Algonquin Power & Utilities Corp (AQN) 2024 Q3 法說會逐字稿

Hello, and welcome to the Algonquin Power & Utilities Corp. third quarter 2024 earnings conference call. (Operator Instructions)

您好，歡迎參加 Algonquin Power & Utilities Corp. 2024 年第三季財報電話會議。 （操作員說明）

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

我現在將會議交給投資者關係副總裁 Brian Chin 先生主持。請繼續。

Thank you, operator, and good morning, everyone. Thank you for joining us for our third quarter 2024 earnings conference call. Joining me on the call today will be Chris Huskilson, Chief Executive Officer; Darren Myers, Chief Financial Officer; and Sarah MacDonald, Chief Transformation Officer. To accompany today's earnings call, we have a supplemental webcast presentation available on our website, algonquinpower.com. Our financial statements and management discussion and analysis are also available on the website as well as on SEDAR+ and EDGAR.

謝謝接線員，大家早安。感謝您參加我們的 2024 年第三季財報電話會議。今天與我一起參加電話會議的是執行長 Chris Huskilson；達倫‧邁爾斯，財務長；和首席轉型官莎拉·麥克唐納 (Sarah MacDonald)。為了配合今天的財報電話會議，我們在我們的網站 algonquinpower.com 上提供了補充網路廣播演示。我們的財務報表以及管理層討論和分析也可在網站以及 SEDAR+ 和 EDGAR 上取得。

We would like to remind you that our discussion during the call will include certain forward-looking information and non-GAAP measures. Actual results could differ materially from any forecast or projection contained in such forward-looking information. Certain material factors and assumptions were applied in making the forecasts and projections reflected in such forward-looking information. Please note and review the related disclaimers located on slide 2 of our earnings call presentation at our website. Please also refer to our most recent MD&A filed as indicated earlier and available on our website for important information -- additional information.

我們想提醒您，我們在電話會議中的討論將包括某些前瞻性資訊和非公認會計原則措施。實際結果可能與此類前瞻性資訊中包含的任何預測或預測有重大差異。在做出此類前瞻性資訊所反映的預測和預測時，應用了某些重大因素和假設。請注意並查看我們網站上收益電話會議簡報投影片 2 上的相關免責聲明。另請參閱我們之前提交的最新 MD&A，並可在我們的網站上獲取重要資訊 - 附加資訊。

On the call this morning, Chris will provide an update on the company's ongoing strategic transition to a pure-play regulated utility. Darren will then review key highlights pertaining to our regulated business and our third quarter financial results, followed by some final remarks from Chris. We will then open the lines for questions. We ask that you kindly restrict your questions to two, then requeue if you have any additional questions to allow others the opportunity to participate.

在今天早上的電話會議上，克里斯將提供有關該公司正在進行的向純粹監管公用事業公司戰略轉型的最新資訊。然後，達倫將回顧與我們受監管的業務和第三季財務業績相關的關鍵要點，然後克里斯進行一些最後的評論。然後我們將開放提問熱線。我們要求您將問題限制為兩個，如果您還有任何其他問題，請重新排隊，以便其他人有機會參與。

And with that, I'll turn it over to Chris.

有了這個，我會把它交給克里斯。

Thank you, Brian, and good morning, everyone. Thank you once again for your interest in Algonquin and for supporting us on our continued journey towards a pure-play regulated utility. I'd like to start with a quick review of how far we've come in our strategic transition. But first, I want to welcome Sarah MacDonald, our Chief Transformation Officer, to the call. Welcome, Sarah.

謝謝你，布萊恩，大家早安。再次感謝您對 Algonquin 的興趣，並感謝您支持我們繼續邁向純粹的受監管公用事業公司。我想先快速回顧一下我們在策略轉型中所取得的進展。但首先，我要歡迎我們的首席轉型官莎拉·麥克唐納 (Sarah MacDonald) 參加電話會議。歡迎，莎拉。

In 2023, we made the strategic decision to simplify and focus the business as a core regulated utility. It was and continues to be our belief that separating the regulated and renewables platform would after a transition period, allow both businesses to be more ideally capitalized and ultimately lead to longer-term growth and value. We began to streamline our capital structure early for this year. This started with paying off our margin loan with Atlantica and collapsing our development joint venture this past winter and successfully remarketing our green equity units this past spring.

2023 年，我們做出了策略決策，將業務簡化並集中為核心受監管公用事業。我們過去和現在都相信，在過渡期後，將受監管平台與再生能源平台分開，將使兩家企業的資本更加理想，並最終帶來長期成長和價值。今年年初，我們開始精簡資本結構。我們首先還清了與Atlantica 的保證金貸款，並在去年冬天關閉了我們的開發合資企業，並在今年春天成功地重新行銷了我們的綠色股權單位。

In May of this year, we announced our support for Atlantica's strategic sale agreement which is now expected to close on December 12, 2024. In August, we announced an agreement to sell our renewables business, excluding the hydro fleet, for up to $2.5 billion, representing an attractive valuation for our platform. This transaction is expected to close in the fourth quarter of 2024 or the first quarter of 2025. These changes are a considerable evolution for the business.

今年5 月，我們宣布支持Atlantica 的策略性出售協議，目前預計將於2024 年12 月12 日完成。業務（不包括水電艦隊） ，對我們的平台來說具有吸引力的估值。該交易預計將於 2024 年第四季或 2025 年第一季完成。

And on upon close of renewables and Atlantica transactions, we will effectively be a regulated utility business with significantly reduced complexity. As we've mentioned in the past, we will be looking to monetize our hydro fleet as part of the separation transaction. We continue to focus our efforts on successfully closing the renewables transaction. And as such, we have not yet officially launched the process for hydro.

在再生能源和Atlantica交易完成後，我們實際上將成為一家受監管的公用事業企業，其複雜性將顯著降低。正如我們過去提到的，作為分離交易的一部分，我們將尋求將我們的水力車隊貨幣化。我們將繼續集中精力成功完成再生能源交易。因此，我們尚未正式啟動水力發電流程。

We would expect to begin the sale process sometime in the first half of 2025 once the renewables transaction is closed. It's important to note that the hydro business represents an annual EBITDA run rate of approximately $25 million, and we intend to only enter into a transaction if it creates value for our shareholders. At the end of the day, we are confident in the actions we are taking to position the business to deliver customer value and growth through simplification and focus. While the journey at times has been challenging, I'm excited to lead the company through this transition period to a brighter days ahead.

一旦再生能源交易結束，我們預計將在 2025 年上半年的某個時候開始銷售流程。值得注意的是，水電業務的年 EBITDA 運行率約為 2,500 萬美元，我們打算僅在為股東創造價值的情況下進行交易。歸根結底，我們對我們正在採取的行動充滿信心，這些行動將使我們的業務透過簡化和專注來實現客戶價值和成長。雖然這個過程有時充滿挑戰，但我很高興能夠帶領公司度過這個過渡期，走向未來更光明的日子。

While we've been executing our strategic simplification plan, we've also been busy optimizing the core regulated business. When I started as CEO, I highlighted that one of my main priorities was to get the regulated business up and running. Early in the company's history, the business primarily grew in a piecemeal fashion. Our opportunity is to more effectively standardize and apply best practices to create additional value for our customers and shareholders. Despite near-term challenges, I'm confident we're taking the right steps.

在我們執行策略簡化計劃的同時，我們也一直在忙於優化核心監管業務。當我開始擔任執行長時，我強調我的主要優先事項之一是讓受監管的業務啟動並運行。在公司歷史的早期，業務主要以零碎的方式成長。我們的機會是更有效地標準化和應用最佳實踐，為我們的客戶和股東創造額外價值。儘管近期面臨挑戰，但我相信我們正在採取正確的步驟。

First, we completed the rollout of our customer first SAP-based IT platform in the spring. We're in the typical stage where we're adapting to our new system and our processes. We recently rolled out the next phase of business services, which will help simplify and harmonize customer service and back office processes, leveraging our new platform. These key milestones in our transition to a more focused regulated utility business. Although our system implementation has caused some short-term regulatory lag and has in part impacted the timing of rate cases, we are excited by the longer-term potential these steps will provide.

首先，我們在春季完成了基於 SAP 的客戶至上 IT 平台的推出。我們正處於適應新系統和流程的典型階段。我們最近推出了下一階段的業務服務，這將有助於利用我們的新平台簡化和協調客戶服務和後台流程。這些關鍵里程碑是我們向更集中監管的公用事業業務轉型的過程中的關鍵里程碑。儘管我們的系統實施造成了一些短期監管滯後，並在一定程度上影響了費率案件的時間安排，但我們對這些步驟將提供的長期潛力感到興奮。

Second, we're evaluating our regulated utility infrastructure expertise. And we've just added in the last few quarters, new members to our Board and new executive leadership all of which have extensive regulated experience. Third, we're reorganizing our utility structure to group by commodity to drive best practices throughout our network. We have revamped a number of our internal processes in an effort to drive more consistent results.

其次，我們正在評估我們受監管的公用事業基礎設施專業知識。我們在過去幾季剛剛增加了董事會的新成員和新的執行領導層，他們都擁有豐富的監管經驗。第三，我們正在重組我們的公用事業結構，按商品分組，以推動整個網路的最佳實踐。我們改進了一些內部流程，以努力獲得更一致的結果。

These approaches are approaches that I've successfully used in the past and I'm beginning to see positive change and increased accountability within the organization. To be clear, this is a journey but we're heading in the right direction. Looking ahead, one of our main priorities is to recover and earn a return on capital that we've already invested but have not yet captured in authorized rates. There are three large rate cases that we expect to improve our return on capital.

這些方法是我過去成功使用的方法，我開始看到組織內的正向改變和問責制的增強。需要明確的是，這是一段旅程，但我們正朝著正確的方向前進。展望未來，我們的主要優先事項之一是收回並賺取我們已經投資但尚未在授權利率中體現的資本回報。我們預計三個大型利率案例將提高我們的資本回報率。

I'm pleased to say that we recently filed rate cases for Empire Electric in Missouri and CalPeco in California and expect to file Litchfield Park in Arizona in the first half of 2025. The general rate case for Empire Electric Missouri was filed yesterday and includes a request to increase rate base by approximately $534 million. The filing includes a 53.1% equity layer and 10% allowed return on equity, resulting in a requested revenue requirement increase of approximately $92.1 million. Historically, Empire's Electric rate cases take about one year to resolve.

我很高興地說，我們最近為密蘇裡州的Empire Electric 和加州的CalPeco 提交了費率案件，並預計於2025 年上半年為亞利桑那州的Litchfield Park 提交費率案件。費率案件已於昨天提交，其中包括請求將費率基數增加約 5.34 億美元。該文件包括 53.1% 的股權層和 10% 允許的股本回報率，導致要求的收入要求增加約 9,210 萬美元。從歷史上看，帝國電力費率案件大約需要一年才能解決。

CalPeco's general rate case was filed in September and includes a request to increase rate base by approximately $154 million through 2025. The filing is based on a 52.5% equity layer and 11% allowed return on equity, resulting in a requested revenue requirement increase of approximately $39.8 million. Based on typical timing, we would expect this rate case to be resolved sometime in the first half of 2026. Concurrent with the rate case, we filed a request to adjust rates retroactively.

CalPeco 的一般費率案件於9 月提交，其中包括到2025 年將費率基礎增加約1.54 億美元的請求。約1.54 億美元。根據典型的時間安排，我們預計此費率案件將在 2026 年上半年的某個時候得到解決。

We're aiming to file a rate case at the Litchfield water and sewer facility in Arizona in the first half of 2025. As we indicated on prior calls, the Sarival wastewater plant is a substantial investment in the community, and it serves significant manufacturing development along a key corridor in the Greater Phoenix area. The plant itself represents approximately $108 million in investment, offset by approximately $23 million in connection fees. This results in our seeking approval to increase rate base by approximately $85 million.

我們的目標是在2025 年上半年對亞利桑那州利奇菲爾德供水和污水處理設施提交費率申請。 ，它服務於重大的製造業發展沿著大鳳凰城地區的一條重要走廊。該工廠本身的投資約為 1.08 億美元，被約 2,300 萬美元的連接費所抵消。這導致我們尋求批准將費率基數增加約 8,500 萬美元。

Historically, Arizona rate cases can take up to 18 months to complete, so we expect financial benefit from the rate case to start in 2026. These three rate cases constitute over $700 million in potential net increases in our authorized rate base. As we turn to 2025, it will be the first year we will be in a position to focus completely on our regulated business. As I mentioned on our last call, there's no question that our short-term results will be impacted by the timing of rate cases.

從歷史上看，亞利桑那州的利率案件可能需要長達18 個月才能完成，因此我們預計從2026 年開始從該利率案件中獲得經濟利益。億美元的潛在淨成長。展望 2025 年，這將是我們能夠完全專注於受監管業務的第一年。正如我在上次電話會議中提到的，毫無疑問，我們的短期業績將受到利率案件時間的影響。

On the other hand, we are taking the right steps, and I'm confident that we have a tremendous opportunity to improve our rate case outcomes, leverage our IT platform and run the business more effectively. The filings of Empire and CalPeco along with other actions I've described are positioning us well to increase our momentum beyond 2025.

另一方面，我們正在採取正確的步驟，我相信我們有巨大的機會來改善我們的費率案例結果、利用我們的 IT 平台並更有效地經營業務。 Empire 和 CalPeco 的備案以及我所描述的其他行動使我們能夠在 2025 年之後增強我們的勢頭。

And with that, I'll ask Darren to review this quarter's operational and financial results. Darren?

接下來，我將請達倫審查本季的營運和財務表現。達倫？

Thank you, Chris, and good morning, everyone. I'll start off my commentary today with an overview of key rate case developments. During the third quarter, we received the final order for our New York water utility authorizing a $38.6 million increase in revenues over a three-year rate plan which came into effect on September 1. As highlighted by Chris, in the third quarter, the company filed an application at our CalPeco electric utility in California, seeking an increase in revenues of $39.8 million based on an ROE of 11% and an equity ratio of 52.5%. We also recently filed an application at our Empire Electric Missouri utility seeking a revenue increase of approximately $92 million based on an ROE of 10% and an equity ratio of 53.1%.

謝謝你，克里斯，大家早安。我今天將首先概述關鍵利率案例的發展。在第三季度，我們收到了紐約自來水公司的最終訂單，授權在9 月1 日生效的三年費率計劃的基礎上增加3860 萬美元的收入。公司我們向加州的 CalPeco 電力公司提交了申請，尋求在 11% 的股本回報率和 52.5% 的股本比率的基礎上增加 3,980 萬美元的收入。我們最近也向密蘇裡州的 Empire Electric 公用事業公司提交了一份申請，要求基於 10% 的股本回報率和 53.1% 的股本比率，將收入增加約 9,200 萬美元。

As we look forward, we plan to file rate cases at Litchfield water and sewer, New England Gas, St. Lawrence Gas in either the fourth quarter of 2024 or the first half of 2025. As we have mentioned on prior calls, 2024 represents the largest number of concurrent rate cases in the company's history. At this time, the company has pending 13 rate reviews, which represent approximately $205 million in revenue request.

展望未來，我們計劃在2024 年第四季或2025 年上半年向Litchfield 供水和污水處理公司、新英格蘭天然氣公司、聖勞倫斯天然氣公司提交費率案件。 2024 年代表公司歷史上並發案件數量最多的一次。目前，該公司有 13 項費率審查待決，這相當於約 2.05 億美元的收入請求。

Turning now to financial results. This quarter, we separated our results into continuing operations and discontinued operations. Let me provide further color to help you better understand the moving parts. Our continuing operations includes our regulated business, hydro business and ownership stake in Atlantica. It also includes all debt except debt specific to our renewables business.

現在轉向財務業績。本季度，我們將業績分為持續經營業務和終止經營業務。讓我提供更多的顏色來幫助您更好地理解移動部件。我們的持續經營業務包括受監管的業務、水力發電業務和Atlantica 的所有權股份。它還包括除我們再生能源業務特定債務之外的所有債務。

We continue to record our ownership stake in Atlantica and associate dividends in continuing operations based on the application of generally accepted accounting principles. We now expect Atlantica to close on December 12, 2024. Our discontinued operations includes our non-hydro renewables business, including taxes and associated tax credits and $1.25 billion in specific debt related to our renewables business. In terms of the numbers, our third quarter financial performance for continuing operations saw year-over-year growth in revenue and adjusted EBITDA of 1% and 4%, respectively primarily due to the implementation of new rates across several of the regulated business electric, natural gas and water facilities.

我們繼續根據公認會計原則的應用記錄我們在Atlantica的所有權和持續經營業務中的聯營股利。我們現在預計Atlantica 將於2024 年12 月12 日關閉。債務。就數字而言，我們第三季持續經營業務的財務業績收入同比增長，調整後的 EBITDA 分別增長 1% 和 4%，這主要是由於幾家受監管的企業實施了新費率，包括電力、天然氣和水設施。

Our revenue growth was partially offset by lower pass-through commodity costs. We recorded year-over-year decreases in adjusted net earnings and adjusted net earnings per share of 5% and 20%, respectively. While our results benefited from new rates, they were more than offset by higher operating expenses as well as depreciation and interest expense. Adjusted net earnings per share was also negatively impacted by the previously disclosed issuance of 76.9 million common shares in connection with the company's green equity units through a mandatory conversion back in June.

我們的收入成長部分被轉嫁商品成本下降所抵銷。我們的調整後淨利和調整後每股淨利潤年減 5% 和 20%。雖然我們的業績受益於新的利率，但它們被較高的營運費用以及折舊和利息費用所抵消。先前揭露的 6 月透過強制轉換發行與公司綠色股權單位相關的 7,690 萬股普通股也對調整後每股淨利潤產生了負面影響。

On a segmented basis, adjusted EBITDA growth for the regulated business in the third quarter was up 3% year-over-year due to the implementation of new rates at several of the company's electric, gas and water facilities as well as higher HLBV income as a result of normalized wind resources and the recovery of securitized regulatory assets at Empire. These gains were partially offset by higher operating expenses, as mentioned earlier. A few other comments on our balance sheet as we move closer towards closing our Atlantica and renewables transaction. Our Q3 balance sheet debt, including continued and discontinued operations is $8.7 billion, which increased from Q2, in part from the buyout of a construction loan at Carvers Creek.

按細分來看，由於該公司的多個電力、燃氣和水設施實施了新費率，以及 HLBV 收入增加，第三季度受監管業務的調整後 EBITDA 增長同比增長 3%。化和帝國證券化監管資產回收的結果。如前所述，這些收益被較高的營運費用部分抵銷。隨著我們接近完成 Atlantica 和再生能源交易，我們的資產負債表上還有一些其他評論。我們第三季的資產負債表債務（包括持續和終止的業務）為 87 億美元，較第二季有所增加，部分原因是收購了 Carvers Creek 的建築貸款。

We expect to have approximately $1.7 billion to $1.8 billion in net proceeds from the renewable sale after off-balance sheet construction loan obligations and other renewable liabilities are satisfied. Final net proceeds received may vary due to items such as construction spending variances, tax credit timing and monetization. It's worth noting, included in the $1.7 billion to $1.8 billion we now expect to receive approximately $150 million of net proceeds associated with tax attributes in certain projects in late 2025. Let me have a few call-outs on our year-to-date earnings and some reminders for next year.

我們預計，在履行表外建設貸款義務和其他再生能源負債後，再生能源銷售將帶來約 17 億至 18 億美元的淨收益。最終收到的淨收益可能會因建築支出差異、稅收抵免時間和貨幣化等因素而有所不同。值得注意的是，包括在17 億至18 億美元中，我們現在預計在2025 年末將收到約1.5 億美元與某些項目的稅收屬性相關的淨收益。介紹以及明年的一些提醒。

Year-to-date, our continuing operations adjusted net earnings is $187 million and our adjusted earnings per share for continuing operations of $0.25. Included in that is $65 million in Atlantica dividends year-to-date or approximately $0.09 in adjusted net earnings per share. So as you think about next year, there's a few pieces merit calling out. If you combine the proceeds of both transactions ignoring timing, we would expect to receive $2.8 billion to $2.9 billion.

年初至今，我們的持續經營業務調整後淨利為 1.87 億美元，持續經營業務調整後每股收益為 0.25 美元。其中包括年初至今 6,500 萬美元的 Atlantica 股息或約 0.09 美元的調整後每股淨收益。因此，當您思考明年時，有一些值得一提的事情。如果忽略時間因素將兩筆交易的收益合併起來，我們預計將獲得 28 億至 29 億美元。

As you consider our pro forma adjusted net earnings per share, you need to take into account that based on our Q3 balance sheet, $1.25 billion of proceeds would go towards discontinued operations debt pay down leaving $1.55 billion to $1.65 billion for deleveraging against the continuing operations. So as you think about our pro forma continuing operations number, you would need to incorporate the continuing operations deleveraging and then remove the Atlantica dividends. As we've noted before, we are not providing 2025 guidance at this point. As a reminder, our results on a per share basis will be affected by the full year effect of the settlement of our equity units from earlier this year.

當您考慮我們的預估調整後每股淨利潤時，您需要考慮到，根據我們第三季的資產負債表，12.5 億美元的收益將用於償還終止經營業務的債務，剩下15.5 億至16.5 億美元用於持續經營業務的去槓桿化。因此，當您考慮我們的預估持續經營業務數字時，您需要將持續經營業務去槓桿化納入其中，然後刪除Atlantica股息。正如我們之前指出的，我們目前不提供 2025 年指導。提醒一下，我們的每股業績將受到今年早些時候我們股權單位結算的全年影響的影響。

We plan to provide guidance when we report our fourth quarter results. In summary, we are on track to achieving a number of key milestones on our path to simplification and becoming a pure-play regulated business. This is a journey, and we are focused on taking the right steps to create long-term value.

我們計劃在報告第四季度業績時提供指導。總之，我們有望在簡化和成為純粹的監管企業的道路上實現許多關鍵里程碑。這是一個旅程，我們專注於採取正確的步驟來創造長期價值。

With that, I will turn the call back over to Chris.

這樣，我會將電話轉回給克里斯。

Thank you, Darren. We're pleased with the progress that we're making on our journey to transform Algonquin into a pure-play regulated utility. We've already achieved several of the key initiatives we listed at the start of our strategic transition. And we believe we have provided the meaningful steps on how we intend to get there. These steps past, present and future have the same goals.

謝謝你，達倫。我們對將 Algonquin 轉變為純粹的受監管公用事業公司所取得的進展感到高興。我們已經實現了策略轉型開始時列出的幾項關鍵措施。我們相信，我們已經為實現這一目標提供了有意義的步驟。過去、現在和未來的這些步驟都有相同的目標。

The strength in the balance sheet, optimize the payout ratio, support future earnings and dividend growth, simplify and refocus the business and ultimately provide exceptional service and value to our customers and our shareholders.

資產負債表的優勢，優化派息率，支持未來收益和股息成長，簡化和重新調整業務重點，最終為我們的客戶和股東提供卓越的服務和價值。

With that, I'll turn the call back over to the operator for some questions. Thank you.

這樣，我會將電話轉回給接線生詢問一些問題。謝謝。

(Operator Instructions) Rupert Merer, National Bank.

（操作員指令）Rupert Merer，國家銀行。

If I could start by asking about your rate case submissions. I believe you've now submitted rate cases for $700 million of your target recovery. Well, that includes Litchfield coming up, of course. I believe there's another $300 million to come. Can you give us more color on that? What would be included in that $300 million? And what would be the timing on submitting rate cases to get you up to your full $1 billion?

我可以先詢問您提交的費率案例嗎？我相信您現在已經提交了 7 億美元的目標追償費率案例。嗯，當然，這也包括即將到來的利奇菲爾德。我相信還會有另外 3 億美元的到來。你能給我們更多的資訊嗎？這3億美元包含哪些內容？提交費率案例的時間是什麼時候才能讓您達到全額 10 億美元？

Rupert, we're not going to give that walk in terms of what's left. I mean, obviously, we're going to continue to file rate cases. We've got a number of other cases to file. And we're definitely pleased that we got two significant rate cases behind us now, and we're focused on Litchfield next and a number of other ones.

魯伯特，我們不會就剩下的事情而放棄這一點。我的意思是，顯然我們將繼續提起費率案件。我們還有許多其他案件需要歸檔。我們非常高興現在已經處理了兩個重大費率案件，接下來我們將重點放在利奇菲爾德和其他一些案件。

And I think, Rupert, one of the things we've been fairly clear that, number one, the number is going to be a moving target as we continue to invest in the business; and number two, we see this occurring out into 2027.

我認為，魯珀特，我們已經相當明確的一件事是，第一，隨著我們繼續投資該業務，這個數字將成為一個不斷變化的目標；第二，我們預計這種情況將持續到 2027 年。

If I could just focus on the Empire rate case then, that one of course is the largest. It seems like it has the potential to be completed the most quickly and possibly to be completed before the end of next year. So what impact could that have on 2025? And how much of it could be retroactive?

如果我可以只關注帝國利率案例，那當然是最大的一個。看起來它有可能最快完成，並可能在明年年底之前完成。那麼這會對 2025 年產生什麼影響呢？其中有多少可以追溯？

Well, I think as we said in the prepared remarks, if you look at history, obviously, you can't predict exactly when these will settle. But if you look at history, it's about 12 months. So we just put the rate case in and it would be prospective. So there'll be a small amount of impact next year, but not meaningful for '25. And then, of course, in 2026, we'll be getting the full benefit.

好吧，我認為正如我們在準備好的演講中所說的那樣，如果你回顧歷史，顯然，你無法準確預測這些問題何時會解決。但如果你看看歷史，大約是12個月。所以我們只要把利率案例放進去，它就會是前瞻性的。所以明年會有一點影響，但對 25 年來說沒有意義。當然，到 2026 年，我們將獲得全部好處。

Maybe one quick follow-up here. I think you were looking also at some deferrals of depreciation, which you'd have to go to the regulators to see those allowances. Can you give us an update on how that might be progressing?

也許這裡有一個快速跟進。我認為您還在考慮一些折舊的延期，您必須去監管機構查看這些津貼。能為我們介紹一下進展嗎？

I think where we are right now, Rupert, is we've submitted applications in New Hampshire and in Arizona, and we don't have an answer yet.

魯珀特，我認為我們現在的情況是，我們已經在新罕布什爾州和亞利桑那州提交了申請，但我們還沒有答案。

Mark Jarvi, CIBC.

馬克·賈維，CIBC。

Thanks for that commentary on some of the helpful measures to get us to sort of pro forma business outlook here. A question on the base set of earnings. I appreciate versus strip out AOI and then there's obviously interest savings. But the earning on the utility business today, do you think there would be erosion as you get into 2025 with regulatory lag? Or do you think that can be flat to up on what you've shown year-to-date?

感謝您對一些有用措施的評論，使我們能夠在這裡了解預計的業務前景。關於收入基數的問題。我很欣賞與剝離 AOI 相比，這顯然可以節省利息。但是，您認為進入 2025 年時，由於監管滯後，公用事業業務的收入是否會受到侵蝕？或者您認為這與今年迄今為止所展示的情況持平嗎？

I would say we're certainly not going to give guidance today because there's -- we do have the benefit of some rate cases that we've been able to settle this year that will go into next year. And then, of course, we're all over our OpEx spend, and there's areas where you have some increases in noncontrollable spend, but we're also looking for all efficiencies we can get. So it's a little early to say what next year is going to be, and we're working hard on our plan there and we will provide further color on that as we close Q4.

我想說，我們今天肯定不會提供指導，因為我們確實受益於我們今年已經解決的一些利率案件，這些案件將持續到明年。然後，當然，我們的營運支出都在我們的營運支出上，有些領域的不可控支出有所增加，但我們也在尋求我們可以獲得的所有效率。因此，現在說明年會發生什麼還為時過早，我們正在努力製定我們的計劃，我們將在第四季度結束時提供進一步的資訊。

And when you say color on that when you closed Q4 before the Q results?

當你在 Q 結果出來之前關閉 Q4 時，你會說顏色嗎？

No, no. Thanks for that clarification. During our fourth-quarter results. Thanks, Mark.

不，不。感謝您的澄清。在我們的第四季業績期間。謝謝，馬克。

All right. And then on the rate case filings, I think in Missouri, in particular, as part of your submission, is there anything you guys will be advocating for in terms of writers, measures to minimize regulatory lag just given what you've been through the last couple of years?

好的。然後，關於費率案件備案，我認為，特別是在密蘇裡州，作為你們提交的材料的一部分，你們會在作家方面提倡什麼，考慮到你們所經歷的情況，盡量減少監管滯後的措施過去幾年？

Well, so you have to remember that in Missouri, we have the PISA opportunity and pretty much everything that we are applying for is in PISA today. So we do have that advantage. There are a few things that we're applying for relative to our fuel adjustment mechanism and a few other items. So those are all listed in the case filed.

嗯，所以你必須記住，在密蘇裡州，我們有 PISA 機會，而且我們今天申請的幾乎所有內容都在 PISA 中。所以我們確實有這個優勢。我們正在申請一些與燃料調整機制和其他一些項目相關的事情。所以這些都列在案件中。

And last question for me is just on New Hampshire, expectations on the path forward there. You've had some sort of extensions there, I think, to November 15. Is there a view that you can work through a settlement? Or is a refiling more likely path?

我的最後一個問題是關於新罕布夏州，對那裡前進道路的期望。我認為你們已經將期限延長到了 11 月 15 日。還是重新歸檔更有可能？

No, no, we're expecting to settle both of those cases. And I think we've had good discussions with interveners and with the staff. And so we're optimistic that that will come to a conclusion.

不，不，我們希望解決這兩起案件。我認為我們與幹預者和工作人員進行了良好的討論。因此，我們對最終結果持樂觀態度。

Sean Steuart, TD Cowen.

肖恩·斯圖爾特，TD·考恩。

And thank you for all the detail on the rate case filings. Just one question for me. Wondering if you can give us any updates on the process for hydro at this point? Is that underway? If so, any context on expressions of interest at this stage?

感謝您提供有關費率案件備案的所有詳細資訊。只是問我一個問題。想知道您目前能否向我們提供有關水力發電流程的任何最新資訊？正在進行中嗎？如果是的話，現階段有任何表達興趣的背景嗎？

Well, for once we've had lots of expressions of interest. That has not been a problem. But no, we haven't really started the process there. What we've been focused on, obviously, is selling the bigger asset base. And also on the carve-out of the hydro, those two things are busy activities.

嗯，這次我們收到了很多人的興趣。這不是問題。但不，我們還沒有真正開始這個過程。顯然，我們一直關注的是出售更大的資產基礎。而且在水力發電的剝離方面，這兩件事都是繁忙的活動。

And so what we've said is sometime in the first half, we'll actually go to market with the hydro but through my eyes, it's not a certainty that they will sell just simply because they do make a fairly substantive contribution to the business. They won't affect our ability to be considered pure play. And so we'll sell if we can create some economic value. But if they're better off in the business, we'll keep them there. But we will go to market and test that.

因此，我們所說的是在上半年的某個時候，我們實際上會帶著水電進入市場，但在我看來，並不能確定它們會僅僅因為它們確實為業務做出了相當實質性的貢獻而出售。它們不會影響我們被視為純粹遊戲的能力。因此，如果我們能夠創造一些經濟價值，我們就會出售。但如果他們在業務上表現更好，我們就會把他們留在那裡。但我們將進入市場並進行測試。

Yes, Sean. And I know in the past, we said we would be hoping to do that this year. But with all, as Chris mentioned, with everything going on and with the fact we want to maximize value here, we're just going to time in next year when we have a bit more bandwidth to give it the attention it needs.

是的，肖恩。我知道，我們過去曾說過希望今年能做到這一點。但正如克里斯所提到的，隨著一切的進展，以及我們希望在這裡實現價值最大化的事實，我們將在明年有更多的頻寬來給予它所需的關注。

(Operator Instructions) Rob Hope, Deutsche Bank.

（操作員指示）Rob Hope，德意志銀行。

Scotiabank.

豐業銀行。

I didn't think you move, Rob.

我沒想到你會動，羅布。

Anyway, okay. So a follow-up to Sean's question there. So it doesn't seem like you need to sell the hydro assets from a strategic point of view or even a balance sheet point of view. So when you think about use of proceeds on the hydro assets, could that push you to share buybacks? Or would that help you accelerate investments into the utility business? Or how do you think about kind of the potential levers for proceeds from hydro if you do choose to sell those assets?

無論如何，好吧。這是肖恩問題的後續行動。因此，從策略角度甚至資產負債表角度來看，您似乎不需要出售水力發電資產。那麼，當您考慮水電資產收益的用途時，這是否會促使您進行股票回購？或者這會幫助您加速對公用事業業務的投資嗎？或者，如果您確實選擇出售這些資產，您如何看待水電收益的潛在槓桿？

I'll repeat maybe comments that we've said in the past. First, as we continue to say, we're committed to the investment-grade rating. We intend to use proceeds to maintain flexibility. We want to be self-funding. That is the bigger priority.

我可能會重複我們過去說過的評論。首先，正如我們繼續說的，我們致力於投資級評級。我們打算利用收益來保持靈活性。我們希望自籌資金。這是更重要的優先事項。

We certainly don't want to do a buyback and go back to the market after that. I will say that the amount of flexibility we have is dependent on getting the regulatory lag lower. Obviously, there's earnings and FFO that's created by those rate cases. So a lot of it is going to be timing dependent. But ultimately, we're looking to have flexibility, bring the more discipline internally on how we time capital spend with our regulatory recovery and then from there, invest in the business.

我們當然不想在那之後回購並回到市場。我想說的是，我們擁有的彈性取決於監管滯後的縮短。顯然，這些利率案例創造了收益和 FFO。所以很多事情都取決於時間。但最終，我們希望擁有靈活性，在內部對我們如何安排資本支出與監管復甦的時間進行更多約束，然後從那裡開始投資業務。

And Rob, we will take a look at the balance between what the value that we get from the Hydro inside the business and the value we can get if we continue to take that capital and reinvest. So I mean that will be the test that we're looking at and whichever comes up with the most economic value, that's what we'll do.

羅布，我們將研究我們從業務內部的 Hydro 獲得的價值與我們繼續利用該資本進行再投資可以獲得的價值之間的平衡。所以我的意思是，這將是我們正在考慮的測試，無論哪一個具有最大的經濟價值，這就是我們要做的。

And then sticking with the power business. As we look through the balance of closing, could we see the purchase price move again? And just to clarify or confirm, the movement that we saw on the net proceeds will be offset by the debt being brought back onto the balance sheet. So the overall economics haven't changed?

然後繼續從事電力業務。當我們查看收盤餘額時，我們是否會看到購買價格再次波動？只是為了澄清或確認，我們在淨收益上看到的變動將被帶回資產負債表的債務所抵銷。那麼整體經濟狀況沒有改變嗎？

So it moved up by $200 million on the high end to 1.6 to the 1.8 because of us bringing $200 million on balance sheet. So that would have been in the construction JVs before and now they're on our books, you naturally go higher. So there's no economic effect. We do have a range in here as we get closer. There's a handful of projects that we need to complete.

因此，由於我們在資產負債表上增加了 2 億美元，因此它在高端上升了 2 億美元，達到 160 至 1.8。因此，這本來是在建築合資企業中，現在它們在我們的帳簿上，你自然會走得更高。所以沒有經濟效應。當我們越來越接近時，我們確實有一個範圍。我們需要完成一些項目。

We're responsible for completing even through the time where LS would take ownership. And so some of those have been pushed to the right with some additional costs. So we've put a range in here. It's our best estimate at this time. We're comfortable with that range of what it's going to take to finish those projects.

即使在 LS 接手期間，我們也有責任完成任務。因此，其中一些已經被推到了右邊，並產生了一些額外的成本。所以我們在這裡設定了一個範圍。這是我們目前最好的估計。我們對完成這些項目所需的範圍感到滿意。

And Rob, just for clarity, that also impacted, the timing of those also impacted. You would see I noted that we're going to get about $150 million of proceeds kind of in the back half of next year. that's around tax attributes of those projects. So as they've pushed out, we don't see it being timed with the closing in the same way anymore. So no change in our overall economics is just some nuances to it.

羅布，為了清楚起見，這也產生了影響，這些時間也產生了影響。你會看到我注意到我們將在明年下半年獲得約 1.5 億美元的收益。這與這些項目的稅收屬性有關。因此，當他們推出時，我們不再以同樣的方式看到它與關閉的時間。因此，我們的整體經濟沒有任何變化，只是存在一些細微差別。

There are no further questions at this time. I will now turn the call to Mr. Chris Huskilson.

目前沒有其他問題。我現在將電話轉給克里斯·赫斯基森先生。

Well, thank you very much for your interest in Algonquin and for your time today. We'll be heading to EEI, the financial conference in a few days, and we look forward to seeing many of you there. So have a great next rest of your day. Thank you.

好的，非常感謝您對 Algonquin 的興趣以及今天抽出寶貴的時間。幾天後我們將前往 EEI，金融會議，我們期待在那裡見到你們。祝您接下來的一天過得愉快。謝謝。

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

今天的電話會議到此結束。您現在可以斷開連線。