CMS能源 (CMS) 2022 Q2 法說會逐字稿

Good morning, everyone, and welcome to the CMS Energy 2022 Second Quarter Results. The earnings news release issued earlier today and the presentation used in this webcast are available on CMS Energy's website in the Investor Relations section. This call is being recorded.

大家早上好，歡迎收看 CMS Energy 2022 第二季度業績。今天早些時候發布的收益新聞稿和本次網絡廣播中使用的演示文稿可在 CMS Energy 網站的投資者關係部分獲得。正在錄製此通話。

(Operator Instructions)

（操作員說明）

Just as a reminder, there will be a rebroadcast of this conference call today, beginning at 12:00 p.m. Eastern Time running through August 4. This presentation is also being webcast and is available on CMS Energy's website in the Investor Relations section.

提醒一下，今天下午 12:00 將重播本次電話會議。東部時間一直持續到 8 月 4 日。該演示文稿也進行了網絡直播，可在 CMS Energy 網站的“投資者關係”部分查看。

At this time, I would like to turn the call over to Mr. Sri Maddipati, Treasurer and Vice President of Finance and Investor Relations.

在這個時候，我想把電話轉給財務和投資者關係副總裁 Sri Maddipati 先生。

Thank you, Elliot. Good morning, everyone, and thank you for joining us today. With me are Garrick Rochow, President and Chief Executive Officer; and Rejji Hayes, Executive Vice President and Chief Financial Officer. This presentation contains forward-looking statements, which are subject to risks and uncertainties. Please refer to our SEC filings for more information regarding the risks and other factors that could cause our actual results to differ materially. This presentation also includes non-GAAP measures. Reconciliations of these measures to the most directly comparable GAAP measures are included in the appendix and posted on our website.

謝謝你，艾略特。大家早上好，感謝您今天加入我們。與我同行的還有總裁兼首席執行官 Garrick Rochow；和執行副總裁兼首席財務官 Rejji Hayes。本演示文稿包含前瞻性陳述，存在風險和不確定性。有關可能導致我們的實際結果出現重大差異的風險和其他因素的更多信息，請參閱我們的 SEC 文件。本演示文稿還包括非公認會計原則措施。這些措施與最直接可比的公認會計原則措施的對賬包含在附錄中，並發佈在我們的網站上。

Now I'll turn the call over to Garrick.

現在我將把電話轉給加里克。

Thanks, Sri, and thank you, everyone, for joining us today. I'm excited to share another strong quarter at CMS Energy and a great first half of the year, bolstered by favorable weather and higher weather-normalized sales at the utility, great tailwinds. And over the course of the quarter, 2 outstanding regulatory outcomes, which provide further evidence of the top-tier regulatory jurisdiction in Michigan and give us continued confidence in our plan.

謝謝，Sri，謝謝大家今天加入我們。我很高興與 CMS Energy 分享另一個強勁的季度和上半年的出色表現，這得益於有利的天氣和公用事業公司更高的天氣正常化銷售，以及巨大的順風。在本季度，兩項傑出的監管成果進一步證明了密歇根州的頂級監管管轄區，並讓我們對我們的計劃充滿信心。

First, our Integrated Resource Plan. If I could open this up for just a moment, 18 months of sophisticated supply modeling, thousands of pages of testimony, 10-month schedule, alignment across dozens of stakeholders, from interveners, the attorney general, business stakeholders and the commission staff to reach a settlement with close to 20 parties. This plan approved at the end of June, solidly positions us to lead the clean energy transformation. Outstanding.

首先，我們的綜合資源計劃。如果我能打開它片刻，18 個月的複雜供應模型、數千頁的證詞、10 個月的時間表、數十個利益相關者的協調，從乾預者、司法部長、業務利益相關者和委員會工作人員到與近 20 個政黨達成和解。該計劃於6月底獲批，為我們引領清潔能源轉型奠定了堅實的基礎。傑出的。

Next, our gas rate case. Important investments to ensure a safe, reliable, affordable and clean natural gas system settled with many of the same parties and approved on July 7, a $170 million increase. Over 95% of our customer investment approved. Excellent! Both outcomes demonstrate the quality of our regulatory environment in Michigan, increase our confidence in delivering the rest of the year and our long-term plan.

接下來，我們的gas費率案例。為確保安全、可靠、負擔得起和清潔的天然氣系統而進行的重要投資已與許多相同的當事方達成和解，並於 7 月 7 日批准，增加了 1.7 億美元。超過 95% 的客戶投資獲得批准。出色的！這兩項結果都證明了我們在密歇根州監管環境的質量，增強了我們對完成今年剩餘時間和我們的長期計劃的信心。

I want to emphasize why we continue to be confident in our plan. Delivering is not new for us. We have nearly 2 decades of commitments made and kept for all our stakeholders, including you, our investors. A key element in our performance is strong energy law in Michigan.

我想強調為什麼我們繼續對我們的計劃充滿信心。交付對我們來說並不新鮮。我們為所有利益相關者（包括您和我們的投資者）做出並遵守了近 2 年的承諾。我們業績的一個關鍵因素是密歇根州強有力的能源法。

We have a productive and solid energy law passed in 2008, which was enhanced and updated in 2016, both with bipartisan support. This allows for timely recovery of investment, which we've outlined through long-term plans, such as our IRP as well as our electric and natural gas distribution plans, which we filed in our rate cases.

我們在 2008 年通過了一項富有成效且堅實的能源法，該法在 2016 年得到了加強和更新，都得到了兩黨的支持。這樣可以及時收回投資，我們已經通過長期計劃概述了這一點，例如我們的 IRP 以及我們在費率案例中提交的電力和天然氣分配計劃。

This, coupled with separate mechanisms allow us timely recovery of fuel and power supply costs as well as attractive economics on renewable energy investments and energy waste reduction programs and uniquely positioned Michigan as one of the safest places to invest capital.

這一點，再加上單獨的機制，使我們能夠及時回收燃料和電力供應成本，以及可再生能源投資和減少能源浪費計劃的具有吸引力的經濟性，並將密歇根州獨特地定位為最安全的資本投資地之一。

But let me be clear, we don't take this for granted. We continue to improve our processes for stakeholder alignment, testimony development and business cases, so we are confident that our proposed customer investments deliver measurable benefit while keeping this affordable. At CMS, we deliver our productive and supportive environment and our deliberate approach ensures that will matter the condition. We are positioned to deliver industry-leading results.

但讓我明確一點，我們並不認為這是理所當然的。我們將繼續改進利益相關者協調、證詞開發和業務案例的流程，因此我們相信我們提議的客戶投資會帶來可衡量的收益，同時保持可承受的成本。在 CMS，我們提供富有成效和支持性的環境，我們深思熟慮的方法確保這對情況很重要。我們有能力提供行業領先的成果。

We remain committed to leading the clean energy transformation. On the solid foundation of strong energy law, we delivered and settled our IRP. This makes us one of the first utilities in the country to completely exit coal. As of the end of second quarter, we have nearly eliminated our long-term economic exposure to coal, which is now less than 2% of property, plant and equipment.

我們將繼續致力於引領清潔能源轉型。在強大的能源法的堅實基礎上，我們交付並解決了我們的 IRP。這使我們成為該國首批完全退出煤炭的公用事業公司之一。截至第二季度末，我們幾乎消除了對煤炭的長期經濟敞口，目前煤炭在物業、廠房和設備中的佔比不到 2%。

Not only have we reduced our long-term financial risk, but we've significantly mitigated our operational risk as well. The acquisition of simpler, more flexible natural gas units means fewer people to operate a better heat rate and less maintenance. The ability to quickly ramp up and down the dispatch of these units will allow us to flex with changing market conditions and to better support the intermittent nature of renewables.

我們不僅降低了長期財務風險，而且還顯著降低了運營風險。購買更簡單、更靈活的天然氣裝置意味著更少的人來操作更好的熱耗率和更少的維護。快速增加和減少這些機組調度的能力將使我們能夠靈活應對不斷變化的市場條件，並更好地支持可再生能源的間歇性。

The acquisition of Covert combined with the RFP for 700 megawatts of capacity through PPAs, the build-out of 8 gigawatts of solar in our ongoing energy efficiency and demand response programs ensure that we have sufficient capacity to meet the needs of our customers. This plan improves reliability and limits our customers' exposure to potentially volatile capacity and energy prices. The IRP strengthens and lengthens our financial plan, eliminates our exposure to coal, improves reliability and is a solid win for everyone.

收購 Covert 以及通過 PPA 獲得 700 兆瓦容量的 RFP，在我們正在進行的能源效率和需求響應計劃中擴建 8 吉瓦太陽能，確保我們有足夠的容量來滿足客戶的需求。該計劃提高了可靠性並限制了我們的客戶對可能波動的容量和能源價格的影響。 IRP 加強並延長了我們的財務計劃，消除了我們對煤炭的敞口，提高了可靠性，對每個人來說都是一次實實在在的勝利。

Strong execution and constructive regulatory outcomes lead to strong financial results, and I couldn't be more pleased with the first half of 2022. As I stated in my opening remarks, a strong quarter and a great first half of the year, where we delivered adjusted earnings per share of $0.53 for the quarter. We remain confident in delivering full year adjusted earnings per share of $2.85 to $2.89, and we continue to guide for the high end of our long-term adjusted EPS growth range of 6% to 8%, which, as I noted, is strengthened and lengthened by our IRP.

強有力的執行和建設性的監管成果帶來了強勁的財務業績，我對 2022 年上半年感到非常滿意。正如我在開場白中所說的那樣，我們實現了強勁的季度和上半年本季度調整後每股收益為 0.53 美元。我們仍然有信心實現 2.85 美元至 2.89 美元的全年調整後每股收益，我們繼續指導我們長期調整後每股收益增長范圍 6% 至 8% 的高端，正如我所指出的，這一增長得到加強，並且被我們的 IRP 加長。

We continue to guide toward long-term dividend growth of 6% to 8% with a targeted payout ratio of about [60%] over time, and we'll update our current $14.3 billion 5-year customer investment plan on our year-end call to include the anticipated upside from the approval of our IRP. We are strongly positioned to deliver in the remainder of the year.

我們將繼續引導長期股息增長 6% 至 8%，目標派息率約為 [60%]，我們將在年底更新我們目前 143 億美元的 5 年客戶投資計劃呼籲包括我們的 IRP 批准的預期好處。我們有能力在今年剩餘時間內交付。

With that, I'll turn the call over to Rejji who'll offer additional detail.

有了這個，我會把電話轉給 Rejji，他會提供更多細節。

Thank you, Garrick, and good morning, everyone. As Garrick noted, we had a strong first half of the year, are ahead of plan and are well positioned to achieve our financial objectives over the next 6 months and longer term.

謝謝你，加里克，大家早上好。正如 Garrick 指出的那樣，我們上半年表現強勁，超前於計劃，並有能力在未來 6 個月和更長期內實現我們的財務目標。

To elaborate for the first half of 2022, we delivered adjusted net income of $499 million or $1.73 per share, up $0.09 per share versus our 2021 first half results, largely driven by favorable weather and economic conditions in the state. The waterfall chart on Slide 7 provides more detail on the key year-to-date drivers of our financial performance versus 2021.

為了詳細說明 2022 年上半年，我們實現了 4.99 億美元或每股 1.73 美元的調整後淨收入，與我們 2021 年上半年的業績相比，每股增加 0.09 美元，這主要受該州有利的天氣和經濟條件的推動。幻燈片 7 上的瀑布圖提供了與 2021 年相比，我們財務業績的關鍵年初至今驅動因素的更多詳細信息。

As noted, favorable sales have been the primary driver of our positive year-over-year variance to the tune of $0.16 per share, driven by weather. From an economic standpoint, we've continued to see strong commercial and industrial load in our electric business, while weather-normalized residential load continues to exceed our plan assumptions and pre-pandemic levels.

如前所述，由於天氣原因，有利的銷售一直是我們實現每股 0.16 美元的積極同比差異的主要驅動力。從經濟角度來看，我們的電力業務繼續看到強勁的商業和工業負荷，而天氣正常化的住宅負荷繼續超過我們的計劃假設和大流行前的水平。

Rate relief net of investment-related expenses contributed $0.03 per share of upside as we continue to benefit from our prior gas and electric rate cases. These sources of upside were partially offset by increased operating and maintenance or O&M expenses largely driven by customer initiatives embedded in rates to improve safety, reliability and our rate of decarbonization, which equated to $0.07 per share of negative variance versus the first half of 2021.

由於我們繼續從之前的天然氣和電力費率案例中受益，扣除投資相關費用的費率減免貢獻了每股 0.03 美元的上漲空間。這些上漲來源被運營和維護或運維費用的增加部分抵消，這主要是由於客戶在提高安全性、可靠性和脫碳率方面的舉措所推動的，與 2021 年上半年相比，這相當於每股負差異 0.07 美元。

We also note the $0.03 per share of negative variance in the final year-to-date bucket, which is primarily driven by investment costs related to the 2019 rate compressor station incident for which we are not seeking recovery at this time as per our recent gas rate case settlement agreement and the company's recent commitment to donate $5 million in support of income-based bill assistance for our electric customers as per our IRP settlement agreement. These sources of negative variances are partially offset by the aforementioned strong non-weather sales performance in the first half of the year.

我們還注意到年初至今最後一個桶中的每股負方差為 0.03 美元，這主要是由與 2019 年壓縮機站事件相關的投資成本驅動的，根據我們最近的天然氣，我們目前不尋求恢復費率案件和解協議以及公司最近承諾捐贈 500 萬美元，以根據我們的 IRP 和解協議為我們的電力客戶提供基於收入的賬單援助。這些負面差異的來源被上述上半年強勁的非天氣銷售業績部分抵消。

As we look to the second half, we feel quite good about the glide path to achieve our EPS guidance range. As Garrick mentioned, we had a constructive outcome in our gas rate case. The approved settlement agreement at $170 million significantly de-risked our financial plan. And when coupled with our December 2021 electric rate order provides $0.10 per share positive variance versus the second half of 2021.

展望下半年，我們對實現 EPS 指導範圍的下滑路徑感覺非常好。正如 Garrick 所說，我們在 gas 費率案例中取得了建設性的結果。經批准的 1.7 億美元和解協議大大降低了我們的財務計劃的風險。再加上我們 2021 年 12 月的電價訂單，與 2021 年下半年相比，每股收益為 0.10 美元。

The forecasted rate relief net of investment-related costs in the second half of the year more than offsets our estimated impact of normal weather, which we assume will provide $0.01 per share, a negative variance versus the comparable period in 2021.

下半年預測的扣除投資相關成本的利率減免超過了我們對正常天氣的估計影響，我們假設正常天氣將提供每股 0.01 美元，與 2021 年可比期間相比出現負差異。

Moving on to cost savings. We continue to anticipate lower O&M expenses of the utility driven by the expectation of a more normalized level of storm activity this year versus the atypical levels experienced in 2021, which I'll remind you equated to $0.16 per share of downside in the third quarter of 2021 versus our financial plan. We also expect the usual solid cost performance driven by the CE Way as well as other cost reduction initiatives in motion.

繼續節省成本。我們繼續預計公用事業公司的 O&M 費用將降低，這是由於預計今年的風暴活動水平將與 2021 年的非典型水平相比更加正常化，我會提醒您，這相當於第三季度每股下跌 0.16 美元2021 年與我們的財務計劃。我們還預計由 CE 方式以及其他正在實施的成本降低舉措推動的通常穩健的成本績效。

To close out our assumptions for the second half of the year, we assume normal operating conditions at enterprises given the outage at DIG in the fourth quarter of 2021 and the usual conservative assumptions for weather-normalized load at utility.

為了結束我們對下半年的假設，鑑於 2021 年第四季度 DIG 的停電以及公用事業公司對天氣正常化負荷的通常保守假設，我們假設企業的運營狀況正常。

Lastly, it's worth noting that we have accrued a healthy level of contingency, given our strong year-to-date performance as illustrated in the $0.24 to $0.28 of negative variance highlighted and the penultimate bar of the chart, which increases our confidence in delivering for you, our investors.

最後，值得注意的是，鑑於我們年初至今的強勁表現，如突出顯示的 0.24 美元至 0.28 美元的負方差和圖表倒數第二條所示，我們已經積累了健康水平的意外事件，這增加了我們對交付的信心。你們，我們的投資者。

Moving on to the balance sheet. On Slide 8, we highlight our recently reaffirmed credit ratings from all 3 rating agencies. As you know, we continue to target mid-teens FFO to debt over our planning period. As always, we remain focused on maintaining our strong financial position which coupled with the supportive regulatory construct and predictable operating capital growth supports our solid investment-grade ratings to the benefit of customers and investors.

轉到資產負債表。在幻燈片 8 中，我們重點介紹了我們最近重申的所有 3 家評級機構的信用評級。如您所知，在我們的計劃期間，我們將繼續以青少年 FFO 為目標來償還債務。與往常一樣，我們仍然專注於維持強勁的財務狀況，再加上支持性的監管結構和可預測的運營資本增長，支持我們穩健的投資級評級，使客戶和投資者受益。

Turning to our 2022 plan financings on Slide 9. We continue to plan for $800 million of debt issuances at the utility. And while our plan does not call for any financing at the parent this year, we are currently assessing funding options for the acquisition of the Covert natural gas facility in the first half of 2023 as per our approved IRP.

轉向幻燈片 9 上的 2022 年計劃融資。我們繼續計劃在公用事業公司發行 8 億美元的債務。雖然我們的計劃今年不要求母公司提供任何融資，但我們目前正在根據我們批准的 IRP 評估在 2023 年上半年收購隱蔽天然氣設施的融資方案。

As a reminder, the current financing plan for Covert assumes the issuance of hybrid securities. However, we're evaluating alternatives, including using our existing ATM equity issuance program given the relative costs in the current environment. It's worth noting that this would be accretive to the previously provided $0.03 or $0.04 per share of EPS accretion attributable to the purchase of Covert and further strengthened our 6% to 8% long-term adjusted EPS growth outlook.

提醒一下，目前 Covert 的融資計劃假設發行混合證券。但是，我們正在評估替代方案，包括考慮到當前環境下的相對成本，使用我們現有的 ATM 股票發行計劃。值得注意的是，這將增加先前提供的因購買 Covert 導致的每股 0.03 美元或 0.04 美元的每股收益增長，並進一步加強了我們 6% 至 8% 的長期調整後每股收益增長前景。

Lastly, we have preserved a strong liquidity position, which supplements our use of commercial paper over the coming months.

最後，我們保持了強勁的流動性頭寸，這補充了我們在未來幾個月對商業票據的使用。

And with that, I'll turn the call back to Garrick for some concluding remarks before Q&A.

有了這個，我將把電話轉回加里克，在問答之前做一些總結性發言。

Thanks, Rejji. I'll leave you with this. Nearly 2 decades of industry-leading financial performance for you, our investors, regardless of conditions, administrations, political parties, economic environments, even a pandemic, we deliver.

謝謝，瑞吉。我會把這個留給你。無論條件、政府、政黨、經濟環境，甚至是流行病如何，我們都能為您和我們的投資者提供近 2 年行業領先的財務業績。

Our strong legislative and regulatory construct, a robust capital runway, industry-leading cost management, conservative planning and our commitment to deliver across the triple bottom line, all of this makes for a strong investment thesis and makes us an investment you can count on.

我們強大的立法和監管結構、穩健的資本跑道、行業領先的成本管理、保守的規劃以及我們對實現三重底線的承諾，所有這些都構成了強有力的投資論點，並使我們成為您可以信賴的投資。

With that, Elliot, please open the lines for Q&A.

有了這個，Elliot，請打開問答線路。

(Operator Instructions) Our first question comes from Shar Pourreza from Guggenheim Partners.

（操作員說明）我們的第一個問題來自 Guggenheim Partners 的 Shar Pourreza。

Garrick, pretty clear-cut print here. But just given sort of the regulatory outcomes that are now secured like the IRP, the gas settlement looks like the electric rate case is on track. As we're kind of thinking about maybe the cadence of updates, is the plan to still update CapEx and financing in the fourth quarter?

加里克，這裡的印刷非常清晰。但考慮到 IRP 等現在得到保障的監管結果，天然氣結算看起來像是電費案正在走上正軌。由於我們正在考慮更新的節奏，是否仍計劃在第四季度更新資本支出和融資？

I guess just given the visibility we have, why not provide a full guidance and capital update sometime in the third quarter or EEI time frame? I guess in other words, given the regulatory execution that you've clearly highlighted today, could you provide early indication in '23 numbers out of schedule?

我想鑑於我們的知名度，為什麼不在第三季度或 EEI 時間框架內的某個時候提供完整的指導和資本更新？我想換句話說，鑑於您今天明確強調的監管執行，您能否在 '23 數字中提供早期指示？

Well, first of all, Shar, thanks for the compliments. We are executing well, and I'm pleased with the first half of the year. But we're still on plan for our Q4 call for our capital update. And let me offer a little color and context around that. Big reason for our execution and our ability to deliver year after year is one of the things we worked through with that capital plan. And that's from the bottom up.

好吧，首先，Shar，謝謝你的讚美。我們執行得很好，我對今年上半年感到滿意。但我們仍在計劃第四季度的資本更新電話。讓我提供一些關於它的顏色和背景。我們執行和年復一年交付能力的重要原因是我們通過該資本計劃完成的工作之一。這是自下而上的。

We're looking at every one of those capital investments to make sure it's going to offer the affordability and benefits to our customers. And so they'll stack on one another. We want to make sure that we're also able to execute on those. So that's a matter of understanding our workforce, the work lined up in a year and so that we're sure that we can deliver on that capital plan.

我們正在研究每一項資本投資，以確保它能夠為我們的客戶提供可負擔性和利益。所以它們會相互疊加。我們希望確保我們也能夠執行這些。因此，這是了解我們的員工隊伍、一年內完成的工作的問題，這樣我們才能確定我們能夠實現該資本計劃。

And then you add that IRP, yes, there's Covert, which is great visibility. But one of the other portions of that settlement was bringing in storage, battery storage, 75 megawatts in the period of 2024 to 2027. So we've got to make sure that that's constructed and built into this 5-year plan as well as -- we've spoken in the past about Voluntary Green Pricing programs is additional renewables for some of our largest customers. And so that's materializing as well. And so that's another factor that's going in that plan. So we want to make sure that we can deliver on it. That leads to the success of our execution. And so that's why we're going to be putting out in Q4 -- our Q4 call.

然後添加 IRP，是的，還有 Covert，它的可見性非常好。但該解決方案的其他部分之一是在 2024 年至 2027 年期間引入 75 兆瓦的儲能、電池儲能。因此，我們必須確保在這個 5 年計劃中建造和建造，以及 - - 我們過去曾談到自願綠色定價計劃是我們一些最大客戶的額外可再生能源。所以這也正在實現。所以這是該計劃中的另一個因素。因此，我們希望確保我們能夠兌現它。這導致我們執行的成功。這就是為什麼我們要在第四季度發布 - 我們的第四季度電話。

Okay, got it. And then just obviously, looking at the results year-to-date, how '22 is shaping up, July looks like a strong weather month. And obviously, you guys are -- as you highlighted, you have normal weather planned for the remainder of the year. Does a strong third quarter weather push you ahead of guidance? And maybe what are sort of some of the offsets and moving pieces there that we should be thinking about because just looking at the results to date, it seems like you're well ahead of your numbers but...

好，知道了。然後很明顯，看看今年迄今為止的結果，22 年的情況如何，7 月看起來像是一個強天氣月。很明顯，你們是——正如你們所強調的，你們計劃在今年剩餘的時間裡有正常的天氣。第三季度強勁的天氣是否會讓您領先於指導？也許我們應該考慮的一些偏移和移動部分是什麼，因為只看迄今為止的結果，看起來你已經遠遠領先於你的數字，但是......

Again, Shar, we feel good about where we're at here at the first half of the year. But as you know, and as I said in my prepared remarks, we plan conservatively. Here's what I know, in 2021, during the third quarter, we lost $0.16 due to storms. We still delivered on 2021, but again, there's a lot of year left. And so we're prudent as we move forward.

再次，Shar，我們對今年上半年的情況感到滿意。但正如你所知，正如我在準備好的發言中所說，我們計劃保守。據我所知，在 2021 年第三季度，我們因暴風雨損失了 0.16 美元。我們仍然在 2021 年交付，但同樣，還有很多年。因此，我們在前進時保持謹慎。

The other thing we look at is where are the opportunities to reinvest, provide benefit for our customers and investors as we move toward the end of the year. That helps to de-risk future years and again, continues to strengthen and lengthen that long-term EPS growth rate of 6% to 8% toward the high end.

我們關注的另一件事是，在我們接近年底時，再投資的機會在哪裡，為我們的客戶和投資者提供利益。這有助於降低未來幾年的風險，並繼續加強和延長 6% 至 8% 的長期每股收益增長率。

Our next question comes from Jeremy Tonet from JPMorgan.

我們的下一個問題來自摩根大通的 Jeremy Tonet。

Just wanted to pick up a little bit, I guess, with the strong results here, and it did seem like load performance was just better than expected. I'm wondering if you could provide a bit more commentary on that? And I guess, do you see any of that abating or just kind of things in general, from a load, even absent weather, a load growth perspective is going to continue at this pace? Or do you see something stopping?

我想只是想稍微提高一下，這裡的結果很好，而且負載性能似乎比預期的要好。我想知道您是否可以對此提供更多評論？而且我想，從負載甚至沒有天氣的情況來看，您是否看到任何減弱或只是一般的事情，負載增長的角度將繼續以這種速度增長？或者你看到什麼東西停止了？

Jeremy, it's Rejji. I appreciate the question. Obviously, we feel quite good about the load trends we're seeing in our service territory, and I'll just remind folks on some of the specifics. And so we had residential down a little over 0.5%. So that's year-to-date versus year-to-date 2021 commercial and industrial. And as always, our industrial excludes 1 large low-margin customer, up about 3% and then all in, up about 1.5 points.

傑里米，是瑞吉。我很欣賞這個問題。顯然，我們對我們在服務領域看到的負載趨勢感覺非常好，我只會提醒人們一些細節。因此，我們的住宅價格下跌了 0.5% 以上。因此，這是年初至今與 2021 年年初至今的商業和工業。和往常一樣，我們的行業排除了 1 個大的低利潤客戶，上漲約 3%，然後全押，上漲約 1.5 個百分點。

And so we feel quite good about that. And particularly with respect to residential, we continue to see that good stickiness with the hybrid workforce, which likely will be a trend that continues on. And obviously, that's a high-margin segment. And so relative to 2019, residential is up about a little over 2%. And so again, that stickiness just really carries on.

所以我們對此感覺很好。尤其是在住宅方面，我們繼續看到混合勞動力的良好粘性，這很可能是一種持續的趨勢。顯然，這是一個高利潤的細分市場。因此，相對於 2019 年，住宅價格上漲了約 2% 多一點。再一次，這種粘性真的繼續存在。

We continue to see, from an economic development perspective, just good activity in the service territory. And obviously, with some of the news in D.C. yesterday, I would think that the CHIPS Act and some of the other legislative items that may be coming down the pipe could lead to more economic development opportunities or increase the probability of some of the stuff that is coming in Michigan's way or is in the prospects for Michigan.

從經濟發展的角度來看，我們繼續看到服務領域的活動很好。顯然，根據昨天華盛頓特區的一些新聞，我認為 CHIPS 法案和其他一些可能即將出台的立法項目可能會帶來更多的經濟發展機會或增加一些東西的可能性正在以密歇根的方式出現，或者在密歇根的前景中。

So very encouraged with the load trends and anecdotal, again, we're hearing from our customers that they continue to feel good about the economic environment. So I feel quite good about the road ahead. And going forward, again, we continue to anticipate that you'll start to head back to those pre-pandemic levels. And so we would anticipate that from a residential perspective, but we continue to be surprised to the upside and commercial and industrial continue to trend very well. So that's our take on load at the moment.

負載趨勢和傳聞令我們深受鼓舞，我們再次從客戶那裡聽到，他們繼續對經濟環境感覺良好。所以我對前面的路感覺很好。展望未來，我們繼續預計您將開始回到大流行前的水平。因此，我們會從住宅的角度預測這一點，但我們繼續對上行空間感到驚訝，商業和工業繼續保持良好的趨勢。這就是我們目前的負載。

And if I could just add just a macro factor here, and this is from the Governor's office. This year-to-date, $11.8 billion of investment opportunities announced in Michigan. Those are projects that have agreed to locate, expand. There's actually 30 companies in all and 15,000 new jobs. And so that's from the governor's office here mid-July. And so still looks very robust here in Michigan, we looked at from a macro perspective.

如果我可以在這裡添加一個宏觀因素，這是來自州長辦公室的。今年迄今為止，密歇根州宣布了 118 億美元的投資機會。這些是已經同意定位、擴展的項目。實際上總共有 30 家公司和 15,000 個新工作崗位。這是七月中旬的州長辦公室發來的。因此，我們從宏觀角度來看，在密歇根州這裡看起來仍然非常強勁。

Got it. That's very helpful there. And then I just wanted to pivot a bit towards MISO. We've seen some capacity constraints there and that's led to some delays in equivalent retirements. Just wondering, should we be thinking about any implications to CMS here or anything else that you want to share on this front?

知道了。這對那裡很有幫助。然後我只是想稍微轉向味噌。我們在那裡看到了一些容量限制，這導致了等效退役的一些延遲。只是想知道，我們是否應該在這裡考慮對 CMS 的任何影響或您想在這方面分享的任何其他內容？

I love our energy law. I really do. I'm not joking there. The 2016 energy law was here in Michigan was solid on the supply and demand side. And so when we go through an integrated resource plan, we've got to do all the modeling, all the analysis to show that the supply and demand is going to meet and have some reserve margin on that. That's a requirement of a load-serving entity which we are. So I feel good about where Michigan is headed within MISO. And I can't speak for all of MISO, but I feel good about where Michigan is at.

我喜歡我們的能源法。我真的。我不是在開玩笑。密歇根州的 2016 年能源法在供需方面非常可靠。因此，當我們進行綜合資源計劃時，我們必須進行所有建模，所有分析以表明供需將滿足並在此基礎上留有一定的儲備餘量。這是我們作為負載服務實體的要求。所以我對密歇根在 MISO 中的發展方向感到滿意。我不能代表所有的味噌，但我對密歇根的位置感覺很好。

And I'll remind people -- remind all the people on this call that part of this IRP is to bring Covert in. Covert right now is in the PJM market, and we're moving it over to the MISO market. That's 1.2 gigawatts of additional supply that's being brought into MISO and brought here to serve our customers. And so that's why we feel good about it. Our IRP, we're still on pace and plan for retirement of all coal, to be out of coal by 2025.

我會提醒人們- 提醒所有參加這次電話會議的人，這個 IRP 的一部分是讓 Covert 加入。 Covert 目前在 PJM 市場，我們正在將其轉移到 MISO 市場。這是 1.2 吉瓦的額外供應，被帶入 MISO 並帶到這里為我們的客戶服務。這就是為什麼我們對此感覺良好。我們的 IRP，我們仍在按計劃淘汰所有煤炭，到 2025 年淘汰煤炭。

Got it that's very helpful. Last one, if I could, hot off the press climate BBB package. Climate package being supported by Manchin here. Any preliminary thoughts at this point? .

明白了，很有幫助。最後一個，如果可以的話，熱銷新聞氣候 BBB 包。 Manchin 支持的氣候包在這裡。在這一點上有什麼初步的想法嗎？ .

Jeremy, you've given like, what, 12 hours to digest it all. Here's what I would say -- here's what I would say on it because we've done some preliminary review, and we're still digesting a lot of facts on it. Solar PTC is a big win in there, and that's something we've been advocating for in Washington. We've been advocating the industry.

傑里米，你已經給了 12 個小時來消化這一切。這就是我要說的——這就是我要說的，因為我們已經進行了一些初步審查，而且我們仍在消化很多關於它的事實。 Solar PTC 在那裡取得了巨大的勝利，這也是我們在華盛頓一直倡導的。我們一直在倡導這個行業。

Hats off to Rejji. Rejji has been making the calls with CFOs 1.5 years ago when it was first being talked about. And so we're excited about that portion of it, what that means for 8 gigawatts. So it's going to be lower cost for our customers as we build out more solar and it will provide -- put us on par with developers.

向 Rejji 致敬。 1.5 年前，當 Rejji 第一次被談論時，他一直在與 CFO 通話。所以我們對它的那一部分感到興奮，這對 8 吉瓦意味著什麼。因此，隨著我們建造更多的太陽能，它將為我們的客戶降低成本，它將提供 - 使我們與開發商相提並論。

So we like that. We know there's a storage ITC as well that will come into play in 2024 to 2027 as we build out 75 megawatts of storage. There's a lot of upside for the industry, one of the birthplace of the automobile. I talked about the $11.8 billion. Most of that is in the automotive space. There's opportunities for load growth in the automotive business to grow as they make their transition. There's incentives in there for solar production in the U.S.

所以我們喜歡這樣。我們知道，隨著我們建設 75 兆瓦的存儲，存儲 ITC 也將在 2024 年至 2027 年發揮作用。作為汽車的發源地之一，這個行業有很多好處。我談到了 118 億美元。其中大部分是在汽車領域。隨著汽車業務的轉型，負載增長有機會增長。美國有太陽能生產的激勵措施

In Michigan, one of our largest customers is the largest -- one of the world's largest producers of polysilicon crystals, which go into solar panels and technology, electronics. And so that's another -- and we see that as an upside.

在密歇根州，我們最大的客戶之一是最大的客戶——世界上最大的多晶矽晶體生產商之一，多晶矽晶體用於太陽能電池板和技術、電子產品。所以這是另一個 - 我們認為這是一個好處。

There's a big tailwind on EVs. EVs are a nice part of load growth. It's not in our forecast, but there's the continuing credits for purchase of EVs. And so there's a lot of good stuff in here. We're still digesting all the specifics, but feeling good. Feeling good with coming out of the Senate. And of course, there's negotiations with the house in front of us.

電動汽車有很大的順風。電動汽車是負載增長的重要組成部分。這不在我們的預測中，但購買電動汽車的持續積分。所以這裡有很多好東西。我們仍在消化所有細節，但感覺很好。從參議院出來感覺很好。當然，還有與我們面前的房子進行談判。

Our next question comes from Michael Sullivan from Wolfe Research.

我們的下一個問題來自 Wolfe Research 的 Michael Sullivan。

Rejji, I wanted to go over to you on just the latest commentary on the potential looking at common equity for financing Covert. I think that was an $815 million project. Any sense of how much the equity could be and how materially the $0.03 to $0.04 accretion could change? .

Rejji，我想向您介紹最新的評論，內容是關於潛在的普通股為 Covert 融資的可能性。我認為這是一個 8.15 億美元的項目。對股權可能有多少以及 0.03 美元到 0.04 美元的增長會有多大的變化有任何意義嗎？ .

Yes. I appreciate the question, Michael. I would say we're obviously still evaluating options. You have the purchase price of Covert spot on at $815 million. And so as you know, our rate construct we would fund about half of that debt at the utilities to call it, roughly $400 million and the balance would be parent financing. And mathematically, that gets you to about $400 million, but we'll still consider what the alternatives might be. And obviously, we've got quite a bit of time to fund it.

是的。我很欣賞這個問題，邁克爾。我想說我們顯然仍在評估選項。你有 8.15 億美元的 Covert 現貨購買價格。如您所知，我們的利率結構將為公用事業公司提供大約一半的債務，大約 4 億美元，餘額將是母公司融資。從數學上講，這會讓你賺到大約 4 億美元，但我們仍然會考慮可能的替代方案。顯然，我們有相當多的時間來資助它。

And so we'll look at our dribbling, our ATM equity issuance program, whether that will be the full $400 million remains to be seen. And so we'll see how the price of other alternatives like those hybrid securities, which for the past 6 to 7 months or so have really priced quite competitively. And so if that changes over time, we may tranche it a little bit. And so I'd say it's still early days, but we could go up to about $400 million. We've got that much on the shelf, but we'll see how the pricing trends over the next handful of months.

因此，我們將看看我們的運球，我們的 ATM 股票發行計劃，這是否會是全部 4 億美元還有待觀察。因此，我們將看到其他替代品的價格，例如那些混合證券，在過去 6 到 7 個月左右的時間裡，它們的價格確實非常具有競爭力。因此，如果這種情況隨著時間的推移而發生變化，我們可能會稍微分檔。所以我會說現在還為時尚早，但我們可能會漲到大約 4 億美元。我們已經有這麼多東西了，但我們會看看未來幾個月的定價趨勢如何。

And then with respect to the accretion, at this point, I'd say it's a little premature to offer precisely how accretive it would be to the $0.03 to $0.04 that we initially provided because clearly, that would depend on the price at which we issue equity if we do choose to dribble. And so I'd say more variables at this point to provide any prescriptive point of view, but it would be directionally accretive to based on the relative cost right now of our equity versus other securities.

然後關於增值，在這一點上，我想說現在準確地提供對我們最初提供的 0.03 美元到 0.04 美元的增值有多大還為時過早，因為很明顯，這取決於我們發行的價格如果我們確實選擇運球，則公平。因此，在這一點上我會說更多變量以提供任何規定性的觀點，但根據我們目前股權與其他證券的相對成本，這將是定向增值的。

Okay, super helpful color. And then last question, what do you guys think about making it 3 for 3 with settlements this year with the pending Electric case?

好的，超級有用的顏色。然後是最後一個問題，你們如何看待今年與未決的 Electric 案達成和解的 3 對 3？

We'll see. I mean I think betting at 670 still gets you into Cooperstown. So we've been encouraged with the IRP and the gas rate settlement. Electric, obviously, many more stakeholders, many more variables. And we've been successful there before. So we're cautiously optimistic, but early days, and we'll look and see where the staff is in about a month, and we'll go from there. But I would say early days to make any prediction at this point.

走著瞧。我的意思是，我認為投注 670 仍然可以讓您進入 Cooperstown。因此，我們對 IRP 和 gas 費率結算感到鼓舞。顯然，電動汽車有更多的利益相關者，更多的變數。我們以前在那裡取得過成功。所以我們謹慎樂觀，但在早期，我們會在大約一個月內看看員工的位置，然後我們會從那裡開始。但我會說在這一點上做出任何預測的早期。

Our next question comes from Julien Dumoulin-Smith from Bank of America.

我們的下一個問題來自美國銀行的 Julien Dumoulin-Smith。

You guys really do execute. So let me follow up on this [one set of angle] just one nuance here. AMT is just going to get a lot of attention to speak, I imagine, for all the utilities here. What are you guys saying on that? I know we asked you for your hot takes a second ago, but just can rehash as best you understood your probably assessment of this last year, if you will.

你們真的會執行。所以讓我跟進這個[一組角度]，這裡只是一個細微差別。我想，對於這裡的所有公用事業，AMT 只會引起很多關注。你們對此有何看法？我知道我們在一秒鐘前問過你的熱門照片，但如果你願意的話，只要你理解你對去年的可能評估，就可以重新討論一下。

Yes. So Julien, just to be clear, you're talking about the alternative minimum tax with respect to last night's...

是的。所以朱利安，為了清楚起見，你說的是昨晚的替代最低稅...

Yes, exactly. The 15%.

對，就是這樣。 15%。

Okay. Yes, with respect to climate bill. So again, as Garrick noted, we're still digesting. I think it's about 700 pages and our folks in federal affairs and on the tax side are really, really good at what they do and their fast readers, but 700 pages is a lot to digest in 12 hours. But I'd say basically what we've done so far, as I understand it, the structure that's contemplated is consistent with what we were talking about around EEI several months ago, where there's a 3-year average on pretax operating income around $1 billion. And if you're below that threshold, you're not subject to the minimum tax.

好的。是的，關於氣候法案。同樣，正如加里克所說，我們仍在消化。我認為它大約有 700 頁，我們在聯邦事務和稅務方面的人非常非常擅長他們的工作和他們的快速閱讀器，但是 700 頁在 12 小時內消化了很多。但我想說的基本上是我們到目前為止所做的，據我了解，所考慮的結構與我們幾個月前圍繞 EEI 討論的結構一致，其中 3 年平均稅前營業收入約為 1 美元十億。如果你低於這個門檻，你就不需要繳納最低稅。

And so from our perspective, given our size, we would likely not chin that bar for some time. Now needless to say, we aspire to at some point because we're a growing company. But in the short term, I think we'd be perhaps not subject to it initially. And we're still looking at -- again, if it's structured, how it was when we were talking about this at EEI, you could apply tax credits through up to 75% of the tax liability.

因此，從我們的角度來看，考慮到我們的體型，我們可能在一段時間內都不會下巴。現在不用說，我們渴望在某個時候，因為我們是一家成長中的公司。但在短期內，我認為我們最初可能不會受到它的影響。我們仍在研究——再次，如果它是結構化的，當我們在 EEI 討論這個問題時，你可以通過高達 75% 的納稅義務申請稅收抵免。

And again, we're still looking to see whether that's in the bill, but that's how it was structured initially. And so I'd say there's a bit more work to be done on our side before we can speak to it. But I'd say to cut through it in the short term, we don't think there's a significant impact on us again, given our size. And if they apply that 3-year average of $1 billion of pretax operating income, we just wouldn't chin that bar for a little while.

再一次，我們仍在尋找是否在法案中，但這就是最初的結構。所以我想說，在我們與它交談之前，我們還有一些工作要做。但我想說的是在短期內削減它，考慮到我們的規模，我們認為不會再次對我們產生重大影響。而且，如果他們採用 3 年平均 10 億美元的稅前營業收入，我們就不會在一段時間內降低這個標準。

Yes -- no, that makes sense. Thank you for the hot takes there. OPEB contribution to the quarter here, et cetera. Just curious if you can comment here. Obviously, that subject has got some attention late, broadly.

是的——不，這是有道理的。謝謝你在那裡的熱銷。 OPEB 對本季度的貢獻，等等。只是好奇你是否可以在這裡發表評論。顯然，這個主題已經得到了廣泛的關注。

Yes. From a pension perspective, again, our story has been quite good for some time now. As you may recall, we have been very active in making discretionary contributions to our pension plan over the year, particularly in years in which we were pretty flush from an OCF perspective. And so we're well overfunded. At this point, we're -- we have 2 pension plans and both are over 120% funded. Clearly, asset experience is tough for most, but we have relatively low equity content in our pension plans.

是的。從養老金的角度來看，我們的故事已經有一段時間了。您可能還記得，在過去一年中，我們一直非常積極地為我們的養老金計劃提供可自由支配的供款，特別是在從 OCF 的角度來看，我們的資金充裕的年份。所以我們資金過剩。在這一點上，我們 - 我們有 2 個養老金計劃，並且都超過 120% 的資金。顯然，資產體驗對大多數人來說都很艱難，但我們的養老金計劃中的股權含量相對較低。

And I would say, based on how our pension is structured at this point, we're a bit more levered to interest rate movement. And with discount rates effectively going up year-over-year, we actually see it in the short term as a net benefit. And so we actually are seeing actually a little bit of upside, particularly since we recently remeasured our plan. So from our perspective, it's actually net positive at the moment, and we feel quite good about the level of funding for the plan.

我想說，根據我們目前養老金的結構，我們對利率變動的影響更大。隨著貼現率逐年上升，我們實際上在短期內將其視為淨收益。因此，我們實際上看到了一點上行空間，特別是因為我們最近重新衡量了我們的計劃。因此，從我們的角度來看，目前實際上是淨積極的，我們對該計劃的資金水平感到非常滿意。

Totally. All right. So no material OPEB impact here, in the quarter?

完全。好的。那麼，在本季度，這裡沒有實質性的 OPEB 影響嗎？

No. No.

不，不。

And then last one, just a quick clarification from earlier on Solar [TTC] I mean, clearly benefits customers from an NPV perspective, but also, I think implicitly also helps utilities participate from a rate base perspective as well, I take it?

最後一個，我的意思是早些時候對太陽能 [TTC] 的快速澄清，從 NPV 的角度來看，顯然有利於客戶，而且，我認為也隱含地幫助公用事業公司從費率基礎的角度參與，我接受嗎？

Yes. So obviously, our rate construct is a little nuanced, but it would help us as well because, obviously, it would allow us potentially, if you think about the 8 gigawatts of solar that we're going to be executing on over the next 15 to 20 years, we're currently structured to, at a minimum, own about half of that. And if we can be more competitive because of that benefit with the -- obviously, the elimination of normalization then we could potentially pencil the own projects in a manner that's comparable with the PPA or contracted portion. And that would make a case for owning more than 50% over time. And so obviously, that could add to rate base opportunities. So we feel quite good about what we've read today. But again, obviously, more to digest.

是的。所以很明顯，我們的費率結構有點微妙，但它也會對我們有所幫助，因為很明顯，如果你考慮一下我們將在接下來的 15 年中執行的 8 吉瓦太陽能，它可能會允許我們到 20 年，我們目前的結構是至少擁有其中的一半。如果我們可以因為這種好處而更具競爭力 - 顯然，消除標準化，那麼我們可能會以與 PPA 或合同部分相當的方式對自己的項目進行規劃。這將有理由隨著時間的推移擁有超過 50% 的股份。很明顯，這可能會增加利率基礎機會。所以我們對今天讀到的內容感覺很好。但同樣，顯然，還有更多需要消化。

Our next question comes from Andrew Weisel from Scotiabank.

我們的下一個問題來自豐業銀行的 Andrew Weisel。

Two clarifying questions. First is for 2022, did you say that the entire $0.24 to $0.28 negative red bar is conservatism? I know you said you're trending well and you've affirmed guidance. But did I hear you right, is that all conservatism? And second part of that question is you mentioned the potential to accelerate O&M expenses through 2023. Have you started that yet? Or are you waiting to get through the summer and the storm season? How flexible can you be to do that late in the year, in other words?

兩個澄清問題。首先是 2022 年，你說整個 0.24 美元到 0.28 美元的負紅條是保守的嗎？我知道你說你的趨勢很好並且你已經確認了指導。但我沒聽錯，這都是保守主義嗎？這個問題的第二部分是你提到了到 2023 年加速運維費用的潛力。你開始了嗎？還是您正在等待度過夏天和暴風雨季節？換句話說，你在今年晚些時候能做到這一點有多靈活？

Yes. Andrew, thanks for the question. I would say, starting with that $0.24 to $0.28 a negative variance in the 6 months to go bucket of that waterfall chart on Page 7, that is a combination of conservative planning. And so that's really a catch-all bucket. And so we've got in their non-weather sales assumption year to go. We've got a little enterprises performance and so -- and some parent expenses. So there's conservatism as it pertains to those variables, but the vast majority of that is just contingency that we've accrued just based on the performance in the first half of the year.

是的。安德魯，謝謝你的問題。我會說，從第 7 頁上的瀑布圖的 6 個月內從 0.24 美元到 0.28 美元的負差異開始，這是保守計劃的結合。所以這真的是一個包羅萬象的桶。所以我們已經在他們的非天氣銷售假設年中走了。我們有一些企業業績等等——還有一些家長費用。所以存在與這些變量有關的保守主義，但其中絕大多數只是我們根據上半年的表現積累的偶然性。

And so obviously, weather was -- has been a big help. It's offered upside to plan. We've seen a little cost performance as well and a little bit of non-weather upside. So sales have been strong as well as cost performance, and that's what's driving a good portion of that bucket. So it's really just where we've parked the contingency, which gives us a lot of flexibility, which kind of segues into the second part of your question about what we're doing with respect to pull ahead.

很明顯，天氣是 - 有很大的幫助。它提供了計劃的好處。我們也看到了一點性價比和一點非天氣優勢。因此，銷售和成本表現都很強勁，這就是推動這一桶的很大一部分的原因。因此，這實際上只是我們將意外事件擱置的地方，這為我們提供了很大的靈活性，這涉及到你的問題的第二部分，即我們在推進方面所做的工作。

And so I would say at this point because we still have 6 months ago, we really tried not to do a whole lot because we still have to get through storm season and see where Q3 is which not just from a store perspective, but also in terms of earnings contribution, that's usually where we have the vast majority of our EPS contribution. So we've been cautious.

所以我現在要說，因為我們還有 6 個月前，我們真的盡量不做很多事情，因為我們仍然必須度過風暴季節，看看第三季度在哪裡，不僅從商店的角度來看，而且在就收益貢獻而言，這通常是我們對每股收益貢獻的絕大部分。所以我們一直很謹慎。

We've done a little bit more with respect to forestry, and we've done a little bit more reliability work. Obviously, we made some commitments as part of the IRP and gas settlements with respect to low income support. And so those are things we like to do, and we'll continue to evaluate opportunities for pull-aheads to de-risk 2023 some more going into the second half of the year.

我們在林業方面做了更多的工作，我們也做了更多的可靠性工作。顯然，作為 IRP 和 gas 解決方案的一部分，我們做出了一些關於低收入支持的承諾。因此，這些是我們喜歡做的事情，我們將繼續評估在今年下半年進一步降低 2023 年風險的機會。

It's also important to remember we also put in place a really nice regulatory mechanism a few years ago, our voluntary refund mechanism, which effectively allows us to make decisions late in the year from an operational pull-ahead perspective, get effectively the accounting benefit in the current year and then a commitment to do work in the subsequent year.

同樣重要的是要記住，幾年前我們還建立了一個非常好的監管機制，我們的自願退款機制，它有效地允許我們從運營提前的角度做出決定，有效地獲得會計收益本年度，然後承諾在下一年開展工作。

And so that gives us even more flexibility as we head into the Q4 and deep into Q4, if we're seeing upside that's in excess of plan. It just gives us a bit more flexibility to commit to more work and again, see the sort of accounting benefits of that in the current year.

因此，如果我們看到超出計劃的上行空間，那麼在我們進入第四季度並深入第四季度時，這給了我們更大的靈活性。它只是給了我們更多的靈活性來承諾更多的工作，並再次看到今年的會計收益。

So a lot of flexibility going forward. We've made some moves to date from an O&M pull ahead perspective. But again, we're obviously cautious at this point because we've got a lot of Q3 left, and we're waiting to see what happens with storms and weather.

所以未來有很大的靈活性。從 O&M 領先的角度來看，迄今為止我們已經採取了一些舉措。但同樣，我們在這一點上顯然很謹慎，因為我們還有很多第三季度，我們正在等待看看風暴和天氣會發生什麼。

Yes, that's definitely a helpful mechanism you have. And then the other question I just wanted to clarify on equity. So I guess first question is when would you decide how to finance Covert and could that be something like an equity forward to de-risked? And then just to be very clear, beyond financing that acquisition, are you still affirming no plans for equity in the general business financing?

是的，這絕對是您擁有的有用機制。然後是另一個我想澄清的關於公平的問題。所以我想第一個問題是你什麼時候決定如何為 Covert 融資，這可能是類似於去風險的股權遠期嗎？然後非常清楚，除了為此次收購提供資金外，您是否仍然確認在一般業務融資中沒有股權計劃？

Yes. To answer the last question first, if you put aside the potential funding of Covert, as we mentioned on the call today with potentially considering equity, there is no plan to issue equity beyond that until 2025 as per our initial guidance when we rolled out our $14.3 billion 5-year plan in Q1 of this year. So we're still committed to not issuing equity through 2024 or more specifically until 2025, but for the funding of Covert.

是的。首先回答最後一個問題，如果你擱置 Covert 的潛在資金，正如我們今天在電話會議上提到的可能考慮股權的那樣，根據我們推出我們的初步指導，在 2025 年之前沒有計劃發行股權今年第一季度的 5 年計劃為 143 億美元。因此，我們仍然承諾不會在 2024 年或更具體地說到 2025 年之前發行股票，而是為 Covert 提供資金。

And in terms of how we'll time that and how we'll think through that, obviously, we'll look at the valuation of the stock versus the relative cost of other hybrid securities, and we'll look to be opportunistic from time to time. And we've seen just great pricing in the past with those dribble programs. And so we'll look to utilize some of that. But again, I think we've got a lot of flexibility because we're not scheduled to acquire Covert until May of next year. So quite a bit of time to evaluate, and we'll be opportunistic and dribble out so likely over the coming months.

就我們如何計算時間以及如何考慮這一點而言，顯然，我們將查看股票的估值與其他混合證券的相對成本，並且我們會從時間上看機會主義到時間。過去，我們已經看到這些運球程序的定價很高。因此，我們將尋求利用其中的一些。但同樣，我認為我們有很大的靈活性，因為我們要到明年 5 月才能收購 Covert。所以有相當多的時間來評估，我們將在接下來的幾個月裡投機取巧並且非常有可能運球。

Our next question comes from David Arcaro from Morgan Stanley.

我們的下一個問題來自摩根士丹利的 David Arcaro。

I was wondering if you could just comment on how you see the equity ratio at the utilities trending over time after we saw it tick down a little bit in the gas rate case?

我想知道您是否可以評論一下在我們看到公用事業股本比率在汽油費率情況下略有下降之後，您如何看待公用事業股本比率隨時間的變化趨勢？

Yes. David, thanks for the question. Obviously, we would love to see equity ratios, if not stabilize, go the other way and go up because we do believe that we have yet to see a remediation from tax reform when it was enacted in 2017, which led to a 200 basis point degradation in our FFO to debt overnight as well as cash flow degradation. And so we're going to continue to make the case. In our cases that we filed that equity thickness should go up. And again, we'll make the case going forward.

是的。大衛，謝謝你的問題。顯然，我們希望看到股權比率（如果不能穩定）反其道而行之並上升，因為我們確實相信，在 2017 年實施稅收改革時，我們還沒有看到稅收改革的補救措施，這導致了 200 個基點我們的 FFO 在一夜之間惡化為債務以及現金流量下降。因此，我們將繼續證明這一點。在我們提交的案例中，股權厚度應該增加。再一次，我們將繼續推進此案。

And what I would mention is, obviously, in the case of the gas rate case settlement, there were a number of stakeholders involved in that process we thought, given the circumstances and all the other constructive aspects of the settlement. We were comfortable with the equity thickness where it was. But again, we still think it should be higher than that.

我要提到的是，顯然，在汽油費率案件和解的情況下，考慮到和解的情況和所有其他建設性方面，我們認為有許多利益相關者參與了這個過程。我們對現有的股權厚度感到滿意。但同樣，我們仍然認為它應該比這更高。

I think it's also important to note that we still have deferred tax flowbacks from tax reform where, again, we're giving back deferred taxes to customers. And that has the effect of [skinny-ing] or reducing the 0 cost of capital component in our rate making capital structure, which offset some of that reduction in the authorized equity thickness.

我認為同樣重要的是要注意，我們仍然有來自稅收改革的遞延稅款回流，我們再次將遞延稅款返還給客戶。這具有 [瘦身] 或降低我們的利率資本結構中資本成分的 0 成本的效果，這抵消了授權股權厚度的部分減少。

And so to be very specific here, our equity thickness in this gas settlement went down from a little over 52% to about 50.75%. So roughly 130 basis points of reduction. However, about 50 basis points of that was offset in our ratemaking equity thickness because of the -- the reduction of that 0 cost of capital layer.

因此，在這裡非常具體地說，我們在這個天然氣結算中的權益厚度從略高於 52% 下降到大約 50.75%。所以大約減少了130個基點。但是，由於降低了 0 資本層成本，其中約 50 個基點在我們的利率制定股票厚度中被抵消。

And so again, we'll continue to make the case. We still think equity thickness should continue to go up or should start to go up. And again, the onus is on us to make the case.

再說一次，我們將繼續證明這一點。我們仍然認為股票厚度應該繼續上升或應該開始上升。再說一次，我們有責任證明這一點。

And the other topic I was curious about was on the CGP. And could you talk about your progress there? And if you see a case for seeing momentum kind of accelerate in customer interest?

我很好奇的另一個話題是關於 CGP。你能談談你在那裡的進展嗎？如果您看到客戶興趣加速增長的案例？

Yes. We certainly see a lot of customer interest. We've seen some additional contracts over the quarter. Due to nondisclosure agreements, I can't talk about all of them. One of my share is the state of Michigan signed a contract over the quarter. And so recall, that's 1,000 megawatts of renewable build incremental to our plan. And so we're starting to layer in those contracts as we move forward and have those customers secured.

是的。我們當然看到了很多客戶的興趣。我們在本季度看到了一些額外的合同。由於保密協議，我不能談論所有這些。我的一份分享是密歇根州在本季度簽署了一份合同。回想一下，那是我們計劃中增加的 1,000 兆瓦的可再生能源。因此，隨著我們向前推進並確保這些客戶的安全，我們開始將這些合同分層。

In addition, we look at -- went out to RFP to look at what would cost to construct that 1,000 megawatts. And again, I want to put it as a 1,000, it's going to come very module. It's going to come in a little tranches as we build out for our customers, but still good interest, really good interest, and we continue to lap contracts to support that build. Is that helpful?

此外，我們還查看了 RFP 以了解建造 1,000 兆瓦的成本。再說一次，我想把它當作 1,000，它將非常模塊化。當我們為我們的客戶進行建設時，它將分批進行，但仍然有很好的興趣，非常好的興趣，我們將繼續簽訂合同以支持這種建設。這有幫助嗎？

Okay, Garrick. Yes. No, that's helpful. Maybe one more just quick one. To the extent out, Rejji, you were to do common equity or something with kind of 100% equity content here for Covert. Does that offset potential equity needs later in the plan, just given the initial thinking was something with a lower equity content, 50% or so? .

好的，加里克。是的。不，這很有幫助。也許再一個只是快速的。在某種程度上，Rejji，你要為 Covert 做普通股或 100% 股權內容的事情。考慮到最初的想法是股權含量較低，50% 左右，這是否抵消了計劃後期的潛在股權需求？ .

So I'm just going to go back to what we committed to when we rolled out our 5-year plan, again before the IRP and before Covert. So just so everyone's granted. So we said $14.3 billion of capital and we would not need to issue equity until '25 and '26 of the outer years of the plan. And at that point, we would do about $250 million per year in '25 and '26.

所以我要回到我們在推出 5 年計劃時所做的承諾，同樣是在 IRP 之前和 Covert 之前。所以就這樣每個人都同意了。所以我們說的是 143 億美元的資本，我們在計劃的 25 年和 26 年之前不需要發行股票。到那時，我們將在 '25 和 '26 年每年做大約 2.5 億美元。

So now with Covert, we said we may dribble a portion of that. And I would say the funding of Covert, that's not going to eliminate those outer-year needs, if that's specifically the question. So the $250 million we said we'd issue in '25 and '26 because we're issuing equity to fund Covert. Where we sit today, we don't think that obviates the need to do that equity in those outer years. But we'll see, I mean, obviously, we'll see what happens with respect to economic performance, load, EPS, how much earnings we retain and so on. But again, from where we sit today, this does not eliminate need for equity in those outer years.

所以現在有了 Covert，我們說我們可以運球其中的一部分。我會說隱蔽的資金，這不會消除那些外年的需求，如果這是特別的問題。所以我們說我們將在 25 年和 26 年發行 2.5 億美元，因為我們正在發行股票來資助 Covert。我們今天所處的位置，我們認為這並不能消除在那些年裡做這種公平的必要性。但我們會看到，我的意思是，很明顯，我們會看到在經濟表現、負荷、每股收益、我們保留多少收益等方面會發生什麼。但同樣，從我們今天所處的位置來看，這並沒有消除那些外部年份對公平的需求。

Our next question comes from Ryan Levine from Citi.

我們的下一個問題來自花旗的 Ryan Levine。

Hoping to follow up on residential load patterns. It looks like your year-over-year residential load on a weather-normalized basis is a little bit softer than some of your peers in the neighboring jurisdictions. Curious if there's any color you could share around the drivers of what you're seeing in your service territory? .

希望跟進住宅負載模式。看起來您在天氣正常化的基礎上的同比住宅負荷比鄰近司法管轄區的一些同行要低一些。想知道您是否可以在您的服務區域內看到的驅動程序周圍分享任何顏色？ .

Yes. So our residential load, to be clear, Ryan, are you speaking about it, you said year-to-date 2022?

是的。所以我們的住宅負荷，需要明確的是，瑞安，你是在說它嗎，你說的是 2022 年年初至今？

Year-to-date and for the -- it seems like second quarter was a little bit better than first quarter, but curious what you're seeing.

年初至今 - 似乎第二季度比第一季度好一點，但很好奇你所看到的。

Yes. So year-to-date, yes, like I said, about a little over 0.5% down versus year-to-date 2021. And then on a quarterly basis, Q2 was a little about up about 25 basis points versus Q2 of 2021. And so as we said in the past, we've actually been quite pleased with what we've seen -- we've been quite pleased with what we've seen so far in terms of residential load. It exceeds our expectations.

是的。所以年初至今，是的，就像我說的那樣，與 2021 年年初至今相比下降了約 0.5% 多一點。然後按季度計算，第二季度與 2021 年第二季度相比上升了約 25 個基點。正如我們過去所說，我們實際上對我們所看到的非常滿意——我們對迄今為止在住宅負荷方面所看到的非常滿意。它超出了我們的預期。

We assumed a much more aggressive sort of return to work or return facilities type of work environment in 2022, and we're still seeing pretty good stickiness in that hybrid work environment and still seeing pretty good load in the residential segment, which obviously is higher margin. So it's exceeded our expectations of performance. I can't speak to the performance of others, but we've been quite pleased with what we've seen being down only about 0.5% year-to-date.

我們假設到 2022 年會有一種更加激進的重返工作崗位或返回設施類型的工作環境，我們仍然看到這種混合工作環境的粘性非常好，並且在住宅領域仍然看到相當不錯的負載，這顯然更高利潤。所以它超出了我們對性能的預期。我無法談論其他人的表現，但我們對今年迄今僅下降約 0.5% 感到非常滿意。

And again, I'll remind you, we're up over 2% versus where we were pre-pandemic. So the stickiness and resilience is still there and that's obviously offering favorable mix. I think it's also worth noting that we plan and we'll continue to plan incredibly conservatively, Ryan. And so when we see performance like that, even though it's slightly down, it's still offering upside relative to plan.

再一次，我要提醒你，與大流行前相比，我們上漲了 2% 以上。所以粘性和彈性仍然存在，這顯然提供了有利的組合。我認為還值得注意的是，我們計劃並且我們將繼續非常保守地計劃，Ryan。因此，當我們看到這樣的表現時，即使它略有下降，它仍然相對於計劃提供上行空間。

I just want to add on to this, too, in both 2020 and 2021, we saw record interconnections, service line connections with residential homes. And so record from a company perspective, an annual perspective. And so Again, I can't compare that to what other utilities are seeing. But for us, it's really nice residential load performance across our service territory.

我只想補充一點，在 2020 年和 2021 年，我們看到了創紀錄的互連，服務線路與住宅的連接。所以從公司的角度，年度的角度來記錄。同樣，我無法將其與其他公用事業所看到的進行比較。但對我們來說，在我們的服務範圍內，住宅負載性能非常好。

And then a follow-up on some of the kind of potential pull forward of '23 costs into '22, you highlighted forestry and a few other items. Curious if you're seeing anything on the labor front may -- to combat some of the inflationary pressures and competition for labor that may lead to some elevated costs in the back half of the year?

然後跟進 '23 成本到 '22 的一些潛在拉動，您強調了林業和其他一些項目。好奇您是否在勞動力方面看到任何可能——以應對可能導致下半年成本上升的一些通貨膨脹壓力和勞動力競爭？

Well, remember one of the -- just -- roughly 40% of our workforce is unionized, and we have a union contract for those and those were signed in 2020. And that contract is a 5-year contract that goes to 2025. And so there's some normal escalation. But you go back to 2020 when that contract was signed, again, we didn't see quite [disinflationary] pressure. And so again, it's measured, it's budgeted, it's planned for. And so I'm not seeing much change there.

好吧，請記住其中一個 - 只是 - 我們大約 40% 的員工加入了工會，我們有一份工會合同，這些合同是在 2020 年簽署的。這份合同是一份為期 5 年的合同，有效期至 2025 年。所以有一些正常的升級。但是，當您回到 2020 年簽訂合同時，我們再次沒有看到相當的 [通貨緊縮] 壓力。同樣，它是衡量的，它的預算，它的計劃。所以我在那裡沒有看到太大的變化。

Across our nonunionized workforce, we've had roughly -- our retention rate -- we haven't seen the Great Resignation at all. And we've seen solid retention across the pandemic period. And so again, we haven't had to go out and do a lot of hiring over the time period. And so that's been helpful too from a cost perspective, labor perspective.

在我們未加入工會的員工隊伍中，我們的保留率大致是——我們根本沒有看到大辭職。我們在大流行期間看到了穩固的保留。再說一次，我們不必在這段時間內出去做很多招聘。因此，從成本角度和勞動力角度來看，這也很有幫助。

We have no further questions. I'll now hand back to Mr. Garrick Rochow for closing remarks.

我們沒有進一步的問題。我現在請 Garrick Rochow 先生做閉幕詞。

Thanks, Elliot, and thank you, everyone, for joining us today. Take care, and stay safe.

謝謝 Elliot，謝謝大家今天加入我們。保重，並保持安全。

This concludes today's conference. We thank everyone for your participation.

今天的會議到此結束。我們感謝大家的參與。