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BKH Black Hills

Participants
Jerome Nichols Director, Investor Relations
Linn Evans President and Chief Executive Officer
Rich Kinzley Senior Vice President and Chief Financial Officer
Michael Weinstein Credit Suisse
Julien Dumoulin Smith Bank of America
Andrew Weisel Scotia Howard Weil
Vedula Murti Avon Capital
Call transcript
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Operator

Good day, ladies and gentlemen. And welcome to the Black Hills Corporation Second Quarter 2019 Earnings Conference Call. My name is Daniel, and I will be your coordinator for today. At this time, all participants are in a listen-only mode.

Following the prepared remarks, there will be a question-and-answer session. Instructions] [Operator

Investor this like recorded over to Jerome Director reminder, I replay to is Hills Nichols, now Black would turn of conference a proceed, for being purposes. Mr. Corporation. As Please of sir. Relations the presentation

Jerome Nichols

Good Linn Daniel. to Welcome Officer. Chief Rich Officer; Evans, XXXX President everyone. Second quarterly earnings Kinzley, Black Leading and President Financial Conference and Call. morning, our Corporation's and Senior discussion Quarter you, Thank Hills Earnings today Chief Vice are, Executive

discussion Securities During the are we Commission earnings inherent of our today, as comments uncertainties there make some statements in forward-looking defined and such a of may and contain number by comments. the Exchange

factors materially. that Although and for our results expectations. based and Exchange our of to some reasonable XX-K of We Securities most recent Form earnings the and our could Form XX-Q release, are slide differ the investor beliefs website from direct a expectations our our list we presentation differ on with two materially you that assumptions, believe filed on the cause Commission may and of actual to results future

over will turn Evans. I now Linn to call the

Linn Evans

I'll for you. with will the for everyone Thank morning, thank us finish around Kinzley will X. and Rich strategy. agenda update quarter. Good morning. then this the cover financial The today you and Slide Jerome. on of appears joining I highlights a our provide discussion

congratulate their and start our their vein, I results, the the and safe customers to meetings to focus. with to second quarter's this Hills with want as Black quarter. safety our the into I during thank response want our dive incredible we the pause within we meeting for Before do and all team both In

determination Our much flooding teams to work rainfall our record focus, customers and respond of territory. across and as they our sensitivity helped with

for safely. of accomplished Many and how thank what it did team you of is listening you each I especially you our and

our X, confident Slide are we Moving in strategy. to

financial on execute execute our success. year strategy investment action our and plan. to capital see to Slide you'll to delivered during continue safe service we of quarter, on to second reliable earnings we We produced our long-term overview achieve plan the an and X, continue our During results we track for this and customers, quarter. guidance On full our

service performance. stepped for second difficult experienced Our territories strong a with quarter, weather operational consecutive our once conditions and again up team

recall quarter, extreme may cold, winter the You the impacted flooding of in first winds dangerous storms, much severe that and Midwest.

Nebraska quarter, experienced flooding precipitation cooler-than-normal then our temperatures. many in and customers breaking record and Iowa of mainly of and This parts

with our combined farmers trade territory overall that tariffs ranchers beyond activity days. conditions poor is our and degree relatively measurable within service economic impact otherwise These in what and territories Midwest dampened

sales electric temporary we quarter, lower for weather to nature. these and investment as capital natural on nearly difficult the stay track million across Despite meet Our view experienced year volumes on during full XXXX. which our expectations execute gas forecast second and $XXX we class conditions, earnings managed our customer every to utilities in businesses

in injuries safety we for reportable As and I've our I'm of achieving June. stated, team prioritize proud zero already

to While an be to goal zero leader continue encouraging an room truly safety. we industry is safety, have in as our to strive milestone demonstrate to is for this we enhance possible that

our simply and do transforming hard are more which last we and As easier customer make example very and value worked to our website the just efficiently I mentioned quarter, efforts need this customers with us. launched customers, week, and enhanced service, we to serves what of an experience last continually they team our know our our it improve customer to an effectively business enhance is

initiatives our our investment our and jurisdiction customers, as approvals growth. earnings We and already long-term regulatory on ready strategy As being to to received we capital customer-focused our are key strong, on for for track we I we related plan. focus expect simplification mentioned, deliver efforts

I'll electric accomplishments to some notable recent with start list the which utilities. Slide X, Moving and

to of renewable that's be We Ready and Renewable to the provides Tariffs. Dakota construct customers Electric, that Nebraska. Electric already to are Steagall application stretch course, from Service a Wind the XX a to voluntary the our our and option entering In Corriedale program commercial City is megawatt pleased Rapid in our in government agencies will joint to for XXXX we South in Project. approval Utilities and constructed wind $XX CPCN our The the Electric million purchase serve larger, the we a it's This and XXX-mile and Dakota Wyoming in included, investment cost-effective operate our Energy At energy. that received industrial are utility-scale of project be home complete South in South service capital line forecasts. Wyoming transmission Dakota that

later region. to on our and and the segment service in Now got schedule place Xrd approval that Cheyenne the help technology this we received Wyoming that At to April recruit mile fall. companies project remains Electric, in what will final XX for the tariffs we -- blockchain

new this development within technology Wyoming recently Now Wyoming. to in blockchain complementary legislation enacted of is tariff the and supports

these year. We surpasses of July, demonstrate new note And that megawatts, to in which in peak Wyoming Electric all-time megawatts surpassed July sort customer are both we last new Wyoming. XXX demand growth contrast record-peak of Electric Colorado set most that our the peak should similarly in overall new also the of the Colorado classes during Electric peak customer and second last growth lower XXX of megawatt Wyoming new experiencing peaks that in prior and a in the of peak I Colorado XXX quarter posted previous Electric a megawatts set was continued set demand the year. energy of of loads. think in July and XXX of

Bridge supply Central this capacity Wyoming. XX project. it's customers that Moving to the May and $XX completed are pipeline scheduled fall. Natural located commenced utilities to in pipeline the of side also X. in mile On Gas enhances And the XX, right on for of Slide placed natural on gas This be Wyoming construction million and reliability service

to gas end in safety, to approval companies system received filed four reliability new and rates, and revenue natural On consolidate we Nebraska two June Gas within rate investments and distribution Wyoming consolidate on natural we gas March quarter, distribution integrity review the requested consolidated that application the related we've made $XX the to million At a combine the tariffs completed. customers. to have During of services X, at submitted was Gas, behalf companies state. an of which

file in review a rate we to Now, XXXX. consolidated plan

is in safety Colorado Gas. for not rate rate a release our mentioned in Something review rider Slide review our investments. on specifically ongoing and but that's X integrity $X.X mechanism revenue million recover and That seeks requests new to also appears earnings new

participating hearing Our an week, ALJ this team in is before those with respect a to requests.

FERC is on XXXX power on request XX the Hills its between Wygen to megawatts Black deliver August power X, agreement Electric, Electric. continuing Wyoming its years. submitted If affiliate to Wyoming the power X, to on new then segment we XX Moving then our will power January for approval purchase of agreement starting Wyoming Wyoming Slide X, and a seeking of generation Black approved Hills purchase and plant energy from

XXXX. agreement the December Black agreement will Hills Wyoming power that expires and Wyoming between Electric existing replace new purchase XX, This on

placed Pueblo will agreement. is Colorado Busch renewable service million, XX the currently II megawatt a under When this near project wind Colorado all XX-year of energy wind located $XX in power construction. its Ranch to deliver under Our fall, project Electric purchase

we XXXX. deliver Electric portfolio state's will declared quarterly requirement fulfill the to our to per consecutive one our annual XXXX. of And our records energy renewable annual dividend a of $X.XX industry. as which Colorado extremely are of. the segment, And proud $X.XXX longest in standard renewable represents of year annualized the Board represents the XXth XX% is dividend by increase, rate an for a rate of course corporate its utility energy track This of share for recently This which record customers

issued proceeds we've of stock offering at-the-market During total the million. issued of common million under Hills approximately for ATM. $XX Year-to-date, shares approximately Black equity quarter, we $XX under new the of a net our XXX,XXX in equity program second

extended the loan increase $XXX On the from $XXX XXXX loan to from our of XXXX million June million. and side, the to we debt of and amended in amount term due

team or in team with so years our our customers. serving survey and creating engaged employee from to in while workplace. excellence to two our to our We improve customers truly through serve our obtain every Finally, assess engagement a us feedback is team continually endeavor our party the service Xrd great a open help

the above score to also are about our the that enjoyed average, it We and our performing XX% companies high US. score, within is US utility the only of announce by recent also is but upon pleased engagement XXXX engagement improved not

turn for update. Now, Rich. financial I'll over to Rich it our

Rich Kinzley

challenges, start and financial good Thanks, Slide delivered Linn other on X, weather our I'll good. as Very related met second noted performance we that expectations. Linn quarter everyone. morning, than

Our last compared to quarter, normal estimate quarterly $X.XX year's as by second adjusted impacted $X.XX compared XXXX. weather $X.XX to EPS We to that in QX, results compared QX was by and $X.XX negatively weather.

due reduced direct energy the believe quarter Beyond customer impact, to activity by we record and weather reduced service as across reflected for territories second demand our precipitation all flooding this during resulting classes. in was nearly economic demand and

conversion by a strategy. customers gas share investments made equity weather, year. planned utilities. primarily purchased unit returns the our reflect results operating unplanned and for costs our related on November and rate quarter to XX% long-term, to generation Lower positively impacted Results lower negatively customer-focused count related higher also effective and of tax and second expenses Aside were capacity from increased driven benefit the last outages by in to at

season of We our season I'll these and everyone forward, these impact attributed in items the expenses. combination of quarter in of XXXX can outages indirect generation period our non-recurring be part many are at certain non-recurring electric few shoulder of in $X.XX direct for that outside approximately utilities. utilities is heating cooling and QX, looking second gas utilities While our nature. weather, a the the business to a EPS remind are believe at of items the primary our also

The in and remain Slides guidance on And Linn as are for achieve and detailed earnings XX XXXX. guidance our reaffirmed on XXXX. importantly have track our we we for assumptions and to earnings noted, appendix. for the More XX our XXXX guidance earnings

earnings slide non-GAAP to this quarters as earnings five reconcile XX displays we special that earnings and adjusted XX, months XXXX. ongoing to XX, performance. measure. the Slide June communicate represent isolate our do We items and better of trailing GAAP and last XXXX as On This

For no We we which special experienced reflective half items in were all XXXX, of related. performance, XXXX our had items. not of the ongoing of tax first special income

legal of the These restructurings completed the Jobs the larger during Cuts as adjusted of our Tax reflect related on performance of The tax reflected impact and and them In indicative as Act second not first ongoing benefits basis. XXXX. item are in and we item items an to XXXX. accordingly

to net more slide from to spending decrease Non-regulated of Slide the and quarter capital X% we this non-recurring our the our taxes. earnings the related planned amounts lower revenue increased XX% a gross added a generation weather mining QX, by on transparency primary for unplanned by next O&M segment. XX lower to customer-focused But margins program. of planned $X.X to drove illustrates year-over-year improve delivered items. our in segment XXXX waterfall in utilities to half after All at last QX, were with materials chart compared the increase tax, by I'll which by year comparisons. investor XXXX. Total our chart of to our The XXXX, second associated QX, on drivers largely detail expenditure XXXX are is of overall, a margins add income O&M largely QX, slide. million Approximately outages, decrease with driven results due impacts. driven

service in as year. and compared in increased our effective rate tax favorability to increased a result income Depreciation and the prior planned QX, experienced XXXX of we

special expected excluding effective this tax rate approximately items. XX% when prior the is Our year, year be approximately to to year last XX% compared

tax investment This recognize year. Under tax generally is energy federal portion Ranch to to production in the forecasted principles driven by credits Busch first tax credits XXXX. accepted annual in our half accounting, of of is rate be fall for which and to expected interim accounting II related large the the reduced required during wind project, forecasted credits service are state tax tax placed of a renewable we XXXX the

and our operating few year-over-year to on our Slide slide results operating margin additional QX gross this XX onto the operating a release. is we details income segments year expenses and earnings changes in added one high-level I'll here you slide. presentation. make in Combining comments find can for a our

summer margins utilities, primarily to power commercial QX, lower income Gross from decreased $X.X decreased $X.X At purchase demand, the compared by and charges. operating million cooler XXXX. electric early offset partially QX, XXXX by for lower and million by residential weather capacity

operating income for over primarily year, QX to Our million million $X.X operating services gas expenses decreased to last and due utilities XXXX. $X.X QX At compared cost. employee higher QX, increased outside the XXXX

Gross $X.X in service on We expenses $X.XX for million. but growth services, outside higher costs our margins weather from investments by decreased benefited unfavorable customer primarily territories. million, and returns and from increased experienced customers Operating depreciation. employee

pretax mentioned quarter As related is outside O&M nature, approximately earlier primarily the the incurred non-recurring I during million services. $X of to in

$X.X our and income you These QX due to of planned see strong negatively results, the sales generation quarter Slide efficiently segment million the we for providing continuing decreased returns. mine. half at by impacted and Operating outages bottom power unplanned year-over-year the the XX, operate On delivered our segment mining to at generation excellent mentioned.

Slide credit through capital XX shows the our lens and flexibility. ratings financial financial of position structure,

to Our at credit both remain committed our credit S&P, from grade to investment net BaaX At capitalization and substantial XXXX total at ratio We ratings. spending BBB year-end with we points ratings XXX a outlook agencies. cap to XX.X%, progresses. at maintaining stable plus capital our debt of three remain increase Fitch all Moody's and expect XX, was strong at debt a as decrease slightly June forecast, with basis XXXX our

at-the-market expect program CapEx in You'll issues our and fund equity new next to to $XX which use in XX million will to guidance XX of we total shortly. year note that in $XX offering $XX equity program Slides appendix our assumptions $XXX million to to Linn our this on speak to and year help the million million

of $XX of half issuance And this year. first we through million noted, as Linn the year's completed the

range to total likely XX% XX% remain debt capitalization XXXX. will into While to in the

a the over longer We total term. continue to target debt cap ratio mid to XXs in the

dividend dividend earnings confidence track growth. future Slide our past XX faster our a grown the rate illustrates at our demonstrating the record. few years, We've in

to As the we of increase. past, annual dividend not amount payout maintain we've range our stated XX% reduce XX% is ratio stated in the And of of dividend to the our intent EPS.

back to overview. Now for now I'll his it turn Linn strategic

Linn Evans

growth. Profitable Thank to invest customers' drive we forecast, centered above earnings strategic Day Growth, safety, to you, on We XX, our we Service, of growth need earnings Slide Better Every Based deliver as we major Rich. and Valued Great our I'm moving and expect the capital goals group four Workplace. plan the categories. on utility in growth reliability long-term our to average. per share future

we fully projects. other larger and incremental addition, growth from expect generation opportunities In

Slide about XX helps think we how us execution. strategic illustrate

around processes analytics aligning our are use technology our our the people, needs. customers' and and We of

In safe addition to for our deliver that investment service. will reliable and customers

innovative bringing We're to make tariffs customer energy our know adding driving with. to to transforming customers us well working growth are businesses. forth renewable a We and business penetration, do new greater experience, hard and our through easier recruit

fit are unique our In And of a infrastructure service the data in we programmatic of growth of which natural reliability are systems, attributes and electric gas we enabling safety program. disciplined, centers, the integrity the and investing utilizing our territory. particular,

illustrates XX business our structure the seasonality the strategic diversity our earnings. Slide of and of

our diverse These We eight systems for overall Midwestern have more reliability electric systems. greater for and Slide efficiency infrastructure complementary of and growing span illustrates more operations states. XX utilities natural mix opportunities and gas across provide investment, stable states customers. growth electric a our interconnections of and large gas and and across for

XX, our investment meet Slide to require significant needs. long-term Moving systems customers' to our

will This reliability translate our growth. investment growth. far exceeds customers' depreciation, future capital to forecast is earnings largely focused supporting capital safety, and Forecasted which on

XXXX to billion our We disclosures. these us, all-time invest with in five million and the for period. year forecasts and capital Both $XXX of $X.X over first plan are high quarter consistent are

and Our projects. gain more capital especially specific certain add occur we in we're to around and relatively forecast as we years includes clarity opportunities then outer the capital comfort

As be when expect quarter our November. capital update earnings forecast X-year in will discussed we last third report our early quarter, we that to

refresh at also guidance our time. will that earnings We

X-year breakdown forecast. the our capital illustrates of XX Slide

XX% investments a of that of recovered note forecasted utilities XX% timely over efficient You'll over manner. in investment within and utility those is our and our

timeline Slide state around the simplification our XX shows jurisdiction efforts. multi

expected Colorado, consolidated and with which decisions states, both rate under the Wyoming, by have and are Colorado legal now consolidation We simplification. Wyoming, we in year-end. process we way those and through Nebraska approval officially three the currently regulatory states for In then and we're and are for received the reviews working completed

plan Nebraska, all we XX and new commitment consolidation strong and in slide continue of request managing impacts, Slide our our a our review is sustainable rate environmental we stakeholders. for end strong filed social ensuring at In to we a and deliver to of XXXX. illustrating the governance future maintaining file a to consolidated March a legal while

our us. for Responsibly new serving customers managing environmental nothing and impact is

the fleets We in generation been modern renewable have approximately impact our emission most country emissions hand reducing also the by thereby transforming chart shown the carbon We've natural one the with technology. the investing more left of low gas control energy, adding latest generation, of since carbon on slide. mix, XX%, the our and as part XXXX on in generation

shareholders thrive. our our are and when Our customers communities successful

our alongside live customers work impacting positively and employees our communities. they Our

charities and We donating take program. a of to great pride and variety local

employee Our that million generously service of variety combined our in team time our more $X.X and donated we company employee across team financially volunteers donates ways communities the In our XXXX, territory. than a their serve. in with

to our a evidenced as and by experience. diversity of continue we legacy on board their composition Finally, build

is on and XX continues on track be our for operational focus our excellence, illustrates performance XXXX. excellent to Slide safety

mentioning our on during June. average month zero we much We the work of Also in better award Associated reportable plan. Gas recognition Southern natural team crisis received communication had in utility the continue again our teams gas and that report worth of an industry performance from it's to communication our injuries

Wyoming. executing customer-focused to our strong the progress And strategy then, Completion several Slide major ourselves the Wyoming you, XX strong of of each checking is our we XX consolidation the items We that filing our of CPCN to accountable wind our Slide ready our initiative the results quarter, Corriedale a published program delivering Gas legal consolidated include hold project. during and rate review scorecard illustrates XXXX year. made the shareholder returns. long-term and renewable shareholders, scorecard in off of approval associated our receipt

for for power Electric. Wyoming Wygen approval Hills FERC between filed one We agreement and the Wyoming purchase Black

completed also We major box everyday also great we completed maintenance appears under survey workplace. engagement plant under better box the appears that which our and employee

Now track met remain earnings our quarter, and to achieving on investment recap to our capital the quickly aside weather. we guidance. confident of from XXXX QX program, our We're the we impacts expectations achieve earnings

That concludes to entertain questions. my remarks we're and happy

Operator

[Operator Instructions]

Credit with Our question Suisse. from Weinstein comes first Michael

is now line open. Your

Michael Weinstein

couple new Hi, guys. the good about morning contracts. of Hey, a Wygen and questions

about filing new would if impact. So to hit on wondering the factors considering should that any the there just would $X.XX less pricing other its $X.XX that FERC mitigating on share than suggest the we that factors. megawatt somewhere suggests per is mitigating XX am of reduce around the neighborhood pricing old that in be to $XX is I earnings unless there's

of simply Is about related new adds to totally that a else X megawatts is incremental for had incremental? question been and pricing? continuing reassignment that just X that contracted a And is revenues? small in there somewhere new Gillette, this that it is previously that one that like under for Or before add would new a situation contract is then is megawatts, there

Rich Kinzley

Yes.

this right of Michael, better Rich. that contract being move on X on coal with the right factors The kind the coal would one coal Wygen the to escalators, mine. I is fixed With a the think it the is statement, is and sold a contract you mitigating now pricing Wyodak megawatts get of about now market. right our this our is so with then the contract, a plant on that's the open and the one PPA, math the on price

as well. locks that of contract that which down plant, component the is So helpful

it's think to that's of land where kind XXXX. been it's and a you others and characterized I to single-digit net by we expect about from high XXXX

through reminder, a end the XXXX the of existing runs As contract

Michael Weinstein

you. Got

other is to So, in I when digit words, mean contract net buyers. after XXXX high-single the impact the

Rich Kinzley

Correct.

Michael Weinstein

Got the then that but the I can impact it. X flipped about coal And there. what's characterize on is second question Wyodak the July economic contract, you

Linn Evans

Mike, Linn. this is

We with for continue PacifiCorp to contract that Rocky negotiate Power. Mountain

to to the have extended the negotiations. thinking $X contract probably moment. We at kind coal we're of the impact We price of overall during those current that's anticipate $X.XX between what an

Michael Weinstein

tons X.X is half or that. And so that's of that, million

Linn Evans

been Probably while have a million less than availability in resources because for They Wyoming. the taking slightly X.X wind that. of than less the of now

Michael Weinstein

you. Got

have Okay. happening. expectation And on resets all long-term can average your you this above impact on have growth make any earnings for been comment an growth? about Does based that these

Linn Evans

quarter anticipate it November. No, Mike average early above still doesn't. next We that growth

in we we my to out said updated average. the what that remarks, believe compared and updating above I As deliver extending we year forecast. providing will capital And utility earnings still an we be average current can see another forecast in

Operator

our Thank from Dumoulin-Smith Bank question of America. you. next And Julien with comes

Your line now open. is

Julien Dumoulin Smith

timing real the Hey the the guys, mitigating just sure the for to with we I good Can clarify offsets talked question Just impact. of those time. about re-positive clarify sorry. the net each and quickly we – also know the of be morning, -- to my Perhaps thanks

Linn Evans

I sorry, you, to Wygen Right. didn't one. I'm mean talking that about you're interrupt

Julien Dumoulin Smith

Yes.

Linn Evans

then, That's the yes. until all XXXX. stays it it all way starts is January X, Everything

Julien Dumoulin Smith

else talk or were should mitigating else speaking period. that of that we trajectory a the of moving items growth about be sort more Anything sort of then And thinking up in average we or down kind that consistent through offsets, anything big trajectory. of you to about enable above smooth that period

Linn Evans

ease high very for to the loss strategies us earnings, four consider least years, to that develop single-digit continue we're our have and that the look Julien, will, strategies something XXXX that of you focused we'll on. at to is next in Well, end pain, that help if

Julien Dumoulin Smith

switch et topic And excellent. tariffs if All talk just ongoing the with contracts any There's a of others new to just you ups, certainly cetera. focuses respect I updates few different been for it. on sign then datacenter just it, here can here, right, of acceleration. yours. about to sort curious a quarters continue to regionally any I Got continued

Linn Evans

blockchain Yes. Wyoming. to been couple responding can those. We of We've that number we've The And a in responding have those. announce, for updates. been contacts don't received to we've of anything we but

to load As by we serve approved Colorado and in Commission megawatt have in datacenters, tariffs approved XX Electric. contract to Colorado an the

I we under a details datacenter think of we're megawatt be XX Pueblo. But confidentiality agreement with respect bringing to to that. to excited the are

Operator

Andrew Our Scotia Weil. comes next from question with Weisel Howard

Your open. is now line

Andrew Weisel

Hey, good morning, is equity. everybody. My question on first

Can You loaded? share the part raised obviously that's on first a why $XX more the the guidance. million front-end better it's thoughts half, full-year of bit any in you

Linn Evans

second Pretty during took simple. and were conditions good quarter of just that. the we Market advantage

Andrew Weisel

right. Simple All enough.

the share you the electric your lot for thoughts you on question, about latest please regulatory a rate the the for the on utilities? Next side? about case talked electric strategy three subsidiaries. How Can filings at outlook gas

Linn Evans

Yes, We five in filing good the which plan rate over next the case years. question. is our next, current don't anticipate any

could resource be filing with be working of will on that that a couple to our change in the Now integrated and plans be respect states. we

But we'll plans through South we cetera, some et rate example, five for believe Dakota years we to any considerations. don't those For have need case we indicated, over the have working capacity Electric next as replace

Rich Kinzley

there on of file years. to a have couple do We Electric. in Wyoming than Other

Linn Evans

Thanks for reminder. Yes. that

XXXX our Wyoming last file Electric by will an be case agreement and filing IRP a rate to have We that. through

Andrew Weisel

one just that's I Great, may. if helpful. last one Then

the us XXXX just are in of one-time You half any of $X.XX in comparisons? sort for one-time expenses the for mentioned quarter. that the aware second Will XXXX of to or you noteworthy of half either you remind of second item

Linn Evans

Yes.

a Let weather, said if me and non-recurring the which to normal. the And impacts then a said second about clarify. could impact think to about, certain generation $X.XX the quarter one-time net be I were you expenses. which attributed I $X.XX compared the I didn't of those roughly were we outage, expenses that $X.XX. outages estimate say $X.XX then $X.XX during

second one items $X.XX. particularly for us, unusual This mean to So there. that's some the in future so to nothing Relative it. have and I I point had out time quarter

Operator

question Our next comes Capital. with Vedula from Avon Murti

is line open. Your now

Vedula Murti

upon I morning. Weinstein's to clarify Good want Mike following questions.

$X.XX understood a the to make on that. $X.XX to not repricing your referenced mine, XXXX. Coal that party then supply third to and I the want to tied from supply. solely from favorable adjustment income First I you technology correct? is that coal sure is on And

Linn Evans

It's from our mine. on Wygen including plants All coal our mine, one. it our coal

coals So all mine. that coming from our

Vedula Murti

then with price. lower mine the but where as affected going So this is, they a negatively earnings get and I'm then

Linn Evans

starting current which positive impact, statement because It call No. will standard we be a move Vedula, in regulatory XXXX is are they the will which arrangement, our to lower. from price

Vedula Murti

Okay.

bit actually price So that's contract up, digits. it, coal get the goes of and to a and high you single part that's how the offset

Linn Evans

Correct.

Vedula Murti

that's current negotiation full a timeframe. be reopen the I that My were correct? think this about I on Okay. coal we is assume to Is the in Wyodak. supply. also recollection referencing And going XXXX -XXXX earlier or

Linn Evans

expires contract in The Yes. mid XXXX.

to clarify least plant continue to last that. just at indicates to change. into Rocky we And from expect for another well we going a So if I bit. can Mountain is But that beyond them. Power don't run are IRP waiting that decade more little The information

Vedula Murti

That to much next question. was going be my pretty

any an previous have you would when disclose IRP expect changes? update or any the So to either affirm or to get

Linn Evans

Mountain intends documents other and Good don't Rocky operations operate do that know know Wyodak through through we when public states XXXX. currently But question, Power Vedula. exactly will to the what approve presentations IRP. there We

We I us is contract that's to part Mountain Rocky extend negotiate So would that negotiations that would in renegotiated for of our opportunity and we Powers. at there And expect some point say between XXXX. now with its fact, price, contract. now

Vedula Murti

able how given state challenging. Washington, I environmental it somewhat could coal be movements states? being into guess that's both another that last and -- that to maybe of mean transmit going the from one to I in does in be those some Oregon thing, generation play into Appears

Linn Evans

watching with tend you, and We we're agree that closely. to

is Wyoming coal, passed We'll of watching find the might over And right. years. legislation keep longevity you're in to open especially very it that interest lately You plants for of of couple closely be but Wyoming, absolutely to try next some Power. of the Mountain the state the determine of Rocky

Operator

Thank over I ahead, call for closing Evans to you. With Linn further return the sir. will questions, no Go remarks. back

Linn Evans

hope everyone rest interest morning. Thank your time your and safe in for thank And enjoy of continued day. your Thank you Black you. for great a you, you We this Hills. that

Operator

This for conference. in you Thank today's concludes presentation. today's your participation

Good day. disconnect. You may now