ALLETE Inc (ALE) 2022 Q4 法說會逐字稿

Good day, and welcome to the ALLETE fourth quarter 2022 year-end financial results call. Today's call is being recorded. Certain statements contained in this conference call that are not descriptions of historical facts are forward-looking statements, such as terms defined in the Private Securities Litigation Reform Act of 1995. Because such statements can include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in filings made by the company with the Securities and Exchange Commission. Many of the factors that will determine the company's future results are beyond the ability of management to control or predict. Listeners should not place undue reliance on forward-looking statements, which reflect management's views only as the date hereof. The company undertakes no obligation to revise or update any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

美好的一天，歡迎來到 ALLETE 2022 年第四季度年終財務業績電話會議。今天的通話正在錄音中。本次電話會議中包含的某些非歷史事實描述的陳述屬於前瞻性陳述，例如 1995 年《私人證券訴訟改革法案》中定義的術語。由於此類陳述可能包含風險和不確定性，因此實際結果可能與這些陳述存在重大差異此類前瞻性陳述明示或暗示。可能導致結果與此類前瞻性陳述明示或暗示的結果存在重大差異的因素包括但不限於公司向美國證券交易委員會提交的文件中討論的那些因素。許多決定公司未來業績的因素超出了管理層的控製或預測能力。聽眾不應過分依賴前瞻性陳述，這些陳述僅反映管理層在本文發布之日的觀點。公司沒有義務修改或更新任何前瞻性陳述或作出任何其他前瞻性陳述，無論是由於新信息、未來事件或其他原因。

Again, welcome to the ALLETE fourth quarter 2022 year-end financial results call. (Operator Instructions) For opening remarks and introductions, I would now like to turn the conference over to ALLETE Chair, President and Chief Executive Officer, Bethany Owen.

再次歡迎來到 ALLETE 2022 年第四季度年終財務業績電話會議。 （操作員說明）關於開幕詞和介紹，我現在想將會議轉交給 ALLETE 主席、總裁兼首席執行官 Bethany Owen。

Good morning, everyone, and thanks for joining us today. With me are ALLETE's Senior Vice President and Chief Financial Officer, Steve Morris; Frank Frederickson, Minnesota Power's Vice President of Customer Experience and Engineering Services; and Jeff Scissons, ALLETE Clean Energy's Chief Financial and Strategy Officer. Corresponding slides can be found on our website at allete.com in the Investors section, and we'll call out each slide number as we go through today's presentation.

大家早上好，感謝今天加入我們。和我一起的是 ALLETE 的高級副總裁兼首席財務官 Steve Morris；明尼蘇達電力公司客戶體驗和工程服務副總裁 Frank Frederickson；和 ALLETE Clean Energy 的首席財務和戰略官 Jeff Scissons。相應的幻燈片可以在我們網站 allete.com 的投資者部分找到，我們將在今天的演示中標出每張幻燈片的編號。

This morning, ALLETE reported full year 2022 earnings of $3.38 per share on net income of $189.3 million compared to 2021 earnings of $3.23 per share on net income of $169.2 million. In a few minutes, Steve will provide more details on ALLETE's 2022 financial results as well as our 2023 earnings guidance. Although our financial results for the year were below our expectations, we are committed to ALLETE's long-term earnings per share growth objective of 5% to 7%, and I am confident in our ability to achieve this for investors.

今天上午，ALLETE 報告稱，2022 年全年每股收益為 3.38 美元，淨收入為 1.893 億美元，而 2021 年全年每股收益為 3.23 美元，淨收入為 1.692 億美元。幾分鐘後，史蒂夫將提供有關 ALLETE 2022 年財務業績以及我們 2023 年收益指引的更多詳細信息。儘管我們今年的財務業績低於我們的預期，但我們致力於實現 ALLETE 每股收益增長 5% 至 7% 的長期目標，我相信我們有能力為投資者實現這一目標。

As you see on slide 3 of the presentation, we're making significant progress putting sustainability into action, and our strategy will provide value to our customers and our shareholders for years to come. While we serve our customers with excellence and provide exciting opportunities for our employees, we take pride in creating value for our shareholders. ALLETE continues to pay an attractive dividend while we strategically position all of our companies for sustainable growth over the long term. Earlier this month, our Board of Directors approved an increased dividend of more than 4%, reflecting the Board's confidence in the growth outlook for ALLETE.

正如您在演示文稿的幻燈片 3 中看到的那樣，我們在將可持續發展付諸行動方面取得了重大進展，我們的戰略將在未來幾年為我們的客戶和股東提供價值。在我們為客戶提供卓越服務並為員工提供激動人心的機會的同時，我們為為股東創造價值而感到自豪。 ALLETE 繼續支付有吸引力的股息，同時我們對所有公司進行戰略定位以實現長期可持續增長。本月早些時候，我們的董事會批准增加超過 4% 的股息，反映出董事會對 ALLETE 增長前景的信心。

In spite of some headwinds encountered in 2022, our accomplishments were many. Just a few examples include the approval of Minnesota Power's integrated resource plan and the resulting $600 million expansion of our capital expenditure plan, increasing rate base growth to 11% over the next 5 years; Minnesota Power's track record for near perfect system reliability and storm response, all while keeping customers' bills below the national average; the MISO Tranche 1 approval of the Northern Reliability transmission project; advancement of our shared vision with Grid United for a future first in the nation transmission expansion as well as the acquisition and integration of new energy equity. These are just a few of our many operational positioning and strategic successes, all driven by ALLETE's dedicated team of talented employees.

儘管 2022 年遇到了一些不利因素，但我們取得了很多成就。僅舉幾個例子，包括批准明尼蘇達電力公司的綜合資源計劃以及由此產生的 6 億美元資本支出計劃擴張，將未來 5 年的利率基礎增長率提高到 11%；明尼蘇達電力公司在近乎完美的系統可靠性和風暴響應方面的記錄，同時將客戶的賬單保持在全國平均水平以下； Northern Reliability 輸電項目的 MISO Tranche 1 批准；推進我們與 Grid United 的共同願景，即在全國輸電擴張以及新能源股權的收購和整合方面成為未來第一。這些只是我們眾多運營定位和戰略成功中的一小部分，所有這些都是由 ALLETE 敬業的優秀員工團隊推動的。

On the regulatory front, I'm proud of our team's thoughtful stakeholder engagement throughout the year. Superior Water, Light & Power finalized its rate case in late 2022 with final rates in effect as of January 1, 2023. The Public Service Commission of Wisconsin improved an annual increase of $3.3 million, along with a return on equity of 10% and a 55% equity ratio. On January 23 of this year, the Minnesota Public Utilities Commission made its determination on Minnesota Power's 2021 rate case, including a return on equity of 9.65%, and a 52.5% equity ratio. While we are disappointed that the overall rate case decision was below our request and below the recommendations of the administrative law judge, we're evaluating options and next steps, which may include clarification or reconsideration of certain items in the case, and we anticipate filing another rate request later this year.

在監管方面，我為我們團隊全年深思熟慮的利益相關者參與感到自豪。 Superior Water, Light & Power 於 2022 年底完成了費率案例，最終費率於 2023 年 1 月 1 日生效。威斯康星州公共服務委員會每年增加 330 萬美元，股本回報率為 10%， 55%的股權比例。今年1月23日，明尼蘇達州公用事業委員會對明尼蘇達電力公司2021年費率案作出裁定，其中股本回報率為9.65%，股本比率為52.5%。雖然我們對整體費率案件的決定低於我們的要求和行政法法官的建議感到失望，但我們正在評估選擇和後續步驟，其中可能包括澄清或重新考慮案件中的某些項目，我們預計會提交今年晚些時候的另一個利率請求。

Constructive regulatory outcomes are critical to our clean energy transition. Minnesota Power is leading the state in providing renewable energy to customers with a strong track record of near perfect reliability and creative hard work by our team to keep rates affordable for our customers. We're grateful for the Minnesota Public Utilities Commission's recent approval of Minnesota Power's IRP, and a critical component of our ability to execute this exciting plan is earning a reasonable return on our investments and recovering costs in a timely fashion through Minnesota's regulatory framework. Minnesota Power is committed to earning its allowed rate of return for shareholders while caring for our customers. We'll continue to advance a carbon-free energy future while providing safe and reliable service and keeping customer bills as low as possible. As utilities are asked to do more and faster, we expect our rate review request to become more frequent going forward, and we're confident that our regulators will support our work on all of these important fronts.

建設性的監管成果對我們的清潔能源轉型至關重要。明尼蘇達電力公司在向客戶提供可再生能源方面處於全州領先地位，我們的團隊在近乎完美的可靠性和創造性的辛勤工作方面有著良好的記錄，以保持客戶負擔得起的價格。我們感謝明尼蘇達州公用事業委員會最近批准了明尼蘇達州電力公司的 IRP，我們執行這一令人興奮的計劃的能力的一個關鍵組成部分是通過明尼蘇達州的監管框架及時獲得合理的投資回報和收回成本。明尼蘇達電力致力於在關心我們的客戶的同時為股東賺取允許的回報率。我們將繼續推進無碳能源的未來，同時提供安全可靠的服務並儘可能降低客戶費用。隨著公用事業被要求做更多更快的事情，我們預計我們的費率審查請求將變得更加頻繁，我們相信我們的監管機構將支持我們在所有這些重要方面的工作。

Meanwhile, Minnesota Power is making significant progress on our vision to provide 100% carbon-free energy to customers. Our recently approved IRP is transformative, adding 700 megawatts of wind and regional solar, supporting energy storage, ceasing coal operations at Minnesota Power's two remaining coal units by 2030 and 2035, respectively, and investing in a resilient and flexible transmission and distribution grid. Already providing 50% renewable energy today, Minnesota Power expects to provide more than 70% renewable energy to customers by 2030. We are engaged in the RFP process for the additional wind, solar and energy storage identified in this IRP and we'll provide updates on the progress of these projects throughout the year.

與此同時，明尼蘇達電力公司在實現我們為客戶提供 100% 無碳能源的願景方面取得了重大進展。我們最近批准的 IRP 具有變革性，增加了 700 兆瓦的風能和區域太陽能，支持儲能，到 2030 年和 2035 年分別停止 Minnesota Power 剩餘的兩個燃煤機組的燃煤運營，並投資於彈性和靈活的輸配電網。明尼蘇達電力公司目前已經提供了 50% 的可再生能源，預計到 2030 年將向客戶提供超過 70% 的可再生能源。我們正在參與此 IRP 中確定的額外風能、太陽能和儲能的 RFP 流程，我們將提供更新關於這些項目全年的進展情況。

In addition, just a few weeks ago, the state of Minnesota enacted new legislation requiring electric utilities to source retail sales with 100% carbon-free energy by 2040. This is clearly an ambitious goal, but our company has been on an incredibly ambitious clean energy journey as well. We're pleased that lawmakers listened closely as we describe the state of technology and the investments necessary to build a modern grid. And as a result, they included important provisions for utilities and regulators in the legislation. We support a carbon-free energy future with a transition that protects reliability, safety and affordability and ensures equity by leaving no one behind. There is a lot of work ahead of us with our customers, our regulators, our communities and other stakeholders to get all of that right. It will take everyone working together to achieve these ambitious goals, and the state must be a strong partner in supporting the bold initiatives that are required to achieve a truly sustainable carbon-free future. We'll build on our current momentum and factor this new Minnesota legislation requirements into Minnesota Power's next IRP filing in the spring of 2025. So, there is much more to come.

此外，就在幾週前，明尼蘇達州頒布了新的立法，要求電力公司在 2040 年之前使用 100% 無碳能源進行零售銷售。這顯然是一個雄心勃勃的目標，但我們公司一直在執行一項雄心勃勃的清潔能源能量之旅也是如此。我們很高興立法者在我們描述技術狀況和建設現代電網所需的投資時仔細聆聽。因此，它們在立法中包含了針對公用事業和監管機構的重要條款。我們通過保護可靠性、安全性和可負擔性的過渡來支持無碳能源的未來，並通過不讓任何人掉隊來確保公平。我們需要與客戶、監管機構、社區和其他利益相關方一起開展大量工作，以確保一切順利。實現這些雄心勃勃的目標需要每個人的共同努力，國家必須成為支持實現真正可持續的無碳未來所需的大膽舉措的強有力的合作夥伴。我們將在當前勢頭的基礎上，將這項新的明尼蘇達州立法要求納入明尼蘇達電力公司 2025 年春季提交的下一份 IRP 文件中。因此，還有更多的事情要做。

Related to Minnesota Power's recently approved IRP, we've updated our capital investment plan on slide 4 to reflect this transition. Steve will elaborate more on this in a minute, but this CapEx plan is transformative, with significant clean energy and transmission infrastructure investments over the next 5 years. As transformative as that 5-year CapEx plan is, we have significant investment plans well beyond 2027, which are not currently included in our CapEx table that are described in slide 5. These include the additional investments in generation and infrastructure that will be needed as we responsibly and reliably transition Minnesota Power's two remaining coal units and to comply with the new Minnesota carbon-free legislation. We also expect to participate in the MISO Tranche 2 transmission projects, and as part of our high-voltage transmission strategy we'll leverage our strategic geographical position to advance interregional transmission projects that support reliability and the clean energy transition.

與明尼蘇達電力公司最近批准的 IRP 相關，我們更新了幻燈片 4 上的資本投資計劃以反映這一轉變。史蒂夫將在一分鐘內詳細說明這一點，但該資本支出計劃具有變革性，在未來 5 年內將進行大量清潔能源和傳輸基礎設施投資。與 5 年資本支出計劃一樣具有變革性，我們有遠超 2027 年的重大投資計劃，這些計劃目前未包含在幻燈片 5 中描述的我們的資本支出表中。這些包括對發電和基礎設施的額外投資，因為我們以負責任和可靠的方式轉換明尼蘇達電力公司剩餘的兩個燃煤機組，並遵守新的明尼蘇達無碳立法。我們還希望參與 MISO Tranche 2 輸電項目，作為我們高壓輸電戰略的一部分，我們將利用我們的戰略地理位置推進支持可靠性和清潔能源轉型的區域間輸電項目。

So, as we execute our strategy in the near term, we're always planning for the future and ALLETE's future is bright with important parts of our long-term investment strategy already in motion. As an example, on slide 6, you'll see additional information on ALLETE's exciting recent announcement of our engagement with Grid United to develop the North Plains Connector, a 370-mile high-voltage direct current transmission line from North Dakota to Montana. This HVDC corridor will be the first of its kind transmission project to connect 3 regional energy markets, MISO, WECC and SPP, creating 3,000 megawatts of transfer capacity between the middle of the country and the West Coast. More importantly, it will help ease transmission system congestion, increase resiliency and reliability, and enable rapid sharing of renewable energy across a vast area with diverse weather patterns. The project is subject to regulatory approvals and permitting and is estimated to cost approximately $2.5 billion. ALLETE's share of this investment is expected to be at least 35%, which will extend and support ALLETE's further growth into the next decade.

因此，當我們在短期內執行我們的戰略時，我們總是在為未來做計劃，而 ALLETE 的未來是光明的，我們長期投資戰略的重要部分已經在實施中。例如，在幻燈片 6 上，您將看到有關 ALLETE 最近令人興奮的宣布我們與 Grid United 合作開發 North Plains Connector 的更多信息，這是一條從北達科他州到蒙大拿州的 370 英里高壓直流輸電線路。這條高壓直流輸電走廊將是連接 3 個區域能源市場 MISO、WECC 和 SPP 的同類傳輸項目中的第一個，在該國中部和西海岸之間創造 3,000 兆瓦的傳輸能力。更重要的是，它將有助於緩解輸電系統擁堵，提高彈性和可靠性，並在具有不同天氣模式的廣大地區實現可再生能源的快速共享。該項目需要獲得監管部門的批准和許可，預計耗資約 25 億美元。 ALLETE 在這項投資中的份額預計將至少達到 35%，這將延長和支持 ALLETE 在下一個十年的進一步增長。

Moving to slide 7 and ALLETE's newest company, we couldn't be more excited about New Energy Equity joining the ALLETE family of businesses. New Energy exceeded our original projections for the year and has continued to increase its total pipeline of prospective projects. Along with the Inflation Reduction Act benefits, which could provide investment tax credit upside of up to 50%, the New Energy team's solid execution and strong pipeline of future projects have only enhanced our confidence in the resiliency and strength of this business and the value the company provides to ALLETE.

轉到幻燈片 7 和 ALLETE 的最新公司，我們對 New Energy Equity 加入 ALLETE 業務家族感到無比興奮。 New Energy 超出了我們當年的最初預測，並繼續增加其潛在項目的總儲備。連同可以提供高達 50% 的投資稅收抵免上行空間的通貨膨脹減少法案的好處，新能源團隊的紮實執行和未來項目的強大管道只會增強我們對該業務的彈性和實力以及價值的信心公司提供給 ALLETE。

Finally, ALLETE Clean Energy's earnings this year were materially affected by congestion and market volatility at its Caddo facilities. Addressing the implications of these issues for both the Diamond Spring and Caddo wind projects is our priority, and we're evaluating all alternatives to improve project economics. All of the sites operated well in 2022, and we continue to believe ALLETE Clean Energy with its talented team is an important strategic contributor to ALLETE. As we move forward into 2023, ALLETE Clean Energy's strategy is focused on maximizing the value of the company's fleet, and we look forward to updating you on progress throughout the year.

最後，ALLETE Clean Energy 今年的收益受到其 Caddo 設施的擁堵和市場波動的重大影響。解決這些問題對 Diamond Spring 和 Caddo 風能項目的影響是我們的首要任務，我們正在評估所有替代方案以提高項目經濟性。所有站點在 2022 年都運行良好，我們仍然相信 ALLETE Clean Energy 及其才華橫溢的團隊是 ALLETE 的重要戰略貢獻者。隨著我們邁入 2023 年，ALLETE Clean Energy 的戰略重點是最大限度地提高公司機隊的價值，我們期待著向您通報全年的最新進展。

Along with creative solutions for our customers and great opportunities for our amazing employees, ALLETE's mix of businesses offers differentiated value to investors with significant near- and longer-term earnings growth, an attractive dividend and strong positioning to thrive in the clean energy future.

除了為我們的客戶提供創造性的解決方案並為我們優秀的員工提供巨大的機會外，ALLETE 的業務組合還為投資者提供了差異化的價值，具有顯著的近期和長期收益增長、有吸引力的股息以及在清潔能源未來蓬勃發展的強大定位。

Now, I'll turn it over to Steve for further details on our 2022 financial results, 2023 guidance and key drivers of ALLETE's long-term growth.

現在，我將把它交給史蒂夫，以進一步了解我們 2022 年的財務業績、2023 年的指導方針和 ALLETE 長期增長的主要驅動力。

Thanks, Bethany, and good morning, everyone. I would like to remind you that we filed our 10-K this morning along with an 8-K that provides details of our 2023 earnings guidance. Please refer to slides 8 through 11 for the quarter and year ended 2022 income statement details as well as 2023 earnings guidance details.

謝謝，Bethany，大家早上好。我想提醒您，我們今天早上提交了 10-K 以及提供 2023 年收益指引詳細信息的 8-K。請參閱幻燈片 8 至 11，了解截至 2022 年的季度和年度損益表詳情以及 2023 年收益指導詳情。

Today, ALLETE reported 2022 earnings of $3.38 per share on net income of $189.3 million. Earnings for 2021 were $3.23 per share on net income of $169.2 million. These financial results were below our third quarter guidance update where we expected to be near the midpoint of our 2022 earnings guidance range of $3.60 to $3.90 per share. The primary reasons relate to recording a full year of interim rate reserves in the fourth quarter for the outcome in the Minnesota Power rate case decision, further costs and losses taken out ALLETE Clean Energy on the now completed Northern Wind project and weather impacts in the fourth quarter due to winter storm events. Please refer to slide 10 for details.

今天，ALLETE 公佈的 2022 年每股收益為 3.38 美元，淨收入為 1.893 億美元。 2021 年每股收益為 3.23 美元，淨收入為 1.692 億美元。這些財務結果低於我們第三季度的指導更新，我們預計將接近我們 2022 年每股收益指導範圍 3.60 美元至 3.90 美元的中點。主要原因涉及第四季度為明尼蘇達州電力費率案件決定的結果記錄了全年的臨時費率儲備、在現已完成的北方風能項目中取出 ALLETE 清潔能源的進一步成本和損失以及第四季度的天氣影響季度由於冬季風暴事件。詳情請參閱幻燈片 10。

Looking at the fourth quarter of 2022, ALLETE's consolidated results for the fourth quarter were below our expectations with earnings of $0.90 per share compared to $1.18 per share in the fourth quarter in 2021. ALLETE's Regulated Operations segment recorded net income of $30.5 million in the fourth quarter of 2022 as compared to $29.7 million in 2021. Earnings reflected higher net income at Minnesota Power due to the implementation of interim rates in 2022, net of interim rate reserves. As a result of the rate case decision earlier this year, a full year of interim rate reserves of approximately $12 million after tax were reflected entirely in the fourth quarter of 2022. The quarter was also impacted by increased purchase power cost as well as higher operating and maintenance expenses. Winter storm events in Minnesota Power's service territory resulted in additional O&M expenses of approximately $2 million after tax.

展望 2022 年第四季度，ALLETE 第四季度的綜合業績低於我們的預期，每股收益為 0.90 美元，而 2021 年第四季度為每股收益 1.18 美元。ALLETE 的受監管業務部門第四季度的淨收入為 3050 萬美元與 2021 年的 2970 萬美元相比，2022 年季度的收益反映出明尼蘇達電力公司的淨收入更高，這是由於 2022 年實施了臨時利率，扣除了臨時利率準備金。由於今年早些時候的利率案件決定，全年約 1200 萬美元的稅後臨時利率儲備完全反映在 2022 年第四季度。該季度還受到購買力成本增加以及運營成本增加的影響和維護費用。明尼蘇達電力公司服務區域的冬季風暴事件導致稅後約 200 萬美元的額外 O&M 費用。

A few thoughts on the Minnesota Power rate case-- at a hearing on January 23, 2023, the Minnesota Public Utilities Commission approved a return on common equity of 9.65% and a 52.5% equity ratio. On an annualized basis, the rate case outcome resulted in additional revenue of approximately $70 million. Accordingly, as the final retail rate increase was lower than interim rates, Minnesota Power recorded a reserve for interim rate refunds of approximately $12 million after tax as of December 31, 2022.

關於明尼蘇達州電力費率案的幾點思考——在 2023 年 1 月 23 日的聽證會上，明尼蘇達州公用事業委員會批准了 9.65% 的普通股回報率和 52.5% 的股權比率。按年率計算，費率案例結果帶來了大約 7000 萬美元的額外收入。因此，由於最終零售費率漲幅低於臨時費率，截至 2022 年 12 月 31 日，明尼蘇達電力記錄了大約 1200 萬美元的稅後臨時費率退款準備金。

Turning to our other segments, ALLETE Clean Energy recorded fourth quarter 2022 net income of $1.3 million compared to $14.6 million in 2021. Net income in 2022 for the Caddo and Diamond Spring wind energy facilities were impacted by market volatility and transmission congestion in the Southwest Power Pool as well as additional costs and losses on the sale of the Northern Wind project. Weather events negatively impacted fourth quarter earnings by approximately $1.2 million after tax. Our Corporate and Other businesses recorded net income of $19.9 million in 2022 compared to net income of $17.6 million in 2021. 2022 included earnings from New Energy, which had a record fourth quarter of projects closing, exceeding our expectations. There were also higher land sales at ALLETE Properties, higher earnings from our investment in the Nobles 2 wind energy facility and earnings from Minnesota solar projects placed into service in 2022. Earnings in 2021 included an $8.5 million after-tax gain from South Shore Energy's sale of a portion of its interest in the Nemadji Trail Energy Center.

談到我們的其他部門，ALLETE Clean Energy 的 2022 年第四季度淨收入為 130 萬美元，而 2021 年為 1460 萬美元。Caddo 和 Diamond Spring 風能設施 2022 年的淨收入受到西南電力市場波動和傳輸擁堵的影響池以及出售 Northern Wind 項目的額外成本和損失。天氣事件對第四季度的稅後收益產生了大約 120 萬美元的負面影響。我們的企業和其他業務在 2022 年的淨收入為 1,990 萬美元，而 2021 年的淨收入為 1,760 萬美元。2022 年包括新能源的收益，該項目第四季度的項目關閉數量創下歷史新高，超出了我們的預期。 ALLETE Properties 的土地銷售額也有所增加，我們對 Nobles 2 風能設施的投資收益以及 2022 年投入使用的明尼蘇達太陽能項目的收益也有所增加。2021 年的收益包括出售 South Shore Energy 的 850 萬美元稅後收益Nemadji Trail 能源中心的部分權益。

As Bethany shared, we have made good progress on key initiatives in 2022 setting the stage for improved financial performance in 2023. I'll now turn to our 2023 earnings guidance. Please refer to slide 11 for further reference. Today, we initiated 2023 earnings guidance of $3.55 to $3.85 per share on net income of $200 million to $220 million. This guidance range is comprised of our regulated operations segment within a range of $2.50 to $2.70 per share and ALLETE Clean Energy, New Energy and our other businesses within a range of $1.05 to $1.15 per share.

正如 Bethany 分享的那樣，我們在 2022 年的關鍵舉措上取得了良好進展，為 2023 年改善財務業績奠定了基礎。我現在將談談我們的 2023 年收益指引。請參閱幻燈片 11 以獲取更多參考。今天，我們啟動了 2023 年每股 3.55 美元至 3.85 美元的收益指引，淨收入為 2 億美元至 2.2 億美元。該指導範圍包括每股 2.50 美元至 2.70 美元範圍內的受監管運營部門和每股 1.05 美元至 1.15 美元範圍內的 ALLETE 清潔能源、新能源和我們的其他業務。

First, a few comments on our regulated operations outlook for 2023. Overall, regulated earnings are expected to be similar to 2022. Our guidance reflects the impacts from Minnesota Power's retail rate case decision and industrial sales slightly lower than 2022. We expect a slight increase in operations and maintenance expenses of 2% over 2022 due to inflationary pressures. Depreciation and property tax expenses are expected to increase by 7%, primarily due to (inaudible) and service. As a result of the MPUC's decision on Minnesota Power's rate case, we expect to earn a return on equity of 8.5% in 2023, significantly below the authorized 9.65%. Consequently, we are planning to file a request for a rate increase November 1 of this year with a 2024 calendar test year. Interim rates would be expected to go into effect on January 1, 2024. We are committed to earning our allowed return on equity at Minnesota Power (inaudible) we will manage our discretionary costs and improve operational efficiencies. For example, from 2017 through 2022, Minnesota Power's operating and maintenance expenses increased by an average of less than 1% on a compound average growth rate.

首先，對我們 2023 年受監管的運營前景發表一些評論。總體而言，受監管的收益預計與 2022 年相似。我們的指引反映了明尼蘇達電力零售費率案例決定和工業銷售額略低於 2022 年的影響。我們預計會略有增加由於通脹壓力，運營和維護費用比 2022 年增加 2%。折舊和財產稅費用預計將增加 7%，主要是由於（聽不清）和服務。由於 MPUC 對明尼蘇達電力費率案例的決定，我們預計 2023 年的股本回報率為 8.5%，遠低於授權的 9.65%。因此，我們計劃在今年 11 月 1 日以 2024 日曆測試年提出加息請求。中期利率預計將於 2024 年 1 月 1 日生效。我們致力於在明尼蘇達電力公司（聽不清）獲得我們允許的股本回報率，我們將管理我們的可自由支配成本並提高運營效率。例如，從 2017 年到 2022 年，明尼蘇達電力的運營和維護費用的複合平均增長率平均不到 1%。

Looking at Clean Energy's outlook for 2023-- ALLETE Clean Energy expects normal wind resources in 2023 with total wind generation of approximately 4 million megawatt hours this year, similar to last year. Our guidance also reflects the sale of the 92-megawatt Red Barn build transfer projects in the first half of 2023 and improving financial performance for the portfolio. However, we still expect challenges in the Southwest Power Pool market for the Oklahoma wind energy facilities.

展望清潔能源2023年展望——阿萊特清潔能源預計2023年風資源正常，今年風力發電總量約為400萬兆瓦時，與去年持平。我們的指引還反映了 2023 年上半年 92 兆瓦的 Red Barn 建設轉移項目的銷售以及投資組合財務業績的改善。然而，我們仍然預計俄克拉荷馬州風能設施的西南電力聯營市場將面臨挑戰。

At New Energy, an impressive number, 44 megawatts of projects closed in the fourth quarter of 2022. The strong fourth quarter allowed New Energy to exceed the acquisition plan for 2022 and set the stage for a solid 2023 and beyond. New Energy continues to gain momentum with more than 2,000 megawatts in the robust and growing pipeline. New York, Illinois and Minnesota continue to be strong markets for New Energy while Maryland, New Mexico and Virginia are new promising markets with strong prospects and opportunities starting in 2023. We expect net income of approximately $16 million to $17 million at New Energy and note that 2023 will not be impacted by purchase price accounting or transaction costs.

在 New Energy，令人印象深刻的數字是 44 兆瓦的項目在 2022 年第四季度關閉。強勁的第四季度使 New Energy 超過了 2022 年的收購計劃，並為 2023 年及以後的穩健發展奠定了基礎。新能源繼續獲得發展勢頭，擁有超過 2,000 兆瓦的強大且不斷增長的管道。紐約、伊利諾伊和明尼蘇達仍然是新能源的強勁市場，而馬里蘭、新墨西哥和弗吉尼亞是新的有前途的市場，從 2023 年開始具有強大的前景和機會。我們預計新能源的淨收入約為 1600 萬至 1700 萬美元，並註意2023 年不會受到購買價格核算或交易成本的影響。

We anticipate approximately $7 million in earnings for ALLETE's investment in Minnesota solar projects, and we expect similar earnings from BNI Energy and our investment in the Nobles 2 wind energy facility in 2023, with slightly lower earnings at ALLETE Properties. We expect minimal equity needs in 2023, but do expect earnings per share dilution of approximately $0.10 per share due to the increased average number of shares outstanding as a result of our March 2022 secondary offering.

我們預計 ALLETE 對明尼蘇達州太陽能項目的投資將獲得大約 700 萬美元的收益，我們預計 BNI Energy 和我們在 2023 年對 Nobles 2 風能設施的投資將獲得類似的收益，而 ALLETE Properties 的收益略低。我們預計 2023 年的股權需求最低，但由於我們 2022 年 3 月的二次發行導致平均已發行股票數量增加，預計每股收益攤薄約為每股 0.10 美元。

As stated previously, we are committed and confident in our ability to achieve ALLETE's long-term earnings per share growth objective of 5% to 7%, primarily fueled by the historic clean energy transformation underway. As we customarily do at the beginning of each year, we have updated our 5-year capital expenditure table in the 10-K. Also, please refer back to slide 4. This updated plan reflects $3.3 billion of CapEx, which is an increase of approximately $600 million over our CapEx plan shared in November of last year, reflective of the final IRP order. This plan highlights significant clean energy infrastructure investments over the next 5 years, translating to a compound annual rate base growth of 11%. We will continue to navigate this clean energy transition as we have in the past with customer rates and overall competitiveness in mind.

如前所述，我們致力於並有信心實現 ALLETE 每股收益增長 5% 至 7% 的長期目標，這主要得益於正在進行的歷史性清潔能源轉型。正如我們通常在每年年初所做的那樣，我們更新了 10-K 中的 5 年資本支出表。另外，請返回幻燈片 4。此更新計劃反映了 33 億美元的資本支出，比我們去年 11 月共享的資本支出計劃增加了約 6 億美元，反映了最終的 IRP 訂單。該計劃強調了未來 5 年的重大清潔能源基礎設施投資，轉化為 11% 的複合年增長率。我們將一如既往地繼續駕馭這種清潔能源轉型，同時牢記客戶率和整體競爭力。

I'll now turn it back to Bethany.

我現在把它轉回 Bethany。

Thanks, Steve. We're obviously very pleased with all that our team has accomplished in 2022, and we're already making significant strides here in the beginning of 2023. Demands for cleaner energy are increasing, providing new and diverse investment opportunities for ALLETE's businesses. We believe our reputation as a leader in this clean energy environment will continue to attract capital and we're committed to delivering value to our investors. The very foundation of our growth strategy at ALLETE is sustainability in all of its forms -- people, planet and prosperity. As always, we are committed to doing all of this in the absolutely right way. Slide 12 contains links to information on this work, including our recently updated corporate sustainability report. Our CSR illustrates how we're building on our strong track record, not only to mitigate climate change risks, but to create a clean energy future through just, equitable and meaningful change, making a difference in doing our part to make our world a better place for everyone. ALLETE's family of businesses is well positioned today for an even brighter future. This is truly an exciting time for ALLETE, and we look forward to sharing more with you in the coming quarters.

謝謝，史蒂夫。我們顯然對我們的團隊在 2022 年取得的成就感到非常滿意，並且我們已經在 2023 年初取得了重大進展。對清潔能源的需求正在增加，為 ALLETE 的業務提供了新的和多樣化的投資機會。我們相信，我們作為清潔能源環境領導者的聲譽將繼續吸引資金，我們致力於為投資者創造價值。我們在 ALLETE 的增長戰略的基礎是所有形式的可持續性——人類、地球和繁榮。一如既往，我們致力於以絕對正確的方式完成所有這些工作。幻燈片 12 包含有關這項工作的信息的鏈接，包括我們最近更新的企業可持續發展報告。我們的企業社會責任說明了我們如何在良好的業績記錄基礎上再接再厲，不僅要減輕氣候變化風險，還要通過公正、公平和有意義的變革創造清潔能源的未來，儘自己的一份力量讓我們的世界變得更美好。每個人的地方。 ALLETE 的業務家族如今已為更光明的未來做好了準備。這對 ALLETE 來說確實是一個激動人心的時刻，我們期待在未來幾個季度與您分享更多信息。

At this time, I'll ask the operator to open the line for your questions.

這個時候，我會請接線員為你的問題開通線路。

(Operator Instructions) Our first question will come from Richard Sunderland of JPMorgan.

（操作員說明）我們的第一個問題將來自摩根大通的理查德桑德蘭。

Starting with the CapEx revisions, I guess, on one hand, could you walk from the resources identified in your IRP settlement to the assumptions banked into this capital plan? I'm curious what's driving your line of sight here versus leaving the projects outside of CapEx's upside into the RFP process.

從資本支出修訂開始，我想，一方面，您能否從 IRP 結算中確定的資源走到該資本計劃中的假設？我很好奇是什麼推動了您的視線，而不是將項目留在 CapEx 的優勢之外進入 RFP 流程。

A great question, as you know, you have our CapEx from November EEI where we reflected the initial IRP. With this outcome from the final IRP, we've added 100 megawatts of solar-- again, subject to RFPs, we added 100 megawatts of solar, 150 megawatts of wind, and we added storage about 200 megawatt hours. Those are all incremental that we did not have in the initial CapEx plan when we met in November. So, subject to RFPs, we've talked about the solar and storage, we feel very good about our RFP prospects about that. The wind we've said we had-- previously, we had a 200-megawatt partnership in there. The IRP was up to 400, so there was another 200 out there. We feel confident on the other 150, so we left off 50, put in 150 megawatts.

一個很好的問題，如你所知，你有我們 11 月 EEI 的資本支出，我們反映了最初的 IRP。根據最終 IRP 的這一結果，我們增加了 100 兆瓦的太陽能——同樣，根據 RFP，我們增加了 100 兆瓦的太陽能、150 兆瓦的風能，並且我們增加了大約 200 兆瓦時的存儲。這些都是我們在 11 月開會時在最初的資本支出計劃中沒有的增量。因此，根據 RFP，我們討論了太陽能和儲能，我們對 RFP 的前景感到非常滿意。我們說過我們擁有的風——之前，我們在那裡有一個 200 兆瓦的合作夥伴關係。 IRP 高達 400，因此還有另外 200 個。我們對另外 150 個充滿信心，所以我們放棄了 50 個，投入了 150 兆瓦。

Just in terms of the confidence there, is that based on interconnection positions or what you're seeing on the cost side relative relative to PPA options? Just curious for any color there as to how you kind of banked that risk-adjusted point here, I guess.

就那裡的信心而言，是基於互連位置還是您在相對於 PPA 選項的成本方面所看到的？我想，只是想知道你是如何將風險調整點存入這裡的。

Yes, very good question. So, as we talked about at EEI, the solar and storage are regional in our areas, right? So, there was a little bit of a recognition for solar storage in and around the Boswell site, we're confident in that there. So, the wind one will-- we're also confident in our ability to get that -- along with the wind project, the partnership project as well. But, again, as we talked about at EEI, solar storage were more regional in nature. So, we think we are in a very good position to win those RFPs.

是的，非常好的問題。所以，正如我們在 EEI 上談到的那樣，太陽能和儲能在我們地區是區域性的，對嗎？因此，博斯韋爾基地內外的太陽能存儲得到了一點認可，我們對此充滿信心。因此，風能——我們也對我們有能力實現這一目標充滿信心——以及風能項目和合作項目。但是，正如我們在 EEI 上談到的那樣，太陽能存儲在本質上更具區域性。因此，我們認為我們處於贏得這些 RFP 的有利位置。

That's very helpful. Then, just in light of this revision on the CapEx side, what are your equity needs associated with financing this plan? Can you speak a little bit to the timing and potential methods to address the equity?

這很有幫助。那麼，就資本支出方面的這一修訂而言，與該計劃融資相關的股權需求是什麼？你能談談解決公平問題的時機和可能的方法嗎？

So, as we've mentioned already on the call, no equity needs in 2023. So, as the CapEx starts up a little bit more in earnest here in '24, '25 -- we're probably looking mid-2024. But, we have increasing cash flow, so obviously, that's the primary source of our funding for this. Second, as we talked about at EEI in the past, we do have to maintain a regulated capital structure, so that's 50-50 equity and debt. So, that will help round it out. We also talked about forming a HoldCo, which gives us greater financial flexibility. Finally, as we just look at our capital allocation and financing options, as we always do, we'll maximize the value of all our assets with opportunistic redeployment of capital into our regulated CapEx plan.

因此，正如我們在電話會議上已經提到的那樣，2023 年不需要股權。因此，隨著資本支出在 24 年、25 年在這裡更加認真地啟動——我們可能會在 2024 年年中尋找。但是，我們的現金流量在增加，所以很明顯，這是我們為此提供資金的主要來源。其次，正如我們過去在 EEI 上談到的那樣，我們確實必須保持受監管的資本結構，即 50-50 的股權和債務。所以，這將有助於解決這個問題。我們還討論了組建一家控股公司，這為我們提供了更大的財務靈活性。最後，正如我們一如既往地審視我們的資本配置和融資方案一樣，我們將通過機會主義的方式將資本重新部署到我們受監管的資本支出計劃中，從而使我們所有資產的價值最大化。

So, just to be clear, it sounds like there are multiple levers in focus, but on a timing front, you'd be looking at more like mid-2024 and beyond? Then, for classifying, is that subject to examining the HoldCo asset recycling and these other levers?

所以，要明確一點，聽起來有多個槓桿在關注，但在時間方面，你會更關注 2024 年中期及以後？那麼，對於分類，是否需要檢查 HoldCo 資產回收和這些其他槓桿？

Yes. Yes, that's fair.

是的。是的，這很公平。

Got it. Just, sorry, one final one for me. There's been a lot of changes in light of the CapEx side on the rate case order. When you talk about the 5% to 7% growth, is that now based on the 2023 guidance, 2022-- actually, what's the right base to think about for that number?

知道了。只是，抱歉，給我最後一個。鑑於費率案例訂單的資本支出方面發生了很多變化。當你談論 5% 到 7% 的增長時，現在是基於 2023 年的指導，2022 年——實際上，考慮這個數字的正確基礎是什麼？

Yes, I'd use '22, actual [$338 million].

是的，我會使用 22 年的實際值 [3.38 億美元]。

Our next question will come from Brian Russo of Sidoti.

我們的下一個問題將來自 Sidoti 的 Brian Russo。

Just when I look at slide 4 of the presentation regarding the CapEx, it looks like the majority of the CapEx can qualify for your rider mechanisms. Can you just remind me how those mechanisms work? Is it full recovery of and on the investments, almost real time or on an annual basis? Just trying to get a sense of the trajectory of the margins from riders in between rate cases, which sometimes historically has created a stair step type profile to your earnings?

就在我查看有關資本支出的演示文稿的幻燈片 4 時，看起來大部分資本支出都符合您的騎手機制。你能提醒我這些機制是如何運作的嗎？是幾乎實時地還是每年一次地完全收回投資？只是想了解不同費率情況下車手的利潤率軌跡，這有時會在歷史上為您的收入創建階梯式配置文件？

Great question, Brian. Yes, so riders are real time, really helps with the regulatory lag. We do have filings to do. But, the ones that we have in here listed on this page 4 CapEx will qualify for rider recovery. So, there will be very little lag here by the time we have initial spending to revenue recognition. There is then cash that comes later. We have to do what's called the factor filing to get the cash on that. So, when you get the earnings, right away, the cash will come a little bit later.

好問題，布賴恩。是的，所以車手是實時的，確實有助於緩解監管滯後。我們確實有備案要做。但是，我們在本頁 4 資本支出中列出的那些將有資格獲得騎手恢復。因此，當我們從初始支出到收入確認時，這裡幾乎沒有滯後。稍後會有現金。我們必須做所謂的因素備案才能從中獲得現金。因此，當您立即獲得收益時，現金會稍晚到來。

Just to tie that into the 11% rate base CAGR versus the 5% to 7% EPS CAGR. Is the lag there or the difference primarily the financing? Or is there some other variables there that create that delta?

只是為了將其與 11% 的基本複合年增長率與 5% 至 7% 的每股收益複合年增長率聯繫起來。是存在滯後還是差異主要在於融資？還是那裡有其他一些變量會產生該增量？

Yes, we don't look at the 11% CAGR as synonymous with 5% to 7% growth. We believe that the CAGR here-- rate base growth certainly leads to growth, but it will enable our 5% to 7% growth.

是的，我們不會將 11% 的複合年增長率視為 5% 至 7% 增長的代名詞。我們相信這裡的複合年增長率——利率基礎增長肯定會導致增長，但它將使我們實現 5% 至 7% 的增長。

Got it. Then, also the 33 million tons of taconite production forecasted in '23 versus the 32 million in 2022. How does that triangle, maybe with the December nominations you guys received for the first 4 months of 2023?

知道了。然後，還有 23 年預測的鐵燧岩產量為 3300 萬噸，而 2022 年為 3200 萬噸。這個三角形如何，也許你們在 2023 年前 4 個月收到了 12 月的提名？

So, good question on where we're budgeting in our outlook for 2023 in taconite production. I'd say overall tonnage generally in line within a small margin with what we saw in 2022. We are pleased with December nominations. We've started off with several of our customers nominating at full production through the first 4 months of the year. As you're probably aware, Cliffs North Shore facility has been off since second quarter of 2022, and that facility remains down.

因此，關於我們在 2023 年鐵燧岩生產前景中預算的好問題。我想說總噸位總體上與我們在 2022 年看到的情況相差無幾。我們對 12 月的提名感到滿意。我們已經開始與我們的幾個客戶提名在今年的前 4 個月全面生產。您可能已經知道，懸崖北岸設施自 2022 年第二季度以來一直處於關閉狀態，並且該設施一直處於關閉狀態。

Got it. Then, just on the New Energy 2023 guidance. Obviously, you're optimistic and bullish. Any more assumptions you can give related to that, that we could kind of maybe extrapolate post 2023, maybe if it's some details on the 2,000 megawatts in the pipeline or the profile of that, that can extend what looks like to be a nice growth trajectory.

知道了。然後，就在新能源 2023 指南上。顯然，你是樂觀和看漲的。您可以給出與此相關的任何更多假設，我們可以推斷 2023 年後，也許如果它是管道中的 2,000 兆瓦的一些細節或它的概況，那可以擴展看起來不錯的增長軌跡.

We did try to provide the net income to try to fill in some of those gaps. What we talked about earlier was the EBITDA, the $20 million of EBITDA in 2021 and roughly 10% growth off of that. As we sit here today, that net income guidance represents the 10% growth in EBITDA, so we're looking at $24 million to $25 million of EBITDA. As mentioned on the call, the strength of the pipeline gives us the confidence that we think that the company can grow in line with the market, which we continue to see as 10% or greater.

我們確實嘗試提供淨收入來填補其中的一些空白。我們之前談到的是 EBITDA，即 2021 年 2000 萬美元的 EBITDA 以及大約 10% 的增長。當我們今天坐在這裡時，淨收入指引代表 EBITDA 增長 10%，因此我們正在尋找 2400 萬至 2500 萬美元的 EBITDA。正如電話中提到的，管道的實力讓我們相信，我們認為公司可以與市場同步增長，我們繼續認為市場增長 10% 或更高。

Then, lastly, just on the...

然後，最後，就在...

...sorry, Brian, I was just going to add, from a megawatts-- that's the other metric we've been referencing, and New Energy was just under 100 megawatts that they closed in 2022. Again, not every megawatt is the same, but we do expect them to be 100 megawatts or just over 100 megawatts this year. That's another metric you can track.

...對不起，布賴恩，我只是想補充一點，從兆瓦開始——這是我們一直在參考的另一個指標，新能源在 2022 年關閉時略低於 100 兆瓦。同樣，並不是每一兆瓦都是相同，但我們確實預計它們今年將達到 100 兆瓦或剛剛超過 100 兆瓦。這是您可以跟踪的另一個指標。

Great, and can you quantify the Red Barn sale gain that's embedded in the (inaudible) $1.05 to $1.15 in the EPS in '23?

太好了，您能否量化 23 年 EPS 中 1.05 美元至 1.15 美元（聽不清）中嵌入的 Red Barn 銷售收益？

This is-- The Red Barn project, we expect to close here at the end of the first quarter, early second quarter. It's still in the construction season, and we do expect a small gain, like a couple of million dollars from net income in the guidance.

這是——紅色穀倉項目，我們預計將在第一季度末、第二季度初在這裡結束。現在仍處於建設季節，我們確實預計會有小幅收益，比如指導中的淨收入幾百萬美元。

Our next question will come from Alex Mortimer of Mizuho.

我們的下一個問題將來自 Mizuho 的 Alex Mortimer。

So, just kind of back of the napkin, there'd have to be about $0.47 of growth to get to the high point of your range at 3.85% for 2023. Just hoping you could provide some clarification on sort of what factors would influence you being able to hit the high, middle and low of that range? And if there's currently any bias within that range as things stand at the moment?

所以，說實話，到 2023 年，必須有大約 0.47 美元的增長才能達到 3.85% 的區間高點。只是希望你能澄清哪些因素會影響你能夠達到那個範圍的高、中、低？如果目前的情況在該範圍內存在任何偏差？

Great question, Brian. So, we do flex around all of our businesses to come up at the high end of the range. Of course, there's always opportunity at Minnesota Power with increasing taconite load. Again, we're at 33 million tons. They were operated that way, last year, as you know, that was in our test year. So, there is some opportunities there along with O&M expense management efforts. From ALLETE Clean Energy, we certainly could do better just on wind, wind resources. We budget what we've seen similar to this year, but it could be better in certain spots. That can have a material impact on us, not just the revenue, but on the PTC side of things, along with New Energy. So, New Energy has upside as well, and we look at that closely, plus or minus 10% to 15%.

好問題，布賴恩。因此，我們確實圍繞我們所有的業務進行調整，以達到該範圍的高端。當然，隨著鐵燧岩負荷的增加，明尼蘇達電力公司總是有機會。同樣，我們的產量為 3300 萬噸。去年，如您所知，那是我們的測試年，它們就是這樣操作的。因此，在 O&M 費用管理方面存在一些機會。從 ALLETE Clean Energy，我們當然可以在風能和風能資源方面做得更好。我們的預算與今年類似，但在某些地方可能會更好。這會對我們產生重大影響，不僅僅是收入，還有 PTC 方面的事情，以及新能源。因此，新能源也有上漲空間，我們仔細觀察，正負 10% 至 15%。

Wonderful. Then, just on the side of regulation, you've seen regulators, I mean, both in Minnesota and, kind of, across the country really start to push back on higher customer bills as customers face inflation across their spending. Do you have any concerns about them potentially pushing back on, obviously, this pretty significant increase in CapEx over the last couple of quarters? Do you have any concern on them pushing back as they look to prioritize affordability as opposed to renewables?

精彩的。然後，就監管方面而言，你已經看到監管機構，我的意思是，在明尼蘇達州和全國各地，隨著客戶的支出面臨通貨膨脹，他們真的開始反對提高客戶賬單。您是否擔心他們可能會反對，顯然，過去幾個季度資本支出的顯著增長？當他們希望優先考慮可負擔性而不是可再生能源時，您是否擔心他們會反對？

We have confidence in our regulators that they understand kind of the care that we have for our customers and ensuring affordability of our rates as we continue this really significant transition. We've had and we've shared in the past some really creative work that our team has done to try to minimize rate impact for the future. So, certainly, that's the regulator's role also is to ensure that our rates continue to be affordable as we continue to work. But, I believe, and they've stated that they're excited about the IRP that was just approved, and they know that this is going to take investment on our part in order to continue this transition. So, as I mentioned earlier, I'm confident in our regulators support for our work to do that, recognizing that we are doing a lot of work to try to keep our rates affordable as we continue this transition and we've been successful to date. So, certainly, more frequent rate cases going forward, but we're confident in our regulator support for the work that we're doing.

我們對我們的監管機構充滿信心，他們了解我們對客戶的關心，並在我們繼續這一真正重大的轉變時確保我們的利率可承受。我們已經並且在過去分享了我們團隊為盡量減少對未來的利率影響所做的一些非常有創意的工作。所以，當然，監管機構的作用也是確保我們的利率在我們繼續工作的同時繼續負擔得起。但是，我相信，他們已經表示他們對剛剛批准的 IRP 感到興奮，並且他們知道這將需要我們的投資來繼續這種過渡。因此，正如我之前提到的，我相信我們的監管機構會支持我們這樣做的工作，認識到我們正在做很多工作來努力使我們的利率保持在可承受的範圍內，因為我們繼續進行這種過渡，並且我們已經成功地做到了日期。因此，當然，未來會出現更頻繁的利率案件，但我們對監管機構對我們正在做的工作的支持充滿信心。

Frank, did you have anything else you wanted to add?

弗蘭克，你還有什麼要補充的嗎？

A couple of things I'd add to that is Minnesota values being a leader in clean energy, and that floats through even to regulators, and it actually flows through into how we're serving our customers. We're a leader in the state that's over 50% renewable and on our way to be over 70%. So, really, as we work with commercial industrial customers delivering a premium product that helped them meet their ESG goals sooner with the energy they procure from us. As it pertains to how we work with residential customers and commercial customers, we're also the leader in the state for energy conservation programs. We're the only utility that can claim that we've exceeded the state conservation goals over the past 12 years. That helps us have the lowest residential bills in the state because we're helping both parts in terms of reducing usage for efficiently and effective use of that renewable energy.

我要補充的幾件事是，明尼蘇達州重視成為清潔能源領域的領導者，這甚至會影響到監管機構，它實際上會影響我們為客戶提供服務的方式。我們是該州的領先者，該州的可再生能源佔比超過 50%，並且正在朝著超過 70% 的方向發展。因此，實際上，當我們與商業工業客戶合作時，提供優質產品，幫助他們利用從我們這裡獲得的能源更快地實現 ESG 目標。由於它涉及我們如何與住宅客戶和商業客戶合作，我們也是該州節能計劃的領導者。在過去的 12 年裡，我們是唯一一家可以聲稱我們已經超過國家保護目標的公用事業公司。這有助於我們在該州獲得最低的住宅賬單，因為我們在減少使用量方面幫助了這兩個部分，以高效和有效地使用可再生能源。

So, if you pair those together, and we've also-- our teams have done wonderful work with low-income customer stakeholders. One of the items we like to share is that our low-income customers have some of the lowest rates in the state and as well as lowest bills because of the work that we've done to mitigate that as we've gone through in even the most recent rate case where even with the increase in residential rates, low income customer bills are going to be flat or lower than they were before the rate case.

所以，如果你將它們組合在一起，我們也 - 我們的團隊與低收入客戶利益相關者做了出色的工作。我們喜歡分享的項目之一是，我們的低收入客戶擁有該州最低的一些利率和最低的賬單，因為我們已經做了一些工作來減輕這種情況，因為我們已經經歷了甚至在最近的利率案例中，即使住宅利率有所上漲，低收入客戶的賬單也將持平或低於利率案例之前的水平。

Understood. Then, just one last one on 2023 guidance. It seems that regulated ops are slightly down or the guidance is slightly down at the midpoint. I was hoping if you could just mention-- is that decrease just based on the dilution you mentioned, if there are other headwinds? And if there are other headwinds, when you see those easing? And if they're just based on the recent rate case or if there are other issues, whether it's O&M or inflation or interest rates, just a little bit more clarity on when you see that potentially easing.

明白了。然後，就是關於 2023 年指導的最後一個。似乎受監管的操作略有下降，或者指導在中點略有下降。我希望你能不能提一下——如果還有其他不利因素，這種減少是否只是基於你提到的稀釋？如果還有其他不利因素，您何時會看到這些不利因素？如果它們只是基於最近的利率情況，或者是否存在其他問題，無論是 O&M 還是通貨膨脹或利率，那麼當你看到這種可能的寬鬆政策時，就更清楚一點。

So, the rate case outcome certainly was reflected in 2022. Same amount of revenue essentially in 2023. The major driver is, as you mentioned, we do have some increase in O&M expenses. We do have some significant increases as we-- as I mentioned in the call, a 7% increase in depreciation and property taxes. That's really the major driver in it being flat. One of the reasons why we're going to need to file a rate case again this year with a 2024 test year.

因此，費率案例的結果肯定會在 2022 年得到反映。2023 年的收入基本相同。正如您提到的，主要驅動因素是我們的運維費用確實有所增加。正如我在電話中提到的那樣，我們確實有一些顯著的增長，折舊和財產稅增加了 7%。這真的是它持平的主要驅動力。這也是我們今年需要再次以 2024 年為測試年提交費率案例的原因之一。

Speakers, I do not see any further questions in the queue. I would now like to turn the conference back to Bethany Owen for closing remarks.

發言者，我沒有看到隊列中有任何其他問題。我現在想把會議轉回 Bethany Owen 作閉幕詞。

So, thank you again for being with us this morning and for your investment and interest in ALLETE. We look forward to speaking with many of you at investor venues throughout the year, and we hope you enjoy the rest of your day.

因此，再次感謝您今天早上與我們在一起，感謝您對 ALLETE 的投資和興趣。我們期待著全年在投資者場所與你們中的許多人交談，我們希望你們度過餘下的一天。

This will conclude today's conference call. Thank you all for participating. You may now disconnect, and have a pleasant day.

這將結束今天的電話會議。謝謝大家的參與。您現在可以斷開連接，並度過愉快的一天。