CMS能源 (CMS) 2023 Q3 法說會逐字稿

Good morning, everyone, and welcome to the CMS Energy 2023 Third 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.

大家早安，歡迎閱讀 CMS Energy 2023 年第三季業績。今天稍早發布的收益新聞稿以及本次網路廣播中使用的簡報可在 CMS Energy 網站的投資者關係部分取得。此通話正在錄音。

(Operator Instructions)

（操作員說明）

Just a reminder, there will be a rebroadcast of this conference call today, beginning at 12:00 p.m. Eastern Time running through November 2. This presentation is also being webcast and is available on CMS Energy's website in the Investor Relations section. At this time, I would like to turn the call over to Mr. Sri Maddipati, Treasurer and Vice President of Finance and Investor Relations.

請注意，今天中午 12:00 開始將重播本次電話會議。東部時間持續至 11 月 2 日。此簡報也進行網路直播，並可在 CMS Energy 網站的投資者關係部分查看。現在，我想將電話轉給財務主管兼財務和投資者關係副總裁 Sri Maddipati 先生。

Thank you, Harry. 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.

謝謝你，哈利。大家早安，感謝您今天加入我們。與我在一起的有總裁兼執行長 Garrick Rochow；以及執行副總裁兼財務長 Rejji Hayes。

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 measure are included in the appendix and posted on our website.

本簡報包含前瞻性陳述，這些陳述存在風險和不確定性。請參閱我們向 SEC 提交的文件，以了解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資​​訊。本簡報也包括非公認會計原則措施。這些指標與最直接可比較的 GAAP 指標的對帳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。

Thank you, Sri, and thank you, everyone, for joining us today. What sets us apart in this industry is clear, and it's been proven for over 2 decades, our simple, cleaner and leaner investment thesis. We've talked about this in many calls in many investor meetings, and it works, a long and robust capital runway, a best-in-class ability to take cost out of the business to create headroom for needed investments and keep bills affordable for customers.

謝謝斯里，謝謝大家今天加入我們。我們在這個行業中的獨特之處是顯而易見的，而且我們簡單、更乾淨、更精簡的投資理念已被 20 多年所證明。我們在許多投資者會議的多次電話會議中討論過這一點，它確實有效，這是一條漫長而穩健的資本跑道，具有一流的能力，可以降低業務成本，為所需的投資創造空間，並使帳單保持在可承受的範圍內。顧客。

Couple that with a constructive top-tier regulatory environment, and that is our recipe for premium total shareholder return. Today, I want to highlight one part of our investment thesis, infrastructure renewal. It starts with our 5-year $15.5 billion capital plan, which supports a long runway for important customer investments. This allows us to do what is most important for our customers, deliver safe, reliable, affordable energy and lead the industry in the clean energy transformation.

再加上建設性的頂級監管環境，這就是我們實現優質股東總回報的秘訣。今天，我想強調我們投資主題的一部分：基礎設施更新。首先是我們 155 億美元的 5 年資本計劃，該計劃為重要客戶投資提供長期支援。這使我們能夠做對客戶最重要的事情，提供安全、可靠、負擔得起的能源，並引領業界清潔能源轉型。

We are one of the first vertically integrated utilities to switch from coal to clean by 2025, leading the industry with net 0 carbon by 2040 aligned with customers, policymakers and our strategic plan, positioning us for the future. In our gas business, we are on pace to net 0 methane by 2030 and with a 20% reduction in Scope 3 emissions, one of the few in the industry, making the gas system safer and cleaner.

我們是首批在2025 年之前從煤炭轉向清潔能源的垂直一體化公用事業公司之一，到2040 年實現淨零碳排放，與客戶、政策制定者和我們的戰略計劃保持一致，從而引領行業，為未來做好準備。在我們的天然氣業務中，我們計劃在 2030 年實現甲烷淨零排放，並將範圍 3 排放量減少 20%，這是業內為數不多的業務之一，從而使天然氣系統更安全、更清潔。

And in our electric distribution system, we are hardening the grid to make it more reliable today while preparing for the resiliency that will be required for EVs, connected devices and to mitigate impact of climate change. Our electric distribution system is vast, covering much of the lower Peninsula of Michigan, but it's aging. We are seeing more frequent and severe weather, which proves the future will require something different because our customers count on us for reliable service.

在我們的配電系統中，我們正在強化電網，使其更加可靠，同時為電動車、連網裝置所需的彈性做好準備，並減輕氣候變遷的影響。我們的配電系統龐大，覆蓋了密西根下半島的大部分地區，但它正在老化。我們遇到的天氣越來越頻繁和惡劣，這證明未來將需要不同的東西，因為我們的客戶依賴我們提供可靠的服務。

Last month, we filed our electric reliability road map with the Michigan Public Service Commission, which outlined our plan to improve reliability and prepare the system for greater resiliency. Over the last 20 years, we've seen an increase in both the frequency of storms and higher wind speed with some of the most extreme winds within the last 4 years. We're clearly seeing the effects of climate change.

上個月，我們向密西根州公共服務委員會提交了電力可靠性路線圖，其中概述了我們提高可靠性並為系統提供更大彈性的計畫。在過去 20 年中，我們看到風暴頻率和風速均有所增加，其中一些最極端的風是在過去 4 年中出現的。我們清楚地看到氣候變遷的影響。

Given this, in the increasing dependency on the electric distribution system, we have set forward a plan that bolsters the system now and builds for the future. We worked with the leading industry research institute, EPRI benchmarking company as well as advancing technology to build a robust and comprehensive plan.

有鑑於此，在對配電系統的依賴日益增加的情況下，我們制定了一項計劃，加強現在的系統並為未來做好準備。我們與領先的行業研究機構、EPRI 標竿公司以及先進技術合作，制定了穩健而全面的計劃。

This 5-year electric reliability road map calls for $7 billion of capital investment to harden the system, expand undergrounding, update infrastructure, increase capacity and advance automation. To give you a small snapshot, our plan includes roughly 1,000 miles of system undergrounding in the near term and longer term, significantly more undergrounding to ensure our system is prepared to withstand severe weather.

這份為期 5 年的電力可靠性路線圖需要 70 億美元的資本投資來強化系統、擴大地下工程、更新基礎設施、增加容量和推進自動化。為了給您一個簡短的介紹，我們的計劃包括在短期和長期內將系統埋入約 1,000 英里，並顯著增加埋入量，以確保我們的系統能夠承受惡劣的天氣。

Originally, our design standard was for 40-mile per hour wind. With the wind speeds we are seeing today, our new standard is for 80-mile per hour wind and 0.5 inch of ice loading. This plan also includes further automation in machine modeling, adding technology to more precisely locate and isolate damage, reroute power and better predict problem areas, keeping more customers online and responding to outages faster.

最初，我們的設計標準是每小時 40 英里的風速。對於我們今天看到的風速，我們的新標準是每小時 80 英里的風速和 0.5 英寸的冰載荷。該計劃還包括機器建模的進一步自動化，增加技術以更精確地定位和隔離損壞，重新路由電源並更好地預測問題區域，讓更多客戶保持在線並更快地響應中斷。

We put our stake in the ground. We've identified the steps to improve reliability, a step change and build an electric grid that can better withstand extreme weather and better serve our customers in the future. With commission support, this plan will reduce the frequency and duration of outages while moving us into second quartile for reliability, coupled with additional customer investments, the longer-term vision delivers a grid where no outage will affect more than 100,000 customers and no customer will be without power for more than 24 hours.

我們把我們的股份放在地上。我們已經確定了提高可靠性、逐步改變並建立一個能夠更好地抵禦極端天氣並在未來更好地為我們的客戶服務的電網的步驟。在委員會的支持下，該計劃將減少停電的頻率和持續時間，同時使我們的可靠性進入第二個四分位，再加上額外的客戶投資，長期願景將提供一個電網，其中停電不會影響超過100,000 個客戶，且沒有客戶會影響電網。超過 24 小時未通電。

We expect these investments to be part of our upcoming electric rate case filings and will be implemented upon commission approval. And let me be clear, we are already making progress. We've doubled our investment in vegetation management over the last 3 years, shortening our trim cycles. We've seen greater than 60% benefit where we've done the work. We've increased the amount of customer investments and upgrades fusing and hardening, installing nearly 15,000 fuse devices in the last 2 years, more than we've ever done, reducing the number of customers impacted per interruption.

我們預計這些投資將成為我們即將提交的電價案件備案的一部分，並將在委員會批准後實施。讓我明確一點，我們已經取得了進展。過去三年來，我們在植被管理方面的投資增加了一倍，縮短了修剪週期。在我們完成工作的地方，我們已經看到超過 60% 的收益。我們增加了客戶投資並升級了熔斷和強化，在過去 2 年裡安裝了近 15,000 個熔斷設備，比我們以往所做的都要多，從而減少了每次中斷影響的客戶數量。

We've increased our maintenance inspection frequency finding potential failures before they occur. And just last week, we were notified that of the nearly 300 companies who applied for grants on the Department of Energy, we were 1 of 7 companies who were awarded $100 million for [specializing] and improving circuits in disadvantaged communities. This is great for our company and our customers.

我們增加了維護檢查頻率，以便在潛在故障發生之前發現它們。就在上週，我們獲悉，在向能源部申請撥款的近 300 家公司中，我們是獲得 1 億美元資助的 7 家公司之一，用於[專門化]和改善弱勢社區的電路。這對我們公司和我們的客戶來說都是好事。

First, it accelerates investment which were already part of our $7 billion electric reliability road map; second, this strikes the important balance of reliability improvement and affordability; and finally, because these are matching grant that provides greater line of sight and certainty recovery of these needed customer investments. We take our commitment to serve seriously what our customers deserve. What we wake up every day to deliver. That's why we constructed our electric reliability road map.

首先，它加速了投資，這已經是我們 70 億美元電力可靠性路線圖的一部分；其次，這達到了可靠性提高和可承受性的重要平衡；最後，因為這些是配套贈款，可以為這些所需的客戶投資提供更大的視野和確定性回收。我們恪守承諾，認真服務客戶應得的服務。我們每天醒來要交付的東西。這就是我們建立電力可靠性路線圖的原因。

On Slide 5, I want to take a moment to provide an update on our regulatory calendar. In September, we revised our position in our electric rate case to $169 million and maintained our position for a 10.25% ROE and a 51.5% equity ratio. We're requesting approval of a 10-mile undergrounding pilot with plans to underground over 400 miles annually beginning in 2027, which aligns with our electric reliability road map, a small but important step in building out a program that can be supported by the Michigan Public Service Commission and will deliver significant improvement for our customers.

在投影片 5 上，我想花點時間提供有關我們監管日曆的最新資訊。 9 月份，我們將電價案件的部位調整為 1.69 億美元，並維持 10.25% 的 ROE 和 51.5% 的股本比率。我們請求批准一項10 英里的地下試點項目，計劃從2027 年開始每年地下超過400 英里，這與我們的電力可靠性路線圖一致，這是製定可由密西根州支持的計劃的一小步但很重要的一步公共服務委員會將為我們的客戶帶來顯著的改善。

We also requested a recovery mechanism for investments in our electric distribution system to improve reliability. Similar to the mechanism we've utilized in our gas business, which creates greater clarity on the investment, and customer benefit while improving certainty of recovery. We expect the final order by March of next year. We also recently received approval from the Michigan Public Service Commission on our gas rate case settlement, providing continued value for our customers and investors. These rates became effective October 1.

我們也要求建立配電系統投資回收機制，以提高可靠性。與我們在天然氣業務中使用的機制類似，它使投資和客戶利益更加清晰，同時提高了回收的確定性。我們預計最終訂單將於明年 3 月收到。我們最近也獲得了密西根州公共服務委員會關於天然氣費率案件和解的批准，為我們的客戶和投資者提供持續的價值。這些費率於 10 月 1 日生效。

We plan to follow our next gas rate case in December of this year. This case brings a continued focus on a safe, reliable, affordable and clean natural gas system while supported needed customer investment. As we've shared in previous calls and in investor meetings, we continue to see the Michigan regulatory jurisdiction as constructive in providing a good balance for all stakeholders, living up to its ranking as top tier.

我們計劃在今年 12 月跟進下一個天然氣費率案例。此案例使人們持續專注於安全、可靠、負擔得起和清潔的天然氣系統，同時支援所需的客戶投資。正如我們在先前的電話會議和投資者會議中所分享的那樣，我們仍然認為密西根州監管管轄區在為所有利益相關者提供良好平衡方面具有建設性，不辜負其頂級排名。

Moving on to the financials. For the third quarter, we reported adjusted earnings per share of $0.61 and $2.06 per share year-to-date. Rejji will provide additional details, but despite a significant storm in the third quarter, we remain on track to deliver on our full year guidance of $3.06 to $3.12 per share and expect to deliver toward the high end. Given that confidence, we are initiating our full year guidance for 2024 at $3.27 to $3.33 per share reflecting 6% to 8% growth off the midpoint of this year's range, and we are well positioned, just like 2023 to be toward the high end of that range.

繼續討論財務狀況。第三季度，我們公佈的調整後每股收益為 0.61 美元，年初至今為 2.06 美元。 Rejji 將提供更多細節，但儘管第三季度發生了重大風暴，我們仍有望實現每股 3.06 至 3.12 美元的全年指導，並預計將達到高端。鑑於這種信心，我們將2024 年全年指導價設定為每股3.27 美元至3.33 美元，較今年範圍中點增長6% 至8%，而且我們處於有利位置，就像2023 年一樣，我們將邁向每股收益的高端。那個範圍。

It is also important to remember that we always rebase guidance off our actuals on the Q4 call, compounding our growth. This brings you a higher quality of earnings and differentiates us from others in the sector. We're also reaffirming our long-term adjusted earnings growth of 6% to 8% per year with continued confidence toward the high end and remain committed to dividend per share growth of 6% to 8%.

同樣重要的是要記住，我們總是根據第四季度電話會議的實際情況重新調整指導，從而促進我們的成長。這將為您帶來更高品質的收益，並使我們在業界脫穎而出。我們也重申，長期調整後獲利每年增長 6% 至 8%，對高端市場繼續充滿信心，並繼續致力於每股股息成長 6% 至 8%。

Like we've done in previous years, we'll provide you with an update on our 2024 guidance based off of actuals as well as a refresh of our 5-year capital plan on the Q4 call. We continue to be confident in our ability to deliver the year and in our longer-term outlook, providing exceptional value for all stakeholders. With that, I'll hand it over to Rejji to offer some additional details.

就像我們前幾年所做的那樣，我們將根據實際情況向您提供 2024 年指導的更新，並在第四季度電話會議上更新我們的 5 年資本計劃。我們仍然對今年的業績和長期前景充滿信心，為所有利害關係人提供卓越的價值。接下來，我將把它交給 Rejji 來提供一些額外的細節。

Thank you, Garrick, and good morning, everyone. As Garrick noted, we had a solid third quarter, delivering adjusted earnings of $0.61 per share, driven by numerous cost reduction initiatives which have largely offset the headwinds that we have faced throughout the year, most recently in the form of a severe storm that hit our electric service territory in August.

謝謝你，加里克，大家早安。正如加里克指出的那樣，我們第三季度業績穩健，調整後每股收益為0.61 美元，這得益於眾多成本削減舉措的推動，這些舉措在很大程度上抵消了我們全年面臨的不利因素，最近的一場嚴重風暴襲擊了我們。我們八月份的電力服務區域。

To put the weather we have experienced in 2023 into perspective, we are approaching a record level of storm activity this year, which further supports the needed investments in our electric system that Garrick highlighted, and we have seen heating and cooling degree days of 11% and 24% below historical levels, respectively, on a year-to-date basis. That said, we do not make excuses and have implemented numerous countermeasures throughout the year to mitigate these risks and are well positioned to deliver on our financial objectives this year, for the benefit of customers and investors.

從我們在 2023 年經歷的天氣來看，今年的風暴活動正在接近創紀錄的水平，這進一步支持了加里克強調的電力系統所需的投資，而且我們已經看到供暖和製冷天數增加了 11%今年迄今，分別比歷史水準低24% 和24%。也就是說，我們不會找藉口，全年實施了許多對策來減輕這些風險，並有能力實現今年的財務目標，造福客戶和投資者。

As such, we are reaffirming our guidance for the year, and on a year-to-date basis, we're on track with adjusted EPS of $2.06 per share given our progress in the aforementioned countermeasures, which I'll elaborate on shortly. In the waterfall chart on Slide 7 for clarification purposes, all of the variance analysis therein are measured relative to the comparable periods in 2022. The actuals are quantified on a year-to-date basis and the prospective period reflects the final 3 months of the year.

因此，我們重申了今年的指導意見，鑑於我們在上述對策方面取得的進展，從年初至今來看，我們預計將調整後每股收益達到 2.06 美元，我將很快對此進行詳細說明。為了澄清起見，在投影片7 的瀑布圖中，其中的所有變異數分析都是相對於2022 年的可比期間進行測量的。實際值是在年初至今的基礎上進行量化的，預期期間反映的是2022年的最後3 個月。年。

Starting with actuals with respect to weather. The previously noted unfavorable weather experience in 2023, has driven $0.49 per share of negative (inaudible) . Rate relief net of investment-related expenses has resulted in $0.20 per share of positive variance driven by last year's constructive electric and gas rate case settlements. From a cost perspective, our financial performance through the third quarter has been significantly impacted by higher operating and maintenance, or O&M, expenses to the tune of $0.21 per share of negative variance due to higher service restoration expenses attributable to storms.

從天氣的實際情況開始。先前提到的 2023 年不利天氣經歷導致每股收益下跌 0.49 美元（聽不清楚）。由於去年的建設性電力和天然氣費率案件和解，扣除投資相關費用後的費率減免導致每股 0.20 美元的正差異。從成本角度來看，我們第三季的財務表現受到營運和維護 (O&M) 費用增加的顯著影響，由於風暴導致服務恢復費用增加，每股負差異達到 0.21 美元。

However, it is worth noting that our operational O&M expenses exclusive of service restoration expense are down roughly 10% versus the third quarter of 2022, which highlights the significant cost performance we've realized across the business. To that end, and as previously noted, we implemented numerous cost reduction initiatives early in the year such as reducing our use of consultants and contractors, limiting hiring, accelerating longer-term IT projects and eliminating other discretionary spending.

然而，值得注意的是，我們的營運維運費用（不包括服務恢復費用）與 2022 年第三季相比下降了約 10%，這突顯了我們在整個業務中實現的顯著性價比。為此，如前所述，我們在今年年初實施了多項降低成本的舉措，例如減少顧問和承包商的使用、限制招聘、加速長期 IT 專案以及消除其他可自由支配的支出。

We have also supplemented these efforts with a voluntary separation program, or VSP, that reduced our salaried workforce by roughly 10%. And more importantly, as we leverage the CE Way, our lean operating system, we will continue to eliminate waste and increase productivity going forward. Rounding out the first 9 months of the year, you'll note that $0.27 per share of positive variance highlighted the catch-all bucket in the middle of the chart. We've seen this bar increase throughout the year as a result of our continued success in realizing cost savings through financing efficiencies, liability management, strong tax planning and favorable non-weather sales in our electric business during the summer.

我們也透過自願離職計畫 (VSP) 來補充這些努力，該計畫使我們的受薪員工減少了約 10%。更重要的是，當我們利用 CE Way（我們的精實作業系統）時，我們將繼續消除浪費並提高生產力。在今年的前 9 個月中，您會注意到每股 0.27 美元的正方差突出顯示了圖表中間的包羅萬象的部分。由於我們透過夏季電力業務的融資效率、負債管理、強有力的稅收規劃和有利的非天氣銷售，持續成功地實現了成本節約，我們看到這一標準在全年中不斷增加。

As we look ahead to the fourth quarter, as always, we plan for normal weather, which we expect will have a neutral impact on our financial performance versus the fourth quarter of 2022. And we expect a similar financial impact for rate relief net of investment-related costs as the benefits of our recent gas rate case settlement and our 2022 electric rate case settlement are largely offset by the absence of tax benefits associated with the prior gas rate case settlement. From a cost perspective, as noted during our Q2 call, we anticipate lower overall O&M expense at the utility driven by the ongoing benefit (inaudible) cost reduction initiatives, which equates to $0.17 per share of positive variance. It is also worth noting that the Q4 2022 comp for this bucket is notably soft given the higher-than-average O&M expenses incurred during that period.

在展望第四季度時，我們一如既往地計劃應對正常天氣，我們預計與2022 年第四季度相比，這將對我們的財務業績產生中性影響。我們預計扣除投資後的利率減免也會產生類似的財務影響- 相關成本，因為我們最近的天然氣費率案件和解和 2022 年電力費率案件和解的好處在很大程度上被先前天然氣費率案件和解相關的稅收優惠的缺失所抵消。從成本角度來看，正如我們在第二季電話會議中所指出的，我們預計公用事業公司的整體營運和維護費用將在持續的效益（聽不清楚）成本削減措施的推動下降低，相當於每股正方差0.17 美元。另外值得注意的是，考慮到該時期發生的維運費用高於平均水平，2022 年第四季該類別的比較明顯疲軟。

Closing out the glide path for the remainder of the year, you'll note in the penultimate, that's yellow bar on the right that we're anticipating $0.23 to $0.29 per share, a positive variance. As we've discussed previously, the key drivers here are the absence of significant discretionary actions taken in the fourth quarter of 2022 related to last year's electric rate case settlement and the filing of our voluntary refund mechanism, which collectively equate to $0.12 per share. The remaining notable items that we anticipate in this bucket are from NorthStar, our nonutility business achieving its full year guidance and favorable non-weather sales at the utility, which have trended well over the past few quarters.

結束今年剩餘時間的下滑路徑，您會在倒數第二個中註意到，右側的黃色條表示我們預計每股收益為 0.23 美元至 0.29 美元，這是一個正方差。正如我們之前討論的，這裡的關鍵驅動因素是 2022 年第四季沒有採取與去年電費案件和解和自願退款機制相關的重大酌情行動，這些行動總共相當於每股 0.12 美元。我們預計這一桶中剩下的值得注意的項目來自 NorthStar，我們的非公用事業業務實現了全年指導，並且公用事業公司的非天氣銷售良好，在過去幾個季度中趨勢良好。

All in, we remain confident in our ability to meet our EPS guidance for the year. And as always, we'll take none of this positive momentum for granted and will approach these last 2 months of the year with the usual degree of paranoia by maintaining our cost discipline and flex additional opportunities as needed to deliver the consistent financial results you have come to expect.

總而言之，我們對實現今年每股收益指引的能力仍然充滿信心。像往常一樣，我們不會認為這種積極勢頭是理所當然的，並將以通常的偏執程度對待今年的最後兩個月，維持我們的成本紀律，並根據需要靈活提供額外的機會，以實現您所擁有的一致的財務表現來期待。

Moving on to the balance sheet. On Slide 8, we highlight our recently reaffirmed credit ratings from S&P in August. As you know, we continue to target mid-teens FFO to debt on a consolidated basis over our planning period to preserve our solid investment-grade credit ratings. Our financing strategy and strong balance sheet position us well given the market volatility we've seen recently. At the utility, our annual rate case cadence and the use of forward-looking test years allow us to incorporate higher interest rates into our filings and recover the associated costs with minimal lag.

繼續看資產負債表。在幻燈片 8 上，我們重點介紹了標準普爾 8 月最近重申的信用評級。如您所知，我們在規劃期內繼續以綜合債務為目標，以十幾歲左右的 FFO 為目標，以保持我們穩健的投資級信用評級。鑑於我們最近看到的市場波動，我們的融資策略和強勁的資產負債表使我們處於有利地位。在公用事業公司，我們的年利率案件節奏和前瞻性測試年的使用使我們能夠將更高的利率納入我們的文件中，並以最小的滯後收回相關成本。

At the parent, where funding costs are non-recoverable, we have limited refinancing risk in the near term with $250 million due in 2024 and 2025 and $300 million coming due in 2026. And as noted during our second quarter call, the 2024 maturity has already been prefunded with proceeds from our convertible debt issuance in May. It is also worth noting that 100% of the debt of the parent companies fixed is over 40% is hybrid in nature, thus receiving equity credit from the rating agencies.

在母公司，由於融資成本不可收回，我們短期內的再融資風險有限，2024 年和2025 年到期的2.5 億美元，2026 年到期的3 億美元。正如我們在第二季度電話會議中指出的那樣，2024 年到期的已經用我們五月發行的可轉換債券的收益進行了預融資。另外值得注意的是，超過40%的母公司債務100%是混合性質的，因此獲得了評級機構的股權信用。

In addition to strong liability management, we have continued to plan conservatively. And though debt funding costs have increased in the current environment, they remain consistent with the assumptions embedded in our long-term financial plan. As always, we remain focused on maintaining a strong financial position, which coupled with a supportive regulatory construct and predictable operating cash flow generation supports our solid investment-grade ratings for the benefit of our customers and investors.

除了強而有力的負債管理外，我們還繼續採取保守的計劃。儘管在當前環境下債務融資成本有所增加，但它們仍然與我們長期財務計劃中的假設一致。一如既往，我們仍然致力於保持強勁的財務狀況，再加上支持性的監管結構和可預測的營運現金流生成，支持我們堅實的投資級評級，造福於我們的客戶和投資者。

Moving on to the financing plan. Slide 9 offers more specificity on the balance of our planned funding needs in 2023. In short, I'm pleased to report that our financing plan for the year is largely completed. In fact, at the utility, we've completed all of our planned first mortgage bond issuances for the year at a weighted average coupon of approximately 4.8%, which is below our planned estimate. The only remaining opco financing is a securitization funding to address the recovery of the undepreciated rate base in our recently retired (inaudible) coal facilities. As for the parent company, given the timing of the aforementioned convertible bond issuance, we've been able to delay the settlement of the equity forwards that priced last year.

繼續進行融資計劃。投影片 9 更詳細地介紹了我們 2023 年計畫融資需求的餘額。簡而言之，我很高興地報告，我們今年的融資計畫已基本完成。事實上，在公用事業公司，我們已經完成了今年所有計劃的首次抵押貸款債券發行，加權平均票面利率約為 4.8%，低於我們的計劃估計。 Opco 唯一剩下的融資是證券化融資，旨在恢復我們最近退役（聽不清楚）煤炭設施的未折舊費率基礎。對於母公司來說，考慮到上述可轉換債券的發行時間，我們已經能夠推遲去年定價的股權遠期的結算。

So the roughly $440 million of forward equity contracts will be settled in the fourth quarter. As I've said before, our approach to our financing plan is similar to how we run the business. We plan conservatively and capitalize on opportunities as they arise. This approach has been tried and true year in and year out and has enabled us to deliver on our operational and financial objectives, irrespective of the circumstances to the benefit of customers and investments.

因此，約 4.4 億美元的遠期股權合約將在第四季結算。正如我之前所說，我們的融資計劃方法與我們經營業務的方法類似。我們採取保守的計劃，並在機會出現時加以利用。這種方法經過年復一年的考驗，使我們能夠在任何情況下實現我們的營運和財務目標，從而為客戶和投資帶來利益。

And with that, I'll hand it back to Garrick for his final remarks and before the Q&A session.

然後，我將把它交還給加里克，讓他在問答環節之前做最後的演講。

Thank you, Rejji. You hear us say it every year. We deliver. Our track record spans 2 decades of consistently delivering industry-leading results in all conditions for all stakeholders. This year will be no different. With that, Harry, please open the lines for Q&A.

謝謝你，雷吉。你每年都會聽到我們這麼說。我們交付。 20 年來，我們始終如一地在各種條件下為所有利害關係人提供業界領先的成果。今年也不例外。哈利，請打開問答線。

(Operator Instructions)

（操作員說明）

Our first question today comes from the line of Jeremy Tonet of JPMorgan.

我們今天的第一個問題來自摩根大通的 Jeremy Tonet。

Just wanted to start with the electric rate case, if I could here. Thank you for the color that you provided, but I wonder if we could dig in a little bit more on how recent conversations have been tracking in the case. Could you walk us through the core differences between [DAS] recommendation and your proposal? What items should we be looking for? More specifically is settlement possible when tracking mechanisms are disputed? And is a fully litigated case preferable in this area, so there's no kind of gray areas?

如果可以的話，我只想從電費案例開始。感謝您提供的信息，但我想知道我們是否可以進一步深入了解該案件最近的對話進展。您能否向我們介紹 [DAS] 建議與您的提案之間的核心差異？我們應該尋找哪些物品？更具體地說，當追蹤機制有爭議時，是否可以和解？在這個領域，完全訴訟的案件是否更好，這樣就不存在灰色地帶了？

I feel good about the progress of our electric rate case. And just to give you a little flavor on where we're at with that. In rebuttal, we came back at $169 million. And as I shared, in my prepared remarks, 10.25% ROE and 51.5% equity ratio. And that reflects just the differences in the business from when we built the case to where we're at now in the forward-looking test year. Staff is at $88 million. And so the gap is pretty small between our ask and where the staff is, which again I see, is very constructive.

我對電費案件的進度感到滿意。只是為了讓您了解我們目前的情況。經過反駁，我們以 1.69 億美元的價格退回。正如我在準備好的演講中所分享的，淨資產收益率為 10.25%，股本比率為 51.5%。這反映了從我們建立案例時到我們現在處於前瞻性測試年的業務差異。員工薪資為 8800 萬美元。因此，我們的要求和工作人員的情況之間的差距非常小，我再次看到，這是非常有建設性的。

And so we're really at a constructive starting point in the conversation. And much of that delta is made up with -- it's just really the cost of capital, ROE and equity ratio. That's a big piece of the difference. And there's a few other what I call cats and dogs, important cats is the dog nonetheless, but things that we are helpful for our customers. And so that's the big difference.

因此，我們的對話確實處於一個建設性的起點。大部分的增量是由資本成本、股本報酬率和股本比率組成。這是一個很大的區別。還有其他一些我稱之為貓和狗的東西，重要的貓仍然是狗，但我們對客戶有幫助。這就是最大的差別。

Now let's talk a little bit about settlement in the context of settlement. And I've certainly been in a number of these calls where I'm open to settlement, and settlement presents itself, that's great. And we're certainly receptive to that. But as you pointed out, there is an important mechanism in there and there's undergrounding. Those are 2 key things that we need to see come out of this case.

現在我們就在結算的背景下稍微談談結算。我確實參加過許多這樣的電話會議，我對和解持開放態度，和解自然而然地出現了，這很好。我們當然願意接受這一點。但正如你所指出的，那裡有一個重要的機制，而且是地下的。這是我們需要從這個案例中看到的兩件關鍵事情。

Investment recovery mechanism to have some certainty on our distribution, let distribution investments and this underground pilot. This is important to get this started, and there's a real benefit for our customers. And so those are harder to get in settlement, just to be fully transparent. Typically, they're a black box when you go through settlement. And so we're prepared to go the full distance. And I'll just be honest with the entire call, it's likely we're going to go the full distance and I have confidence that we can get a really constructive outcome going to a full order.

投資回收機制要對我們的分銷有一定的確定性，讓分銷投資和這個地下試點。這對於開始這一點很重要，並且對我們的客戶來說有真正的好處。因此，為了完全透明，這些問題很難達成和解。通常，當您進行結算時，它們是一個黑盒子。所以我們準備好全力以赴。我對整個電話會議誠實地說，我們很可能會全力以赴，並且我有信心我們能夠獲得真正有建設性的結果，以達成完整的訂單。

Got it. That's very helpful there. And maybe pivoting a bit, could you walk us through your longer-term expectations for DIG, particularly as it relates to recontracting here? Could you speak to the longer-term potential for this business and for nonregulated renewables growth in the future as well given the changing landscape?

知道了。這非常有幫助。也許稍微轉向一下，您能否向我們介紹一下您對 DIG 的長期期望，特別是與這裡重新簽訂合約有關的期望？鑑於不斷變化的形勢，您能否談談該業務以及未來不受監管的可再生能源成長的長期潛力？

Yes. Our non-utility growth continues to be small in the bigger scheme of things. Our primary business continues to be the utility space. So it's about a 95%-5% mix. And as shared in the prepared remarks, we expect them to be within guidance range. And so that's a good piece. It continues to be contracted renewables. And again, Rejji uses these words, singles and doubles. We're not swinging for the fences here. So just thoughtful, contracted renewables. They have a utility-like return, long-term contracts, assuming no terminal value, again, really conservative, almost utility-like. And then there's the Dearborn Industrial Generation, or DIG. And we continue to see upward pressure on energy and capacity prices.

是的。在更大的計劃中，我們的非公用事業成長仍然很小。我們的主要業務仍然是公用事業空間。所以大約是 95%-5% 的混合。正如準備好的評論中所分享的那樣，我們預計它們將在指導範圍內。所以這是一個好作品。它仍然是可再生能源的合約。 Rejji 再次使用了這些單字：單打和雙打。我們不會在這裡搖搖欲墜。所以，只要是深思熟慮的、簽約的再生能源。他們有類似實用程式的回報，長期合同，假設沒有最終價值，同樣，非常保守，幾乎類似實用程式。然後是迪爾伯恩工業世代（DIG）。我們繼續看到能源和產能價格面臨上行壓力。

And so we're fully contracted out to 2025 with energy and capacity. And so we're filling in '26, '27 and the out years. We plan conservatively, but those bilaterals and the contracts that we are inking are certainly better than expectations. Now don't read into that a sugar high. You've heard me say no sugar highs in the past. So you can anticipate 6% to 8% growth on this, again, expectation toward the high side of that growth. And so we'll continue to reinvest as needed versus the sugar high. So hopefully, that's helpful as we see North Star.

因此，我們的能源和產能將在 2025 年完全外包。所以我們要填寫「26」、「27」以及以後的年份。我們的計劃比較保守，但我們正在簽署的雙邊協議和合約肯定比預期要好。現在不要解讀為糖分高。你過去聽過我說過不要吃糖。因此，您可以在此基礎上預期 6% 至 8% 的成長，同樣，對成長的較高預期。因此，我們將繼續根據需要進行再投資，以應對糖價高漲的情況。希望這對我們看到北極星有幫助。

Got it. Understood. No sugar highs, but certainly helpful towards the upper end of the range there. So thank you for the color.

知道了。明白了。沒有糖分高點，但肯定有助於達到該範圍的上限。所以謝謝你的顏色。

Our next question today is from the line of Julien Dumoulin-Smith of Bank of America Merrill Lynch.

今天我們的下一個問題來自美銀美林的 Julien Dumoulin-Smith。

Congratulations on the announcement there, and good work on your team.

恭喜您的宣布，並祝福您的團隊工作順利。

I appreciate it. Look, just following up on the -- speaking of good work, the distribution plan, right, the $7 billion that you guys talked about there. Can you elaborate just if you think that, that's really kind of incremental versus your prior plan? It seems like that's probably kind of a net $1 billion increase over 5 years. Can you talk about, is that incremental? Or as you talk about sugar highs, is that going to like offset capital elsewhere, if you will, to smooth things out? Just curious on how you think about that fitting into the grander plan as you update that more holistically?

我很感激。看，只是跟進——說到好的工作，分配計劃，對，你們在那裡談論的 70 億美元。如果您認為這相對於您之前的計劃確實是漸進式的，您能詳細說明一下嗎？看起來這可能是 5 年內淨增加 10 億美元的情況。能談談，這是增量嗎？或者當你談論高糖時，如果你願意的話，是否會喜歡在其他地方抵消資本來平息事情？只是好奇，當您更全面地更新該計劃時，您如何考慮將其融入更宏偉的計劃？

I'm really excited about this plan. We've talked about -- we've seen the storms this year, and certainly, we have an opportunity to improve reliability in the here and now and then prepare for the -- an aging system, a system that's seen higher winds and more severe weather in preparing for the future. So the team has really done a nice job of putting a good plan together.

我對這個計劃感到非常興奮。我們已經討論過 - 我們今年已經經歷了風暴，當然，我們有機會提高此時此地的可靠性，然後為 - 老化的系統、經歷過更強風的系統等做好準備為未來做好準備的惡劣天氣。因此，團隊在製定良好計劃方面確實做得非常出色。

Now when I look out at the 5 years, it's more than an incremental $1 billion. It's an incremental $3 billion, right? What's right in the plan right now is $4 billion in our 5-year plan. Now I want to be really careful and really clear about this. And so when we get to the Q4 call, we're going to grow our capital. You can expect we're going to grow our capital. You can expect with these needs on the distribution system that it's going to be biased or it's going to be more growth in the -- on the electric distribution system.

現在，當我展望未來 5 年時，增量超過 10 億美元。這是增量 30 億美元，對嗎？目前計劃中正確的是我們的 5 年計劃中的 40 億美元。現在我想非常小心並且非常清楚這一點。因此，當我們進行第四季度電話會議時，我們將增加資本。您可以預期我們將會增加我們的資本。您可以預期，配電系統的這些需求將會出現偏差，或者配電系統將會出現更多成長。

So that $4 billion number should grow. That's what I would anticipate and expect. However, I wouldn't just do the simple math of taking [15.5] and add in $3 billion to it. And that would get you the wrong answer, the wrong number. It's important that we get commission support. And as we go through the steps, we'll get that in the electric rate case filing, and we'll weave that into that capital plan over time. But it should give you a picture of the strength of our 5-year plan. It is robust. There's plenty of opportunities out there, and that extends even beyond 10 years into a really nice, long capital runway.

因此 40 億美元的數字應該還會成長。這就是我所預料和期待的。然而，我不會只是簡單地計算一下 [15.5] 並加上 30 億美元。這會讓你得到錯誤的答案、錯誤的數字。獲得佣金支持很重要。當我們完成這些步驟時，我們將在電價案件備案中獲得這一點，隨著時間的推移，我們將把它融入資本計劃中。但它應該能讓您了解我們五年計畫的實力。它很堅固。那裡有很多機會，甚至可以在 10 年後形成一條非常美麗、漫長的資本跑道。

In fact, speaking of context, capacity markets writ large, have attracted a decent amount of tension of late and certainly, some of the inflationary dynamics around them. Can you speak a little bit to the status of DIG, both your contracting status through the long term and more importantly, how you think about your commercial strategy here with pricing as elevated as it seems to be getting in some of these markets. So just curious on what you guys are seeing and what the opportunity is and how that fits into the plan.

事實上，就背景而言，容量市場顯然很大，最近引起了相當大的緊張局勢，當然還有一些圍繞它們的通膨動態。您能談談 DIG 的狀況嗎？您的長期合約狀況，更重要的是，您如何考慮您的商業策略，因為在某些市場中定價似乎很高。所以只是好奇你們看到了什麼、機會是什麼以及它如何融入計劃。

Yes. And similar to my previous answer here on this that Dearborn Industrial generation, we take a very conservative utility-like approach. And as you know, over time, we've just stacked in contracts for energy and capacity, bilateral contracts to make sure that we are avoiding risk and market volatility. But we certainly see some upward pressure on both energy and capacity prices, as you noted. And so much of the energy and capacity is already -- contracts are already in place through 2025, but we're filling in the gaps at '26, '27 and out years.

是的。與我之前關於迪爾伯恩工業世代的回答類似，我們採取了非常保守的類似公用事業的方法。如您所知，隨著時間的推移，我們只是堆積了能源和產能合約、雙邊合同，以確保我們避免風險和市場波動。但正如您所指出的，我們確實看到能源和產能價格面臨一些上行壓力。到 2025 年，大量的能源和產能已經到位，但我們正在填補 26 年、27 年及以後的空白。

We plan conservatively and those contracts are, I would say, exceeding our expectations or exceeding our plan, which is great. And so we'll continue to operate just as we have historically in a really conservative mode and a conservative plan, but you can see we're layering in the future right now and feel good about the opportunities for growth at DIG.

我們計劃保守，我想說，這些合約超出了我們的預期或超出了我們的計劃，這很棒。因此，我們將繼續像歷史上那樣以非常保守的模式和保守的計劃運營，但你可以看到我們現在正在對未來進行分層，並對 DIG 的成長機會感到滿意。

And then just quickly, if you don't mind the status of the solar projects, just where that stands and the schedule for bringing those into rates. Sorry, just to clarify that. I just wanted to hit that as a last quick one.

然後很快，如果您不介意太陽能專案的狀況，只關心其現狀以及將其納入費率的時間表。抱歉，只是為了澄清這一點。我只是想把它作為最後一個快速的擊球。

We feel good about our renewable build. And in this electric rate case, we pulled out some of the renewable build. But I'll be honest with you, 25 years in this business, been in engineering operations, much of my career. There's projects and contracts that move between years. That's not a big deal. And much of our build this year is in wind. We're going to be COD here end of the year at our Heartland wind farm. We're building another 201 megawatts of wind. And so there's a lot of renewable build that's underway in these years.

我們對我們的可再生建築感覺良好。在這個電價案例中，我們取消了一些再生能源建設。但老實說，我在這個行業工作了 25 年，我職業生涯的大部分時間都在工程營運領域。有些項目和合約會在幾年之間移動。這沒什麼大不了的。我們今年的大部分建設都是在風中進行的。我們將在今年年底在我們的 Heartland 風電場進行 COD。我們正在建造另外 201 兆瓦的風能。因此，這些年來有大量再生能源建設正在進行中。

And so those projects that were referenced in the electric rate case were some of the ones that early got caught up in some of the ops and solar complaint-related issues. We've talked about that, that's been hashed through in this industry. I felt good about the projects we have in mid-development right now. We have line of sight into panels. We got good sighting pieces. And so that will play out as part of our IRP build.

因此，電價案例中提到的那些項目是早期陷入一些營運和太陽能投訴相關問題的項目。我們已經討論過這個問題，這個問題已經在這個行業中得到了討論。我對我們目前處於開發中期的專案感覺良好。我們可以看到面板。我們得到了很好的瞄準鏡。這將成為我們 IRP 建置的一部分。

The other thing is these all projects don't go away. Remember that, these are part of the IRP. And so they'll get constructed here. It's just a matter of timing, and that timing is being refined here. And I think at least one of them is going to go this year anyway, so we're going to see some construction there. And remember, because they're approved in the IRP, they get AFUDC along the way. So there's no earnings impact.

另一件事是所有這些項目都不會消失。請記住，這些是 IRP 的一部分。所以它們將在這裡建造。這只是一個時間問題，而這個時間在這裡正在被完善。我認為無論如何，其中至少有一個今年將會竣工，所以我們會看到那裡有一些建設。請記住，因為他們在 IRP 中獲得批准，所以他們會一路獲得 AFUDC。所以對獲利沒有影響。

Our next question is from the line of Shahriar Pourreza of Guggenheim.

我們的下一個問題來自古根漢的 Shahriar Pourreza。

As we reflect on your kind of prior guidance for $350 million of equity starting in '25, does kind of that increased CapEx plan move your equity needs proportionately higher.

當我們反思您先前對 25 年開始的 3.5 億美元股本的指導時，增加的資本支出計劃是否會相應地提高您的股本需求。

Shar, this is Rejji. Yes, so we're still in the relatively early stage of building out -- sorry, Shar? Shar, this is Rejji, if you can hear me. So we're in the early stages of rolling out our 5-year plan. So we're still calibrating where -- what the financing needs will be. As I've said the estimate that we have in our current 5-year plan where we said up to $350 million a year of equity starting in 2025. I don't see that number materially changing. Now as the CapEx plan increases, again, we always recalibrate, you may see a slight shift upward, but we have to take a look at all of the puts and takes, the capital investments, the cash flow generation.

莎爾，這是雷吉。是的，所以我們仍處於構建的相對早期階段 - 對不起，莎爾？ Shar，我是 Rejji，如果你聽得到我的話。因此，我們正處於推出五年計畫的早期階段。因此，我們仍在調整融資需求的範圍。正如我所說，我們在目前的 5 年計畫中估計，從 2025 年開始，每年的股本高達 3.5 億美元。我認為這個數字不會發生重大變化。現在，隨著資本支出計畫的增加，我們總是會重新調整，您可能會看到輕微的向上轉變，但我們必須考慮所有的看跌期權、資本投資和現金流生成。

And I think at the end of the day, you're not going to see us with any sort of need to do block equity. I still think even without seeing the numbers, we'll be able to dribble out the equity in those outer years. But again, still early days on those calculations.

我認為最終，你不會看到我們有任何進行大宗股權的需要。我仍然認為，即使沒有看到這些數字，我們也能夠在那些年慢慢消耗掉股本。但同樣，這些計算仍處於早期階段。

Okay. Perfect. And then just from a stakeholder perspective, where is the MPSC going with sort of the investigations into storms at this point? And I guess what's the range of outcomes you guys anticipate and we've seen some comments filed, but there seems to be a negatively skewed mechanism for penalties versus rewards.

好的。完美的。那麼，從利害關係人的角度來看，MPSC 目前對風暴的調查將走向何方？我猜你們預期的結果範圍是多少，我們已經看到了一些評論，但懲罰與獎勵似乎存在負向傾斜的機制。

So there's 2 pieces. And I wouldn't put a negative take on it. All the conversations we have with staff and commissioners continue to be constructive and frankly, we're both aligned in the same thing. We want to improve reliability. We have a longer-term view of resiliency. And when we're aligned, it makes for constructive conversations. But there's 2 pieces that I'm hearing in your question, Shar. There's one, there's the audit that's underway. That was started in September. Liberty Consulting Group is the one doing the work. They've participated with other utilities, very skilled organization.

所以有2塊。我不會對此持負面看法。我們與工作人員和委員的所有對話仍然是建設性的，坦白說，我們在同一件事上是一致的。我們希望提高可靠性。我們對彈性有更長遠的看法。當我們保持一致時，就會產生建設性的對話。但我在你的問題中聽到了兩點，Shar。有一個，正在進行的審計。那是九月開始的。 Liberty Consulting Group 是這項工作的負責人。他們與其他公用事業公司一起參與，是非常熟練的組織。

Right now, they're in the data collection phase, that's well underway. We expect an interim report about the end of the year and then a full report likely in the September-ish timeframe. It's not about a year report then. But I would just be fully transparent with you and honest, I want reliability to improve in the state. I want resiliency and improvement in the state for our customers. And so if they have findings on how we can do work better. My gosh, I'm just going to agree to them. Like we should build that into the next electric grid case. We should do that because we want it better for our customers. And so it doesn't bother me at all. I think this is good that we have an outside party looking and looking at how we can improve.

目前，他們正處於資料收集階段，進展順利。我們預計將在年底發布一份中期報告，然後可能在 9 月左右發布完整報告。那麼這不是年度報告。但我會對你完全透明，誠實地說，我希望提高州的可靠性。我希望我們的客戶能夠在州內獲得彈性和改善。因此，如果他們有關於我們如何更好地工作的發現。天哪，我就同意他們的觀點了。就像我們應該將其建置到下一個電網案例中一樣。我們應該這樣做，因為我們希望為客戶提供更好的服務。所以根本不困擾我。我認為這是一件好事，我們有一個外部團體來研究我們如何改進。

It's only going to add to our reliability road map. And the other thing is on this performance-based rates or PBR. The work group is underway. It was initiated in the first, second quarter timeframe, April-ish timeframe, I believe. And so that conversation is underway. A [straw] proposal was put out. We have put comments through that process. We're continuing to participate in work groups.

它只會增加我們的可靠性路線圖。另一件事是基於性能的費率或 PBR。工作小組正在進行中。我相信，它是在第一季、第二季、四月左右的時間範圍內啟動的。因此，對話正在進行中。提出了一項[稻草]提案。我們已透過此流程提出了意見。我們將繼續參與工作小組。

At the end of the day, I think you're going to have a nice balance of incentives, disincentives from an electric reliability perspective. But the important piece for us is making sure there's a nice line of sight into capital and the capital recovery and there's certainty. That's why we're so focused on this investment recovery mechanism. We also think the same thing is required for storm and some of the O&M expense that occurs in the year. As long as we can navigate all that and get to that point, I feel good, I feel good. This will lead to good outcomes for our customers.

最終，我認為從電力可靠性的角度來看，您將在激勵措施和抑制措施之間取得良好的平衡。但對我們來說，重要的是確保對資本和資本回收有良好的視野，並且有確定性。這就是為什麼我們如此關注這種投資回收機制。我們也認為風暴和當年發生的一些維運費用也需要同樣的事情。只要我們能夠克服這一切並達到這一點，我感覺很好，我感覺很好。這將為我們的客戶帶來良好的結果。

Our next question today is from the line of Andrew Weisel of Scotiabank.

今天我們的下一個問題來自豐業銀行的安德魯·韋塞爾。

My first question is about supply chain. I know solar has been in focus. I think you just alluded to that a moment ago, but how about the availability of grid level equipment like transformers or switch gears? And if you do see shortages, is there a risk that might slow down your planned pace of spending?

我的第一個問題是關於供應鏈的。我知道太陽能一直是人們關注的焦點。我想您剛才提到了這一點，但是變壓器或開關設備等電網級設備的可用性如何？如果您確實發現短缺，是否存在可能放慢您計劃支出速度的風險？

Well, first of all, I appreciate your analysis. You did a nice write-up on that. It was about a week ago, 2 weeks ago. So some good work of what's going on in the industry. And so we're highly focused on the supply chain. I'll give it over here to Rejji in a minute. He has responsibility for that area. They've done a lot of good work to be able to secure that line of sight. And so when I think about the projects we have underway, particularly those that are in mid-development.

嗯，首先，我很欣賞你的分析。你對此寫了一篇很好的文章。那是大約一週前，兩週前。因此，我們對行業中正在發生的事情做了一些很好的工作。因此，我們高度關注供應鏈。我一會兒就把它交給 Rejji。他負責該地區。為了確保視線安全，他們做了很多出色的工作。因此，當我想到我們正在進行的專案時，尤其是那些處於開發中期的專案。

The team has done a much better job to make sure we have panels, transformers and the like, so we can do that build. Now there's longer lead times, most definitely. And so you've got to be prepared and you've got to be planned in that, but the team has just done a phenomenal job. But Rejji, your team is doing great work, maybe add to it.

團隊做得更好，確保我們有面板、變壓器等，這樣我們就可以進行建造。現在，毫無疑問，交貨時間更長了。所以你必須做好準備，你必須為此做好計劃，但團隊剛剛完成了出色的工作。但是 Rejji，你的團隊做得很好，也許可以補充一下。

Yes. Thanks, Garrick. And I appreciate the question, Andrew. So Garrick is exactly right. We have really been attacking challenges in supply chain for the last 18 months or so. And what we've done to really make sure that we've got sufficient supply, not just on the solar side, but really across the business is we've been very focused on diversifying our vendor sources. And so that has been a very concerted effort, again, over the last 12 to 18 months. We've also done what we would describe as value engineering and looking at other alternatives, particularly in the context of transformers that could be compatible with our electric grid.

是的。謝謝，加里克。我很欣賞這個問題，安德魯。所以加里克是完全正確的。在過去 18 個月左右的時間裡，我們確實一直在應對供應鏈方面的挑戰。為了真正確保我們擁有充足的供應，不僅在太陽能方面，而且在整個業務領域，我們所做的就是我們一直非常注重供應商來源的多元化。因此，在過去 12 到 18 個月裡，這又是一次非常一致的努力。我們也做了我們所說的價值工程，並尋找其他替代方案，特別是在可以與我們的電網相容的變壓器的背景下。

So we historically used a standard of grain-oriented steel, we're now using amorphous core and introducing that into our system. We've also been very successful in refurbishing damaged transformers and using a variety of third parties to help us with that. And so all of those countermeasures have really led to us getting to a sufficient level of supply across our most highly used transformers.

因此，我們過去使用的是晶粒取向鋼標準，現在我們使用非晶磁芯並將其引入我們的系統中。我們在翻新損壞的變壓器並利用各種第三方來幫助我們方面也非常成功。因此，所有這些對策確實使我們在使用最頻繁的變壓器上達到了充足的供應水準。

Now there's still issues in the supply chain across a variety of materials, and we're spending a lot of time on hypercare. But for those highest velocity materials. We feel like we're in really good shape at this point. So I really appreciate the question.

現在，各種材料的供應鏈仍然存在問題，我們花了大量時間進行超級護理。但對於那些速度最高的材料。我們感覺目前我們的狀態非常好。所以我真的很感激這個問題。

I just got to note something. Just a Rejji's dexterity, great CFO. And when you can talk about amorphous core, that's really awesome to see.

我只是需要注意一些事情。簡直就是 Rejji 的靈巧，偉大的財務長。當您可以談論非晶磁芯時，這真是太棒了。

One other question for the team here. Can you give us any updates on the legislative environment in Michigan? I'm talking about the fact that Democrats have full control. So is there any talk of potential updates either a big change to the 2016 law or maybe more likely incremental marginal support for clean energy. Are you hearing any potential around that?

這裡的團隊還有一個問題。您能為我們介紹密西根州立法環境的最新情況嗎？我說的是民主黨擁有完全控制權的事實。那麼是否有任何關於潛在更新的討論，要么是對 2016 年法律的重大修改，要么更有可能是對清潔能源的增量邊際支持。您聽過這方面有什麼潛力嗎？

So I'll start with the big picture. In the governor's first term, she came out with her healthy climate plan. And that was a nice plan, supportive of the plan, very pragmatic and balances clean energy, reliability of supply and affordability. And the governor came out in August and said -- now in her second term and came out and said, "Hey, I want to make a portion of this into law." And that's been in the Senate right now. It started out in committee. And so there are a number of bills that were put together on that as you imagine, in Committee, there's a discussion, and we're actively engaged in that discussion.

所以我將從大局開始。在州長的第一個任期內，她提出了健康的氣候計畫。這是一個很好的計劃，支持該計劃，非常務實，平衡了清潔能源、供應的可靠性和負擔能力。州長在八月出來說——現在她已經進入第二個任期了，她出來說：“嘿，我想將其中的一部分納入法律。”現在已經在參議院了。它始於委員會。因此，正如你想像的那樣，有許多法案被放在一起，在委員會中進行了討論，我們正在積極參與該討論。

And so that's moved on now to the full Senate for consideration, still has not made it to the House. And so there's important work going on to define what that looks like. But I'll just again, stand back and look at the bigger picture of this, much like 2008, much like 2016, this legislative body as well as the Public Service Commission continues to provide a constructive approach to the future. And we see a constructive out of these bills if they even move forward and if they even get agreement we see a path of constructive regulation going forward and a constructive policy going forward. And so -- but that's currently where it stands.

因此，該問題現在已移交參議院全體會議審議，但尚未提交眾議院。因此，我們正在進行重要的工作來定義它的樣子。但我會再次退後一步，看看更大的圖景，就像 2008 年，就像 2016 年一樣，這個立法機構以及公共服務委員會繼續為未來提供建設性的方法。如果這些法案向前推進，如果他們達成一致，我們將看到建設性的監管和建設性政策的前進之路。所以——但這就是目前的情況。

Our next question today is from the line of Durgesh Chopra of Evercore ISI.

今天我們的下一個問題來自 Evercore ISI 的 Durgesh Chopra。

I had a few questions. You've already answered them. Just -- maybe just on the O&M savings. Obviously, you've done a great job here offsetting weather and storms, it's a big number, like $0.60, $0.70 year-to-date combined impact from weather and storms. What -- like is there a way for you to quantify for us what these O&M savings that you're using. That You're offsetting weather and storms with this year. How much of that can be carried forward to 2024 and beyond? I'm just looking for what level of these savings are sustainable? Or are these truly onetime in nature?

我有幾個問題。你已經回答他們了。只是——也許只是節省營運和維護費用。顯然，您在抵消天氣和風暴方面做得很好，這是一個很大的數字，例如今年迄今為止天氣和風暴的綜合影響為 0.60 美元、0.70 美元。您是否有辦法為我們量化您正在使用的運維節省費用。今年你正在抵消天氣和風暴的影響。其中有多少可以結轉到 2024 年及以後？我只是想知道這些節省的水平是可持續的？或者這些真的是一次性的嗎？

Yes, Durgesh, this is Rejji. I appreciate the question. And I appreciate also the compliments. We are really proud of the work done for the first 3 quarters of the year, offsetting the headwinds we've seen on the weather side, both in terms of mild weather as well as the storm activity and the organization has really rallied around the cause. Obviously, when it comes to cost savings, we never discriminate when it comes to operational versus nonoperational and we've been quite expansive in our approach.

是的，Durgesh，這是 Rejji。我很欣賞這個問題。我也很感謝你們的讚美。我們對今年前三個季度所做的工作感到非常自豪，抵消了我們在天氣方面看到的不利因素，無論是溫和的天氣還是風暴活動，並且該組織確實圍繞這一事業團結起來。顯然，在節省成本方面，我們從不區分營運和非運營，而且我們的方法非常廣泛。

To get to the spirit of your question, I think it's difficult to quantify to what degree the savings will be sustainable. And I do think a decent portion will be because when you think about the separation plan that I mentioned, we reduced our salaried workforce by roughly 10%. WE do not assume that we will go and restaff that over the next year or 2 or even next several years. And so we'll see sustainable savings from that, and that will be a significant portion. Some of the other bigger opportunities. So in Q2, the tender financing, obviously, that is a one-timer, and so we wouldn't count on that being sustained. But there are other opportunities we've executed on. We've been really disciplined and rationalizing our contractor base and some of the consultants we're working with, again, we'd like to think we can sustain that.

就你問題的實質而言，我認為很難量化節省的可持續程度。我確實認為其中相當一部分是因為當你考慮我提到的離職計劃時，我們將受薪員工減少了大約 10%。我們不認為我們會在未來一年或兩年甚至未來幾年內重新配備人員。因此，我們將看到可持續的節省，這將是很大一部分。其他一些更大的機會。因此，在第二季度，招標融資顯然是一次性的，因此我們不會指望這種情況會持續下去。但我們也抓住了其他機會。我們一直在嚴格遵守紀律，並對我們的承包商基礎和與我們合作的一些顧問進行合理化，我們再次認為我們可以維持這一點。

And as I mentioned in my prepared remarks, we accelerated some longer-term IT projects, and we think we'll see productivity from those actions for some time now. So I'd say it's tough to really ascribe a specific percentage to, but I'd say decent portion should be sustained going into next year and will provide some tailwinds when you think about not just our guidance next year, but also affordability because we always look forward to passing on those savings on the customers.

正如我在準備好的演講中提到的，我們加速了一些長期 IT 項目，我們認為在一段時間內我們將看到這些行動的生產力。因此，我想說，很難真正確定一個具體的百分比，但我想說，相當一部分應該持續到明年，並且當你不僅考慮我們明年的指導，而且還考慮可負擔性時，這將提供一些推動力，因為我們始終期待將這些節省的費用轉嫁給客戶。

And the last thing I'll note is, on the financing side, we've seen quite a few efficiencies with the convert where we pulled ahead some costs that we were going to have or some financing needs we had in 2024. That's going to have a sustained level of savings and the operating company financings, we've done those in a really efficient fashion at a weighted average coupon of 4.8% below plan. And so we'll see sustained savings from that. So I'd say -- on the operational and nonoperational side, you've got some one-timers and then some of that will be sustained, but I can't give you a specific percentage at this point.

我要指出的最後一件事是，在融資方面，我們已經看到轉換帶來了相當多的效率，我們提前了一些成本或我們在 2024 年的一些融資需求。擁有持續水平的儲蓄和運營公司融資，我們以真正有效的方式做到了這些，加權平均票面利率比計劃低4.8%。因此，我們將看到持續的節省。所以我想說——在營運和非營運方面，你有一些一次性的，然後其中一些將持續存在，但我目前無法給你一個具體的百分比。

And then maybe one just quick clarification on the financing plan, I'm not trying to jump that gun here, but you mentioned you're going to update us on the Q4 call. But for 2024, next year still no equity, that's still accurate, correct?

然後也許只是對融資計劃進行快速澄清，我並不是想在這裡操之過急，但你提到你將向我們通報第四季度電話會議的最新情況。但對於 2024 年，明年仍然沒有股權，這仍然準確，對嗎？

That's exactly right.

完全正確。

And our next question today is from the line of David Arcaro of Morgan Stanley.

今天我們的下一個問題來自摩根士丹利的大衛·阿卡羅。

You alluded to this on the last question, but maybe just directly on, as you look into 2024, what's your comfort level, you've pulled a lot of cost levers for this year to the extent there are any incremental challenges into '24. Do you still feel like you're setting up with the same kind of quantum of flexibility around cost structure and the overall expense structure as you look toward hitting your guidance next year?

您在最後一個問題中提到了這一點，但也許只是直接說，當您展望2024 年時，您的舒適度是多少，今年您已經拉動了很多成本槓桿，以至於24 年會出現任何增量挑戰。當您希望明年達到預期目標時，您是否仍然覺得自己在成本結構和整體費用結構方面具有相同的靈活性？

Yes, David. Appreciate the question. This is Rejji. So as you think about the glide path to deliver on the guidance we initiated today, we're guiding $3.06 to $3.12 in 2023 and then $3.27 to $3.33 in 2024. And so that implies somewhere around $0.20 of pickup year-over-year to get to midpoint to midpoint or thereabouts. And so as I think about it, obviously, the weather we had this year, we're looking at roughly $0.30 of Weatherford, and that's just the mild weather experience over the first 3 quarters of the year, and we anticipate basically being flat in the fourth quarter. So you have to imagine that because we plan for normal weather, we shouldn't anticipate that $0.30 of weather impacting us next year.

是的，大衛。感謝這個問題。這是雷吉。因此，當您考慮實現我們今天啟動的指導的下滑路徑時，我們的指導是 2023 年為 3.06 美元至 3.12 美元，然後為 2024 年為 3.27 美元至 3.33 美元。這意味著同比增長約 0.20 美元到中點到中點或附近。因此，當我想到這一點時，顯然，我們今年的天氣，我們正在考慮大約 0.30 美元的 Weatherford，這只是今年前 3 個季度的溫和天氣經歷，我們預計基本持平第四季度。所以你必須想像一下，因為我們計劃的是正常天氣，所以我們不應該預期明年 0.30 美元的天氣會影響我們。

Now the reality is there have been some one-timers, as I've mentioned, in my prior remarks on the sort of tender financing side. And so we'd have to assume that those don't recur as well. And so when you net the 2 of those out, you get about $0.10 of pickup. And then if you think about the pending rate case we have. We had a very constructive gas rate case settlement in the third quarter of this year that was approved by the commission. We've got a pending electric rate case, and then we'll file another gas rate case in December this year. And with the anticipation of constructive outcomes on those proceedings that offers about per preliminary estimates, maybe somewhere between $0.10 to $0.15 net of investment-related costs of pickup.

現在的現實是，正如我在先前關於招標融資方面的評論中所提到的，存在一些一次性的情況。所以我們必須假設這些也不會重複發生。因此，當您將其中 2 個扣除後，您將獲得大約 0.10 美元的提貨費。然後，如果您考慮我們的待定利率案例。今年第三季度，我們達成了非常有建設性的天然氣費率案件解決方案，並獲得了委員會的批准。我們有一個待決的電價案件，然後我們將在今年 12 月提交另一個天然氣費案件。預計這些程序將取得建設性成果，根據初步估計，扣除與投資相關的提貨成本後，淨值可能在 0.10 美元到 0.15 美元之間。

And then again, a lot of the cost savings I enumerated earlier, we expect a decent portion of those to be sustained, and so we'll get additional pickup there. And so you can get to a glide path of that $0.20 per share, again, for that year-over-year growth, relatively easily when you look at those pieces. Now there are always puts and takes. And again, there are some things that will roll off going into 2024. And I think what's highly debatable is will we see the same quantum of service restoration expense going into next year because clearly, we've had a record level of storm activity, as I noted in our prepared remarks.

話又說回來，我之前列舉的許多成本節省，我們預計其中相當一部分能夠持續下去，因此我們將在那裡獲得額外的收益。因此，當您查看這些內容時，您可以相對輕鬆地獲得每股 0.20 美元的下滑路徑，以實現同比增長。現在總是有投入和拿取。再說一次，有些事情將在 2024 年開始減少。我認為，非常有爭議的是，我們是否會在明年看到同樣數量的服務恢復費用，因為顯然，我們的風暴活動水平達到了創紀錄的水平，正如我在我們準備好的演講中指出的那樣。

And so as we think about the glide path, it's going to be a combination of rate relief, net of investment-related costs with our pending proceedings. We'll see the weather roll off. We'll see some of the one-timers roll off. And then we expect some of the savings from a lot of the cost reduction initiatives to provide a tailwind on a net basis next year as well. And so that's what gives us confidence that we can deliver on the 2024 guide. Is that helpful?

因此，當我們考慮下滑路徑時，這將是利率減免、扣除投資相關成本以及我們未決訴訟的組合。我們會看到天氣轉涼。我們將會看到一些一次性產品的推出。然後，我們預計許多成本削減措施所節省的一些費用也將為明年的淨成長帶來推動力。這讓我們有信心兌現 2024 年指南。有幫助嗎？

Yes, very helpful. I appreciate all the color. All good points. And let's see was also just going to check on, could you just give the latest update in terms of what you're seeing with the voluntary green pricing program, potential upside from that program and just expectations for how customer additions could trend from here?

是的，非常有幫助。我欣賞所有的顏色。所有的優點。讓我們看看，您能否提供最新的更新信息，包括您所看到的自願綠色定價計劃、該計劃的潛在優勢以及對客戶增加趨勢的預期？

Yes, it continues to be very positive. And so remember, we're in, what I'd call, a tranche of 1,000 megawatts that is being contracted out. There's significant demand from our customers for those products. We're well over 400, 400 megawatts of contracted lower that continues to grow. And then that's driving to more build from a renewable perspective. And so we've announced even within the quarter, the intent to build a solar facility in the (inaudible) coal facility that will help meet some of that -- a portion of that need. So again, very robust continued strong interest from our commercial and industrial customers.

是的，它仍然非常積極。所以請記住，我們正處於我所說的 1,000 兆瓦的承包中。我們的客戶對這些產品有很大的需求。我們的合約電量遠遠超過 400、400 兆瓦，而且還在持續成長。然後，這將推動從再生能源的角度進行更多的建設。因此，我們甚至在本季度內就宣布打算在（聽不清楚）煤炭設施中建造一座太陽能設施，這將有助於滿足其中的一部分——部分需求。同樣，我們的商業和工業客戶也表現出非常強烈的持續濃厚興趣。

And our next question today is from the line of Nicholas Campanella of Barclays.

今天我們的下一個問題來自巴克萊銀行的尼古拉斯·坎帕內拉。

Just one for me. A lot of them have been answered. But I guess, just looking at the resiliency plan, you kind of start to show the [SADI] scores improving '25, '26. But I was just trying to dig in more on how you're thinking about operational risk reduction for '24. Just given lessons learned from last year's storm cycle and I assume you're probably actively deploying some of this technology now. So just how should we kind of think about storm risk '24 versus this year?

只給我一個。其中很多已經得到解答。但我想，只要看看彈性計劃，你就會開始顯示 [SADI] 分數在 25 年、26 年有所提高。但我只是想多了解您如何看待 24 世紀降低營運風險。剛剛從去年的風暴週期中吸取了教訓，我認為您現在可能正在積極部署其中的一些技術。那麼，與今年相比，我們該如何看待 24 世紀的風暴風險呢？

Great question. I'm glad you're digging into it. That's a fun plan to look at. Right now -- and that's why I shared in some of my prepared remarks, like we're not waiting. And the commission has been supportive of additional tree removal or vegetation management. That's more than doubled our spend over the last 3 years. So that's active work that's underway. There's close to 300 crews that are on our system, contracted crews that are out doing that work today and have been over the course of the year. And we -- in those areas where we do the work, we see greater than a 60% improvement, well underway.

很好的問題。我很高興你正在深入研究它。這是一個有趣的計劃。現在——這就是為什麼我分享了我準備好的一些言論，就像我們不會等待一樣。該委員會一直支持額外的樹木砍伐或植被管理。這是我們過去三年支出的兩倍多。這是正在進行的積極工作。我們的系統中有近 300 名工作人員，這些合約工作人員今天一直在外面從事這項工作，並且已經持續了一年。在我們開展工作的領域，我們看到了超過 60% 的改進，並且進展順利。

In addition to that, fusing. Using 15,000 fuses over the last 2 years and a plan to do more next year as well. That takes -- when there's an interruption on the system, like fuse box in your home. And so rather than the whole home going out, you might lose the bathroom or the kitchen. Same type of thing on the electric. We're fusing that. So when there's an interruption, less customers are impacted. We're seeing [SADI] performance improvement already from the deployment of those fuses. We've never done this level of fusing never across our history.

除此之外，還有融合。過去 2 年使用了 15,000 個保險絲，並計劃明年使用更多。這需要－當系統出現中斷時，例如家裡的保險絲盒。因此，您可能會失去浴室或廚房，而不是整個房子都消失。電動車上也有同類型的東西。我們正在融合它。因此，當出現中斷時，受影響的客戶就會減少。我們已經看到部署這些保險絲後 [SADI] 性能得到了改善。在我們的歷史上，我們從未進行過這種程度的融合。

We continue to add automation. I just saw a great one the other day being able to -- one of the things on our high-voltage distribution system, we've got what's called a Victor insulator. Now Victor insulators are prone to failure. That's a known problem. But once you put them on the grid back in the '70s, we didn't have the best kind of control on where those went. And so to be able to identify them, you got to be able to see the small little V on top of the Victor insulator. Before we'd have to stick a bucket truck up there to see that. That's very inefficient. Now with drones with the ability to automatically pull from a picture to see that little V, we're able to find that -- find those Victor insulators and be very strategic about replacing them.

我們繼續增加自動化。前幾天我剛剛看到一個很棒的東西，我們的高壓配電系統中的其中一件事，我們有所謂的維克多絕緣子。現在維克多絕緣子很容易故障。這是一個已知問題。但是，一旦你在 70 年代將它們放到電網上，我們就無法對它們的去向進行最好的控制。因此，為了能夠識別它們，您必須能夠看到 Victor 絕緣體頂部的小 V。之前我們必須把一輛斗式卡車放在那裡才能看到這一點。這是非常低效的。現在，無人機能夠自動從圖片中拉出並看到那個小V，我們能夠找到這些維克多絕緣體，並非常有策略地更換它們。

So I'm excited about the technology we're bringing to bear as well. And so those are just a few examples. There are hundreds of examples like we are not satisfied with our reliability performance. We are going to make it better. We've seen the improvement over 2022. We continue to be on good pace this year even with the storms. And so -- and we're going to keep the -- sorry with the analogy, we're keeping the foot down on the floor on the accelerator on this.

因此，我也對我們所採用的技術感到興奮。這些只是幾個例子。像我們對自己的可靠性表現不滿意這樣的例子有數百個。我們會讓它變得更好。我們已經看到了 2022 年的進步。即使有暴風雨，今年我們仍然保持良好的步伐。因此，我們將繼續對這個類比感到抱歉，我們將腳踩在油門上的地板上。

Next question today is from the line of Travis Miller of Morningstar.

今天的下一個問題來自晨星公司的崔維斯·米勒。

On the distribution plan, I was wondering if you could talk a little bit about what you expect the timing of the regulatory review on that to be?

關於分配計劃，我想知道您是否可以談談您期望監管審查的時間表？

It's going to be -- those will get woven into electric rate case filings. And so the plan by itself will get some comment, but that's not a contested filing. What will happen is those -- that will be the -- it's truly a road map. It's truly a vision of where we're headed and the important pieces that have to come together for that. And so those get brought into electric rate case filings and then with commission support, they can be approved. I would just highlight one thing, one announcement we've had here in the last couple of weeks, though, Department of Energy grant of $100 million. That really jump starts some of this important work. And so again, to the previous guest question, we're not waiting around. We see some opportunities to put this to work immediately. But again, the regulatory process is through the rate cases.

這些將被納入電價案件備案中。因此，該計劃本身將會得到一些評論，但這並不是一個有爭議的文件。將會發生的是那些——這將是——它確實是一個路線圖。這確實是我們前進方向的願景，以及為此必須整合的重要組成部分。因此，這些內容會被納入電費案件備案，然後在委員會的支持下，它們可以得到批准。我只想強調一件事，過去幾週我們在這裡宣布的一件事，能源部撥款 1 億美元。這確實是一些重要工作的開始。再說一遍，對於上一位嘉賓的問題，我們不會等待。我們看到了一些立即將其付諸實踐的機會。但同樣，監管過程是透過費率案件進行的。

Okay. So that suggests you'd probably continue that annual type run rate of electric rate cases and even potentially gas rate cases, but especially the electric. Is that roughly correct?

好的。因此，這表明您可能會繼續採用電費情況甚至潛在的燃氣費情況的年度運行率，但尤其是電力。這大致正確嗎？

Yes, you should expect an annual rate case type filing, and I would just offer too in these particularly with the interest rates the way they are, 10-month rate cases and forward-looking test years and the kind of the annual strategy really eliminates some of that drag that you get with higher interest rates. And so there's a lot of benefits of that approach.

是的，您應該期待年度利率案例類型備案，我也會在這些方面提供，特別是利率現狀、10 個月利率案例和前瞻性測試年以及年度策略真正消除的類型較高的利率會帶來一些阻力。因此，這種方法有許多好處。

Okay. And then just real quick would the investment recovery mechanism change that timing at all? Or still even if you get that still kind of a 1-year [type] of rate.

好的。那麼投資回收機制會很快改變這個時機嗎？或者即使你得到的是一年期[類型]的利率。

It will still be a 1-year approach. The IRM is not big enough at this point. It's a starting spot. And over time, we'd look to enhance that. The first step is to get it in place, which is part of this current electric rate case.

這仍然是一個為期一年的方法。目前 IRM 還不夠大。這是一個起點。隨著時間的推移，我們希望加強這一點。第一步是將其落實到位，這是當前電價案例的一部分。

Our next question today is from the line of Sophie Karp with [Key Corp].

今天我們的下一個問題來自 [Key Corp] 的 Sophie Karp。

A lot of questions have been answered, but I wanted to ask you about the cost of capital and like the ROEs, right? So a bit of a push-pull in Michigan as in many other states right now. I'm just kind of curious how the conversations about the need for higher ROE are landing with the stakeholders at the commission. Like I'm not sure if you people are catching on to how fast the rates have risen and that really needs to -- you're going to have some adjustment to how they are reviewed, I guess, in the last few years. So any color on that would be helpful.

很多問題已經解答，但我想問你有關資本成本和股本回報率的問題，對吧？因此，與目前許多其他州一樣，密西根州也存在著一定的推拉效應。我只是有點好奇委員會的利害關係人如何就需要更高的股本回報率進行對話。就像我不確定你們是否意識到利率上升的速度有多快，這確實需要——我想，在過去幾年裡，你們將對利率的審查方式進行一些調整。所以任何顏色都會有幫助。

Sophie, it's Rejji. I appreciate the question. Let me just start by saying we're certainly making the case and have made the case really for the last few years around the need to have higher ROEs just given the changing cost of capital environment. I think treasuries probably a couple of hundred basis points higher than where they were when we first had 9.9% established as the prevailing ROE across our electric and gas businesses and DTs and parity as well. And so we're certainly making the case. And I think the case becomes stronger and stronger every day as we see continued hawkish monetary policy. So I think if -- to give you any confidence, I think it's -- we feel very good about the fact that there's a good floor at the 9.9% prevailing ROE, but we're going to continue to make the case that it should be higher.

蘇菲，我是雷吉。我很欣賞這個問題。首先我要說的是，考慮到資本環境成本的變化，我們確實正在證明這一點，並且在過去幾年中確實證明了需要提高股本回報率。我認為國債可能比我們最初將 9.9% 確定為我們電力和天然氣業務以及 DT 和平價的普遍 ROE 時的水平高出幾百個基點。所以我們肯定會這樣做。我認為，隨著我們看到持續的強硬貨幣政策，這種情況變得越來越強烈。因此，我認為，如果——為了給你任何信心，我認為——我們對 9.9% 的現行 ROE 有一個很好的下限這一事實感到非常滿意，但我們將繼續證明它應該更高。

As Garrick noted, we're seeking 10.25% in our pending electric case. And again, I think the data support that point of view. And we try to make the case in addition to all the different ways in which you can calculate the cost of equity. The fact is that we compete for capital against other utilities and other jurisdictions. And given the quantum of capital that we have, not just in our current 5-year plan, but in what we anticipate being our next and subsequent 5-year plan, we do think we need to be as competitive as possible on all fronts because you can take your dollars elsewhere as investors. And so we've been making the case loudly and clearly, I think DTE has as well, and hopefully, we can start to see a change in the wind here with respect to ROEs.

正如加里克（Garrick）指出的那樣，我們正在懸而未決的電力案件中尋求 10.25% 的賠償。再說一遍，我認為數據支持了這個觀點。除了計算股權成本的所有不同方法之外，我們還嘗試提供案例。事實上，我們正​​在與其他公用事業公司和其他司法管轄區爭奪資本。考慮到我們不僅在目前的 5 年計劃中，而且在我們預期的下一個和後續 5 年計劃中擁有的資本量，我們確實認為我們需要在所有方面都盡可能具有競爭力，因為作為投資者，您可以將資金帶到其他地方。因此，我們一直在大聲而清晰地闡述這一觀點，我認為 DTE 也是如此，希望我們能夠開始看到有關 ROE 的風向發生變化。

Got it. And then maybe if I can squeeze one more in. You've been doing your underground in pilots. And I'm just curious, what have you learned so far from this pilot project maybe in terms of cost or approach that needs to be taken. Curious if you can provide any color on how that is going.

知道了。然後也許我可以再擠一個進去。你一直在做地下飛行員。我只是很好奇，到目前為止，您從這個試點計畫中學到了什麼，也許是在成本或需要採取的方法方面。很好奇您是否能提供任何有關進展的資訊。

Well, just a point of clarification, what's introduced in the electric case is a pilot, a pilot of 10 miles. And as I shared, small but important so that the Public Service Commission has the opportunity to evaluate -- now we do do undergrounding already. We do it in the context of subdivisions and the like, and we have done a couple of trial runs. And what we've seen is very cost effective because of our gas business directional drilling underground is one of our specialties. We certainly have the equipment and the expertise to do that. And so we're able to be very competitive from an undergrounding perspective.

嗯，澄清一點，電動箱裡介紹的是飛行員，10英哩的飛行員。正如我所分享的，規模雖小但很重要，以便公共服務委員會有機會進行評估——現在我們已經在進行地下化了。我們是在細分等領域進行的，並且已經進行了幾次試運行。我們所看到的非常具有成本效益，因為我們的天然氣業務地下定向鑽井是我們的專長之一。我們當然擁有做到這一點的設備和專業知識。因此，從地下的角度來看，我們能夠非常有競爭力。

Now our plan stays out of congested areas, stays out of 3-phase construction. And so we're talking single phase, more [royal] construction where you have the right soil conditions, and we do over much of Michigan, which helps from a cost perspective. And so we've shared historically -- not historically more current, I guess, and the $350,000 a mile is, we think, very achievable.

現在我們的計劃是遠離擁擠區域，遠離三期建設。因此，我們正在談論單階段、更[皇家]的建設，在那裡你有合適的土壤條件，我們在密西根州的大部分地區都這樣做，從成本角度來看這很有幫助。因此，我們在歷史上分享過——我猜，歷史上並沒有更新，我們認為，每英里 35 萬美元是非常可以實現的。

Our next question today is from the line of Anthony Crowdell of Mizuho.

今天我們的下一個問題來自瑞穗銀行的安東尼克勞德爾。

All my questions have been answered.

我所有的問題都得到了解答。

Our next question is from the line of Ross Fowler of UBS.

我們的下一個問題來自瑞銀集團 (UBS) 的羅斯福 (Ross Fowler)。

Let's take it to the full hour, why not. And again, I throw out as many auto -- auto analogies as you'd like in the answer to this question. But I just wanted to get an update on the estimated bills meter installation issue, given the commission filed that show cost a couple of days ago. So I know Rejji kind of talked about this back when I saw you in August, but just an update there. And then the second part of the question is, do you think that has any sort of lateral impacts on the rate case proceeding? Or from your perspective, is the commission really looking at these as 2 separate filings and issues?

讓我們用整整一個小時來討論吧，為什麼不呢？再次，我在回答這個問題時拋出了盡可能多的自動類比。但我只是想了解估計的帳單安裝問題的最新情況，因為幾天前提交的委員會顯示了成本。所以我知道當我八月見到你時，Rejji 曾經談到過這個問題，但只是更新一下。問題的第二部分是，您認為這對費率案件審理有任何橫向影響嗎？或者從您的角度來看，委員會是否真的將這些視為兩個單獨的文件和問題？

So I don't know if I have any auto analogies for this one. We talked about this in great detail, and I provide probably a long answer, maybe too long an answer on the Q2 call. So I'll try to be brief, but this is just the next step in that. And so what I shared back, again, briefly what I shared in Q2 was recall that we had some 3G meters that were no longer supported. Our vendor could not meet some of the supply chain needs, again, considered a carryover from the pandemic and did not meet some of the read required reads out in the field.

所以我不知道我是否對此有任何汽車類比。我們非常詳細地討論了這個問題，我可能提供了一個很長的答案，也許在第二季電話會議上的答案太長了。所以我會盡量簡短，但這只是下一步。因此，我再次簡要分享了我在第二季分享的內容，即我們有一些不再受支援的 3G 儀表。我們的供應商無法滿足一些供應鏈需求，再次被認為是疫情的遺留問題，並且沒有滿足現場讀出的一些讀取要求。

And so that creates some billing issues for our customers. That's a problem. And the Public Service Commission clearly identified that. And so we shared in our Q2 call that, that issue is behind us. We filed a report in August, and this is the next step to reach resolution. And so I don't -- it's an important step. It gets us to the final end of this with the commission. I don't see any spillover impact into the electric rate case or in any other filings.

因此，這給我們的客戶帶來了一些計費問題。這是一個問題。公共服務委員會明確指出了這一點。因此，我們在第二季電話會議中表示，這個問題已經過去了。我們在八月提交了一份報告，這是達成解決方案的下一步。所以我不——這是重要的一步。它讓我們與委員會達成了最終的結論。我沒有看到電價案件或任何其他文件有任何溢出影響。

And we have no further questions in the queue today. So I'd like to hand back to Mr. Garrick Rochow for any final remarks.

今天我們沒有其他問題了。因此，我想請 Garrick Rochow 先生發表最後的評論。

Thanks, Harry, and I'd like to thank you for joining us today. We'll see you at EEI. Please take care and stay safe.

謝謝，哈利，我要謝謝你今天加入我們。我們在 EEI 見。請注意安全。

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。