusted net debt profile supports our current credit ratings.

Speaker #2: We have a solid investment-grade credit rating with stable outlooks from S&P and Fitch. Moody's rates are operating subsidiary, Liberty Utilities at BAA2 with a stable outlook.

Compound annual growth rate of nearly 6% from year-end 2025 through 2028.

Speaker #2: We continue to expect no equity issuance through 2027. On refinance the Algonquin Unsecured Notes that are due in June 2026, and we continue to manage our maturity profile in a disciplined manner.

On slide 15, our balance sheet was meaningfully strengthened following the completion of the sale of the Renewables business in January of 2025. We used approximately $1.6 billion of net proceeds to pay down debt, combined with proceeds from the sale of our Atlantica ownership stake. We have significantly improved our credit profile.

Speaker #2: Lastly, we expect to pay an annualized dividend of $26 per share subject to board approval. On slide 16, you'll see a sources and uses table depicting the cash flows between the holding company of our U.S.

Rob Stefani: We have a solid investment-grade credit rating with stable outlooks from S&P and Fitch. Moody's rates our operating subsidiary Liberty Utilities at Baa2 with a stable outlook. We continue to expect no equity issuance through 2027. On the near-term financing front, we plan to refinance the Algonquin unsecured notes that are due in June 2026. We continue to manage our maturity profile in a disciplined manner. Lastly, we expect to pay an annualized dividend of $0.26 per share, subject to board approval. On slide 16, you'll see a sources and uses table depicting the cash flows between the holding company of our US operating businesses, Liberty Utilities Company, or LUCo, and the publicly traded holding company, Algonquin Power & Utilities Corporation, or APUC.

Total debt stands at approximately $6.5 billion after adjusting for equity, credit on our hybrid debt, Empire securitization bonds, and preferred equity. Our adjusted net debt profile supports our current credit ratings.

Speaker #2: operating businesses, Liberty Utilities Company, or LUCO, and the publicly traded holding company, Algonquin Power and Utilities Corporation, or APUC. Our 2026 financing plan at APUC of approximately $1.6 billion includes nearly $1.45 billion upstream from LUCO.

We have a solid investment grade credit rating with stable outlooks from S&P and Fitch. Moody's rates our operating subsidiary, Liberty Utilities, at Baa2 with a stable outlook. We continue to expect no equity issuance through 2027.

Speaker #2: We expect this upstream to fund repayment of the June 2026 APUC $1.15 billion debt maturity and the approximately $100 million Sorales term loan. As well as the Algonquin Common Equity Dividend.

On the near-term financing front, we plan to refinance the Algonquin unsecured notes that are due in June 2026, and we continue to manage our maturity profile in a disciplined manner. Lastly, we expect to pay an annualized dividend of $0.26 per share, subject to board approval.

Speaker #2: We expect to raise approximately $1.15 billion at LUCO through bond issuances to retire the June maturity at APUC. Cash flow from OPS of approximately $500 million and a draw of about $500 million on the credit facility together are expected to fund domestic regulated CapEx and the upstreaming of cash to APUC.

On slide 16, you'll see a Sources and Uses.

Rob Stefani: Our 2026 financing plan at APUC of approximately $1.6 billion includes nearly $1.45 billion upstream from LUCO. We expect this upstream to fund repayment of the June 2026 APUC $1.15 billion debt maturity and the approximately $100 million Seralis term loan, as well as the Algonquin common equity dividend. We expect to raise approximately $1.15 billion at LUCO through bond issuances to retire the June maturity at APUC. Cash flow from ops of approximately $500 million and a draw of about $500 million on the credit facility together are expected to fund domestic regulated CapEx and the upstreaming of cash to APUC. Through these actions, we aim to proactively refinance upcoming maturities, fund the business, maintain liquidity, and manage leverage without incurring additional incremental debt.

Table depicting the cash flows between the holding company of our US operating businesses, Liberty Utilities Company (or Luca), and the publicly traded holding company, Algonquin Power & Utilities Corporation (or APUC).

Speaker #2: Through these actions, we aim to proactively refinance upcoming maturities, fund the business, maintain liquidity, and manage leverage without incurring additional incremental debt. Let me walk through our financial outlook.

Speaker #2: On slide 17, first, we are referring reaffirming our 2026 adjusted net EPS estimate in the range of $35 to $37, consistent with the outlook we originally provided in June of 2025.

Our 2026 financing plan at Oppo of approximately $1.6 billion includes nearly $1.45 billion upstream from Luca. We expect this upstream to fund repayment of the June 2026 Oppo $1.15 billion debt maturity and the approximately $100 million Salas term loan.

Speaker #2: The drivers supporting 2026 performance are underway, and we are confident in their achievability. As Rod discussed earlier, we are revising our 2027 adjusted net EPS estimate to a range of $38 to $42.

Speaker #2: We updated our assumptions regarding the company's effective tax rate in 2027, which is now expected to be in the mid to high 20s percent range, as compared to the previously anticipated low to mid-20s percent range.

Rob Stefani: Let me walk through our financial outlook on slide 17. First, we are reaffirming our 2026 adjusted net EPS estimate in the range of $0.35 to $0.37, consistent with the outlook we originally provided in June 2025. The drivers supporting 2026 performance are underway, and we are confident in their achievability. As Rod discussed earlier, we are revising our 2027 adjusted net EPS estimate to a range of $0.38 to $0.42. We updated our assumptions regarding the company's effective tax rate in 2027, which is now expected to be in the mid to high 20% range as compared to the previously anticipated low to mid-20% range.

As well as the Algonquin common equity dividend. We expect to raise approximately $1.15 billion at Lucca, through bond issuances to retire the June maturity, at a book cash flow from operations of approximately $500 million, and a draw of about $500 million on the credit facility. Together, these are expected to fund domestic regulated capex and the upstreaming of cash to APO. Through these actions, we aim to proactively refinance upcoming maturities, fund the business, maintain liquidity, and manage leverage without incurring additional incremental debt.

Let me, let me walk through our financial outlook on slide 17.

Speaker #2: We are continuing to evaluate tax strategies to optimize the tax rate, but expect the majority of the benefits from such strategies to be realized after 2027.

First, we are reaffirming our 2026 adjusted net EPS estimate in the range of $0.35 to $0.37, consistent with the outlook we originally provided in June of 2025.

Speaker #2: The guidance revision also reflects expected timing of gas operational excellence activities to extend into 2027 before normalizing. With that, I'll turn the call back over to Rod for his closing remarks.

The drivers supporting 2026 performance are underway, and we are confident in their achievability.

Speaker #1: Before we open the line for questions, I want to step back and leave you with a few thoughts on where we are and where we're headed now that literally this is my one year in the job.

Rob Stefani: We are continuing to evaluate tax strategies to optimize the tax rate, but expect the majority of the benefits from such strategies to be realized after 2027. The guidance revision also reflects expected timing of gas operational excellence activities to extend into 2027 before normalizing. With that, I'll turn the call back over to Rod for his closing remarks.

Speaker #1: It was March 7th. Last year when I began my tenure. When I joined Algonquin just over a year ago, I said that this company had the very real potential to become a premium pure-play utility.

Speaker #1: In 2025, we began turning that potential into results. Our leadership team is now in place and we're delivering results through our strategy. We're focused on driving operational execution and constructive regulatory engagement to drive an attractive, near-term financial profile as we close the gap to our authorized return.

As Rod discussed earlier, we are revising our 2027 adjusted net EPS estimate to a range of $0.38 to $0.42. We updated our assumptions regarding the company's effective tax rate in 2027, which is now expected to be in the mid- to high-20s percent range, as compared to the previously anticipated low- to mid-20s percent range. We are continuing to evaluate tax strategies to optimize the tax rate, but expect the majority of the benefits from such strategies to be realized after 2027. The guidance revision also reflects the expected timing of gas operational excellence activities to extend into 2027 before normalizing. With that, I'll turn the call back over to Rod for his closing remarks.

Rod West: Before we open the line for questions, I wanna step back and leave you with a few thoughts on where we are and where we're headed now that literally, this is my 1 year in the job. It was 7 March last year when I began my tenure. When I joined Algonquin just over 1 year ago, I said that this company had the very real potential to become a premium pure-play utility. In 2025, we began turning that potential into results. Our leadership team is now in place. We're delivering results through our Back to Basic Strategy. We're focused on driving operational execution and constructive regulatory engagement to drive an attractive near-term financial profile as we close the gap to our authorized returns.

Before we open the line for questions, I want to step back and leave you with a few thoughts on where we are.

Speaker #1: We have a strengthened balance sheet with a credit rating profile that provides low-cost access to capital, and no expected equity needs through 2027. We're executing a customer-focused capital plan of approximately $3.2 billion focused on organic investment to enhance safety, reliability, and improve customer service.

And where we're headed now that literally, um, this is my, my 1 year in the job. It was March 7th. Um, last year, when I, when I began my tenure

When I joined Algonquin, just over a year ago, I said that this company had the very real potential.

To become a premium, pure play utility.

In 2025, we began turning that potential into results.

Speaker #1: As we continue to re-earn our right to grow, we're keeping our eye on additional opportunities in our service territories. We believe this adds up to a clear and compelling investment thesis as we position Algonquin as a singularly focused pure-play regulated utility operating across high-quality, increasingly constructive jurisdictions.

Our leadership team is now in place, and we're delivering results through our back-to-basics strategy.

Rod West: We have a strengthened balance sheet with a credit rating profile that provides low-cost access to capital and no expected equity needs through 2027. We're executing a customer-focused capital plan of approximately $3.2 billion, focused on organic investment to enhance safety, reliability, and improve customer service. As we continue to re-earn our right to grow, we're keeping our eye on additional opportunities in our service territories. We believe this adds up to a clear and compelling investment thesis as we position Algonquin as a singularly focused, pure-play regulated utility operating across high-quality, increasingly constructive jurisdictions. As you've heard me say, every component of our vision, mission, and strategy is being developed with achieving sustainable premium attributes at the forefront. We're staying focused on capturing the opportunity ahead and executing the mission we've laid out.

We're focused on driving operational execution and constructive regulatory engagement to drive an attractive near-term financial profile as we close the gap to our authorized returns.

Speaker #1: As you've heard me say, every component of our vision, mission, and strategy is being developed with achieving sustainable, premium attributes at the forefront. We're staying focused on capturing the opportunity ahead and executing the mission we've laid out.

We have a strong balance sheet with a solid credit rating profile. That provides low-cost access to capital, and we have no expected equity needs through 2027.

We're executing a customer-focused capital plan of approximately $3.2 billion.

Speaker #1: I couldn't be more excited about what's in store for 2026 and beyond. Thanks for your time this morning, and with that, I'll turn it back to the operator for questions.

As we continue to re-earn our right to grow, we're keeping our eye on additional opportunities in our service territories.

Speaker #3: Thank you. If you have a question, please press star one on your telephone keypad. To withdraw your question, simply press star one again. We do requests for today's session that you please limit to one question and one follow-up question only.

We believe this adds up to a clear and compelling investment thesis as we position Algonquin as a singularly focused, pure-play regulated utility operating across high-quality, increasingly constructive jurisdictions.

Speaker #3: One moment, please, for your first question. And our first question comes from the line of Baltej Sindhu with National Bank of Canada. Your line is open.

As you've heard me say, every component of our vision, mission, and strategy is being developed with achieving sustainable premium attributes at the forefront.

Rod West: I couldn't be more excited about what's in store for 2026 and beyond. Thanks for your time this morning. With that, I'll turn it back to the operator for questions.

We're staying focused on capturing the opportunity ahead and executing the mission. We've laid out

Speaker #4: Hey, good morning, everyone, and thanks for taking my questions. Just on the revised 2027 guidance, can you share details or the largest drivers that underpin the new assumptions towards the mid to high 20s effective tax rate versus the prior assumptions?

I couldn't be more excited about what's in store for 2026 and beyond. Thanks for your time this morning. And with that, I'll turn it back to the operator for questions.

Operator: Thank you. If you have a question, please press star 1 on your telephone keypad. To withdraw your question, simply press star 1 again. We do request for today's session that you please limit to 1 question and 1 follow-up question only. One moment please for your first question. Our first question comes from the line of Baltej Sidhu with National Bank of Canada. Your line is open.

Speaker #5: Yeah, thanks, Baltej. It's Rob Stefani. Look, throughout my onboarding, we reviewed the financial projections and during that assessment, the forward view of the effective tax rate moved from the low to mid-20s to that mid to high 20s that we currently expect.

Thank you. If you have a question, please press star 1 on your telephone keypad to be drawn. For your questions, simply press star 1. Again, we do request for today's session that you please limit yourself to 1 question and 1 follow-up question. Only one moment, please, for your first question.

Speaker #5: That resulted in just over about $0.03 per share of EPS deduction. We're actively looking at tax optimization strategies but those appear to really move past 2027.

Baltej Sidhu: Hey, good morning, everyone, and thanks for taking my questions. Just on the revised 2027 guidance, can you share details or the largest drivers that underpin the new assumptions towards the mid to high 20s effective tax rate versus the prior assumptions?

And our first question comes from the line of Baltuch Seadoo with National Bank of Canada. Your line is open.

Good morning, everyone, and uh, thanks for taking my questions.

Speaker #5: If pursued, as a result, and in the interest of transparency, we revised that 2027 range down. Anything else I can add there for you?

Just on the, um, the revised 2027 guidance—can you share details on the largest drivers that underpin the new assumptions toward the mid to high 20s effective tax rate, versus the prior assumptions?

Rob Stefani: Yeah. Thanks, Baltej. It's Robert Stefani. Look, throughout my onboarding, we reviewed the financial projections, and during that assessment, the forward view of the effective tax rate moved from the low to mid 20s to the mid to high 20s that we currently expect. That resulted in just over about $0.03 per share of EPS deduction. We're actively looking at tax optimization strategies, but those appear to really move past 2027, if pursued. As a result, and in the interest of transparency, we revised that 2027 range down. Anything else I can add there for you?

Speaker #4: No, I think I got it there. And then just to follow up there for you, Rob, just more from a strategic overview, you've been in the seat now for 60 days.

Speaker #4: Could you share your thoughts on the largest levers that the business can pull in the near term and also potential procedures or processes that Algonquin doesn't have yet that you've seen elsewhere in your prior experience?

Speaker #5: Yeah, I mean, look, I think the strategy that Rod and the team have put together is strong and that's really hinges around the rate case cadence and rate case strategy and engaging across our jurisdictions.

Yeah, thanks. B Dash. It's a Rob Stefani. Um, look throughout the, my onboarding, we reviewed the financial projections and during that assessment, the forward view of the effective tax rate, moved from the low to mid to 20s to the mid to high uh, 20s that we currently expect that resulted in just over about 3 cents per share of eps, uh, uh, deduction. Uh, we're actively looking at tax optimization strategies, uh, but but those appear to really move past 2027. Um, if pursued, uh, as a result, then in the interest of transparency, we revised that that 2027 range down. Um,

And anything else I can add there for you.

Baltej Sidhu: No, I think I got it there. Just to follow up there for you, Rob, just more from a strategic overview. You've been in the seat now for 60 days. Could you share your thoughts on the largest levers that the business can pull in the near term and also potential procedures or processes that Algonquin doesn't have yet that you've seen elsewhere in your prior experience?

Speaker #5: Bringing leaders in from very well-recognized utilities to enhance the operating platform like Amy and Pete and Kristen. And so, as I think about kind of levers we can pull as a management team with a lot of experience at premium utilities, I think that's really at the forefront.

No, I I think uh I think I got it there and then just to follow up there for for you Rob. Just more from a strategic over over overview. Um, you've been in this email for 60 days. Uh, could you share your thoughts on the largest levers that the business can pull in the near term and and also uh, potential procedures or processes that Hugo doesn't have yet that you've seen elsewhere in your prior prior experience.

Rob Stefani: Yeah. I mean, look, I think the strategy that Rod and the team have put together is strong, and that's really hinges around, you know, the rate case cadence and rate case strategy, and engaging across our jurisdictions. You know, bringing leaders in from, you know, very well-recognized utilities to enhance the operating platform like Amy, and Pete, and Kristen. As I think about kind of, you know, levers we can pull as a management team with a lot of experience at premium utilities, I think that's really at the forefront. The balance sheet. You know, we've got over $1.4 billion of liquidity.

Speaker #5: And then the balance sheet. We've got over $1.4 billion of liquidity. We've got a strong investment-grade balance sheet and that provides us the flexibility to pursue organic growth as well as assess other opportunities.

Speaker #5: So as you think about levers, the leadership team that refocus on regulatory engagement and then the sound financial balance sheet provides us a lot of flexibility.

Speaker #5: And as far as.

Speaker #4: Okay, thanks.

Speaker #3: Our next question comes from the line of Ellie Josen with JPMorgan. Your line is open.

Rob Stefani: We're got a strong investment-grade balance sheet. That provides us the flexibility to pursue, you know, organic growth, as well as assess, you know, other opportunities. As you think about levers, the, you know, the leadership team that refocus on, you know, regulatory engagement, and then the sound financial balance sheet, you know, provides us a lot of flexibility.

Speaker #6: Hey, good morning, everyone. Wanted to start on the additional opportunities you mentioned at the end of your remarks. Can you just frame what types of opportunities you see in the market and maybe touch on whether those would include some portfolio optimization opportunities as well?

Speaker #6: Thanks.

Speaker #1: I'll start in certainly let Rob weigh in with his early observations. The opportunities from my vantage point aren't new. Our growth story starts with organic growth within our existing jurisdictions where we have both the opportunity and I would dare say the mandate to create different customer outcomes in the areas we serve.

You know, regulatory engagement, um, and then that, the sound financial balance sheet, you know, provide us a lot of flexibility.

Rod West: Thank you. I'll leave it there.

Baltej Sidhu: Thank you. I'll leave it there.

Rob Stefani: Okay, thanks.

Thank you.

Okay, thanks.

Operator: Our next question comes from the line of Eli Joseph with JP Morgan. Your line is open.

Eli Joseph: Hey, good morning, everyone. wanted to start on the additional opportunities you mentioned at the end of your remarks. Can you just frame, you know, what types of opportunities you see in the market and maybe touch on whether that was would include some portfolio optimization opportunities as well? Thanks.

Our next question comes from the line of Ellie Josen with JP Morgan. Your line is open.

Hey, good morning, everyone. Um, wanted to start on the additional opportunities. You mentioned that at the end of your—

Speaker #1: And the underpinning of our rate-based growth is predominantly organic. What we've said in prior the last couple of quarters, particularly since last May, is that the portfolio we've done the work on our existing portfolio with all the potential scenarios around puts and takes.

Rod West: I'll start and certainly, you know, let Rob weigh in with his early observations. You know, the opportunities from my vantage point aren't new. Our growth story starts with organic growth within our existing jurisdictions, where we have both the opportunity, and I would dare say the mandate, to create different customer outcomes in the areas we serve. The underpinning of our rate base growth is predominantly, you know, organic. What we've said the last prior couple of quarters, particularly since last May, is that the portfolio, we've done the work on our existing portfolio with all the potential scenarios around puts and takes. What you've heard from us is that we remained opportunistic.

Remarks. Um, can you just frame—you know—what types of opportunities you see in the market, and maybe touch on whether that would include, uh, some portfolio optimization opportunities as well? Thanks,

Speaker #1: And what you've heard from us is that we remained opportunistic; there was nothing so compelling given the screening criteria for M&A. That keeps us disciplined on our core business.

Speaker #1: There was nothing immediately so compelling that it required us to move now. But to the extent that there are opportunities for us to take a look at potential moves within the portfolio, we're poised to do that.

Create different customer outcomes in the, in the areas we serve. And, and the underpinning of our rate based growth is predominantly, um, you know, organic

Speaker #1: If there was a capital recycling opportunity again, we have a point of view around things that might be in the dashboard. But our focus still, and remember, it's only from my vantage point, at least, it's only 12 months in.

Rod West: There was nothing so compelling, given the screening criteria for M&A or, you know, that keeps us disciplined on our core business. There was nothing immediately so compelling that it required us to move now. To the extent that there are opportunities for us to take a look at potential moves within the portfolio, we're poised to do that. If there was a capital recycling opportunity, again, you know, we have a point of view around things that might be in the dashboard. Our focus still, and remember, it's only from my vantage point, at least, it's only 12 months in. We're under the hood right now, improving the existing portfolio with an eye towards creating sustainable returns, you know, from that base.

Speaker #1: We're under the hood right now improving the existing portfolio with an eye towards creating sustainable returns from that base. And we'll continue to be eyes wide open on additional moves, but they got to be a creative they got to be transactional to be able to be executed.

What we've said in in Prior the last prior couple of quarters, particularly since last May, is that the portfolio. We've done the work on on our existing portfolio with all the potential scenarios around puts and takes and what you've heard from us? Is that we remained opportunistic. Um, there was nothing so compelling uh given the the screening criteria for for m&a or you know, that that keeps us disciplined on on our Core Business. There was nothing immediately so compelling that it required us to move now. But to the extent that there are opportunities for us to take a look,

Speaker #1: And they can't so unduly distract us from the commitments we've made. So opportunistic is the word.

Speaker #6: Great. And then we've seen some initial rate case and broader operational execution across the business, but maybe thinking a bit further out, how should we think about this transitioning from an ROE improvement vision to one that is more growth-driven by solid rate-based trends and growth across the business?

Rod West: You know, we'll continue to be eyes wide open on additional moves, but they gotta be accretive, they gotta be transactional to be able to be executed, and they can't so unduly distract us from the commitments we've made. Opportunistic is the word.

Speaker #6: Thanks.

Speaker #1: Yeah, that's the right question. And the one that's occupying us, it starts first on our end by improving the outcomes for customers in our own operational discipline.

Speaker #1: Earning the right to make requests for the, and I use the term gently, the tweaks in the regulatory mechanisms in our respective states. I'll give you a prime example.

On additional modes, but they got to be accretive, they got to be transactional, uh, to be able to, to be executed, and they can't, so, unduly distract us from the commitments we've made. So, uh, opportunistic is the word.

Eli Joseph: Great. You know, we've seen some initial rate case and broader operational execution across the business, but maybe thinking a bit further out, how should we think about this transitioning from an ROE improvement vision to one that is more growth driven by solid rate base trends and growth across the business? Thanks.

Speaker #1: I'll use the state of Missouri because I remember off the top of my head, I think it's Senate Bill 4 that created forward test year formula rate plans for water and gas, I believe.

Rod West: Yeah, that's the right question and the one that's occupying us. It starts first on our end by improving the outcomes for customers and our own operational discipline, earning the right to make requests for the, and I use the term gently, the tweaks in the regulatory mechanisms in our respective states. I'll give you a prime example. I'll use the state of Missouri because I remember off the top of my head, I think it's Senate Bill 4 that created a forward test year formula rate plans for water and gas, I believe. It did not include electric.

Speaker #1: And it did not include electric. But given what we know to be our capital focus to create customer outcomes and support economic development in that empire region, it would be a helpful component if we didn't have if we had the access to forward test years and formula rates in the electric business, right?

Speaker #1: But those require legislative adjustments. And I could see where we would align we can align with our stakeholders there to help support more timely and constructive recovery mechanisms, consistent with our customer-centric capital plan.

Great. And then you know we've seen some initial rate case and broader operational execution across the business but maybe thinking a bit further out how should we think about this transitioning from an Roe Improvement Vision to 1 that is more growth driven by solid rate based Trends and uh growth across the business? Thanks. Yeah, that's, that's, that's the right. That's the right question and the 1 that's occupying us. It starts first on our end by improving, um, the outcomes for customers in our own operational, discipline earning the right to to make requests for the. And I use the term gently, uh, the tweaks in the regulatory mechanisms, in our respective States. I'll give you a, a prime example. Um, I'll use the state of Missouri because I remember off the top of my head, I think it's Senate Bill 4, uh, that that created, um, a forward test year, formula rate plans for water.

Rod West: Given what we know to be our capital focus to create customer outcomes and support economic development in that Empire region, you know, it would be a helpful component if we didn't have, if we'd had the access to future test years and formula rates in the electric business, right? Those would require legislative adjustments. I could see where we would align with our stakeholders there to help support more timely and constructive recovery mechanisms consistent with our customer-centric capital plan.

Speaker #1: That's just one example of the types of tweaks. Where we have an opportunity to close the gap and allow it returns by coming to the regulator with an all-out effort to lower costs, to be focused on affordability, while at the same time meeting our aligned objectives around improving customer outcomes, supporting economic development, and certainly for us, meeting our financial obligations to our owners.

Speaker #6: Awesome. Appreciate the color.

Speaker #3: Next question comes from the line of Nelson Ng with RBC Capital Markets. Your line is open.

Rod West: That's just one example of the types of tweaks where we have an opportunity to close the gap in allowed returns by coming to the regulator, with an all-out effort to lower costs, to be focused on affordability, while at the same time meeting our aligned objectives around improving customer outcomes, supporting economic development, and certainly for us, meeting our financial obligations to our owners.

Speaker #5: Great. Thanks, everyone. And Rod, congrats on your first anniversary on the job.

Speaker #1: Thank you.

Speaker #5: My first question just relates to CALPICO, the solar project that was canceled or written down. Can you just give a bit of background on that project?

In gas, I believe. And and it did not include electric, but given what we know to be our, our Capital Focus to create uh, customer outcomes and support Economic Development, uh, in that Empire, uh, region, you know, it would be a, a, a helpful component. If we didn't have, uh, if we had the access to forward test years and formula rates in the electric business, right? But those require legislative, uh, legislative adjustments. And I, I could see where we would align. We, we can align with our stakeholders there to help support more timely and constructive, um, recovery mechanisms, uh, consistent with our customer Centric, Capital plan. That's just 1. Example of the types of tweaks where we have an opportunity to close the gap and allow it returns by coming to the regulator, uh, with an all-out effort, to lower costs, to be focused on

Speaker #5: And how big it was? Because I think there are several solar assets that CALPICO already, but I just want to kind of understand a bit.

On affordability, while at the same time meeting our aligned objectives around improving customer outcomes, supporting economic development, and certainly for us, meeting our financial, uh, obligations to our owners.

Eli Joseph: Awesome. Appreciate the color.

Speaker #5: Provide a bit of color. And then also, I guess I was also included in adjusted earnings and why it wasn't adjusted out.

Awesome. Appreciate the caller.

Operator: Next question comes from the line of Nelson Ng with RBC Capital Markets. Your line is open.

Next question.

Nelson Ng: Great. Thanks, everyone. Rod, congrats on your first anniversary on the job.

Speaker #4: Yeah. So just regarding the question on the CALPICO solar write-off, that project was in Nevada, was meant to bring power in the CALPICO. Just given where the economics of the project were, and our assessment of the ability to earn a fair return on it, we decided not to move forward.

Rod West: Thank you.

Nelson Ng: My first question just relates to CalPeco, the solar project that was canceled or written down. Can you just give a bit of background on that project, and like how big it was? Because I think there are several solar assets at CalPeco already. I just want to

Great. Thanks, everyone, and Rod. Congrats on your first, uh, first anniversary on the job.

Thank you. Um,

My first question just relates to Calpico, the solar project that was, uh, canceled or written down.

And just give a bit of background on that project.

Rob Stefani: Yeah.

Nelson Ng: understand a bit, provide a bit of color. Then also-

Rob Stefani: Yeah.

Nelson Ng: I guess it was also included in adjusted earnings and why it wasn't adjusted out.

Speaker #4: As far as why it wasn't included in adjustments, I think as a utility with the rate-based, the size of ours, obviously, you'll have projects that could potentially be abandoned along the way.

Rob Stefani: Yeah. Just regarding the question on the CalPeco solar write-off. That project was in Nevada, was meant to, you know, bring power in the, in the CalPeco. You know, just given where the economics of the project were, and our assessment of, you know, the ability to, you know, earn a fair return on it, you know, we, you know, decided not to move forward. As far as why it wasn't included in adjustments, you know, I think as, you know, as a utility with the rate base the size of ours, obviously you'll, you know, have projects that could potentially be abandoned along the way.

Speaker #4: And so viewed that more as a something that wouldn't necessarily be classified as one-off. Obviously, you strive to limit those but in that case, we wanted to reflect it within an operating expense this year.

Um, that project was, is, was in Nevada, was meant to, you know, uh, bring power in the, in the CalPeco. Um, you know, just, just given, given where, um, the economics of the project were and, and our assessment of

Speaker #5: Okay. Great. Thanks. And then my next question is, I know Rod, you previously talked about potentially we domiciling do you have any updates or early indications on that process?

Speaker #5: And I was just wondering whether that could potentially impact your effective tax rate.

Rob Stefani: you know, viewed that more as a, you know, something that wouldn't necessarily be classified as one-off. Obviously, you strive to limit those, but, in that case, you know, we wanted to reflect it within operating expense this year.

Speaker #1: The short answer is it could. And the other answer is it's ongoing. I won't be in a position to announce anything on the redomicile question other than to say we are advancing our analytics around answering those types of questions to the extent that a redomicile conversation could influence our point of view.

Nelson Ng: Okay. Great. Thanks. My next question is, I know, Rod, you previously talked about potentially re-domiciling. Do you have any updates or early indications on that process?

You know, the ability to, you know, earn a fair return on it. Um, you know, we we uh, you know, decided not to move forward. Um, as far as why it wasn't uh, included in in adjustments, you know. I think as, you know, as a utility with the rate base the size of ours, obviously you'll you'll you know, have projects that could potentially be abandoned along the way. And so you know, if viewed that more as a uh, you know, a a something that wouldn't necessarily be classified as 1 off obviously you, you strive to limit those. But uh, but in that case, you know, we, we wanted to reflect it within an operating expense this year.

Speaker #1: On our respective tax strategy and the options available to us. And we're taking those types of that type of analysis to our board to answer those very questions.

Rod West: Nope. Yeah.

Nelson Ng: ... I was just wondering whether that could potentially impact your effective tax rate.

Rod West: Nope. Yeah.

Nelson Ng: ... I was just wondering whether that could potentially impact your effective tax rate.

Okay, great, thanks. And then my next question is, I know, Rod, you previously talked about potentially re-doing some selling. Do you have any updates or early indications on that process?

Speaker #1: But we don't have announcements to make I think those are premature, but they'll work without question underway.

Rod West: The short answer is, it could. The other answer is, it's ongoing. I won't be in a position to announce anything on the re-domicile question other than to say, we are advancing our analytics around answering those types of questions to the extent that the a re-domicile conversation could influence our point of view on our respective tax strategy and the options available to us. We're taking those types of that type of analysis to our board to answer those very questions. But we don't have announcements to make. I think those are premature, but the work is without question underway.

And I was just wondering whether that could potentially impact your effective tax rate.

Speaker #5: Great. Thanks. We'll get back into queue.

Speaker #3: Next question comes from the line of Robert Hope with Scotiabank. Your line is open.

Speaker #4: Morning, everyone. So I appreciate the incremental color in 2028 CapEx and rate base on the presentation. Can you provide some incremental color on what you think the natural growth rate of your utilities are in a more steady state environment?

Speaker #4: The presentation shows 5 to 6 percent rate base 5 to 6 percent rate base KDR up to 28. But if we actually take a look at 28 with 1.3 billion of CapEx, you're closer to 8% growth on the rate base.

Nelson Ng: Great. Thanks. Put it back in the queue.

Speaker #4: Is this what you view to be a more indicative number for the natural growth of the business?

Great, thanks. I got back in the queue.

Operator: Next question comes from the line of Robert Hope with Scotiabank. Your line is open.

Speaker #5: Yeah. Thanks, Robert. I think towards the end of that forecast, I think you have to remember we've got the ARIS generation project as well as our investment in the transmission and SPP, which we're very excited about.

Next question comes from the line of Robert Hope at Scotiabank. Your line is open.

Robert Hope: Morning, everyone. Appreciate the incremental color in 2028 CapEx and rate base on the presentation. You know, can you provide some incremental color on what you think the natural growth rate of your utilities are in a more steady state environment? The presentation shows 5% to 6% rate base, K growth to 2028. If we actually take a look at 2028 with $1.3 billion of CapEx, you're closer to 8% growth on the rate base. Is this what you view to be a more indicative number for the natural growth of the business?

Speaker #5: So it's backend weighted due to that SPP transmission project and really more of the spend on ARIS. So that's what really drives the outsized growth towards the end of that forecast period.

Speaker #4: All right. That's helpful. And then as a follow-up there, maybe just in terms of the SPP transmission, can you provide us an update on where you are with the number of those projects and would it be fair to assume that that does hit 28, but that will be a multi-year project towards the end of the decade?

Uh, good morning, everyone. Uh, so I appreciate the incremental color in 2028 capex and repeats on the presentation. Um, you know, can you provide some information to color on what you think the natural growth rate of your utilities are in a more steady state environment? The presentation shows 5 to 6% rate base, uh, 5 to 6% to '28. But if we actually take a look at '28 with $1.3 billion of capex, you're closer to 8%.

Rob Stefani: Thanks, Robert. You know, I think at towards the end of that forecast, I think you have to remember we've got ARIS generation project as well as our investment in the transmission and SPP, which we're, you know, very excited about. It's back-end weighted due to that SPP transmission project and really more of the spend on ARIS. That's what really drives the outsized growth towards the end of that forecast period.

Speaker #1: One, it's a multi-year project for sure where the lion's share of the capital really shows up on the back end of the decade. We're going through various regulatory processes associated with SPP and our counterparties in both the transmission and the generation projects.

Yeah, thank thanks. Robert. You know I think at towards the end of that forecast, I think you have to remember we've got the arrows generation project as well as our investment in the transmission and spp, which we're, you know, very excited about. So it's back-end way to do that spp transmission project and and and really more of the spend on on arrows. So, um, you know, that's what really drives the outside growth towards the uh, the end of that forecast, period.

Robert Hope: All right. That's helpful. As a follow-up there, maybe just in terms of the SPP transmission, can you provide us an update on where you are with the number of those projects? You know, would it be fair to assume that that, you know, does hit 28, that will be a multi-year project towards the end of the decade?

Speaker #1: Internally, we're tracking along with our regulator expectations around how that capital deployment is actually going to flow through rates and we're shaping our regulatory strategy around aligning recovery with our capital deployment expectations.

Rod West: One, it's a multi-year project for sure, where the lion's share of the capital really shows up on the back end of the decade. We're going through various regulatory processes associated with SPP and our counterparties in both the transmission and the generation projects. Internally, we're tracking along with our regulator expectations around how that capital deployment is actually going to flow through rates. We're shaping our regulatory strategy around aligning recovery with our, you know, with our capital deployment expectations. It's as you know already, you know, from your history, you know how this works. Given the size of the capital programs, particularly as it relates to the history of Algonquin and the Empire District.

All right, that's helpful and then as a follow up there maybe just in terms of the spp transmission. Uh can you provide us an update on where you are with the number of those projects? And you know, would it be fair to assume that that you know, does hit 28 but that will be a multi-year project towards the end of the decade.

Speaker #1: And so it's, as you know already, from your history, you know how this works. Given the size of the capital programs particularly as it relates to the history of Algonquin and the Empire District, this is one of the largest projects we've ever had in the company's history.

Speaker #1: It's critical for us that we align our CapEx programs with constructive regulatory recovery. And two, to their credit, the respective states are aware of the significance of us getting that piece right.

1. It's a it's a multi-year project for sure, where the, the line share of the, of the capital really shows up on the, on the back end of the, of the decade, we are going through our various regulatory processes associated with, uh, with spp and our counterparties in both the transmission and the generation uh uh uh uh projects uh internally. We're we're tracking along with our regulator expectations around how that Capital uh deployment is actually going to

Speaker #1: And we're bringing them along with us on the journey.

Speaker #5: All right. Appreciate that. Thank you.

Speaker #3: Next question comes from the line of Ben Pam with BMO. Your line is open.

Speaker #6: Hi. Thanks for morning. I'm you mentioned the progress on operational efficiencies for 25. You mentioned the uptick in ROE. Can you comment maybe specific for Rod is you think what the last 12 months you generally track into what your expecting coming in was there?

Rod West: This is one of the largest projects we've ever had in the company's history. It's critical for us that we align, our CapEx programs with constructive regulatory recovery. To their credit, the respective states are aware of the significance of us getting that piece right, and we're bringing them along with us on the journey.

To flow through rates and we're shaping our regulatory strategy uh around aligning recovery uh with our uh you know with our Capital deployment expectations. And so it's it's as you know already you know from from from your history. You know how this works. Given the the size of the capital programs particularly as it relates to to the history of Algonquin and and the Empire District this 1 of the largest projects we've ever had. In the company's history, it's critical for us.

Speaker #6: Anything you learned along the way the last 12 months surprises areas you can tweak a bit more? So during our progress update on 2025 versus when you first started.

Robert Hope: All right. Appreciate that. Thank you.

Uh, the respective states are aware of the significance of us getting that piece, right? And, uh, we're bringing them along with us on the journey.

I appreciate that, that's it.

Operator: Next question comes from the line of Ben Pham with BMO. Your line is open.

Next question comes from the line of Ben Pam with BMO. Your line is open.

Speaker #1: Yeah. It's a great question. And I've been in constant both assessment and reflection mode. I think the extent to which I had a point of view around bidding the cost curve and the need for us to right-size the service company in support of our utility objectives that's really been reinforced the deeper I've gotten into the organization.

Nelson Ng: Hi. Thanks. Good morning. You mentioned the progress on operational efficiencies for 25. You mentioned the uptick in ROE. Can you comment then, maybe it's specific for Rod, is you think about the last 12 months, you.

Ben Pham: Hi. Thanks. Good morning. You mentioned the progress on operational efficiencies for 25. You mentioned the uptick in ROE. Can you comment then, maybe it's specific for Rod, is you think about the last 12 months, you.

Hi, thanks. Good morning. Um, you mentioned the—

The progress on the operational efficiencies for '25—you mentioned the uptick, and are we—

Ben Pham: You trying to track into what you're expecting, coming in. Was there anything you learned along the way the last 12 months, surprises, areas you can tweak a bit, more? Just generally a progress update on 2025 versus when you first started.

Speaker #1: The need for consistent operational both cadence and standards for customer outcomes for safety and operational performance the need is great. To the extent that you have operating entities from, let's say, Bermuda out from an eastward perspective to CalPico to the west, you have different operating cultures and experiences.

Rod West: It's a great question. I've been in constant both assessment and reflection mode. I think the extent to which I had a point of view around bending the cost curve and the need for us to right size the service company in support of our utility objectives, that's really been reinforced the deeper I've gotten into the organization. The need for consistent operational both cadence and, you know, standards for customer outcomes, for safety and operational performance, the need is great. To the extent that you have operating entities from, let's say Bermuda out from an east-eastward perspective to CalPeco to the west, you have different operating cultures and experiences. The 13 US states and four different countries each have different regulatory cultures.

Uh, can you comment that any, um, maybe it's specific for a rod is you think about the last 12 months, you you turn a track into what you're what you're expecting, uh, coming in. Was there anything that you learned along the way to the last 12 months surprises? Areas you can tweak a bit more? Uh so it's generating our progress update on on 2025 versus when you you first started

Yeah, it's a great question, and I've been in constant, uh, both assessment and reflection mode. I think the extent to which I had a point of view around bidding the cost curve and the need for us to right-size, uh,

Speaker #1: The 13 US states in four different countries, each have different regulatory cultures. But from our vantage point, the need to have a singular focus on safety, customer outcomes, and operational excellence required more engagement from leadership, which is why I knew that I needed to be surrounded by folks who understood what excellence looks like.

the service company in support of our utility objectives,

Speaker #1: So that we could role model the very behavior we're seeking to now reinforce to three, four levels down in the company. And the other piece of the puzzle is the stakeholder engagement where I'm bringing and we are intentionally bringing our stakeholders along with us on the journey.

Speaker #1: It's really important for us as leaders to show up with our regulators who we're asking to support us on the journey to create different customer outcomes.

Rod West: From our vantage point, the need to have a singular focus on safety, customer outcomes, and operational excellence required more engagement from leadership, which is why I knew that I needed to be surrounded by folks who understood what excellence looks like, so that we could role model the very behavior we're seeking to now reinforce two, three, four levels down in the company. The other piece of the puzzle is the stakeholder engagement, where I'm bringing, and we are intentionally bringing our stakeholders along with us on the journey. It's really important for us as leaders to show up with our regulators who we're asking to support us on the journey to create different customer outcomes. That means putting capital to work.

Speaker #1: And that means putting capital to work. More importantly, all of this stuff is happening in an environment where affordability is an absolute headwind regardless of what the actual price-to-value might actually be the narrative around affordability is influencing regulators' receptivity to additional rate recovery.

that's really been reinforced, uh, the deeper I've gotten into the, uh, to the organization. Uh, the need for consistent operational. Both Cadence. Uh, and um, you know, standards for customer outcomes for safety and and operational performance. Um, the need, the need is great to the extent that you have operating entities from, uh, let's say Bermuda out, uh, from an East Eastward perspective, to calpico to the West. You have different operating cultures and experiences the 13 US states, uh, in 4 different countries. Each have different regulatory, uh, regulatory cultures but but from our vantage point, the need to have a singular focused on safety. Customer outcomes and operational excellence.

Speaker #1: But they recognize that being intellectually honest that customers can't receive the benefits of economic development and lower costs without efficient investment and timely recovery.

Speaker #1: And so I'm not surprised by what I've seen because I've been in the industry long enough to where I'm recognizing pattern recognition. But in every different jurisdiction context matters.

Rod West: More importantly, all of this stuff is happening in an environment where affordability is an absolute headwind. Regardless of what the actual price to value might actually be, the narrative around affordability is influencing regulators' receptivity to additional rate recovery. They recognize that being intellectually honest, that customers can't re-receive the benefits of economic development and lower costs without efficient investment and timely recovery. I'm not surprised by what I've seen because I've been in the industry long enough to where I'm recognizing pattern recognition. In every different jurisdiction context matters and it influences how our employees, our regulators, the communities, and the customers we serve, how they receive, you know, our value proposition.

Speaker #1: And it influences how our employees, our regulators, the communities, and the customers we serve how they receive our value proposition. My objective then is to provide you as much transparency as our investors in the path ahead and create a predictable pathway of meeting your expectations so that you take the journey with us.

Speaker #1: But I've been pleasantly surprised by the receptivity of our employees to this pure-play strategy. And the standard. And I'm really pleased that I've been able to convince my colleagues around the table to join me on this journey of realizing what I still very much believe is a fantastic future for Algonquin.

I'm not surprised by what I've seen, because I've been in the industry long enough to where I'm recognizing pattern recognition. But in every different jurisdiction, context matters, and it influences how our employees, our Regulators, the communities, and the customers we serve.

Rod West: My objective is to provide you as much transparency, as our investors in the path ahead and create a predictable pathway of meeting your expectations so that you take the journey with us. I've been pleasantly surprised by the receptivity of our employees to this pure play strategy and the standard, and I'm really pleased that I've been able to convince my colleagues around the table to join me on this journey of realizing what I still very much believe is a fantastic future for Algonquin.

Speaker #5: Okay. That's great. Thanks for the reflection there. And maybe to turn to some of the other questions highlighted to 2028 CapEx the rate base you have there.

Speaker #5: You now have a CFO Robert in the CDs. He's looked at the numbers in more detail. Are you in a position near-term or next couple of months to think about your guidance beyond 27 with these additional details?

Speaker #5: Or is even through 2030 guidance is that maybe unrealistic? Just give me you're still walking than running.

Take the journey, uh, with us. But, uh, I've been pleasantly surprised, uh, by the receptivity of our employees to this Pure Play strategy and the standard. And I'm really pleased that I've been able to convince, uh, my colleagues around the table, uh, to join me on this journey, uh, realizing what I still very much believe is a fantastic future for Aegon.

Ben Pham: Okay. That's great. Thanks for the reflection there. Maybe to turn to some of the other questions highlighted to the 2028 CapEx, the rate base you have there. You now have a CFO, Robert, in the seat. He's looked at the numbers in more detail. Are you in a position near term or next couple of months to think about your guidance beyond 27 with these additional details? Or is even through 2030 guidance, is that may be unrealistic, just given that you're still walking than running.

Speaker #1: Yeah. I think you better believe we're looking at that. But to the extent that I would give guidance beyond, say, a growth CAGR for earnings I'm grappling with what level of certainty do I have given the multitude of states regulatory constructs, investment opportunities, portfolio scenarios on top of the question the earlier questions that were being asked and continue to be asked around domicile.

Your guidance Beyond.

Rod West: Yeah. I think, you know, you better believe we're looking at that. To the extent that I would give guidance, you know, beyond, say, a growth CAGR, you know, for earnings, I'm grappling with what level of certainty do I have given the multitude of states, regulatory constructs, investment opportunities, portfolio scenarios on top of the earlier questions that were being asked and continue to be asked around domicile.

27 with with these additional details or is even through 2030 guidance. Is that that may be unrealistic? Just give me your you're still walking then then running.

Speaker #1: I don't know that in the next couple of months I'm going to give you be in a position where I'm comfortable giving you a longer view but from the moment we came on board and now that we've settled Rob has settled in settling in as CFO we're putting the meat on the bones around the longer view.

Yeah, I I think I think you know you you better believe we're looking at that but but to the extent that I would, I would give guidance, you know, beyond say a a a growth keer you know for earnings.

Speaker #1: And zeroing in on reducing that cone of uncertainty as we and the board begin making some decisions around the answer to some of those broader questions.

I'm grappling with, with what level of certainty do I have, given the multitude of, of states', uh, regulatory, uh, constructs, investment opportunities?

Speaker #1: Whether it's portfolio domicile all of those things influence the tax assumptions for 27. But it's a work in progress. And I don't I won't create an expectation of some big reveal but I need you to know that we're under the The hood , constantly assessing how far out can we have clarity so that we can project transparently that clarity .

Rod West: I don't know that in the next couple of months I'm going to be in a position where I'm comfortable giving you a longer view, but from the moment we came on board and now that we've settled, you know, Rob has settled in, settling in as CFO, we're putting the meat on the bones around the longer view and zeroing in on reducing that cone of uncertainty as we and the board begin making some decisions around the answer to some of those, you know, broader questions, whether it's portfolio, domicile, all of those things influence, you know, the tax assumptions for 2027.

Um, portfolio—uh, portfolio scenarios on top of the earlier questions that were being asked, and continue to be asked, around Dohuk,

Speaker #1: You . But we are . We are definitely working , working on that

Speaker #2: Okay . That's great . Thank you

Speaker #3: Next question comes from the line of Mark Jarvi with CIBC Capital Markets . Your line is open

Speaker #4: Yeah . Thanks Just in terms of the CapEx ramping through 27 and again through 28 , rod , you've articulated that you don't want the company really spending cap unless you can earn a fair return on it .

I don't know that in the next couple of months I'm going to give you be in a position where I'm comfortable giving you a longer view. But but but from the moment we came on board and now that that we've settled, you know, Rob is settled in settling in a CFO. We're putting the meat on the bones around the longer View and zeroing in on reducing that cone of uncertainty as as we and the board, begin making some decisions around the answer to some of those, you know, broader questions, whether its portfolio. Uh domicile all of those things influence, you know.

Rod West: It's a work in progress, and I won't create an expectation of some big reveal, but I need you to know that we're under the hood constantly assessing how far out can we have clarity so that we can project transparently that clarity to you. We are definitely working on that.

Speaker #4: So I'm just as you stand here today , the confidence that the regulatory improvements , their confidence in recovering that invested capital to get across 27 , 28 and just is that sort of the signal then the higher CapEx for 28 , just that increasing confidence that the earned ROE continues to track higher beyond 2027 ?

The tax assumptions for 27 but it's a work in progress and I don't I won't create an expectation of some big revealed but I I need you to know that we're under the hood constantly. Assessing how far out can we have Clarity so that we can project transparently that that Clarity to you. But we are we are definitely working working on that.

Rob Stefani: Okay, that's great. Thank you.

Speaker #1: Well , the short answer is , is yes . And and again , for me , looking at and certainly Rob , as we're as we're shaping out the capital plan and matching the the earnings , we're also doing the dance around timing and what I am trying to get , get my , my comfort around in this kind of goes to the to my , my relative visibility into a five year plus , you know , kind of look is how do the time how does the timing play out ?

Operator: Next question comes from the line of Mark Jarvi with CIBC Capital Markets. Your line is open.

Next question comes from the line of Mark Jarvy with CIBC Capital Markets. Your line is open.

Mark Jarvi: Yeah, thanks. Good morning, everyone. Just in terms of the CapEx ramping through 2027 and again through 2028, Rod, you've articulated that you don't want to come really spending capital unless you can earn a fair return on it. Just as you stand here today, the confidence that the regulatory improvements there, confidence in recovering that invested capital to get across 2027, 2028, just is that sort of the signal then the higher CapEx through 2028, just that increasing confidence that the earned ROE continues to track higher beyond 2027?

Speaker #1: I know that I got some big chunky investments in transmission and and generation in the next couple of three years . You know , Missouri , I got a I got a two year stay out period right where where I'll be working into to feather in the implementation of the rates that we settled on , while at the same time knowing I got to put capital to work to advance the the larger chunk of your projects in transmission and generation , all of which are accreted to the value , the value of the firm , you know , but but the work is ongoing for me .

just in terms of the capex, ramping through 27 and again through 28 Rod, you've articulated that you don't want to come early spring Capital unless you get an a fair return on it. So I'm just I just stand here today. The confidence that the regulatory improvements their confidence and recovering that invested Capital to get across 27/28. And just is that sort of the signal. Then the higher cap. X3 28 is that increasing confidence? That the earned are we continue to track higher Beyond 2027?

Rod West: Well, the short answer is yes. Again, for me, looking at and certainly Rob, as we're shaping out the capital plan and matching the earnings, we're also doing the dance around timing. What I am trying to get my comfort around, and this kind of goes to my relative visibility into a 5+ year, you know, kind of look, is how does the timing play out? I know that I got some big chunky investments in transmission and generation in the next 2 or 3 years. You know, Missouri, I got a 2-year stay-out period, right?

For me, looking at and and certainly Rob, as we're as we're shaping out the capital plan and and matching the the earnings. We're also doing the dance around timing. And what I am trying to get

Speaker #1: How do I bend the cost curve in the near term to create and maintain the margins while still feathering in investment and getting support of my regulators to , in some instances , perhaps accelerate existing mechanisms to to keep us whole .

Rod West: Where I'll be working in to feather in the implementation of the rates that we settled on, while at the same time knowing I got to put capital to work to advance the larger chunkier projects in transmission and generation, all of which are accretive to the value of the firm. You know, the work is ongoing for me. How do I bend the cost curve in the near term to create and maintain the margins while still feathering in investment and getting support of my regulators to, in some instances, perhaps accelerate existing mechanisms to keep us whole? All of those things are part of managing the business.

Speaker #1: All of those things are part of managing managing the business . And as we've alluded to , there are some areas where we just have to put more , more resources to work to provide the outcomes to customers , to earn the right for those more efficient recovery mechanisms .

Speaker #1: But but Rob and I are are along with the executive team , know that our responsibility to you is to map out how we close the gap between our allowed returns and earned and we're we're dead set on remaining , focused on on achieving those outcomes as quickly and as efficiently as we can .

Speaker #1: I need you to know that that's not that's never lost on us .

Rod West: As we've alluded to, there are some areas where we just have to put more resources to work to provide the outcomes to customers to earn the right for those more efficient recovery mechanisms. Rob and I are along with the executive team, know that our responsibility to you is to map out how we close the gap between our allowed returns and earned. We're dead set on remaining focused on achieving those outcomes as quickly and as efficiently as we can. I need you to know that that's never lost on us.

Speaker #4: That makes sense . And then just if I hear you right , would we put maybe sort of higher sort of variance potentially on CapEx in 27 , 28 just because you're still working through this process ?

Speaker #4: And then I guess , Rob , in terms of the comments , around 2027 , no equity , just the view in terms of how you fund through 2028 .

Speaker #5: Yeah . So we we haven't put out guidance on 2028 . And I think to Rod's earlier point , you know I think you know as you look across the the business and kind of anything , anything we could do there , I just think it's just premature .

It's to map out how we close the gap between our allowed returns and earned. And, um,

Speaker #5: But but you know , as we look out , as you look at our balance sheet , as you look at bringing in , you know , decisions on the regulatory front , we feel confident in that ability to to get through 2027 without , you .

Mark Jarvi: That makes sense. Just if I hear you right, would we put maybe higher variance potentially on CapEx in 2027, 2028 just because you're still working through this process? I guess, Rob, in terms of the comments around 2027, no equity, just the view in terms of how you fund through 2028.

Speaker #5: An equity issuance . You know , I think the capital plan is exciting . You know , it is back end weighted . But , you know , a , you know , not an insignificant part of that is , you know , for , you know , transmission that the , you know , would , would earn a return along the way .

Rob Stefani: Yeah. We haven't put out guidance, you know, on 2028. I think to Rod's earlier point, you know, I think, as you look across the business and kind of anything we, you know, could do there, you know, I just think it's just premature. You know, as we look out, as you look at our balance sheet, as you look at bringing in, you know, decisions on the regulatory front, we feel confident in that ability to get through 2027 without, you know, an equity issuance. You know, I think the capital plan is exciting.

Speaker #5: That's compelling . So , you know , as , as we think kind of opportunities and closing the gap on Roe , I mean , that's exactly , you know , that .

Speaker #5: And getting in on the on the state side to to close the gap on the distribution end , you know , that's that's what we got to be doing .

Yeah, so we, we, we haven't put out guidance, you know, on 2028 and I think to Rod's earlier point, you know, I think, you know, as you look at across the, the business and kind of anything anything, we, you know, could do there. Um, you know, I just think it's just premature but but, you know, as we look out, as you look at our balance sheet. Um, as you look at bringing in, uh,

Speaker #5: So I think it's exciting . The those projects , you know , you know , unfortunately they're towards the back end . But but as rod highlighted you know they do continue past 2028 .

Rob Stefani: You know, it is back-end weighted, but, you know, not an insignificant part of that is, you know, for, you know, transmission that, you know, would earn a return along the way that's compelling. You know, as we think about those kind of opportunities and closing the gap on ROE, I mean, that's exactly, you know, that and getting in on the state side to close the gap on the, I think, distribution end. You know, that's what we got to be doing. I think it's exciting, those projects, you know. You know, unfortunately, they're towards the back end, but as Rod highlighted, you know, they do continue past 2028.

Speaker #5: So so something to kind of look forward to in the forecast . But but also beyond that .

Speaker #4: Got it . That's it for me . Thanks

Speaker #3: Next question comes from the line of John Mould with TD airline is open

Speaker #6: Thanks . Good morning everybody . I'd just like to start with the Missouri rate case . And you know the customer metrics that you need to have in place there for three consecutive months .

Speaker #6: Could you maybe just and I appreciate those were you know , those are metrics that were included in in the settlement that you're comfortable with .

You know, decisions on the regulatory front. We feel confident in in that ability to, to get through 2027 without, you know, inequity issuance. Um, you know, I think the, the capital plan is exciting. I, you know, it is back-end weighted. But, um, you know, ah, ah, you know, not an insignificant part of that is, you know, for, uh, you know, transmission uh, the the, you know, what, what earn a return along the way that that's compelling. So, you know, as, as we think about those kind of opportunities and closing the gap on Roe. I mean, that's exactly, you know, that and and getting in on the, on the state side to, to close the gap, on the, I think distribution end. Um, you know, that's that's what we got to be doing. So, I think it's exciting the

Rob Stefani: so something to kind of look forward to in the forecast, but also beyond that.

Speaker #6: I'm just if you can give us some color on on your progress on those on those customer metrics and you know how you're thinking about kind of time to hitting that three consecutive month window

Rob Stefani: so something to kind of look forward to in the forecast, but also beyond that.

Mark Jarvi: Got it. That's it for me. Thanks.

Got it. That's it for me. Thanks.

Operator: Next question comes from the line of John Moore with TD Cowen. Your line is open.

Speaker #1: Yeah . And I , I have , I have Amy , our chief customer officer here I'll , I'll , I'll start the question and I'll , I'll look for some body language from Amy to tell me if I'm , if I'm off on it .

John Moore: Thanks. good morning, everybody. I'd just like to start with the Missouri rate case and, you know, the customer metrics that you need to have in place there for three consecutive months. I appreciate those were, you know, those are metrics that were included in the settlement that you're comfortable with. I just wondering if you could give us some color on, you know, your progress on those, on those customer metrics and, you know, how you're thinking about kind of time to hitting that three consecutive months window.

Speaker #1: And I've shared before that these customer metrics , the customer metrics were , were all around items like accuracy , timeliness of of billing , which , which , you know , sounds simple , but for us , represented the outcomes of of a series of end to end processes that that presented opportunities for improvement .

Thanks, uh, good morning, everybody. Um, I'd just like to start with the, uh, Missouri rate case and, uh, you know, the customer metrics that you need to have in place there for three consecutive months. Could you maybe just

Rod West: Yeah. I have Amy, our Chief Customer Officer here. I'll start the question and I'll look for some body language from Amy to tell me if I'm, if I'm off on it. I've shared before that these the customer metrics were all around items like accuracy, timeliness of billing, which, you know, sounds simple, but for us represented the outcomes of a series of end-to-end processes that presented opportunities for improvement. We did not believe those metrics, all of which would be the types of things that any utility would view as reasonable.

Uh, and I appreciate those were, you know, those are metrics that were included in in the settlement that you're comfortable with. I'm just wondering if you give us some color on on you know your progress on those uh on those customer metrics. And uh you know how you're thinking about kind of time to hitting that that 3 consecutive month window

Speaker #1: We we did not believe those those metrics , all of which would be the types of things that any any utility would , would , would view as reasonable .

Speaker #1: We believe we have we have satisfied those metrics , but we're in the process of validating with the Commission . The sustainability of the achievement .

Speaker #1: And sustainability of those metrics , so that we we could then satisfy for the Commission that we've met the conditions , precedent for rate implementation .

Yeah. And I, I have, I have Amy our chief customer officer. Here I'll, I'll, I'll, I'll start the question and I'll I'll look for some body language from Amy to tell me if I'm, if I'm off on it. And and I've shared before that, these customer metric, the customer metrics were were all around uh items like accuracy timeliness of uh of of billing which which you know sounds simple but

Speaker #1: And Amy and her team have literally been working 24 over seven to to ensure not only the achievement , but the durability of of the fixes that created the friction in Missouri and and our expectation is that we're going to answer the bell for the regulator , but also for our customers to to meet that , you know , to meet those timelines and outcomes .

Rod West: We believe we have satisfied those metrics, but we're in the process of validating with the commission the sustainability of the achievement and sustainability of those metrics so that we could then satisfy for the commission that we've met the conditions precedent for rate implementation. Amy and her team have literally been working 24/7 to ensure not only the achievement, but the durability of the fixes that created the friction in Missouri. Our expectation is that we're going to answer the bell for the regulator, but also for our customers to meet that, you know, to meet those timelines and outcomes.

Speaker #1: So , you know , we're on track , but we're in the process of validating that with the commission . And that is a condition precedent of rate implementation per per the settlement .

Speaker #1: But think about timeliness . Think about accuracy of bills and and the durability of the system upgrades that we and tweaks that we have made along the way

For us represented um the outcomes of a of a series of end to end processes that that presented opportunities for improvement. We do we did not believe those those metrics. Uh, all of which would be the types of things that any, any utility would would would view as reasonable. We believe we have, we have satisfied, those metrics, but we are in the process of validating with the, the commission, uh, the sustainability of the achievement, and sustainability of those metrics, uh, so that we, we could then satisfy for the commission that we met the conditions president for rate, implementation and Amy and her team, uh, have literally been working, uh, 24/7, uh, to to ensure not only the achievement, uh, but the durability of of the fixes, uh, that created the, the, the friction in Missouri and

Speaker #6: Okay . Thanks for that . And then just maybe a quick one on the hydro . How should we think about where that sits in the pecking order of potential recycling opportunities ?

Speaker #6: Doesn't impede your your play positioning . And , you know , wouldn't displace and equity need over the next couple of years because you don't need to come to market .

Rod West: you know, we're on track, but we're in the process of validating that with the commission, and that is a condition precedent of a rate implementation per the settlement. Think about timeliness, think about accuracy of bills and the durability of the system upgrades that we, and tweaks that we have made along the way.

Speaker #6: But it does represent your only non-red asset . So how should we think of that relative to the rest of the portfolio ? And in terms of what you the kind of interest or conversations you've had in the market since you identified that ?

Speaker #6: Yeah .

Speaker #1: Yeah . And I I'm in . It's not going to be exciting to hear because there isn't a one thing different than what you've heard before .

John Moore: Okay, thanks for that. Just maybe a quick one on the hydro. You know, how should we think about where that sits in the pecking order of potential recycling opportunities? Doesn't impede your pure play positioning and, you know, wouldn't displace an equity need over the next 2 years 'cause, you know, you don't need to come to market, but it does represent your only non-reg assets. You know, how should we think of that relative to the rest of the portfolio and, you know, in terms of what you, the kind of interest or conversations you've had in the market since you identified that?

Speaker #1: And I don't actually I do want to sound like a broken record , because I want us to be consistent . It's no longer what we consider to be material , right ?

Speaker #1: Just given where where the asset sits with the within the existing portfolio . We are focused on the pure play , and certainly our openness and willingness to transact on with , with the hydro asset hasn't , hasn't changed .

Speaker #1: We've made the point that it is not , you know , it's not a fire sale circumstance where we're looking to to jettison it , you know , at any .

Rod West: Yeah. Yeah. It's not gonna be exciting to hear because there isn't a one thing different than what you've heard before. Well, actually, I do wanna sound like a broken record because I want us to be consistent. It's no longer what we consider to be material, right? Just given where the height the asset sits within the existing portfolio. We are focused on the pure play and certainly our openness and willingness to transact on with the hydro asset hasn't changed. We've made the point that it is not, you know, it's not a fire sale circumstance where we're looking to jettison it, you know, at any cost.

Speaker #1: And to the extent that that we have been have received or , or are in any stage of conversation with counterparties , we wouldn't be we wouldn't be commenting on it unless we thought we were at a point where we'd have something to to transact on that , that being said , it is still very much asset that we believe is would better serve us outside the portfolio .

Speaker #1: Assuming assuming we had reasonable terms and that's that's all that that's all we're doing is pursuing reasonable terms and , and we're sure not going to to be distracted by , by any process that isn't , you know , from our vantage point , isn't creating some level of value , you know , on our end .

Rod West: To the extent that we have received or are in any stage of conversation with counterparties, we wouldn't be commenting on it unless we thought we were at a point where we'd have something to transact on. That being said, it is still very much an asset that we believe it would better serve us outside the portfolio, assuming we had reasonable terms. That's all we're doing is pursuing reasonable terms, and we're sure not going to be distracted by any process that isn't, you know, from our vantage point, isn't creating some level of value you know, on our end.

Speaker #1: So I'm , you know , Rob has anything to add there by all means . But it's it's on the dashboard and , and we go through the normal , you know , the normal processes around considering , you know , inbound from interested parties .

Speaker #1: But but again , this will not be a fire sale .

Speaker #6: Okay . Got it . Appreciate the consistency . Those are my questions . Thanks very much for taking them

Uh, and to the extent that that we have been have received or, or are in any stage of conversation with counterparties, we wouldn't be, we wouldn't be commenting on it unless we thought we were at a point where we'd have something to, uh, to transact on, uh, that that being said, uh, it is still very much, uh, an asset that we believe. Um, is it would better serve us outside the portfolio, assuming, uh, assuming we had a reasonable terms and that's, that's all that, that's all we're doing is pursuing reasonable terms and, and we're sure not going to

Speaker #3: Again , if you would like to ask a question , press star . Then the number one on your telephone keypad We'll take our last question from Ellie Johnson with JP Morgan .

Rod West: I'm, you know, if Rob has anything to add there, by all means, but it's on the dashboard and we go through the normal, you know, the normal processes around, considering, you know, inbound from interested parties. Again, this will not be a fire sale.

Speaker #3: Your line is open

Speaker #7: Hey , thanks for squeezing me in . One more quick one . Can you just discuss your overall view on the California regulatory backdrop ?

Speaker #7: Maybe thinking about wildfire risk at Calpico and whether the team would consider contributing to a wildfire fund there ? Thanks .

Isn't creating some level of value, you know, on our end. So I'm—you know, if Rob has anything to add there, by all means, but it's on the dashboard, and we go through the normal, you know, the normal processes around, uh, considering, uh, you know, inbound from interested parties.

But, but again, this will not be a fire sale.

John Moore: Okay, got it. Appreciate the consistency. Those are my questions. Thanks very much for taking them.

Speaker #1: How much time you got ?

Speaker #7: I got all morning

Operator: Again, if you would like to ask a question, press star then the number 1 on your telephone keypad. We'll take our last question from Eli Josan with JP Morgan. Your line is open.

Speaker #1: No , it's you know , listen , it's an ongoing effort for us as a as as , you know , we're not the same scale as some of my , you know , my larger colleagues that operate in the in the state and that dynamic , you know , influences how I think about the backdrop around wildfire .

Eli Joseph: Hey, thanks for squeezing me in. One more quick one. Can you just discuss your overall view on the California regulatory backdrop? maybe thinking about wildfire risk at CalPeco and, you know, whether the team would consider contributing to a wildfire fund there. Thanks.

Speaker #1: We're going through a process now to to get our wildfire mitigation plans approved . And , you know , it is a it is a complex landscape that we are navigating .

Rod West: How much time you got?

Eli Joseph: I got all morning.

Rod West: No, it's, you know, listen, it's an ongoing effort for us. As, you know, we're not the same scale as some of my, you know, my larger colleagues that operate in the state. That dynamic, you know, influences how I think about the backdrop around wildfire. We're going through a process right now to get our wildfire mitigation plans approved. You know, it is a complex landscape that we are navigating.

Speaker #1: We expect to navigate it , as is our our charge and reduce the risk financially , operationally and otherwise , to to wildfires .

Speaker #1: While managing certainly the cost . But but from my vantage point , the recovery , the recovery mechanisms that and access to insurance that reduces risk on our end and and I am spending a fair amount of time as , as as my team both contributing to and tracking that process .

Speaker #1: But and it is a full time endeavor . I will I will tell you , we are spending a fair amount of time in and resources keeping up , but I am duty , duty bound to reduce the risk of operating in California and and we're we're we're engaged with our stakeholders in Washington , DC and the state of California from the governor's office to our regulators and and other counterparties .

Rod West: We expect to navigate it as is our charge and reduce the risk, both financially, operationally, and otherwise to wildfires while managing certainly the cost, but from my vantage point, the recovery mechanisms that, and access to insurance that reduces risk on our end. I am spending a fair amount of time, as is my team, both contributing to and tracking that process. It is a full-time endeavor, I will tell you. We are spending a fair amount of time and resources keeping up. I am duty-bound to reduce the risk of operating in California. We're engaged with our stakeholders in Washington, DC, in the state of California, from the governor's office to our regulators and other counterparties.

Speaker #1: We're fully engaged , just given given the complexity of managing risk , there .

Speaker #7: Great . Thanks again

In the state and that dynamic, um, you know, influences how I think about, uh, the backdrop around wildfire. We're going through a process right now to, to get our wildfire mitigation plans, uh, approved. And, you know, it is a, it is a complex landscape that we are navigating—we expect to navigate, uh, as is our, our charge—and reduce the risk on both financially, operationally, and otherwise to, to wildfires while managing, uh, certainly the cost. But, but from my vantage point, uh, the recovery, uh, the recovery mechanisms that, and, and access to insurance, that reduces risk on our end. And, and I am spending a fair amount of time, as, as, as my team.

Uh, both contributing to and tracking that process.

Speaker #3: There are no further questions at this time . I will turn the call to Mr. Rod West

Speaker #1: All right . Just a general thanks for your continued interest and and our commitment to to be transparent with you has has been the undergirding of our disclosures today .

Speaker #1: And and again , thanks for for supporting our path to premium . Have a great day .

Rod West: We're fully engaged, just given the complexity of managing risk there.

But it and it is a full-time. Endeavor I will I will tell you we are spending a fair amount of time and and resources keeping up, but I am duty duty bound to reduce the risk of operating in California. And, and we're, we're we're engaged with our stakeholders in Washington DC in the state of California, from the governor's office to our regulators and and, and other counterparties, we're fully engaged. Uh, just given, um, given the complexity of managing risk. Their

Eli Joseph: Great. Thanks again.

Great. Thanks again.

Operator: There are no further questions at this time. I will turn the call to Mr. Rod West.

There are no further questions at this time. I will turn the call over to Mr. Rod West.

Rod West: All right. Just a general thanks for your continued interest and our commitment to be transparent with you has been the undergirding of our disclosures today. Again, thanks for supporting our path to premium. Have a great day.

Um, and our commitment, to, to be transparent with you, uh, has has been the undergirding, uh, of our disclosures today. And, uh, and again, uh, thanks for, uh, for supporting, uh, our path to premium have a great day.

Operator: This concludes today's conference call. You may now disconnect.

You me now.

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