Q4 2025 Algonquin Power & Utilities Corp Earnings Call

March 6, 2026

Speaker #1: Please unmute 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 Rob Stefani, Chief Financial Officer, who will share prepared remarks.

Speaker #1: ALGONQUIN POWER & UTILITIES CORP. fourth quarter 2020 earnings conference call. All lines have been placed on mute to prevent any background noise.

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 #1: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during, simply press star one on your telephone keypad.

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

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

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 management discussion and analysis 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: 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.

Speaker #2: Other members of the management team are also available to answer your questions. During the Rob portion of the call today, to accompany today's earnings call, we have a supplemental webcast presentation available on our website, 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: . Our financial statements and management discussion and analysis are also available on the website , as well as on Sedar and Edgar We would like To to remind you that our discussion during the call will include certain forward looking information 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: 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 then 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 two and then requeue if you have any additional questions to allow others the opportunity to participate.

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

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

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 also refer to our most recent MD&A on our SEDAR+ and EDGAR, and our 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 your questions to two and then requeue. If you have any additional questions, please allow others the opportunity to participate.

Speaker #3: 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.

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

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

Speaker #3: Brian, and good morning, everyone. Thanks for joining us. 2025 was a turning point for Algonquin. We delivered strong

Rod West: 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. 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: results , improved , website for earned returns , made substantial operational and regulatory progress , and meaningfully strengthen our balance sheet . And those reflect something broader .

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: Algonquin is a different company today than it was a year ago. We are more focused, more disciplined, and more accountable to each other and to our stakeholders.

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: We have sharpened our strategy , assembled and 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 .

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, to improve customer outcomes.

Speaker #3: Turning to slide five . I'll begin my remarks today by walking through our accomplishments in 2025 . We delivered full year net earnings per share of adjusted net EPs of $0.34 , which exceeded the top end of our guidance range by $0.02 .

Speaker #3: 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: 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 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 And second , strengthening regulatory strategy execution through more proactive engagement .

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 38% in 2024 to roughly 36% in 2025.

Speaker #3: 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 used net proceeds from the sale of our renewable business, excluding our hydro assets, to retire approximately $1.6 billion of debt.

Speaker #3: Materially improving our cap structure and financial flexibility. And finally, we continue to simplify the company and the story, both through portfolio actions and by reducing complexity inside the regulated platform.

Speaker #3: 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: 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.

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: 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, can drive consistency, across our gas, water, and electric portfolio.

Speaker #3: And finally, we continue to simplify the company and the story, both through portfolio actions and by reducing complexity inside the regulated platform.

Speaker #3: While we have much more work to do, it’s a good start, and we carry that momentum into 2026. Looking ahead to 2026, on slide six, our priorities build directly on what we've achieved over the last 12 months.

Speaker #3: As we undertake these efforts, we're also implementing a centralized capital projects team to improve our execution performance and reducing risk. At the the safety and reliability of our system, supporting positive customer outcomes and maintaining affordability.

Speaker #3: Operationally , cost , this was 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: Across all of our jurisdictions. 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.

Speaker #3: We expect to capture 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 reducing risk.

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.

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: 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.

Speaker #3: We're working there to see the rates implemented, which remain subject to evaluation, of specific customer metrics. We were also glad to resettlement agreements at New England Gas, CalPico Electric, and Arizona Litchfield Park Water and Sewer.

Speaker #3: 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 during any kind of disruption from a regulatory standpoint , we're pleased to receive approval of our settlement in Empire Electric .

Speaker #3: 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 Norgio as our new chief operating officer, and Kristen Von Fischer as our new chief human resources officer.

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

Rod West: We were also glad to reach settlement agreements at New England Gas, CalPeco Electric, and Arizona Litchfield Park Water and Sewer. We 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 Norjo 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. 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: 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, 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.

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 twenties % range as compared to the previously anticipated low to mid-twenties % range. 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: 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 in our systems efficiently.

Speaker #3: 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.

Rod West: 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. 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: This authorizes a $97 million revenue increase after we meet customer metric performance requirements for three 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.

Speaker #3: In California, we received a proposed decision at CalPico Electric. Adopting the proposed settlement agreement, which provides for a 48.6 million revenue increase retroactive to January 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 three 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 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 two 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 a rate stay-out, a rate case stay-out through October 31 of 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.

Speaker #3: The settlement, which was reached with the Arizona Corporation Commission staff, calls for a 15.3 million revenue adjustment and an ROE allowed ROE of 9.75%.

Rod West: The settlement includes an allowed ROE of 9.3% and an equity ratio of approximately 52.9%, 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, an allowed ROE of 9.75% with a 54% equity ratio. Hearings are scheduled for late March of this year.

Speaker #3: With a 54% equity ratio. Hearings are scheduled for late March of this year. 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: 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 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, 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, multi-year rate plans, forecasted test years, and formula rate structures.

Speaker #3: Which will inform our forward earnings trajectory. Turning to 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-based 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, CCIP 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 of Southwest Gas Holdings.

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

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.

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.

Rob Stefani: 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 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, and the prior sale of our Atlantica ownership stake.

Speaker #2: 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 paydown 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 in 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 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. 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: 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.

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 discontinuation. Turning 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, representing a compound annual growth rate of nearly 6% from 2025 year-end through 2028.

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 integrated case mechanisms.

Speaker #2: 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.

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: 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.

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: 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.

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 representing a compound annual growth rate of nearly 6% from 2025 year, end through 2028.

Speaker #2: 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, 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 businesses, Liberty Utilities Company, or LUCO, and the publicly traded holding company, Algonquin Power & Utilities Corporation, or APUC.

Rob Stefani: 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. 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: 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 Sorales term loan.

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, 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: 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.

On slide 16, you'll see a sources and uses.

Speaker #2: 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.

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 Suralis 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.

Table depicting the cash flows between the holding company of our U.S. operating businesses, Liberty Utilities Company or LUCA, and the publicly traded holding company, Algonquin Power & Utilities Corporation. Algonquin Power & Utilities Corporation are a book.

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 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.

Rob Stefani: 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 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 of 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 twenties percent range, as compared to the previously anticipated low to mid-twenties percent range.

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.

As well as the alcohol and common equity dividend. We expect to raise approximately $1.15 billion at Lucca through bond issuances to retire the June maturity, a book cash flow from opiates 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.

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.

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 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 return.

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 one year in the job. It was March seventh 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. 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.

As Rod discussed earlier, we were our revising, our 2027 adjusted net EPS estimate to a range of 38 cents to 42 cents. 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 load 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 strategy is 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.

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 one year in the job. It was March 7th, uh, last year when I began my tenure.

When I joined El Gangchen 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 strengthened balance sheet with a strong 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 improved customer service.

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 claim it 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 Sidhu 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?

Operator: 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 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.

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.

Speaker #5: Yeah, thanks, Baltej. It's a 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 redraw your question, simply press star 1. Again, we do request for today's session that you please limit it to one question and one 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.

Hey, 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 towards the mid- to high-20s effective tax rate versus the prior assumptions?

Rob Stefani: 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 the mid to high 20s that we currently expect. That resulted in just 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 spell 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 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 and 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. 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. 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.

Is that a Guango doesn't have yet? That you've seen elsewhere in your prior experience.

Rob Stefani: Yeah. I mean, look, I think the strategy that Rod and the team have put together is strong, and that 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, 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. We've got a strong investment-grade balance sheet, that provides us the flexibility to pursue, you know, organic growth.

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.

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 that was would include some portfolio optimization opportunities as well?

Nelson Ng: 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.

Rob Stefani: 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.

Yeah. I, I mean, look, I think the, uh, the strategy that rod and the team have put together is, is strong, and that's, that's really hinges around, uh, you know, the the rate case, Cadence and rate case strategy, and and engaging across our jurisdictions. Um, you know, bringing leaders in from, uh, you know, very well recognized utilities to enhance the operating platform, like Amy and and Pete and Kristen. Um, and, and so, as I think about kind of, you know, levers we can pull as a, as a management team with a lot of experience that, that premium utilities. I think that's, that's really at the Forefront. Um, and then the balance sheet, you know, we've got over 1.4 billion of liquidity. We are got a strong investment grade balance sheet and that provides us the flexibility to pursue, you know, organic growth um as well as assess you know other opportunities. Um so so as you think about levers the you know the leadership team that uh refocus on

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 sound financial balance sheet, you know, provide this a lot of flexibility.

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

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

Nelson Ng: Okay, thanks.

Rob Stefani: Okay, thanks.

Thank you. All.

Okay, thanks.

Operator: Our next question comes from the line of Eli Rubin with JPMorgan. Your line is open.

Our next question.

Eliot Jovanovic: 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 those would include some portfolio optimization opportunities as well? Thanks.

Eli Josen: 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 those would include some portfolio optimization opportunities as well? Thanks.

Ellie Joseph with JP Morgan, your line is open.

Hey, good morning everyone. Um, wanted to start on the additional opportunities you mentioned 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, let 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-based growth is predominantly, you know, organic. What we've said in prior, 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, changes 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.

Oh, I'll start in in certainly. I let uh, you know, let Rob weigh in with, with his early observations, you know, the opportunities for my vantage point aren't new. Um, our growth story starts with Organic growth, within our existing jurisdictions where we have both the opportunity and I would dare say the Mandate, uh, to create, uh, 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.

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.

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, uh, at at potential moves within the portfolio. We're poised to do that if there was a capital recycling opportunity, uh, again, you know, we have a point of view around things that that, that might be in the, in the dashboard, but but our Focus still and remember, it's only from my vantage point, at least it's, it's a, it's only 12 months in, um, we're under the hood. Uh, right now, uh, improving the existing portfolio, uh, with an eye towards creating sustainable returns, you know, from that base and, uh, you know, we'll, we'll continue to be Eyes Wide Open.

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 moves, but they got to be a creative. They got to be transactional, uh, to be able to, to be executed and they cancel unduly distract us from the commitments. We've we've made. So, uh, opportunistic, is the, is the word.

Eliot Jovanovic: 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-based trends and growth across the business? Thanks.

Eli Josen: 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-based 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 a forward test year, formula rate plans for water and gas, I believe.

Great. And then, you know, we've seen some initial rate case and broader operational execution across the business, but maybe thinking about it 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?

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 our stakeholders there to help support more timely and constructive recovery mechanisms consistent with our customers' central capital plan.

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 had the access to forward test years and formula rates in the electric business, right? Those would 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.

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 caller.

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?

For water and 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 cost.

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 provide a bit of color.

Eliot Jovanovic: Awesome. Appreciate the color.

Eli Josen: Awesome. Appreciate the color.

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, uh, obligations to our owners.

Speaker #5: 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? Like how big it was? Because I think there are several solar assets at CalPeco already, but I just want to kind of understand a bit, provide a bit of color.

Great. Thanks, everyone. And, uh, 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.

Rod West: Yes.

Nelson Ng: I guess that 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.

Yeah. So uh, just regarding the question on on the calpico, uh, solar write offs. Um, that project was is, was in Nevada, was meant to, you know, uh, bring power in the, in the cow Pico. 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 redomiciling 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, a 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.

Ben Pham: 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? I was just wondering whether that could potentially impact your effective tax rate.

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

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, 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.

Okay, great, thanks. And then my next question is, I know, Rod, you previously talked about potentially ReD Dohuk—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 the work is without question underway.

Rod West: 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 re-domicile question other than to say we are advancing our analytics around answering those types of questions to the extent that 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. 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: Good morning, everyone. So I appreciate the incremental color in 2028 CapEx x 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?

Uh, the short answer is it could, uh, and 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, uh, answering those types of questions to the extent that the, the re-domicile conversation, uh, could influence our point of view.

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

Ben Pham: Great. Thanks. Put back in the queue.

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

Uh on on our respective tax strategy and the options available to us and and we're taking those types of uh that type of analysis to our board uh to answer those very questions. So but we don't have announcements uh to make uh I think those are are premature, but the work is without question underway.

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

Great, thanks. I'll get 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.

Robert Hope: Morning, everyone. Appreciate the incremental color on 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 drive 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?

Next question comes from the line of Robert, I hope it's Scotiabank. Your line is open.

Speaker #5: So it's backend weighted due to that SPP transmission project. And really more of the spend on ARIS. So yeah, 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?

Rob Stefani: Yeah. 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. Yeah, that's what really drives the outsized growth towards the end of that forecast period.

$0.3 billion of capex, you're closer to 8% growth on the rate base. Is this where you need to be? Is that a more indicative number, uh, for the natural growth of the business?

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.

Robert Hope: All right. That's helpful. 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? You know, would it be fair to assume that, you know, does hit 2028, that will be a multi-year project towards the end of the decade?

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 were you know, very excited about. So it's back end weighted due to that spp transmission project and and and really more of the spend on on arrows. So, um, yeah, that's what really drives the outside growth towards the uh, the end of that forecast, period.

Speaker #1: And 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 and we're shaping our regulatory strategy around aligning recovery with our capital deployment expectations.

Rod West: One, it's a, 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 our 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.

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're 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

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

Speaker #4: All right. Appreciate that. Thank you.

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

Rod West: 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. 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.

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 as you think about the last 12 months?

Speaker #6: You generally track into what your expecting coming in was there. Anything you learned along the way the last 12 months surprises areas you can tweak a bit more?

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

Capital uh deployment is actually going 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 is 1 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 and and 2 to their credit. Uh, their respective states are aware of 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.

Speaker #6: So during our progress update on 2025 versus when you first started.

The question comes from the line of Ben Pam, with BMO.

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, as you think about the last 12 months, are you kind of tracking to 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? Bearing out progress update on 25 versus when you first started?

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.

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

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

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 the 13 US states in four different countries each have different regulatory cultures.

Rod West: Yeah. 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 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. 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 eastward perspective to CalPeco to the west, you have different operating cultures and experiences. The 13 US states in four different countries each have different regulatory cultures.

Uh, can you comment Denny maybe specific for a rod? Is, you think what 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 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

the service company in support of our utility objectives,

Speaker #1: 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.

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 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.

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 AER operating entities from, um, 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

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.

But from our vantage point, the need is to have a singular focus on safety, customer outcomes, and operational excellence.

Speaker #1: To additional rate recovery. 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 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.

Support us on the journey to create different customer outcomes and that means putting Capital to work. More importantly, all of this stuff is happening in an environment where affordability uh is an absolute headwind regardless of what the actual price to Value might actually be the narrative around affordability is influencing uh Regulators receptivity uh to to additional rate recovery. But they recognize being intellectually honest, that that customers can't receive the benefits of Economic Development and, and lower costs without efficient, uh, investment and, And Timely recovery. And so, I'm

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.

Rod West: 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. 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 #6: 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 you now have a CFO Robin in the CDC.

You know, our our value proposition, my objective then is to provide you as much transparency uh as our investors in the path ahead and and create a predictable pathway of of meeting your expectations. So that you

Speaker #6: 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 #6: 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—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 2020 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 2027 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 earlier questions that were being asked and continue to be asked around domicile.

Okay, that's great. Thanks for the reflection there, and maybe to turn to some of the other questions highlighted in the 2020 chat box, the rate that you have there. You now have a CFO, Robin, in the CDC. He's looked at the numbers in more detail.

Near-term, over a couple of months, to think about 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. 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.

27 with these additional details, or is that even through 2030 guidance? Is that maybe unrealistic? Just give me your—you're still walking, 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 tagger, 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 what level of certainty do I have, given the multitude of state regulatory 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 hood constantly assessing how far out can we have clarity so that we can project transparently that clarity to you.

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

Rod West: 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 27. 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.

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.

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

Speaker #6: Okay. That's great. Thank you.

Speaker #4: Next question comes from the line of Mark Jarve with CIBC Capital Markets. Your line is open.

Speaker #5: Yeah. Thanks, Gordon. 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 capital unless you can earn a fair return on it.

Speaker #5: So just as you stand here today the confidence that the regulatory improvements there confidence in recovering that invested capital to get across 27, 28.

Speaker #5: And just is that sort of the signal then the higher CapEx through 28 just by increasing confidence that the earned ROE continues to track higher beyond 2027?

Ben Pham: Okay, that's great. Thank you.

But but, but from the moment, we came on board and now that that we've settled, you know, Rob has 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, 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 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.

Okay, that's great. Thank you.

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

Speaker #1: Well, the short answer is yes. And 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.

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 to risk 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, 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: And what I am trying to get my comfort around in this kind of goes to my relative visibility into a five-year-plus kind of look is how do the timing play out?

Speaker #1: I know that I got some big chunky investments in transmission and generation in the next couple of three years. Missouri I got a two-year stay-out period, right?

Rod West: Well, the short answer is yes. Again, for me, looking at 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 plus, 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 couple of 3 years. You know, Missouri, I got a 2-year stay out period, right?

Yeah, thanks. So, um, 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 spending capital unless you can earn a fair return on it. So, I'm just— I just stand here today, the confidence that the regulatory improvements— their confidence in recovering that invested capital to get across '27 to '28, and just, is that sort of the signal, then, the higher capex in '28? Is that increasing confidence that they earned, or do we continue to track higher beyond 2027?

Well, the short answer is yes. And again,

Speaker #1: Where I'll be working into 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 chunky of projects in transmission and generation all of which are accreted to the value of the firm.

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: But 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?

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, 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 the business. And 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.

Speaker #1: But 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.

Speaker #1: And we're a 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 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's not, that's never lost on us.

Speaker #5: 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 #5: 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.

Uh, the right for those more efficient recovery mechanisms, but Rob and I are, along with the executive team, know that our responsibility is to you.

Speaker #6: Yeah. So we haven't put out guidance on 2028. And I think to Rod's earlier point I think as you look at across the business and kind of anything we could do there I just think it's just premature but as we look out as you look at our balance sheet as you look at bringing in decisions on the regulatory front we feel confident in that ability to get through 2027 without an equity issuance.

Mark Jarvi: That makes sense. Just if I hear you right, would we put maybe sort of higher sort of 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.

We're we're a dead set on remaining focused on on achieving those outcomes as as quickly. And as efficiently as we we can, I need you to know that that's not, that's never lost on us.

Speaker #6: I think the capital plan is exciting. It is back-end weighted but not an insignificant part of that is for transmission. The 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, you know, 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. 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 #6: That's compelling. So as we think about those kind of opportunities and closing the gap on ROE I mean that's exactly that and getting in on the state side to close the gap on the distribution end.

Yeah, so we, we, we haven't put out guidance on, you know, on 2028. And I think, Todd'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 #6: That's what we got to be doing, so. I think it's exciting. Those projects unfortunately they're towards the back end but as Rod highlighted 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 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 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. Something to kind of look forward to in the forecast, but also beyond that.

Speaker #6: So something to kind of look forward to in the forecast but also beyond that.

Speaker #1: Thanks.

Speaker #4: Next question comes from the line of John Mould with TD Cohen. Your line is open.

Speaker #7: Thanks, good morning everybody. I'd just like to start with the Missouri rate case and the customer metrics that you need to have in place there for three consecutive months.

Speaker #7: Could you maybe just and I appreciate those were those are metrics that were included in the settlement that you're comfortable with. I'm just wondering if you could give us some color on your progress on those customer metrics and how you're thinking about kind of time to hitting that three consecutive months window.

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

Those projects, you know, you know, unfortunately, they're towards the back end, but, but as Rod highlighted, you know, they, they do continue past 2028. So, so something to kind of look forward to in the forecast, but but also beyond that,

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

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

Speaker #1: Yeah. And 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 off on it.

John.

The TD calling is open.

Rod West: 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. Could you maybe just. I appreciate those were, you know, those are metrics that were included in the settlement that you're comfortable with. I'm just wondering if you could give us some color on, you know, your progress on those customer metrics and, you know, how you're thinking about kind of time to hitting that three consecutive months window. 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 off on it.

John Mould: 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. Could you maybe just. I appreciate those were, you know, those are metrics that were included in the settlement that you're comfortable with. I'm just wondering if you could give us some color on, you know, your progress on those customer metrics and, you know, how you're thinking about kind of time to hitting that three consecutive months window. 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 off on it.

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

Thanks. Uh, good morning, everybody. Um, I'd just like to start with the 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

And I appreciate those were, you know, those are metrics that were included in in the settlement that you're comfortable with. I just want to give 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 did not believe those metrics all of which would be the types of things that any utility would view as reasonable. 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.

Rod West: I've shared before that 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. We believe we have satisfied those metrics, but we're in the process of validating with the commission the achievement and sustainability of those metrics so that we could then satisfy for the commission that we met the conditions precedent for rate implementation.

Speaker #1: So that we could then satisfy for the commission that we met the conditions precedent for rate implementation. And 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.

Speaker #1: And our expectation is that we're going to answer the bell for the regulator but also for our customers to meet that to meet those timelines.

Speaker #1: And outcomes. So 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 the settlement.

Rod West: 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. 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 #1: But 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.

Seems like accuracy, timeliness of, uh, of billing which, which, you know, sounds simple, but for us represented, um, the outcomes of a series of in and 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, um, the sustainability of the achievement, and sustainability of those metrics, uh, so that we, we could then satisfy for the commission that we've met the conditions precedent for rate implementation. And Amy and her team, uh, have literally been working, uh, 24/7, uh, to, to ensure—

Speaker #7: 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 #7: Doesn't impede your play positioning and wouldn't displace and equity need over the next couple of years because you don't need to come to market but it does represent your only non-reg asset.

Not only the achievement, uh, but the durability of the fixes, uh, that created the, the friction in Missouri. And, and our expectation is that we're going to answer the bell, uh, for the regulator but also for our customers to, uh, to meet that, uh, you know, to meet those timelines and outcomes. So, you know, we're on track, but we are in the process of validating that with the commission, and that is

Speaker #7: 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 #1: Yeah. Yeah. And I'm in it's not going to be exciting to hear because there isn't one thing different than what you've heard before. And I.

A condition precedent of a great implementation per the settlement, but think about timeliness, think about accuracy of bills, and the durability of the system upgrades that we, uh, and tweaks that we have made, um, uh, along the way.

John Wall: 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? It doesn't impede your play positioning and, you know, wouldn't displace an equity need over the next couple of years because, 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 the kind of interest or conversations you've had in the market since you identified that?

John Mould: 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? It doesn't impede your play positioning and, you know, wouldn't displace an equity need over the next couple of years because, 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 the kind of interest or conversations you've had in the market since you identified that?

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

Speaker #1: We've made the point that it is not it's not a fire sale circumstance where we're looking to jettison it at any cost. And to the extent that we have been 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.

Rod West: Yeah. Yeah. It's not going to be exciting to hear because there isn't a one thing different than what you've heard before. Well, 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? Just given where the asset sits within the existing portfolio. We are focused on the pure play and certainly our openness and willingness to transact 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.

Yeah. And and and I I'm in it's not going to be exciting to hear because there is an 1 thing different than what you've heard before. And I I don't well actually I do want to sound like a broken record because I want us to be consistent.

Speaker #1: That being said, it is still very much an asset that we believe is would better serve us outside the portfolios assuming we had reasonable terms.

Speaker #1: And 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 from our vantage point isn't creating some level of value on our end.

It's no longer what we consider to be material, right? Just given where, where the high the assets sits with the within the existing portfolio, we are focused on the Pure Play and certainly our openness and willingness uh to transact on on with with the hydro asset hasn't hasn't changed. We've made the point that it is not you know it's not a fire sale uh cir

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. 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.

Circumstance where we're looking to jettison it, you know, at any cost.

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

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

Speaker #7: Okay. Got it. Appreciate the consistency. Those are my questions. Thanks very much for taking them.

Speaker #4: Again, if you would like to ask a question press start then the number one on your telephone keypad. We'll take our last question from Ellie Josen with JPMorgan.

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 #4: Your line is open.

Speaker #8: 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 CALPICO and whether the team would consider contributing to a wildfire fund there.

And we go through the normal, you know, the normal processes around, uh, considering, uh, you know, inbound from interested parties.

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

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

But again, this will not be a fire sale.

Speaker #8: Thanks.

Speaker #1: How much time you got?

Speaker #8: 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 Eliot Jovanovic with JPMorgan. Your line is open.

Speaker #1: No, it's listen, it's an ongoing effort for us as we're not the same scale as some of my larger colleagues that operate in the state.

Eliot Jovanovic: 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.

Eli Josen: 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: And that dynamic influences how I think about the backdrop around wildfire. We're going through a process right now to get our wildfire mitigation plans approved.

Rod West: How much time you got?

Eliot Jovanovic: I got all morning.

Speaker #1: And it is a complex landscape that we are navigating. 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.

Eli Josen: 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. 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.

Speaker #1: And I am spending a fair amount of time as is my team both contributing to and tracking that process. And it is a full-time endeavor.

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

Rod West: From my vantage point, the recovery, 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, but 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. We're fully engaged, just given the complexity of managing risk there.

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

Speaker #8: Great. Thanks again.

Uh, in the state, and that Dynamic um, you know, influences how I think about, uh, the 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, uh, 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 is my team.

Uh, both contributing to and tracking that process.

Speaker #4: There are no further questions at this time. I will turn the call to Mr. Rodbath.

Speaker #1: 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.

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

Eliot Jovanovic: Great. Thanks again.

Eli Josen: Great. Thanks again.

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

Rod West: All right. Just a general thanks for your continued interest. 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.

We'll turn the call to Mr. Rod West.

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

All right, just a general. Thanks, uh, for your continued interest and, um, and our commitment to, to be transparent with you. Uh, it has has been the under ging, uh, of our disclosures today. And, uh, and again, uh, thanks for, uh, for supporting, uh, our path to premium have a great day.

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

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