Algonquin Power & Utilities Corp (AQN) 2025 Q1 法說會逐字稿

Hello, and welcome to the Algonquin Power & Utilities Corporation first quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session (Operator Instructions).

您好，歡迎您參加 Algonquin Power & Utilities Corporation 2025 年第一季財報電話會議。所有線路均已靜音，以防止任何背景噪音。演講者發言後，將進行問答環節（操作員指令）。

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

現在，我將會議交給臨時財務長兼投資者關係副總裁 Brian Chin 先生。請繼續。

Thank you, operator, and good morning, everyone. Thank you for joining us for our first quarter 2025 earnings conference call. Joining me on the call today will be Rod West, Chief Executive Officer; and Sarah MacDonald, Chief Transformation Officer.

謝謝接線員，大家早安。感謝您參加我們的 2025 年第一季財報電話會議。今天與我一起參加電話會議的還有執行長羅德·韋斯特 (Rod West)；以及首席轉型官 Sarah MacDonald。

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.

為了配合今天的收益電話會議，我們在我們的網站 algonquinpower.com 上提供了補充網路廣播簡報。我們的財務報表和管理討論與分析也可在網站以及 SEDAR+ 和 EDGAR 上查閱。

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 forecast and projections reflected in such forward-looking 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準則指標。實際結果可能與此類前瞻性資訊中包含的任何預測或預期有重大差異。在做出此類前瞻性資訊所反映的預測和預期時，我們應用了某些重要因素和假設。

Please note and review the related disclaimers located on Slide 2 of our earnings call presentation at the Investor Relations sections of our website at algonquinpower.com. Please also refer to our most recent MD&A filed on SEDAR+ and EDGAR and available on our website for additional important information on these items.

請注意並查看我們網站 algonquinpower.com 投資者關係部分的收益電話會議簡報投影片 2 中的相關免責聲明。另請參閱我們在 SEDAR+ 和 EDGAR 上提交的最新 MD&A，該文件可在我們的網站上查閱，以獲取有關這些項目的更多重要資訊。

On the call this morning, Rod will provide brief commentary on his first 60 days at Algonquin, followed by a review of key highlights and operational updates for the quarter. I will then detail our financial results. We will then open the line for questions. We kindly ask that you restrict your questions to two, then re-queue if you have any additional questions to allow others the opportunity to participate.

在今天早上的電話會議上，羅德將簡要回顧他在阿岡昆工作的前 60 天，然後回顧本季的主要亮點和營運更新。然後我將詳細說明我們的財務結果。然後我們將開放問答熱線。我們懇請您將問題限制為兩個，然後如果您有任何其他問題，請重新排隊，以便其他人有機會參與。

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

說完這些，我就把事情交給羅德了。

Thank you, Brian, and good morning, everyone. Before I provide my opening remarks on the quarter and my first 60 days, I first want to acknowledge the heartbreaking incident that occurred on April 9 in Lexington, Missouri, within our gas service territory. As members of the community, our thoughts and prayers remain with the affected families whose lives have been devastated by the tragedy.

謝謝你，布萊恩，大家早安。在我對本季和我的頭 60 天發表開場白之前，我首先要承認 4 月 9 日在我們天然氣服務區域內密蘇裡州列剋星敦發生的令人心碎的事件。身為社區成員，我們的思念和祈禱與那些生活因這場悲劇而遭到破壞的受災家庭同在。

Our hearts are with you. Nothing's more important to me and to this company than the safety of our customers, employees, and communities. We remain fully committed to working with the authorities to support the ongoing investigation into the cause of the accident and we will continue to work in partnership with the community on restoration and recovery initiatives.

我們的心與你們同在。對我和公司來說，沒有什麼比我們的客戶、員工和社區的安全更重要。我們將繼續全力配合當局對事故原因的持續調查，並將繼續與社區合作進行恢復和重建工作。

Moving now to my comments on the quarter, I'd like to start things off by thanking you for your interest in Algonquin, for continuing to support the company through this transformative journey, and for welcoming Brian and I into our new respective roles. It's been a busy first 60 days for me, having had the opportunity to meet with many of our stakeholders and visit several of our regional offices. My observations are consistent with the remarks I shared on the Q4 call. I see significant opportunity ahead, but there's still a tremendous amount of work to do.

現在談談我對本季的評論，首先我想感謝您對阿岡昆的關注，感謝您在公司轉型過程中給予的持續支持，感謝您和我歡迎布萊恩擔任我們各自的新職務。對我來說，這是忙碌的頭 60 天，我有機會與許多利益相關者會面並訪問我們的幾個地區辦事處。我的觀察與我在第四季度電話會議上分享的評論一致。我看到未來巨大的機遇，但仍有大量的工作要做。

Algonquin has real potential to be a premium utility. We have solid, diversified asset base, and many talented and hardworking employees, but we have yet to consistently evidence the practices that set premium utilities apart from the rest.

阿岡昆 (Algonquin) 確實有潛力成為優質公用事業公司。我們擁有堅實、多元化的資產基礎，以及眾多才華橫溢、勤奮工作的員工，但我們尚未持續證明將高端公用事業公司與其他公司區分開來的做法。

Some areas of improvement that come to mind include improving our customer outcomes first and community engagement, leveraging our economies of scale. I look forward to sharing more insights on our path forward.

我想到的一些改進領域包括首先改善我們的客戶成果和社區參與，並利用我們的規模經濟。我期待著就我們的前進道路分享更多見解。

As promised, we plan to provide a forward-looking multi-year update on June 3, which falls approximately 90 days from our Q4 2024 call and my first day in the seat. Also on June 3, I plan to share more of my observations regarding the company and later this year, I do expect to provide a little more color into our longer-term strategic thinking and positioning of the portfolio.

正如承諾的那樣，我們計劃在 6 月 3 日提供一份前瞻性的多年更新，距離我們 2024 年第四季的電話會議和我上任的第一天大約有 90 天。此外，我計劃在 6 月 3 日分享更多關於該公司的觀察，今年晚些時候，我希望為我們的長期策略思維和投資組合定位提供更多細節。

With that, let's now turn to the operational highlights from the quarter. Starting with regulatory updates, on March 25, the New Hampshire Public Utilities Commission issued an order approving the Granite State Electric settlement agreement with new rates having taken effect on April 1. On April 21, the New Hampshire Commission further extended a stay of the Energy North Gas rate case proceeding until May 30, allowing more time for settlement negotiations to be completed.

現在讓我們來看看本季的營運亮點。從監管更新開始，3 月 25 日，新罕布夏州公共事業委員會發布命令，批准 Granite State Electric 和解協議，新費率於 4 月 1 日生效。4月21日，新罕布夏州委員會進一步將能源北方天然氣費率案審理期限延長至5月30日，以便有更多時間完成和解談判。

On our Empire Electric Missouri rate case, the Commission extended the test year true up period from September 30, 2024, to March 31, 2025, which provides an opportunity for us to capture capital invested during that timeframe in our rate filing.

在我們的 Empire Electric Missouri 費率案例中，委員會將測試年度調整期從 2024 年 9 月 30 日延長至 2025 年 3 月 31 日，這為我們提供了一個機會，讓我們能夠在費率申報中記錄該時間範圍內投資的資本。

Moving to a brief update on the Missouri Commission investigation into our customer service and billing issues. As stated on the Q4 call, the investigation opened at the end of February and we have been working with the investigation team, responding to data requests and providing answers to their questions.

現在簡要介紹密蘇裡州委員會對我們的客戶服務和帳單問題的調查情況。正如第四季度電話會議所述，調查於 2 月底開始，我們一直在與調查團隊合作，回應資料請求並解答他們的問題。

Shifting from state level rate cases to transmission. As discussed last quarter, the Southwest Power Pool, SPP approved its 2024 Integrated Transmission Plan, the largest portfolio of transmission projects ever undertaken by SPO, totaling roughly $7.7 billion.

從州級費率案例轉向傳輸。正如上個季度所討論的，西南電力聯盟 (SPP) 批准了其 2024 年綜合輸電計劃，這是 SPO 有史以來承擔的最大輸電項目組合，總額約為 77 億美元。

A significant share of this transformative investment, approximately $750 million to $800 million is dedicated to strengthening the Empire District Electric service area, underscoring the region's critical role in the future of the grid.

這項轉型投資的很大一部分（約 7.5 億至 8 億美元）將用於加強帝國區電力服務區，凸顯該地區在未來電網中的關鍵作用。

Within the Empire District Electric footprint, the approved upgrades encompass approximately 80 miles of 161 kV rebuilds or conversions, 90 miles of new 345 kV transmission lines and the construction of two large scale transmission stations.

在帝國區電力覆蓋範圍內，已批准的升級包括約 80 英里的 161 kV 重建或轉換、90 英里的新 345 kV 輸電線路以及兩座大型輸電站的建設。

On April 23, Empire accepted the first tranche of Notices to Construct or NTCs for the 161 kV portion of the portfolio. Empire has also received the second tranche of NTCs and the next step is the official acceptance of the second tranche of NTCs submitted to SPP on or before June 19. We're excited for the opportunity these projects represent for our stakeholders.

4 月 23 日，Empire 接受了該投資組合中 161 kV 部分的第一批施工通知或 NTC。Empire 也收到了第二批 NTC，下一步是在 6 月 19 日或之前正式接受向 SPP 提交的第二批 NTC。我們很高興這些項目能為我們的利害關係人帶來機會。

I'll now turn things back to Brian to review the financial highlights from the quarter. Brian?

現在我將把事情交還給布萊恩來回顧本季的財務亮點。布賴恩？

Thanks, Ron.

謝謝，羅恩。

In a short summary, it was an encouraging quarter for our key financial metrics. First quarter adjusted net earnings from continuing operations were $111.6 million, up from up 39% from $80.1 million in 2024. 43% increase of $40.8 million in net earnings for the Regulated Services Group was primarily due to the implementation of new rates of $15.7 million and lower interest expense of $13.6 million as a result of debt repayment with the proceeds from the sales of the renewables business and our Atlantica stake.

簡而言之，對於我們的主要財務指標而言，這是一個令人鼓舞的季度。第一季調整後的持續經營淨收益為 1.116 億美元，較 2024 年的 8,010 萬美元成長 39%。監管服務集團的淨收益成長 43%，即 4,080 萬美元，這主要是由於實施了 1,570 萬美元的新利率，並且由於使用出售再生能源業務和我們的 Atlantica 股份所得償還債務，導致利息支出降低 1,360 萬美元。

Our depreciation expense was relatively flat year-over-year. Our usual organic growth in depreciation expense was partly offset by $8.2 million in non-recurring favorable pickups related to regulatory orders in New Hampshire and Arizona. The $13.4 million increase in net earnings for the Hydro Group was primarily due to a one-time tax recovery related to the sale of the renewable energy business.

我們的折舊費用與去年同期相比相對持平。我們通常的折舊費用有機增長被與新罕布什爾州和亞利桑那州監管命令相關的 820 萬美元非經常性有利收益部分抵消。水電集團淨利潤增加 1,340 萬美元，主要原因是出售再生能源業務獲得的一次性稅收補償。

Our expectations of an effective tax rate in the mid to low-20% range for the year has not changed and as we have said before, we do expect a bit of lumpiness in our quarterly tax profile.

我們對今年有效稅率在 20% 中低水準的預期沒有改變，正如我們之前所說，我們確實預期季度稅收狀況會有些波動。

On the corporate side, our adjusted net earnings decreased by $22.7 million related to the removal of Atlantica dividends.

在公司方面，由於取消 Atlantica 股息，我們的調整後淨收益減少了 2,270 萬美元。

Moving to our EPS walk, Q1 adjusted earnings net earnings per share were $0.14, which is flat to last year's Q1 2024 adjusted net earnings per share of $0.14, which includes renewables. And yet above last year's Q1 2024 continuing operations adjusted net EPS of $0.11 excluding renewables.

轉向我們的每股盈餘預測，第一季調整後每股淨收益為 0.14 美元，與去年第一季 2024 年調整後每股淨收益 0.14 美元持平，其中包括再生能源。然而，高於去年第一季 2024 年持續經營調整後淨每股收益 0.11 美元（不含再生能源）。

Starting with last year's $0.14 including renewables, year-over-year drivers include a negative $0.03 attributed to the renewables sale, an increase of $0.03 for new rate case contributions from New York Water, BELCO, and Midstates Gas as well as increased customer demand. And another $0.02 of contribution from lower interest expense from use of renewables and Atlantica sales proceeds to pay down debt net of financing for organic growth.

從去年包括再生能源在內的 0.14 美元開始，年比驅動因素包括再生能源銷售帶來的 0.03 美元負值、紐約水務公司、BELCO 和 Midstates Gas 的新費率案例貢獻增加 0.03 美元以及客戶需求增加。另外，使用再生能源和 Atlantica 銷售收益帶來的較低利息支出貢獻了 0.02 美元，用於償還扣除有機成長融資後的債務。

Mirroring my earlier comments, we had approximately $0.01 pickup from non-recurring items favorable items based on depreciation related to regulatory orders in New Hampshire and Arizona.

與我先前的評論一致，根據新罕布夏州和亞利桑那州監管命令相關的折舊，我們從非經常性專案利好專案中獲得了約 0.01 美元的收益。

Aside from the regulated business, we captured $0.02 increase for the one-time tax recovery related to our Hydro Group, a decrease of $0.03 for the removal of the Atlantica dividend and a reduction of $0.02 for an increase in weighted average shares outstanding.

除了受監管的業務外，我們還因與水力發電集團相關的一次性稅收追回而獲得了 0.02 美元的增加，因取消 Atlantica 股息而獲得了 0.03 美元的減少，因加權平均流通股數增加而獲得了 0.02 美元的減少。

For the last two quarters, our adjusted net EPS impact from dilution has been tracking to $0.01 each quarter, but since our results are proportionally skewed to Q1, this mathematically increased our dilution to $0.02 for this quarter.

在過去兩個季度中，我們調整後的每股淨收益因稀釋而產生的影響一直跟踪到每季度 0.01 美元，但由於我們的結果與第一季成比例偏向，因此從數學上講，本季度的稀釋度增加到 0.02 美元。

Let me pause here on non-recurring items embedded in this walk. If one takes the positive $0.01 from regulatory orders related to depreciation and the $0.02 from the Hydro tax recovery, our adjusted net EPS includes a total of $0.03 of favorable non-recurring items in the quarter. And given our unchanged view of an effective tax rate in the mid to low-20% range, we expect a portion of the effective tax rate non-recurring items to reverse over the remainder of the year.

讓我在這裡停下來談談這次散步中不經常發生的事情。如果從與折舊相關的監管命令中扣除 0.01 美元的正值，從水電稅追回中扣除 0.02 美元，那麼我們調整後的淨每股收益將包括本季度總計 0.03 美元的有利非經常性項目。鑑於我們對有效稅率在 20% 中低區間的看法不變，我們預計部分有效稅率非經常性項目將在今年剩餘時間內逆轉。

In keeping with our goal of reducing complexity, the company's financial disclosures now focus primarily on adjusted net earnings and adjusted net earnings per share and earnings per share, as we view these as our key financial metrics. Our simplified financial disclosure includes net earnings from continuing operations separated into regulated Hydro and corporate segments in our financial statement footnotes.

為了實現降低複雜性的目標，公司的財務揭露現在主要集中在調整後的淨收益和調整後的每股淨收益和每股盈餘，因為我們將這些視為我們的關鍵財務指標。我們的簡化財務揭露包括財務報表腳註中分為受監管的水電和公司部門的持續經營淨收益。

A few comments now on our credit metrics. Simply stated, our credit metrics are healthy for year-end 2024 S&P indicated our FFO to debt was 12.5%, comfortably above the requisite BBB threshold of 11%. Fitch indicated our debt to EBITDA was 5.6 times appropriately below the requisite BBB threshold of 5.8 times. These metrics were measured before net deleveraging proceeds to continuing operations were received from the sale of the renewable energy business on January 8.

現在就我們的信用指標發表幾點評論。簡而言之，我們的信用指標在 2024 年底是健康的，標準普爾顯示我們的 FFO 與債務之比為 12.5%，遠高於 BBB 所要求的 11% 的門檻。惠譽表示，我們的債務與 EBITDA 比率為 5.6 倍，適當低於 BBB 所需的 5.8 倍門檻。這些指標是在 1 月 8 日出售再生能源業務並獲得持續經營的淨去槓桿收益之前衡量的。

And now back to Rod for closing remarks.

現在請羅德作最後發言。

Thanks Brian. as per our press release this morning, I want to highlight to our listeners to save the date for our Investor Update Call on June 3, which I referenced earlier. We expect this outlook, which will be primarily based on the current portfolio will include projected adjusted net EPS ranges for 2025, 2026, and 2027, with more detailed thoughts on the company and its potential after my first 90 days. I also aim to share my broader strategic thinking on the broader portfolio later this year.

謝謝布萊恩。根據我們今天早上發布的新聞稿，我想提醒聽眾記住我們之前提到的 6 月 3 日投資者更新電話會議的日期。我們預計這項展望主要基於目前的投資組合，包括 2025 年、2026 年和 2027 年預計的調整後淨每股收益範圍，以及我在任職 90 天後對公司及其潛力的更詳細的想法。我還計劃在今年稍後分享我對更廣泛投資組合的更廣泛的策略思考。

Thanks to everyone for joining us on the call this morning. I am excited and motivated by the opportunities ahead and now the management team is available to answer your questions. Operator?

感謝大家今天早上參加我們的電話會議。我對未來的機會感到興奮和鼓舞，現在管理團隊可以回答您的問題。操作員？

(Operator Instructions)

（操作員指示）

Robert Hope with Scotiabank.

加拿大豐業銀行的羅伯特霍普 (Robert Hope)。

Morning everyone. I won't ask about the forward outlook, but maybe a little bit backwards looking. Rod, you've been here for a number of weeks, months now. Can you maybe walk us through kind of what you think the most impactful changes you've made to the organization so far have been?

大家早安。我不會詢問未來的前景，但可能會稍微回顧一下。羅德，你已經來這裡好幾個星期、好幾個月了。您能否向我們介紹一下您認為迄今為止對該組織做出的最有影響力的改變是什麼？

Yeah, t's interesting that you say months because it is literally two months. So the S in month look back is literally one month. But my focus and the initial sort of impact has been setting a vision for what a premium pure play utility looks like and setting the attributes of a pure play utility to the corporation, which informs the work we're doing to lower our overall cost profile, to make room to do more on the capital and O&M front.

是的，你說幾個月很有趣，因為實際上是兩個月。因此，月份回顧中的 S 實際上是一個月。但我的重點和最初的影響是為優質純粹公用事業設定一個願景，並為公司設定純粹公用事業的屬性，這為我們降低總體成本狀況所做的工作提供了指導，為在資本和 O&M 方面做更多的事情騰出空間。

But also a focus on improving our stakeholder engagement capacity and sort of discipline. Again, these things are notional because I'm communicating them to the organization as I'm setting ourselves up to actually execute on those plans and the way that they will ultimately play out are on outcomes for our stakeholders from for the investment community.

但同時也著重於提升我們的利害關係人的參與能力和紀律。再次強調，這些都是名義上的，因為我正在將它們傳達給組織，因為我正在準備真正執行這些計劃，而它們最終的實施方式將決定我們的利害關係人和投資界的成果。

We're talking more and we'll be talking more about total shareholder return from the customer perspective. We'll be talking about Net Promoter Score and specific customer outcomes that will drive our capital plan and our sort of organizational health, the motivation, the health, the alignment of our employees actions to create sustainable value for those four key stakeholders and the metrics that we're paying attention to are the types of things that will give us our stage gates along the way, so everybody has a clear understanding of where we're headed and what are the milestones along the way that, that will separate us from good to great.

我們正在談論更多，並將更多地從客戶的角度談論股東總回報。我們將討論淨推薦值和特定的客戶結果，這些將推動我們的資本計劃和組織健康、激勵、健康、員工行動的協調，從而為這四個關鍵利益相關者創造可持續的價值，而我們關注的指標是為我們一路上的階段門檻，因此每個人都清楚地了解我們的前進方向以及沿途的里程碑，這些將使我們從優秀走向卓越。

The good thing is that, that we have a lot to work with and that's the biggest part of my initial evaluation is that we have really quality assets and we have a group of employees who are really motivated to turn our performance around.

好消息是，我們有很多工作要做，這是我初步評估中最重要的部分，我們擁有真正優質的資產，我們擁有一群真正有動力扭轉我們業績的員工。

All right. Appreciate that color. Second question, moving over to the SPP projects, so you have two tranches with good clarity right now. Do you know how much capital that could be versus the $750 million to $800 million that you referenced as well as when would that capital start being spent?

好的。欣賞那種顏色。第二個問題，轉到 SPP 項目，現在您有兩個非常清晰的部分。您是否知道與您提到的 7.5 億至 8 億美元相比，這筆資金可能有多少，以及這些資金何時開始使用？

We haven't disclosed anything beyond what is currently public. And so I don't anticipate that we'll do so until we're further along. But the short answer is my expectation is that if we're successful in executing on what's in front of us, we'll be in a better position to capture and execute on additional CapEx opportunities in that space.

除了目前已公開的資訊外，我們還沒有透露其他任何資訊。因此，我預計我們不會這樣做，直到我們取得進一步進展為止。但簡而言之，我的期望是，如果我們成功執行眼前的任務，我們將處於更有利的位置來抓住和執行該領域的額外資本支出機會。

All right. Thank you. I'll jump back into queue.

好的。謝謝。我會重新回到隊列中。

Sean Steuart with TD Cowen.

肖恩·斯圖爾特 (Sean Steuart) 與 TD Cowen 合作。

Thank you. Good morning a couple questions. I want to start with investigations. So there's another investigation in Arkansas and an audit in New Hampshire. And I'm just trying to gauge are these the same billing issues that you're dealing with in the Missouri investigation and do you have any perspective on timing resolution for these various investigations and audits?

謝謝。早上好，有幾個問題。我想從調查開始。因此，阿肯色州又進行了一次調查，新罕布夏州進行了一次審計。我只是想判斷一下，這些帳單問題是否與你們在密蘇裡州調查中處理的帳單問題相同，你們對於這些調查和審計的時間解決有什麼看法？

I don't believe New Hampshire is a customer-related investigation, but the other investigations have to do with the billing issues, the timeliness of billing associated with the deployment of an overhaul of a new system. And we're working with the regulators and the state in each of those circumstances.

我不認為新罕布夏州的調查與客戶有關，但其他調查與計費問題有關，以及與部署新系統大修相關的計費及時性。在每種情況下，我們都在與監管機構和政府部門合作。

From my initial observation that our challenges were not unlike other utilities who have gone through system deployment, I think where we have fallen short and are seeking to remedy it is that we did not do a good job of stakeholder engagement prior to the deployment of the system, which left a lot of folks surprised when the normal, what I would consider to be the normal hiccups associated with the scale of the system overhaul that we implemented. We didn't in my view at least do the conditions precedent to making it a smoother transition for customers and regulators.

從我最初的觀察來看，我們所面臨的挑戰與其他經歷過系統部署的公用事業公司並無不同，我認為我們所存在的不足以及正在尋求補救的原因是，在部署系統之前，我們沒有做好利益相關者的參與工作，當出現正常的、我認為是與我們實施的系統改革規模相關的正常問題時，很多人感到驚訝。在我看來，我們至少沒有做到讓客戶和監管機構更順利地過渡的先決條件。

But we're closing that gap as we speak. And I don't I am not surprised at all by the Attorney General Zagora was initiating investigations because we put them in a position where they had to do that. I do expect us to work through them and I have personally gone to those respective states to represent my commitment to follow through and cure the issues that the customers have been experiencing, but we'll continue to participate and support the work of the states in closing out these customer complaints.

但我們正在縮小這一差距。我一點也不驚訝司法部長札戈拉發起調查，因為是我們讓他們不得不這麼做的。我確實希望我們能夠解決這些問題，並且我親自前往各州，表明我的承諾，以解決客戶所遇到的問題，但我們將繼續參與並支持各州解決這些客戶投訴的工作。

Okay. Thank you for that context. Second question, wondering if there's any update on your thinking around the Hydro portfolio potential timeline towards divestiture, how the thinking's evolved in the current valuation environment.

好的。感謝您提供的資訊。第二個問題，想知道您對 Hydro 投資組合剝離潛在時間表的想法是否有任何更新，以及在當前估值環境下您的想法如何演變。

Yeah, and I'll if we do a double click, I'll let Brian talk more about it. But my perspective is consistent with the position we've taken. We're looking to transact but the condition precedent has to be it being value accretive, not from a singular EPS perspective, but certainly from a balance sheet and a strategy accretive perspective as well.

是的，如果我們雙擊，我會讓 Brian 詳細談談。但我的觀點與我們所採取的立場是一致的。我們正在尋求交易，但先決條件必須是價值增值，不是從單一每股盈餘的角度來看，而是從資產負債表和策略增值角度來看。

And we're monitoring the market environment for potential off takers. But it has to be something that is that we view as net accretive. And I don't know that that there's a specific timeline that we are we feel forced to pursue but should that opportunity arise, I have given the go ahead that we'll transact if those conditions are met. Brian?

我們正在監測市場環境以尋找潛在的承購商。但它必須是我們認為具有淨增值作用的東西。我不知道我們是否被迫遵循一個具體的時間表，但如果出現這樣的機會，我已經同意，如果滿足這些條件，我們就會進行交易。布賴恩？

Yeah, and Sean, as a reminder, our thought process is that we would be looking at that in the first portion of this year, obviously with the leadership transition. And our thought process on the portfolio strategy has been evolving here. We've pushed back the timetable a little bit, but everything that we said before about it being value accretive on a number of fronts that remains consistent.

是的，肖恩，提醒一下，我們的想法是，我們會在今年上半年考慮這個問題，顯然是在領導層過渡期間。我們的投資組合策略的思考過程也一直在不斷發展。我們稍微推遲了時間表，但我們之前所說的關於它在多個方面增值的一切仍然保持一致。

Got it. Okay, thanks very much guys. Much appreciated.

知道了。好的，非常感謝大家。非常感謝。

Nelson Ng from RBC Capital Markets.

加拿大皇家銀行資本市場 (RBC Capital Markets) 的納爾遜·吳 (Nelson Ng)。

Great, thanks, and good morning, everyone. Quick question on the CRM implementation. Can you just comment about I think in the past you talked about how the CRM implementation would result in cost savings and I just had a look at the operating expenses of the utility division.

太好了，謝謝，大家早安。關於 CRM 實施的快速問題。您能否評論一下，我記得您過去曾談到 CRM 實施將如何節省成本，我剛剛查看了公用事業部門的營運費用。

I think costs have increased by just 1.5% year-over-year. So that's obviously lower than inflation. So that's good. But can you just talk about realizing cost savings in the business, that big picture and maybe give a bit more color going forward as well?

我認為成本比去年同期僅增長了 1.5%。所以這顯然低於通貨膨脹率。這很好。但是，您能否談談如何實現業務成本節約，以及整體情況，並進一步闡述未來發展？

Sure. Nelson, it's Sarah MacDonald. So the implementation was not just about cost savings. There were a lot of other customer benefits that we're now coming to fruition. When we were starting to implement, we had multiple systems, no integration, and issues in making sure that customers had access, visibility, ability to go online and look at their bills.

當然。尼爾森，我是莎拉麥克唐納。因此實施並非只是為了節省成本。我們也為客戶帶來了許多其他益處，這些益處現在正在逐漸實現。當我們開始實施時，我們有多個系統，沒有集成，並且在確保客戶能夠訪問、查看、上網和查看賬單方面存在問題。

And so there was certainly a lot more benefits to the customer coming in. Ultimately, when the system is functioning optimally, you will start to see cost. We'll start to be able to realize the benefits of that integration. But for now we're looking we're focused on getting it implemented right and making sure the customer experience is better.

因此，對顧客來說，這無疑會帶來更多好處。最終，當系統以最佳方式運作時，您將開始看到成本。我們將開始認識到這種整合所帶來的好處。但目前我們正專注於正確實施並確保客戶體驗更好。

And the cost benefits are not going to be specifically called out solely to the implementation of the platform. But you would expect to see more digital channels, lower calls from customers because we're providing more self-help options and lower paper expenses. But those would be reflected in our overall O&M numbers and not just attributed to one specific platform, just on a future basis to understand where we'll be coming from.

而且成本效益不會只反映在平台的實施上。但您會看到更多的數位管道、更少的客戶電話，因為我們提供了更多的自助選項和更低的紙張費用。但這些將反映在我們的整體營運和維護數字中，而不僅僅歸因於一個特定的平台，只是在未來的基礎上了解我們將從哪裡來。

Okay. Thanks for the color. And then the second question probably relates to Brian. So just a quick one on the non-controlling interest earnings of $18.9 million. I know in the past you kind of singled out HLBV as a line item. Is this item, is it all HLBV or are there several items lumped together into earnings attributable to non-controlling interest.

好的。謝謝你的顏色。第二個問題可能與布萊恩有關。因此，我們簡單介紹一下 1890 萬美元的非控制權益收益。我知道您過去曾將 HLBV 單列為一項。這是該項目嗎？是全部 HLBV 嗎？還是有幾個項目合併到歸屬於非控制權益的收益中？

Yeah. So it's primarily HLBV income. The other significant piece of that, and it's a relatively small piece is the minority interest related to the ownership stake in Suralis down in Chile.

是的。所以它主要是 HLBV 收入。其中另一個重要且相對較小的部分是與智利 Suralis 的所有權股份相關的少數股權。

Got it. Thanks. I'll get back in the queue.

知道了。謝謝。我會回到隊列中。

Rupert Merer from National Bank.

國家銀行的魯珀特·梅勒（Rupert Merer）。

Hi, good morning everyone. If I could start with a follow-up on the operating costs. I think with the billing issues you've had in previous quarters, it did incur some added costs. Are you still seeing added costs related to those issues or is that largely in the rearview mirror now? And when we look at those operating costs, are they more representative of what we should expect in future quarters?

大家早安。如果我可以從跟進營運成本開始。我認為，由於您在前幾個季度遇到的計費問題，確實產生了一些額外的成本。您仍看到與這些問題相關的額外成本，或者這些問題現在已基本消失？當我們查看這些營運成本時，它們是否更能代表我們對未來幾季的預期？

Yeah, Rupert. So when we started experiencing those billing issues, the extra cost that we did callout in the Q4 materials was bad debt expense and that's where we saw the majority of that. You saw a little bit of that this quarter, but it wasn't really enough for us to callout specifically.

是的，魯伯特。因此，當我們開始遇到這些計費問題時，我們在第四季度材料中標註的額外成本是壞帳費用，而這正是我們看到的大部分費用。您在本季看到了一些這樣的情況，但這還不足以讓我們具體指出。

And definitely the trend line is moving in a more improved direction. I think going forward from here that we would expect that that would temper off just given the trajectory of where our customer billings exceptions are at. So the short answer, Rupert is we recorded the majority of that in Q4.

而趨勢線肯定正在朝著更改善的方向發展。我認為從現在開始，我們預計這種情況會逐漸減少，因為考慮到我們的客戶帳單異常的軌跡。所以簡短的回答是，魯伯特，我們在第四季記錄了大部分數據。

And last quarter, you talked about some dissynergies related to the sale of the renewable group. It seems like the costs in the renewables and corporate group have come down significantly. Have you largely dealt with these dissynergies, are there any other sort of plans you can discuss to lower costs in the near-term? I understand some of this may be things you want to talk about on June 3.

上個季度，您談到了與再生能源集團出售相關的一些不協同效應。看起來再生能源和企業集團的成本已經大幅下降。您是否已基本解決了這些不協同效應？是否有其他計劃可以討論以在短期內降低成本？我知道其中一些可能是您想在 6 月 3 日談論的事情。

Yeah, Rupert, so last year, if you look at the year in aggregate, we had roughly $18 million in dissynergies that affected our OpEx numbers last year. For the first quarter, it's at a smaller amount. It's less than $0.01 of dissynergies that we're seeing. We didn't call it out specifically in the materials just because of the size.

是的，魯珀特，如果從總體來看，去年我們的營運支出數字受到了大約 1800 萬美元的不協同效應的影響。對於第一季來說，金額較小。我們看到的不協同效應不到 0.01 美元。由於尺寸的原因，我們沒有在材料中特別指出它。

We do expect that as we're continuing to execute greater operational and capital discipline on the company, that the eventual removal of those dissynergies will manifest themselves through the outlook. But at this stage for the quarter, it just simply wasn't large enough for us to callout. So we do think that that's a helpful stage and that's something you should expect for us here.

我們確實希望，隨著我們繼續對公司執行更嚴格的營運和資本紀律，最終消除這些不協同效應將透過前景體現出來。但就本季而言，這一數字還不足以讓我們大聲疾呼。因此，我們確實認為這是一個有益的階段，這也是您應該期待的。

Sounds very good. I'll leave it there. Thank you.

聽起來很不錯。我就把它留在那裡。謝謝。

Ben Pham from BMO.

來自 BMO 的 Ben Pham。

Hey, thanks. Good morning. How do your peers on conference calls highlight customer affordability as a topic of interest these days with all that's going on with markets and inflation, slight change? Can you add some flavor to conversation and think about some of your comments previously on cost initiatives and narrowing that way you get towards the?

嘿，謝謝。早安.鑑於市場和通貨膨脹等許多因素，在電話會議上您的同事如何強調客戶承受能力是目前關注的話題，以及有何變化？您能否為談話增添一些趣味，並思考一下您之前對成本舉措的一些評論，並縮小您所要討論的範圍？

Yeah, I'll certainly start on that. If I think about the guardrails of the company and you heard me make reference to premium utilities. We aren't capital constrained if we have constructive regulatory mechanisms and we have a platform for customer-centric investment to meet evolving customer demands for our services.

是的，我一定會從那裡開始。如果我考慮公司的護欄，你會聽到我提到優質公用事業。如果我們擁有建設性的監管機制，並且擁有以客戶為中心的投資平台來滿足客戶對我們服務不斷變化的需求，那麼我們就不會受到資本限制。

But I think the at this point, the one thing that gives us credibility when coming in to our regulatory environment asking for support is that we've done everything that we can to lower the cost profile, the actual cost of service for our customers. And so from my vantage point, the one constraint is not capital constraint, its affordability.

但我認為，目前，當我們進入監管環境尋求支援時，唯一能讓我們獲得信譽的是我們已盡一切努力降低成本概況，即降低為客戶提供的實際服務成本。因此，從我的角度來看，唯一的限制不是資本限制，而是可負擔性。

And so the conversation that we are having internally and for the entirety of my tenure here in our pursuit to be a premium utility is driving the cost down, so that we could put productive capital to work on behalf of our stakeholders in a way that minimizes the impact on customer bills.

因此，在我們努力成為優質公用事業公司的過程中，我們內部以及我整個任期內都在進行對話，以降低成本，以便我們能夠將生產性資本用於為利益相關者服務，同時最大限度地減少對客戶帳單的影響。

It's embedded in what you just heard Brian make reference to about capital discipline. But we're also constantly going to be benchmarking ourselves against best-in-class on our overall cost profile. So that I can make, we can make a credible case to our stakeholders that we're responsible stewards of our service.

它包含在你剛才聽到的布萊恩提到的資本紀律中。但我們也將持續以同類最佳企業為基準來衡量我們的整體成本狀況。這樣我就可以向我們的利害關係人證明，我們是我們的服務的負責任的管理者。

So you'll see that in our O&M numbers. And I'll talk a little bit more about it in our outlooks on June 3. But I think discipline should be your takeaway. And we're comparing our objectives. We're not there yet. Obviously, we're a ways away, but our objective is to compare ourselves to best-in-class on both capital and O&M discipline.

因此您會在我們的 O&M 數字中看到這一點。我將在 6 月 3 日的展望中對此進行更詳細的討論。但我認為紀律應該是你的收穫。我們正在比較我們的目標。我們還沒到那裡。顯然，我們還有很長的路要走，但我們的目標是在資本和營運與維護方面與一流企業相媲美。

Okay, got it. And I provide some details on the June update you mentioned also later in the year. Just wanted to clarify the June portion with 2025 to 2027 is the focus on EPS numbers rate base CapEx in that time frame and then later in year, it's a beyond 2027 guidance.

好的，明白了。我還在今年稍後提供了您提到的 6 月更新的一些詳細資訊。只是想澄清一下，2025 年至 2027 年 6 月的部分重點是該時間範圍內的 EPS 數字率基準資本支出，然後在今年晚些時候，這是 2027 年之後的指導。

It's fair to say that you're absolutely right on 2025, 2026, and 2027. And I know that there are going to be questions about broader points of view on a portfolio strategy. And what we're saying is that we're prepared to go public with the guidance and outlooks for that three-year time frame. And while we are definitely thinking through the broader strategic portfolio questions, we think we'll be in a better position to talk about it publicly later in 2025.

可以說，你對 2025、2026 和 2027 年的預測完全正確。我知道，人們會對投資組合策略的更廣泛觀點提出疑問。我們要說的是，我們準備公開未來三年的指導和展望。雖然我們肯定在思考更廣泛的策略性投資組合問題，但我們認為我們將在 2025 年稍後更有能力公開討論這個問題。

Okay, got it. Thanks so much.

好的，明白了。非常感謝。

Thanks.

謝謝。

(Operator Instructions)

（操作員指示）

Mark Jarvi from CIBC.

來自加拿大帝國商業銀行的馬克·賈維。

Sorry about that. Yes, questions on New Hampshire, you've got settlements now at Energy North and Granite State, obviously there's still the audit in terms of the systems there, updated perspective in terms of the path forward there when you could get back in to file for new rates and try to get through some of those revenue requests that didn't come through on the prior settlements.

很抱歉。是的，關於新罕布夏州的問題，現在已經在 Energy North 和 Granite State 達成了和解，顯然那裡的系統方面仍有審計，那裡的前進道路方面有更新的視角，您可以重新申請新的稅率，並嘗試通過一些在之前的和解中沒有提出的收入請求。

Yeah, Mark, so just to be clear, we do have an order approving the settlement for Granite State. We are in settlement discussions at Energy North and that's part of the prepared commentary that we've got a little bit more time as granted by the commission to negotiate that settlement. So just to clarify that.

是的，馬克，需要明確的是，我們確實有一項批准花崗岩州和解的命令。我們正在 Energy North 進行和解討論，這是準備好的評論的一部分，委員會給予我們更多時間來協商和解。只是為了澄清這一點。

But with regards to when we can go back in for new rates, so for Granite State, what we have in the settlement is a stay out period until we can file a new rate case on January 1, 2026. And that, that is a helpful data point in those. And given that similar parties, similar timescales for the rate cases, I think that's something to think about as we're looking at concluding settlement negotiations in Energy North.

但關於我們何時可以重新制定新的稅率，對於花崗岩州來說，我們在和解協議中有一個暫停期，直到我們可以在 2026 年 1 月 1 日提起新的稅率案件。這是一個有用的數據點。考慮到類似的當事人、類似的費率案件時間表，我認為在我們考慮完成 Energy North 的和解談判時，這是值得考慮的事情。

Got it. And then maybe updated views in terms of inside CalPeco the application for interim rates, any feedback yet in terms of whether or not that's feasible and just probably how you see timeline progressing in CalPeco.

知道了。然後也許會更新關於 CalPeco 內部臨時費率申請的看法，對於這是否可行，您有何反饋，以及您如何看待 CalPeco 的時間表進展。

So it's absolutely feasible. We wouldn't have filed otherwise. We haven't got any feedback yet, but we're continuing to answer any questions that come up. But it's certainly an option open to us that we're taking every advantage of.

所以絕對是可行的。否則我們就不會提出申請。我們尚未收到任何回饋，但我們會繼續回答出現的任何問題。但這無疑是一個我們可以充分利用的選擇。

When do you think you get clarity? Because I believe the ask was for interim rates by middle of this year and you know that's not that far away at this point.

您認為什麼時候才能清楚？因為我相信要求的是今年年中之前公佈的臨時利率，而且你知道現在距離這個時間並不遠了。

Yes. The California is a slower jurisdiction to hear back, so I actually can't say when we'll hear.

是的。加州的回覆速度較慢，所以我實際上無法說出我們什麼時候會收到回覆。

Got it. Okay. Thanks for the time this morning.

知道了。好的。感謝您今天上午抽出時間。

Thanks Mark.

謝謝馬克。

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

目前沒有其他問題。我將把電話轉給羅德·韋斯特先生。

All right. Thanks again for your interest and your questions this morning. And we look forward to visiting with you again in just a few weeks on June 3. Have a great rest of the day.

好的。再次感謝您今天早上的關注和提問。我們期待幾週後的 6 月 3 日再次拜訪您。祝您今天剩餘時間愉快。

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。