Q2 2026 Fortis Inc Earnings Call

July 31, 2026

Speaker #1: Thank you for standing by. This is Chuck, the conference operator. Welcome to the Fortis Inc. second quarter 2026 results conference call. As a reminder, all participants are in a listen-only mode, and the conference call is being recorded.

Operator: Thank you for standing by. This is Chuck, the conference operator. Welcome to the Fortis Inc. Q2 2026 Results Conference Call. As a reminder, all participants are in a listen-only mode, and the conference call is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then zero. I would now like to turn the conference over to Miss Stephanie Amaimo, Vice President, Investor Relations. Please go ahead, Miss Amaimo.

Speaker #1: After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then 1 on your telephone keypad.

Speaker #1: Should you need assistance during the conference call, you may signal an operator by pressing star, then zero. I would now like to turn the conference over to Ms. Stephanie Amaimo, Vice President, Investor Relations. Please go ahead, Ms. Amaimo.

Speaker #2: Thanks, Chuck, and good morning, everyone. Welcome to Fortis's second quarter 2026 results conference call. I'm joined by David Hutchens, President and CEO, Jocelyn Perry, Executive VP and CFO, other members of the senior management team, as well as CEOs from certain subsidiaries.

Stephanie Amaimo: Thanks, Chuck, and good morning, everyone. Welcome to Fortis' Second Quarter 2026 Results Conference Call. I'm joined by David Hutchens, President and CEO, Jocelyn Perry, Executive VP and CFO, other members of the senior management team, as well as CEOs from certain subsidiaries. Before we begin today's call, I want to remind you that the discussion will include forward-looking information, which is subject to the cautionary statement contained in the supporting slideshow. Actual results can differ materially from the forecast projections included in the forward-looking information presented today. Non-GAAP financial measures referenced in our prepared remarks are reconciled to the related U.S. GAAP financial measures in our Q2 2026 MD&A. Also, unless otherwise specified, all financial information referenced is in Canadian dollars. With that, I will turn the call over to David.

Speaker #2: Before we begin today's call, I want to remind you that the discussion will include forward-looking information, which is subject to the cautionary statement contained in the supporting slideshow.

Speaker #2: Actual results can differ materially from the forecast projections included in the forward-looking information presented today. Non-GAAP financial measures referenced in our prepared remarks are reconciled to the related U.S. GAAP financial measures in our second quarter 2026 MD&A.

Speaker #2: Also, unless otherwise specified, all financial information referenced is in Canadian dollars. With that, I will turn the call over to David.

Speaker #3: Thank you and good morning, everyone. During the first half of the year, our utilities continued to provide safe and reliable service, while advancing our regulated growth strategy.

David Hutchens: Thank you and good morning, everyone. During the H1 of the year, our utilities continued to provide safe and reliable service while advancing our regulated growth strategy. Through June, we invested CAD 2.7 billion in our systems and delivered earnings per share in the Q2 of CAD 0.78. More recently, we secured a milestone for a significant opportunity above and beyond our five-year capital plan with the receipt of an Order in Council that supports the expansion of our Tilbury LNG facility in British Columbia. Today, we also released our 2026 sustainability report, highlighting our progress to decarbonize our energy mix, including a 38% reduction in our scope one greenhouse gas emissions through 2025 compared to 2019 levels. With nearly half of our annual capital plan invested through June and our major capital projects tracking well, we remain on pace to invest CAD 5.6 billion in 2026.

Speaker #3: Through June, we invested $2.7 billion in our systems, and delivered earnings per share in the second quarter of $78. More recently, we secured a milestone for a significant opportunity above and beyond our five-year capital plan, with the receipt of an order and counsel that supports the expansion of our Tilbury LNG facility in British Columbia.

Speaker #3: Today, we also released our 2026 sustainability report, highlighting our progress to decarbonize our energy mix including a 38% reduction in our Scope 1 greenhouse gas emissions through 2025 compared to 2019 levels.

Speaker #3: With nearly half of our annual capital plan invested through June, and our major capital projects tracking well, we remain on pace to invest $5.6 billion in 2026.

Speaker #3: In June, the second Road Runner Reserve Battery Storage Project was placed in service at TEP. This 200-megawatt energy storage system facilitates the integration of renewables into the grid, with the capability to store 800 megawatt-hours of energy—enough to serve 42,000 homes for four hours when deployed at full capacity.

David Hutchens: In June, the second Roadrunner Reserve battery storage project was placed in service at TEP. This 200 MW energy storage system facilitates the integration of renewables into the grid with the capability to store 800 MWh of energy, enough to serve 42,000 homes for four hours when deployed at full capacity. With our capital plan on track, we continue to expect average annual rate base growth of 7% through 2030. Last week, FortisBC received an Order in Council from the province of British Columbia, approving a larger phase I-B expansion of its Tilbury LNG facility, allowing total investment of approximately CAD 2 billion in regulated rate base. We currently have approximately CAD 350 million in our current five-year plan.

Speaker #3: With our capital plan on track, we continue to expect average annual rate-based growth of 7% through 2030. Last week, Fortis BC received an order and counsel from the province of British Columbia approving a larger phase 1B expansion of its Tilbury LNG facility, allowing total investment of approximately $2 billion in regulated rate-base.

Speaker #3: We currently have approximately $350 million in our current five-year plan. The OIC also provides the approvals required to implement an equity partnership with the Musqueam Indian Band and includes regulatory mechanisms to smooth the cost recovery in the early years of the project.

David Hutchens: The OIC also provides the approvals required to implement an equity partnership with the Musqueam Indian Band and includes regulatory mechanisms to smooth the cost of recovery in the early years of the project. The Tilbury I-B expansion supports LNG marine fueling services and promotes jobs and economic growth in the province. The project positions the Port of Vancouver as a leading LNG marine fueling hub and supports the transition to lower emission marine fuels. This is an exciting opportunity, and FortisBC will now proceed to develop and refine project cost estimates, which will be reflected in our next five-year capital plan, expected to be released with our Q3 results. While the project remains subject to certain regulatory approvals and permitting requirements, construction could start as early as mid-2027 and be in service as early as 2031.

Speaker #3: The Tilbury 1B expansion supports LNG marine fueling services and promotes jobs and economic growth in the province. The project positions the Port of Vancouver as a leading LNG marine fueling hub and supports the transition to lower-emission marine fuels.

Speaker #3: This is an exciting opportunity, and FortisBC will now proceed to develop and refine project cost estimates, which will be reflected in our next five-year capital plan, expected to be released with our third quarter results.

Speaker #3: While the project remains subject to certain regulatory approvals and permitting requirements, construction could start as early as mid-2027 and be in service as early as 2031.

Speaker #3: As for other opportunities above and beyond the plan, our teams continue to make steady progress. At ITC, the MISO long-range transmission projects associated with tranche 2.1 are advancing.

David Hutchens: As for other opportunities above and beyond the plan, our teams continue to make steady progress. At ITC, the MISO long-range transmission projects associated with Tranche 2.1 are advancing. As we have noted in the past, ITC expects $3.3 to $3.8 billion of investment beyond 2030 for projects that have been awarded and are not subject to competitive bidding. For the Iowa Tranche 2.1 project subject to a competitive process, ITC has submitted bids for two opportunities, with MISO expected to award the projects in Q4. At TEP, negotiations continue with the data center customer for an incremental 300 MW of capacity to support a potential build-out of 600 MW at the first site. TEP is also in active negotiations for additional capacity at a second site in the range of 500 to 700 MW and is continuing to engage with other large customers for additional growth opportunities.

Speaker #3: As we have noted in the past, ITC expects $3.3 to $3.8 billion of investment beyond 2030 for projects that have been awarded and are not subject to competitive bidding.

Speaker #3: For the Iowa tranche 2.1 projects subject to a competitive process, ITC has submitted bids for two opportunities, with MISO expected to award the projects in the fourth quarter.

Speaker #3: At TEP, negotiations continue with the data center customer for an incremental 300 megawatts of capacity to support a potential build-out of 600 megawatts at the first site.

Speaker #3: TEP is also in active negotiations for additional capacity at a second site in the range of 500 to 700 megawatts, and is continuing to engage with other large customers for additional growth opportunities.

Speaker #3: If agreements are finalized for these subsequent phases, we estimate that new generation investment in the range of $1.5 to $2 billion U.S. dollars would be required.

David Hutchens: If agreements are finalized for these subsequent phases, we estimate that new generation investment in the range of $1.5 to $2 billion would be required. In Arizona, TEP and UNS Electric expect to file new integrated resource plans with the ACC in the fall. The IRPs will support increasing energy needs while taking into account clean, reliable, and affordable energy solutions. The IRP will include a high-growth scenario that evaluates the impacts of potential incremental data center load beyond the 300 MW currently approved, as well as a clean energy build-out scenario. Our utilities continue to prioritize capital investments focused on operational need and customer bill impacts. As we highlighted last quarter, both ITC and UNS are great examples of how load growth and cost-effective capital projects can benefit customers.

Speaker #3: In Arizona, TEP and UNS Electric expect to file new integrated resource plans with the ACC in the fall. The IRPs will support increasing energy needs while taking into account clean, reliable, and affordable energy solutions.

Speaker #3: The IRP will include a high-growth scenario that evaluates the impacts of potential incremental data center load beyond the 300 megawatts currently approved, as well as a clean energy build-out scenario.

Speaker #3: Our utilities continue to prioritize capital investments focused on operational needs and customer bill impacts. As we highlighted last quarter, both ITC and UNS are great examples of how load growth and cost-effective capital projects can benefit customers.

Speaker #3: Adding to the discussion continue growth of the LNG markets is also expected to provide rate benefits for customers in British Columbia. First, sales of LNG into the growing marine fueling market associated with our current Tilbury 1A facility have provided a rate benefit for customers of approximately $1.5% since 2024.

David Hutchens: Adding to the discussion, continued growth of the LNG markets is also expected to provide rate benefits for customers in British Columbia. First, sales of LNG into the growing marine fueling market associated with our current Tilbury 1A facility have provided a rate benefit for customers of approximately 1.5% since 2024. The further expansion of FortisBC's Tilbury 1B facility is expected to build on this rate benefit. Additionally, increased demand served through the Eagle Mountain Pipeline project will increase the utilization of FortisBC's gas system, and once complete and in service, is expected to provide a rate benefit of approximately 1.5%. Overall, through operational efficiency, disciplined capital planning, and innovation, Fortis utilities continue to be laser-focused on finding better ways to reduce costs and support customer affordability. Our dividend remains a core component of our investment thesis.

Speaker #3: The further expansion of FortisBC's Tilbury 1B facility is expected to build on this rate benefit. Additionally, increased demand served through the Eagle Mountain pipeline project will increase the utilization of FortisBC's gas system and, once complete and in service, is expected to provide a rate benefit of approximately 1.5%.

Speaker #3: Overall, through operational efficiency, disciplined capital planning, and innovation, Fortis Utilities continues to be laser-focused on finding better ways to ensure affordability. Our dividend remains a core component of our investment thesis.

Speaker #3: We have demonstrated that we can grow our dividend responsibly, having increased it for the past 52 consecutive years, while maintaining a disciplined approach to balance sheet strength.

David Hutchens: We have demonstrated that we can grow our dividend responsibly, having increased it for the past 52 consecutive years while maintaining a disciplined approach to balance sheet strength. Looking ahead, we remain confident in our 4% to 6% annual dividend growth guidance through 2030, supported by our regulated growth strategy. Now I will turn the call over to Jocelyn for an update on our Q2 financial results.

Speaker #3: Looking ahead, we remain confident in our 4% to 6% annual dividend growth guidance through 2030, supported by our regulated growth strategy. Now, I will turn the call over to Jocelyn for an update on our second quarter financial results.

Speaker #1: Thank you, David, and good morning, everyone. For the quarter, we reported net earnings of $396 million, or $0.78 per common share, an increase of $0.02 compared to the second quarter of last year.

Jocelyn Perry: Thank you, David, and good morning, everyone. For the quarter, we reported net earnings of CAD 396 million, or CAD 0.78 per common share, an increase of CAD 0.02 compared to Q2 of last year. At ITC, EPS increased by CAD 0.02, largely due to continued capital investment and related rate-based growth, partially offset by higher finance costs and stock-based compensation expense. UNS contributed a CAD 0.02 increase driven by higher retail electricity sales, including the impact of warmer weather. This increase was moderated by the timing of operating costs as well as regulatory lag associated with rate-based growth not yet reflected in customer rates. Our Western Canadian utilities increased EPS by CAD 0.01, largely driven by capital investment.

Speaker #1: At ITC, EPS increased by $0.02, largely due to continued capital investment and related rate-based growth, partially offset by higher finance costs and stock-based compensation expense.

Speaker #1: UNS contributed a 2-cent increase, driven by higher retail electricity sales, including the impact of warmer weather. This increase was moderated by the timing of operating costs, as well as regulatory lag associated with rate base growth not yet reflected in customer rates.

Speaker #1: Our Western Canadian utilities increased EPS by 1 cent, largely driven by capital investment. The Corporate and Other segment reflects unrealized losses on foreign exchange contracts, higher finance costs, and lower earnings due to the disposition of Fortis Belize in the fourth quarter of 2025, partially offset by the timing of income tax recoveries.

Jocelyn Perry: The corporate and other segment reflects unrealized losses on foreign exchange contracts, higher finance costs, and lower earnings due to the disposition of Fortis Belize in Q4 of 2025, partially offset by the timing of income tax recoveries. While not shown on the slide, results at Central Hudson were consistent with Q2 of 2025, as rate-based growth was offset by the timing of quarterly revenue. Earnings for our other electric segment were also comparable quarter over quarter, as earnings growth in the segment was offset by the impact of the FortisTCI disposition completed in Q3 of last year. Foreign exchange had a CAD 0.01 unfavorable impact for the quarter, and higher weighted average shares issued under our dividend reinvestment plan impacted EPS by CAD 0.01. On a year-to-date basis, earnings were CAD 897 million, or CAD 1.76 per common share.

Speaker #1: And while not shown on the slide, results at Central Hudson were consistent with the second quarter of 2025, as rate base growth was offset by the timing of quarterly revenue.

Speaker #1: And earnings for our other electric segment were also comparable quarter over quarter, as earnings growth in the segment was offset by the impact of the Fortis TCI disposition, completed in the third quarter of last year.

Speaker #1: Foreign exchange had a 1-cent unfavorable impact for the quarter, and higher weighted average shares issued under our dividend reinvestment plan impacted EPS by 1 cent.

Speaker #1: On a year-to-date basis, earnings were $897 million, or $1.76 per common share, results year-to-date were mainly driven by the same factors discussed for the quarter, with a few additional items to note for Central Hudson and UNS Energy.

Jocelyn Perry: Results year to date were mainly driven by the same factors discussed for the quarter, with a few additional items to note for Central Hudson and UNS Energy. For the H1, Central Hudson was up CAD 0.03, primarily due to rate base growth and the timing of operating costs. At UNS, EPS was down CAD 0.03 as higher retail sales were tempered by lower margin on wholesale sales, the timing of operating costs, and the regulatory lag for rate base growth not yet in rates. For the H1 of 2026, our utilities issued CAD 2.1 billion of long-term debt and our funding plan remains on track. As we've noted in the past, our capital plan is expected to be funded largely from cash from operations, utility debt, and our dividend reinvestment plan.

Speaker #1: For the six-month period, Central Hudson was up $0.03, primarily due to rate base growth and the timing of operating costs. At UNS, EPS was down $0.03, as higher retail sales were tempered by lower margin on wholesale sales, the timing of operating costs, and the regulatory lag for rate base growth not yet in rates.

Speaker #1: For the first half of 2026, our utilities issued $2.1 billion of long-term debt, and our funding plan remains on track. As we have noted in the past, our capital plan is expected to be funded largely from cash from operations, utility debt, and our dividend reinvestment plan.

Speaker #1: In May, S&P confirmed our A-minus issuer and BBB-plus on secured debt credit ratings, and stable outlook. Fitch also confirmed the corporation's BBB-plus issuer and on secured debt credit ratings, and stable outlook.

Jocelyn Perry: In May, S&P confirmed our A- issuer and BBB+ unsecured debt credit ratings and stable outlook. Fitch also confirmed the corporation's BBB+ issuer and unsecured debt credit ratings and stable outlook. Overall, our liquidity position and our funding plans support our investment-grade credit ratings. As Dave mentioned, we expect to release our new five-year capital plan on our Q3 earnings call, and we will address our new funding plan at that time. On the regulatory front, the TEP general rate application continues to progress. During the quarter, hearings concluded and the administrative law judge issued an extension of the procedural schedule such that a final decision on the rate case be issued by 17 November. That concludes my remarks. I'll now turn the call back to David.

Speaker #1: Overall, our liquidity position and our funding plan support our investment-grade credit ratings. As Dave mentioned, we expect to release our new five-year capital plan on our third quarter earnings call, and we will address our new funding plan at that time.

Speaker #1: On the regulatory front, the TEP general rate application continues to progress. During the quarter, hearings concluded, and the administrative law judge issued an extension of the procedural schedule such that a final decision on the rate case will be issued by November 17.

Speaker #1: That concludes my remarks. I'll now turn the call back to David.

Speaker #3: Thank you, Jocelyn. In closing, we have delivered a strong first half while maintaining our focus on what matters most: operating our utilities safely, reliably, and affordably.

David Hutchens: Thank you, Jocelyn. In closing, we have delivered a strong H1 while maintaining our focus on what matters most, operating our utilities safely, reliably, and affordably. Our two-pronged focus on execution is clear, with our annual capital plan on track and our advancement of opportunities above and beyond the plan. Backed by a disciplined strategy and a diversified regulated portfolio, we remain confident in our ability to deliver on our rate base and dividend growth outlook through 2030. That concludes my remarks. I will now turn the call back over to Stephanie.

Speaker #3: Our two-pronged focus on execution is clear. With our annual capital plan on track, and our advancement of opportunities above and beyond the plan, backed by a disciplined strategy and a diversified regulated portfolio, we remain confident in our ability to deliver on our rate base and dividend growth outlook through 2030.

Speaker #3: That concludes my remarks. I will now turn the call back over to Stephanie.

Speaker #1: Thank you, David. This concludes the presentation. At this time, we’d like to open the call to address questions from the investment community.

Stephanie Amaimo: Thank you, David. This concludes the presentation. At this time, we'd like to open the call to address questions from the investment community.

Speaker #4: Thank you. We will now begin the question-and-answer session. To join the question queue, please press star then 1 on your telephone. You will hear a tone acknowledging your request.

Operator: Thank you. We will now begin the question and answer session. To join the question queue, please press star then one on your telephone. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. Our first question for today will come from Maurice Choy with RBC Capital Markets. Please go ahead.

Speaker #4: If you are using a speakerphone, please pick up your handset before pressing any keys. And to withdraw your question, please press star then 2.

Speaker #4: And our first question for today will come from Maurice Choi with RBC Capital Markets. Please go ahead.

Speaker #5: Thanks, and good morning, everyone. As you know, I probably like to see BC take the spotlight here, so maybe my first question: if you could help unpack the next steps for October 1B, and also an update on a bigger October phase two, I appreciate that.

Maurice Choy: Thanks, and good morning, everyone. As you know, I'd probably like to see BC take the spotlight here. Maybe my first question, if you could help unpack the next steps for Tilbury 1B, and also an update on the bigger Tilbury Phase 2. I'd appreciate that. Presumably Phase 2 also has some rate benefits for customers over and above all the other ones.

Speaker #5: And presumably, phase two also has some rate benefits for our customers over and above all the other ones.

Speaker #3: Yeah, thanks, Maurice. And Roger has been waiting for this question, so I'm going to turn it right over to Roger, our CEO of FortisBC.

David Hutchens: Yeah. Thanks, Maurice. Roger has been waiting for this question, so I'm going to turn it right over to Roger, our CEO of FortisBC. Roger?

Speaker #3: Roger.

Speaker #6: Thanks, David. Thanks for the question, Maurice. Maybe I'll try to anticipate some of the other questions as well. Starting with October 1B. So the project itself, with the Order in Council from the government, really has three components.

[Company Representative] (FortisBC): Thanks, David. Thanks for the question, Maurice. Maybe I'll try to anticipate some of the other questions as well, starting with Tilbury 1B. The project itself with the Order in Council from the government really has three components. It's the Tilbury Marine Jetty, the liquefaction expansion, as well as a 230 kV power line to provide power for the electric drive liquefaction. Those three components are covered by the OIC. The next steps, we're still assessing and designing plans to address the conditions that came out of the environmental assessment certificate that the provincial and federal government provided to us in 2024. Designing the liquefaction and power needs for the TLSC. That's going to start in earnest with hope that we'll be in construction for Tilbury 1B sometime in 2027. We are also finalizing agreements with the Musqueam Indian Band on their equity investment.

Roger Dall’Antonia: Thanks, David. Thanks for the question, Maurice. Maybe I'll try to anticipate some of the other questions as well, starting with Tilbury 1B. The project itself with the Order in Council from the government really has three components. It's the Tilbury Marine Jetty, the liquefaction expansion, as well as a 230 kV power line to provide power for the electric drive liquefaction. Those three components are covered by the OIC. The next steps, we're still assessing and designing plans to address the conditions that came out of the environmental assessment certificate that the provincial and federal government provided to us in 2024. Designing the liquefaction and power needs for the TLSC. That's going to start in earnest with hope that we'll be in construction for Tilbury 1B sometime in 2027. We are also finalizing agreements with the Musqueam Indian Band on their equity investment.

Speaker #6: It's the marine jetty, the liquefaction expansion, as well as the 230 kV power line to provide power for the electric-drive liquefaction. Those three components are covered by the OIC.

Speaker #6: The next steps were still assessing and designing plans to address the conditions that came out of the environmental assessment certificate that the provincial and federal government provided to us in 2024.

Speaker #6: And then designing the liquefaction and power needs for the TLSC, so that's going to start in earnest with the hope that we'll be in construction for TLSC or, sorry, for October 1B sometime in 2027.

Speaker #6: We are also finalizing agreements with the Musqueam on their equity investment. The percentage that they may take is confidential at this point, but we're working on finalizing the limited partnership agreement that will allow them to have a direct equity investment in this project.

[Company Representative] (FortisBC): The percentage that they may take is confidential at this point, but we're working on finalizing the limited partnership agreement that will allow them to have a direct equity investment in this project. For Tilbury Phase 2, as a reminder, there's two components to Tilbury Phase 2. The first is the Tilbury storage tank that's replacing one of the existing tanks at Tilbury that was built and commissioned in 1971. As that facility is basically end-of-life Tilbury storage expansion, which we received BCUC approval in 2025 for. Once the EA is approved, we'll start the process for construction on that. That doesn't come with direct rate benefit. It really is primarily resiliency, but the size of the tank up to 3 BCF, from what the current facility is, about a 0.6 BCF.

Roger Dall’Antonia: The percentage that they may take is confidential at this point, but we're working on finalizing the limited partnership agreement that will allow them to have a direct equity investment in this project. For Tilbury Phase 2, as a reminder, there's two components to Tilbury Phase 2. The first is the Tilbury storage tank that's replacing one of the existing tanks at Tilbury that was built and commissioned in 1971. As that facility is basically end-of-life Tilbury storage expansion, which we received BCUC approval in 2025 for. Once the EA is approved, we'll start the process for construction on that. That doesn't come with direct rate benefit. It really is primarily resiliency, but the size of the tank up to 3 BCF, from what the current facility is, about a 0.6 BCF.

Speaker #6: For T for October 2, as a reminder, there are two components to October 2. The first is the October storage tank—that's replacing one of the existing tanks at October that was built and commissioned in 1971.

Speaker #6: As that facility is basically end-of-life, October storage expansion, which we received BCUC approval in 2025 for—once the EA is approved, we'll start the process for construction on that.

Speaker #6: That doesn't come with direct rate benefit. It really is primarily resiliency, but the size of the tank—up to 3 BCF from what the current facility is, about 0.6 BCF—there will be some gas supply benefit where we can manage summer/winter gas cost differentials. So we will be able to expand our gas supply capabilities on system.

[Company Representative] (FortisBC): There will be some gas supply benefit where we can manage summer-winter gas cost differentials. We will be able to expand our gas supply capabilities on system. The rest, though, is really just resiliency for system disruption and peak weather events. Tilbury Phase 2 also has up to two and a half million tons per annum of liquefaction. That is further out. If that does get built, that would be designed with rate benefit, but it's too early to understand what those rate benefits might be. Hopefully, that answers the questions.

Roger Dall’Antonia: There will be some gas supply benefit where we can manage summer-winter gas cost differentials. We will be able to expand our gas supply capabilities on system. The rest, though, is really just resiliency for system disruption and peak weather events. Tilbury Phase 2 also has up to two and a half million tons per annum of liquefaction. That is further out. If that does get built, that would be designed with rate benefit, but it's too early to understand what those rate benefits might be. Hopefully, that answers the questions.

Speaker #6: The rest, though, is really just resiliency for system disruption. And peak weather events. October 2 also has up to 2.5 million tons per annum of liquefaction.

Speaker #6: That is further out. If that does get built, that would be designed with rate benefit, but it's too early to understand what those rate benefits might be.

Speaker #6: Hopefully, that answers the questions.

Speaker #5: Maybe this is a great follow-up. It's just a matter of timing as to when these projects might be sanctioned.

Maurice Choy: Maybe this is a quick follow-up. Just timing as to when these projects might be sanctioned.

[Company Representative] (FortisBC): For the Tilbury Two projects, the EA is expected later this year. We are in the mandated, I think, 151-day review period. That is going to end sometime in Q4, then it'll be referred to Cabinet. At that point, there's a 30-day timeframe for Cabinet to approve the environmental assessment certificate. If that timing holds and there's no additional process requested by the Environmental Assessment Office, we should see decision for Tilbury Two, both the storage tank and the added liquefaction, later this fall.

Roger Dall’Antonia: For the Tilbury Two projects, the EA is expected later this year. We are in the mandated, I think, 151-day review period. That is going to end sometime in Q4, then it'll be referred to Cabinet. At that point, there's a 30-day timeframe for Cabinet to approve the environmental assessment certificate. If that timing holds and there's no additional process requested by the Environmental Assessment Office, we should see decision for Tilbury Two, both the storage tank and the added liquefaction, later this fall.

Speaker #6: For October for the October 2 projects, the EA is expected later this year. We are in the mandated, I think, 151-day review period. And that is going to end sometime in Q4, and then it'll be referred to cabinet.

Speaker #6: And at that point, there's a 30-day timeframe for Cabinet to approve the Environmental Assessment Certificate. So if that timing holds and there's no additional process requested by the Environmental Assessment Office, we should see a decision for October 2, for both the storage tank and the added liquefaction, later this fall.

Maurice Choy: Understood. If I could finish off in Arizona. There continues to be, I guess, selective data center opposition in the US, and I know that you highlighted some rate benefits in one of your slides. At TEP, have you more recently witnessed any change in how your customers approach your negotiations, whether that be the pace, whether it be the terms, so on and so forth?

Speaker #5: Understood. And if I could finish off in Arizona, there continues to be, I guess, selective data center opposition in the U.S., and I know that you highlighted some rate benefits in one of your slides.

Speaker #5: But at TEP, have you more recently witnessed any change in how your customers approach your negotiations, whether that be the pace, whether it be the terms, so on and so forth?

Speaker #3: Yeah. So obviously, there's been a bit of pushback in data centers across the U.S. in general, for various reasons. I think one of the stories is our industry wasn't really pushing as well as it should have been as to the rate benefit that these types of projects can have for our customers.

David Hutchens: Yeah. Obviously, there's been a bit of pushback in data centers across the US in general for various reasons. I think one of the stories our industry wasn't really pushing as well as it should have been is the rate benefit that these types of projects can have for our customers. That's the message that we're trying to get out in Arizona and anywhere else we can, as is everyone else, including data center developers, because there is a really good positive story, as you can see in our deck, that customer rate benefit that we see. That's just from the phase 1 of Project Blue.

Speaker #3: And that's the message that we're trying to get out in Arizona and anywhere else we can, as is everyone else, including data center developers, because there is a really good, positive story—as you can see in our deck—that customer rate benefit that we see, and that's just from the first phase of Project Blue.

Speaker #3: But yeah, the customers as in the data center customers themselves, are very aware of making sure that we get the right design in our obviously will and enable to make sure that they and there's been all kinds of conversations and pledges, etc., at every level in government and whether it's federal, local, and with utilities and data and the data centers and hyperscalers themselves, we're all on the exact same page to make sure that the that there is no cost shift or allocation of the costs that are needed to build and serve those customers that get shifted to the other customers.

David Hutchens: Yeah, the customers, as in the data center customers themselves, are very aware of making sure that we get the right design and are obviously willing and able to. There has been all kinds of conversations and pledges, et cetera, at every level in government, whether it is federal, local, and with utilities and the data centers and hyperscalers themselves. We are all on the exact same page to make sure that there is no cost shift or allocation of the costs that are needed to build and serve those customers that get shifted to the other customers. Everybody is on the same page that these data centers have to cover their own costs and then some. That is where we get that.

Speaker #3: And everybody's on the same page that these data centers have to cover their own costs and then some. And that's the benefit that's where we get that the and then some is the part that gives us the benefits that we see to lower the rest of the customers' rates by them sharing an actual large portion of the overall system fixed cost by the usage that those data center customers have.

David Hutchens: The "and then some" is the part that gives us the benefits that we see to lower the rest of the customers' rates by them sharing an actual large portion of the overall system fixed costs by the usage that those data center customers have. We all have the same message. It is a bit hard to get people to listen to it.

Speaker #3: So, the message is: we all have the same message. We're just making—it's a bit hard to get people to listen to it.

Speaker #5: Perfect. Thank you for that, and good luck with that.

Maurice Choy: Perfect. Thank you for that, and good luck with that.

Speaker #3: Thanks, Maurice.

David Hutchens: Thanks, Maurice.

Speaker #1: The next question will come from Ben Pham with BMO. Please go ahead.

Operator: The next question will come from Ben Pham with BMO. Please go ahead.

Speaker #7: Hi. Thanks. Good morning. I know you mentioned your expected refresh of the CapEx plan in the fall. Could you talk about if there's any potential to look beyond the five-year plan, to maybe look at a longer horizon? I'm just thinking about this Tilbury expansion going through 2031.

Ben Pham: Hi. Thanks. Good morning. I know you mentioned your expected refresh of the CapEx plan in the fall. Could you talk about maybe if there's any potential to look beyond the five-year plan to maybe look at a longer horizon? Just thinking about this Tilbury expansion going through 2031. You got the ITC transmission opportunity, it just also seems like your backlog's also more visible than it has been, versus last year.

Speaker #7: You got the ITC transmission opportunity, and just also seems like your backlog is also more visible than it has been versus last year.

David Hutchens: Yeah, Ben. Obviously, from a planning perspective, there's a lot of things that we do that extend beyond the five-year period. The integrated resource plans are a prime example, the LRTP projects. There's a lot of things, obviously, that we look at longer term. Just given how those types of forecasts tend to diverge and have quite wide error bars when you get past the five-year period, it would really be tough to be able to put out more than a five-year capital plan without having a whole bunch of caveats. We kind of want to stick with that. I wouldn't say five years is a short time period by any means.

Speaker #3: Yeah, Ben. Obviously, from a planning perspective, there are a lot of things that we do that extend beyond the five-year period. The integrated resource plans are a prime example.

Speaker #3: The LRTP projects—there’s a lot of things, obviously, that we look at longer term. But just given how those types of forecasts tend to diverge and have quite wide error bars when you get past the five-year period, it would really be tough to be able to put out a five-year, say, capital plan, or more than a five-year capital plan, without having a whole bunch of caveats.

Speaker #3: So we kind of want to stick with the that and I wouldn't say five years is a short time period by any means, but we know that that's why we try to provide the color around what's going on within our portfolio, and that above and beyond the plan conversation and try to break those into things that we see within the next five years, things that we could essentially add to the existing five-year capital plan, but more importantly, things that extend that growth in the beyond the five-year plan.

David Hutchens: We know that's why we try to provide the color around what's going on within our portfolio and that above and beyond the plan conversation, and try to break those into things that we see within the next five years, things that we could essentially add to the existing five-year capital plan. More importantly, things that extend that growth in the beyond the five-year plan. We try to give color around that, but to lay out numbers that far out, I don't know if that would be all that beneficial.

Speaker #3: So we try to give color around that, but to lay out numbers that far, I don't know if that would be all that beneficial.

Speaker #7: Okay, got it. And, going back to the Tilbury expansion, if you can maybe quantify, or at least attempt to think about this as you’ve had enough time to consider—what is the impact on the balance sheet?

Ben Pham: Okay. Got it. Going back to the Tilbury expansion, if you can maybe quantify or maybe attempt to think about this, is, have you got enough time to think about the impact on the balance sheet as well? You put the CapEx in there. I know the First Nations piece is still TBD, in a range of scenarios if you looked at, there's a concept potential look at ATM.

Speaker #7: As well, you put the CapEx in there. I know the First Nations piece is still TBD, but in a range of scenarios, if you looked at there’s a content plate potential looking at ATM.

Speaker #8: Ben, this is Jocelyn. Thanks for the question. Yeah, Tilbury will be wrapped up with our whole look at the five-year plan, and so we'll no doubt this is putting good pressure on the amount that we're spending and but we need to firm up the time for Tilbury in particular and when and how these investments will be coming into play.

Jocelyn Perry: Ben, this is Jocelyn. Thanks for the question. Yeah, Tilbury will be wrapped up with our whole look at the five-year plan. We'll no doubt this is putting good pressure on the amount that we're spending, but we need to firm up the time for Tilbury in particular and when and how these investments will be coming into play. We'll look at all funding options available to us with the aim is to keep our credit metrics in check. That's something that we're going to be taking a deeper dive on in the fall.

Speaker #8: And so we'll look at all funding options available to us, with the aim to keep our credit metrics in check. So that's something that we're going to be taking a deeper dive on in the fall.

Speaker #7: Okay. Got it. Thank you.

Ben Pham: Okay. Got it. Thank you.

Speaker #1: The next question will come from Mark Jarvie with CIBC Capital Markets. Please go ahead.

Operator: The next question will come from Mark Jarvi with CIBC Capital Markets. Please go ahead.

Speaker #5: Hey, good morning. I know we're going to get the CapEx refresh, but just on the Tilbury project, is there anything you can indicate in terms of the profile of the CapEx?

Mark Jarvi: Good morning, everyone. I know we're going to get the CapEx refresh, just on the Tilbury project, anything you can kind of indicate in terms of the profile of the CapEx? Is there material amounts before 2030, or does most of this come in the early 2030s?

Speaker #5: Are there material amounts before 2030, or is most of this coming in the early 2030s?

Speaker #3: Yeah, we haven't put that together yet. Obviously, there is a shape to the CapEx spend that, typically on large projects, will start out slowly and ramp up over time.

David Hutchens: Yeah. We haven't put that together yet. Obviously there is a shape to the CapEx spend that kind of typically on large projects will start out slowly and ramp up over time. As I mentioned in the remarks, we could see this online as early as 2031. As we spend capital, remember we also get AFUDC on these projects as well. There's a whole lot of modeling that still has to be done. When we get that shape in there, we'll let you know. That kind of goes to that prior question, shape of capital matters too, not just the overall size of the capital plan.

Speaker #3: As I mentioned in the remarks, we could see this online as early as 2031. And as we spend capital, remember, we also get AFUDC on these projects as well.

Speaker #3: So, there's a whole lot of modeling that still has to be done. But when we get that shape in there, we'll let you know.

Speaker #3: And that kind of goes to that prior question. Shape of capital matters too, not just the overall size of the capital plan.

Speaker #5: Understood. And just in the last couple of days, there's been some positive commentary from large load with the Michigan LDCs and Alliant as well in Iowa.

Mark Jarvi: Understood. Just in the last couple of days, some positive commentary from large load with the Michigan LDCs and Alliant as well in Iowa. Just your view in terms of any updated views on ITC conversations with the local distribution companies in terms of accelerating investments to facilitate large loads in those regions?

Speaker #5: Just to review, are there any updated views on ITC conversations with the local distribution companies in terms of accelerated investments to facilitate large loads in those regions?

Speaker #3: Yeah, Krista, do you want to address that? She's obviously very close to those conversations with our largest customers, which happen to be CMS, DTE, and Alliant.

David Hutchens: Yeah. Krista, you want to address that? She's obviously very close to those conversations with our largest customers, which happen to be CMS, DTE, and Alliant. Krista?

Speaker #3: So Krista?

Speaker #2: Yeah. Good morning. Yeah, our we remain very optimistic having really positive conversations with the large data centers. We are working hand in hand with the customers that you just noted because, of course, transmission can take a long time.

[Company Representative] (ITC): Good morning. We remain very optimistic, having really positive conversations with the large data centers. We are working hand in hand with the customers that you just noted because, of course, transmission can take a long time. We are at the table with them. At this point, everything that we have announced publicly, we have, and we are just sticking to that approximately 8 gigawatts of additional load in our queue. Of course, that does not mean it will all come to fruition, but that is really what is in our pipeline that is not, things we have not yet finalized.

Krista Tanner: Good morning. We remain very optimistic, having really positive conversations with the large data centers. We are working hand in hand with the customers that you just noted because, of course, transmission can take a long time. We are at the table with them. At this point, everything that we have announced publicly, we have, and we are just sticking to that approximately 8 gigawatts of additional load in our queue. Of course, that does not mean it will all come to fruition, but that is really what is in our pipeline that is not, things we have not yet finalized.

Speaker #2: So we're at the table with them. At this point, everything that we've announced publicly, we have. And we're just sticking to that approximately 8 gigawatts of additional load in our queue.

Speaker #2: And of course, that doesn't mean it'll all come to fruition, but that's really what's in our pipeline that we haven't yet finalized.

Speaker #5: So most of this would be the loads we're trying to cite where they can use existing transmission generation, or is there a view that there's some upgrades required just given the speed to power demands for some of these customers?

Mark Jarvi: Most of this would be the loads we try to site where they can use existing transmission generation, or is there a view that there are some upgrades required just given the speed to power demands for some of these customers?

[Company Representative] (ITC): There is not really a rule of thumb for transmission. We are seeing when we get a large load, it can be anywhere from CAD 10 million to CAD 100 million, right? We are, because of what you just said, speed to power, we are moving them. We are working hard to direct them to places where we need fewer upgrades because they need to be on 2 years or less, and a new line would take much more than that, obviously. From our point of view, we are really directing them to where there are fewer upgrades needed, which still provides a benefit to us in terms of the rate relief for our customers.

Krista Tanner: There is not really a rule of thumb for transmission. We are seeing when we get a large load, it can be anywhere from CAD 10 million to CAD 100 million, right? We are, because of what you just said, speed to power, we are moving them. We are working hard to direct them to places where we need fewer upgrades because they need to be on 2 years or less, and a new line would take much more than that, obviously. From our point of view, we are really directing them to where there are fewer upgrades needed, which still provides a benefit to us in terms of the rate relief for our customers.

Speaker #2: Yeah, there's not really a rule of thumb for transmission. We're seeing when we get a large load, it can be anywhere from $10 million to $100 million, right?

Speaker #2: But we are, because of what you just said—speed to power—we are moving them, we are working hard to direct them to places where we need fewer upgrades, because they need to be on in two years or less.

Speaker #2: And a new line would take much more than that, obviously. So from our point of view, we are really directing them to where they're fewer upgrades needed, which still provides a benefit to us in terms of the rate relief for our customers.

Speaker #5: Okay. That's great. Thanks, everyone.

Mark Jarvi: Okay. That is great. Thanks, everyone.

Speaker #1: The next question will come from Mike Lonegan with Barclays. Please go ahead.

Operator: The next question will come from Michael Long with Barclays. Please go ahead.

Speaker #6: Hi. Thanks for taking my questions. So, on the TEP rate case, there was obviously a change in the procedural schedule for a decision after the November election. Just wondering how you're feeling about this and the rate case more broadly.

Michael Long: Hi. Thanks for taking my questions. On the TEP rate case, there was obviously the change in the procedural schedule for a decision after the November election. Just wondering how you're feeling about this and the rate case more broadly, coming out of the hearings that happened in May.

Mike Lonegan: Hi. Thanks for taking my questions. On the TEP rate case, there was obviously the change in the procedural schedule for a decision after the November election. Just wondering how you're feeling about this and the rate case more broadly, coming out of the hearings that happened in May.

Speaker #6: Coming out of the hearings that happened in May.

Speaker #3: Yeah, we're feeling good. I'll turn it over to Susan to give a little color. From Arizona, but I think we definitely were not surprised to see that the open meeting or the final decision on the TEP rate case did slide a little bit, given the November elections.

David Hutchens: Yeah. We're feeling good. I'll turn it over to Susan to give a little color from Arizona. I think we definitely were not surprised to see that the open meeting or the final decision on the TEP rate case to be slid a little bit given the November elections. Susan, do you want to provide a little color on where we stand?

Speaker #3: Susan, do you want to provide a little color on where we stand?

Speaker #8: Yeah, sure. Good morning, and thanks for the question, Mike. Yeah, so as Dave mentioned, we are expecting a recommended opinion and order from the judge to come out fairly soon.

[Company Representative] (UNS Energy): Yeah, sure. Good morning, and thanks for the question, Mike. As Dave mentioned, we are expecting a recommended opinion and order from the judge to come out fairly soon. As we've just filed briefings, I think we're pretty close on a lot of the issues, particularly in alignment with ACC staff. We were apart on ROE in our recent filing. TEP came down to 9.75%, which is now a 10.2% increase that we're asking for. That's the impact of changing the ROE. I think we are optimistic that the judge will include the ARAM, the formula rate, and I think there was some varying opinions on what the debt ban should be. Overall, I think the design of the ARAM is likely going to look a lot like what we got for UniSource Gas.

Susan Gray: Yeah, sure. Good morning, and thanks for the question, Mike. As Dave mentioned, we are expecting a recommended opinion and order from the judge to come out fairly soon. As we've just filed briefings, I think we're pretty close on a lot of the issues, particularly in alignment with ACC staff. We were apart on ROE in our recent filing. TEP came down to 9.75%, which is now a 10.2% increase that we're asking for. That's the impact of changing the ROE. I think we are optimistic that the judge will include the ARAM, the formula rate, and I think there was some varying opinions on what the debt ban should be. Overall, I think the design of the ARAM is likely going to look a lot like what we got for UniSource Gas.

Speaker #8: And as we've just filed briefings, I think we're pretty close on a lot of the issues, particularly in alignment with staff—ACC staff. The main area we were apart on is ROE, and in our recent filing, TEP came down to 9.75, which is now a 10.2% increase that we're asking for.

Speaker #8: That's the impact of changing the ROE. I think we are optimistic that the judge will include the ARAM, the formula rate, and I think there were some varying opinions on what the debt band should be, but overall, I think the design of the ARAM is likely going to look a lot like what we got for Unisource Gas.

Speaker #8: So, I think we'll know more as the briefings have just come out, and then the judge's recommended opinion and order. We expect to get a decision probably in November, with the implementation date in December.

[Company Representative] (UNS Energy): I think we'll know more as the briefings have just come out, then the judge's recommended opinion and order. We expect to get a decision probably in November with an implementation date in December. I think we're wrapping up pretty closely here to be done by the end of the year.

Susan Gray: I think we'll know more as the briefings have just come out, then the judge's recommended opinion and order. We expect to get a decision probably in November with an implementation date in December. I think we're wrapping up pretty closely here to be done by the end of the year.

Speaker #8: So I think we're wrapping up pretty closely here. We expect to be done by the end of the year.

Speaker #6: Thank you. And then, sticking with Arizona, obviously you talked about the Project Blue data center and the expansion opportunity there—the $1.5 to $2 billion of opportunity.

Michael Long: Thank you. Sticking with Arizona, obviously, you talked about the Project Blue data center and the expansion opportunity there, the CAD 1.5 to 2 billion of opportunity. Just wondering if you could talk more about your pipeline beyond this in the state, where you stand with that opportunity, and anything you could share there would be helpful.

Mike Lonegan: Thank you. Sticking with Arizona, obviously, you talked about the Project Blue data center and the expansion opportunity there, the CAD 1.5 to 2 billion of opportunity. Just wondering if you could talk more about your pipeline beyond this in the state, where you stand with that opportunity, and anything you could share there would be helpful.

Speaker #6: Just wondering if you could talk more about your pipeline beyond this in the state—where you stand with that opportunity—and anything you could share there would be helpful.

Speaker #3: Go ahead, Susan.

David Hutchens: Go ahead, Susan.

Speaker #8: Yeah, so when you talk about pipeline, I assume you're talking about the gas pipelines?

[Company Representative] (UNS Energy): Yeah. When you talk about pipeline, I assume you're talking about the gas pipelines?

Susan Gray: Yeah. When you talk about pipeline, I assume you're talking about the gas pipelines?

Speaker #3: He's talking about the pipeline of projects like we've got the project Blue, but what's behind them?

David Hutchens: He's talking about the pipeline of projects, like we've got.

[Company Representative] (UNS Energy): Okay

Susan Gray: Okay

David Hutchens: The Project Blue, what's behind them?

Speaker #8: Sure, yeah. And so we still have 8 to 10 gigawatts of data center pipeline in our queue, but we also have the Hermosa Mine that's coming online. Copper World is probably in the latter part of our five-year plan.

[Company Representative] (UNS Energy): Sure. Yeah. We still have 8 to 10 GW of data center pipeline in our queue. We also have the Hermosa Mine that's coming online. Copper World is probably in the latter part of our 5-year plan. We've got some other manufacturing and other, even some existing customers that are growing. It's not all data center growth in Tucson. There's kind of a wide variety of opportunities that we're seeing.

Susan Gray: Sure. Yeah. We still have 8 to 10 GW of data center pipeline in our queue. We also have the Hermosa Mine that's coming online. Copper World is probably in the latter part of our 5-year plan. We've got some other manufacturing and other, even some existing customers that are growing. It's not all data center growth in Tucson. There's kind of a wide variety of opportunities that we're seeing.

Speaker #8: And then we've got some other manufacturing and other even some existing customers that are growing so it's not all data center growth in Tucson.

Speaker #8: There's a wide variety of opportunities that we're seeing.

Speaker #6: Great, thanks for taking my question.

Michael Long: Great. Thanks for taking my question.

Mike Lonegan: Great. Thanks for taking my question.

Speaker #1: Again, if you have a question, please press star, then one. Our next question will come from Eli Jocelyn with J.P. Morgan Securities. Please go ahead.

Operator: Again, if you have a question, please press star one. Our next question will come from Eli Jawson with J.P. Morgan Securities. Please go ahead.

Speaker #3: Hey, good morning, everyone. Maybe sticking with Arizona, just wanted to shift to the political landscape. Obviously, we saw primary outcome just a few days ago.

Eli Jawson: Hey, good morning, everyone. Maybe sticking with Arizona, just wanted to shift to the political landscape. Obviously, we saw a primary outcome just a few days ago. I just wanted to kind of get your thoughts there, if there was any surprise and whether or not that would impact your overall kind of regulatory strategy within the state.

Eli Jossen: Hey, good morning, everyone. Maybe sticking with Arizona, just wanted to shift to the political landscape. Obviously, we saw a primary outcome just a few days ago. I just wanted to kind of get your thoughts there, if there was any surprise and whether or not that would impact your overall kind of regulatory strategy within the state.

Speaker #3: And I just wanted to kind of get your thoughts there. If there was any surprise and whether or not that would impact your overall kind of regulatory strategy within the state.

Speaker #5: Yeah, I'll take that one, Susan. I mean, I still spend a lot of time in Arizona, so I'm pretty up to speed on the politics there.

David Hutchens: Yeah, I'll take that one, Susan. I still spend a lot of time in Arizona, so I'm pretty up to speed on the politics there. I don't know. I wouldn't call it a surprise when there's three folks running for two seats. In a primary, it's hard to call which way that'll split. It doesn't matter to us from a regulatory strategy perspective. We'll see how the general election turns out as well. In the end, this is two of the five commissioners that are up. Even a complete change in commissioners, a complete turnover there would still have three that we've known and built relationships with over these past couple years or several years in some of the commissioners' cases. We don't change our regulatory strategy based on election.

Speaker #5: I mean, I don't know. I wouldn't call it surprise. I mean, there's when there's three folks running for two seats, and in a primary, it's hard to call which way that would that'll split.

Speaker #5: It doesn't matter to us from a regulatory strategy perspective. We'll see how the general election turns out as well. But in the end, this is two of the five commissioners that are up.

Speaker #5: So even with a complete change in commissioners—a complete turnover—there would still be three that we've known and built relationships with over these past couple of years, or several years.

Speaker #5: And some of the commissioners' cases. So, we don't change our regulatory strategy based on elections, so we work with the regulators that are in those roles.

David Hutchens: We work with the regulators that are in those roles, and work to push for good and solid policy that helps us support the things that matter most to our customers. That doesn't change from election to election.

Speaker #5: And we work to push for good, solid policy that helps us support the things that matter most to our customers. So, that doesn't change from election to election.

Speaker #3: Got it. And I know there's been a lot of discussion on Arizona, but maybe just last question on the IRP. We know that we have that timeline in October.

Eli Jawson: Got it. I know there's been a lot of discussion on Arizona, but maybe just last question on the IRP. We know that we had that timeline in October for the filing. Can you just remind us sort of the range of outcomes that we can expect coming out of that IRP and how that affects sort of the opportunity set that you have in Arizona?

Eli Jossen: Got it. I know there's been a lot of discussion on Arizona, but maybe just last question on the IRP. We know that we had that timeline in October for the filing. Can you just remind us sort of the range of outcomes that we can expect coming out of that IRP and how that affects sort of the opportunity set that you have in Arizona?

Speaker #3: For the filing, can you just remind us sort of the range of outcomes that we can expect coming out of that IRP and how that affects sort of the opportunity set that you have in Arizona?

Speaker #5: So we don't really have a range of outcome yet other than one from the old IRP that so we really are waiting for the results of this and then, of course, we run a whole bunch of different scenarios in this process, pick one as kind of the recommended the recommended portfolio for filing with the commission.

David Hutchens: We don't really have a range of outcome yet other than one from the old IRP. We really are waiting for the results of this. Then, of course, we run a whole bunch of different scenarios in this process, pick one as kind of the recommended portfolio for filing with the Commission, obviously with the rest of the scenarios as well. At the end of the day, that's when we start looking at what that scenario looks like, whether or not it gets through the process with the Corporation Commission. Well, we'll be penciling in some of those investment opportunities as we go through this process and start communicating those at that time. Right now, we haven't released all of the scenarios and what those look like, but those will be released, and it's something that folks can see.

Speaker #5: Obviously, with the rest of the scenarios as well. But at the end of the day, that's when we start looking at what that scenario looks like, whether or not it gets through the process with the corporation commission, and then we start well, we'll be penciling in some of those investment opportunities as we go through this process.

Speaker #5: And start communicating those at that time. Right now, we haven't released all of the scenarios and what those look like. But those will be released and it's something that folks can see.

Speaker #5: I mean, it'll be more on a very high level, kind of revenue net present value revenue requirement for those portfolios. But it'll show the investments that are needed and what years those are needed in.

David Hutchens: It'll be more on a very high level, kind of net present value revenue requirement for those portfolios. It'll show the investments that are needed and what years those are needed in. It'll provide some of the data for folks like you all on the call to do some back of the envelope and see what would be needed in those different time frames.

Speaker #5: So, it’ll provide some of the data for folks like you all on the call to do some back-of-the-envelope calculations and see what would be needed in those different time frames.

Speaker #3: Great. Thanks for the caller.

Eli Jawson: Great. Thanks for the color.

Eli Jossen: Great. Thanks for the color.

Speaker #5: You bet.

David Hutchens: You bet.

Speaker #1: This concludes our question and answer session. I would like to turn the conference back over to Ms. Amaimo for any closing remarks. Please go ahead.

Operator: This concludes our question and answer session. I would like to turn the conference back over to Ms. Amaimo for any closing remarks. Please go ahead.

Speaker #4: Thank you, Chuck. We have nothing further at this time. Thank you, everyone, for participating in our second quarter conference call. Please contact investor relations should you need anything further and have a great day.

Stephanie Amaimo: Thank you, Chuck. We have nothing further at this time. Thank you everyone for participating in our Q2 conference call. Please contact investor relations should you need anything further, and have a great day.

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

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