CMS能源 (CMS) 2024 Q1 法說會逐字稿

Good morning, everyone, and welcome to the CMS Energy 2024 First 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. (Operator Instructions)

大家早安，歡迎閱讀 CMS Energy 2024 年第一季業績。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。 （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 May 2. This presentation is also being webcast and is available on CMS Energy's website in the Investor Relations section.

請注意，今天中午 12:00 將會重播本次電話會議。東部時間，持續到 5 月 2 日。

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

現在，我想將電話轉給財務主管兼投資者關係副總裁 Jason Shore 先生。

Thank you, Drew. 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.

謝謝你，德魯。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。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。

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. And now I'll turn the call over to Garrick.

本簡報也包括非公認會計原則措施。這些衡量標準與最直接可比較的公認會計原則衡量標準的對帳包含在附錄中並發佈在我們的網站上。現在我將把電話轉給加里克。

Thank you, Jason, and thank you, everyone, for joining us today. CMS Energy, 21 years of consistent industry-leading results. And what sets us apart is our performance, and it starts with our investment thesis. It is how we prioritize and focus our work to deliver the service our customers deserve in the financial outcomes you expect.

謝謝傑森，也謝謝大家今天加入我們。 CMS Energy，21 年來始終保持業界領先的業績。讓我們與眾不同的是我們的業績，這一切始於我們的投資理念。這就是我們如何確定工作的優先順序和重點，以便為客戶提供應有的服務並實現您期望的財務成果。

As we look ahead, we see ample investment opportunity over the long term as we lead the clean energy transformation and deliver the critical work needed to improve the reliability and resiliency of our electric and gas systems.

展望未來，隨著我們引領清潔能源轉型並開展提高電力和天然氣系統可靠性和彈性所需的關鍵工作，我們看到了充足的長期投資機會。

This important work is supported by legislation and a constructive regulatory environment, which provides confidence in making required investments to strengthen our system and prepare for a clean energy future.

這項重要的工作得到了立法和建設性監管環境的支持，這為進行必要的投資以加強我們的系統並為清潔能源的未來做好準備提供了信心。

We plan ahead through our electric reliability road map, natural gas delivery plan and our upcoming renewable energy plan, which all provide visibility and transparency, and the work will deliver to keep our systems safe, sound and clean.

我們透過電力可靠性路線圖、天然氣輸送計劃和即將推出的可再生能源計劃提前進行規劃，所有這些都提供了可見性和透明度，並且我們的工作將確保我們的系統安全、健全和清潔。

At CMS Energy, we work both sides of the equation. We make important investments in our systems, and we work to keep bills affordable. Our CE Way lean operating system helps us improve our performance, increase productivity and take costs out of the business. And we are hard at work to grow Michigan through economic development, ensuring Michigan thrives well into the future. These efforts are important and help us keep customers' bills affordable.

在 CMS Energy，我們兼顧等式的兩邊。我們對我們的系統進行了重要投資，並努力保持帳單負擔得起。我們的 CE Way 精實作業系統幫助我們提高績效、提高生產力並降低業務成本。我們正在努力透過經濟發展來發展密西根州，確保密西根州在未來蓬勃發展。這些努力很重要，有助於我們降低客戶的帳單負擔。

At CMS Energy, we make our investment thesis work year after year, and it continues to set us apart in the industry, delivering results for all our stakeholders. Today, I'm going to share 3 focus areas that have me excited about our future and give us confidence in our outlook.

在 CMS Energy，我們的投資理論年復一年地發揮作用，它繼續使我們在行業中脫穎而出，為所有利益相關者帶來成果。今天，我將分享 3 個重點領域，這些領域讓我對我們的未來感到興奮，並對我們的前景充滿信心。

First, our electric distribution system. As our world becomes more dependent on electricity for business growth, technology advancements, devices and vehicles, our system needs to be stronger, smarter and more resilient for our customers. But our vast electric distribution system is aging. It needs to be modernized and strengthened for increasingly severe weather. Over the past 5 years, we have seen some of the highest wind speeds on record in more frequent storm activity.

首先，我們的配電系統。隨著我們的世界越來越依賴電力來實現業務成長、技術進步、設備和車輛，我們的系統需要為客戶提供更強大、更智慧和更具彈性的系統。但我們龐大的配電系統正在老化。它需要現代化和加強以應對日益惡劣的天氣。在過去的五年裡，我們在更頻繁的風暴活動中看到了有史以來的最高風速。

We have responded to this need through our electric reliability road map. Currently, a 5-year $7 billion plan to improve performance and harden our system for the future. The plan utilizes best practices from across the industry, including designing the system with stronger pull, undergrounding, sectionalizing in further automation. And given the size of our distribution system, 90,000 miles of line, nearly 1,200 substations and a historically lower investment per mile compared to peers, we see a long runway of needed investment.

我們透過電力可靠性路線圖滿足了這項需求。目前，我們有一項為期 5 年、價值 70 億美元的計劃，旨在提高性能並強化我們的系統以應對未來。該計劃利用了整個行業的最佳實踐，包括設計具有更強拉力的系統、地下化、進一步自動化的分段。考慮到我們配電系統的規模、90,000 英里的線路、近 1,200 個變電站以及與同行相比歷史上較低的每英里投資，我們認為所需投資還有很長的路要走。

We've incorporated roughly half of the incremental $3 billion you see on Slide 4, into our current capital plan, and you'll start to see this investment show up in our next electric rate case, which we'll file in the second quarter. These important investments will mean fewer in shorter outages for our customers, and we are already seeing meaningful improvements in the investments made over the last few years.

我們已將您在幻燈片4 上看到的增量30 億美元中的大約一半納入我們當前的資本計劃中，您將開始看到這筆投資出現在我們的下一個電價案例中，我們將在第二季提交該案例。這些重要的投資將意味著我們的客戶可以減少較短的停機時間，而且我們已經看到過去幾年的投資取得了有意義的改善。

The second focus area I want to share is our continued leadership of the transformation to clean energy in the industry. In the past, I have shared our approved plans to eliminate coal in 2025, reduce carbon, grow energy efficiency and build out renewables in pursuit of our net zero target and cleaner air for our customers and our planet.

我想分享的第二個重點領域是我們在產業清潔能源轉型方面的持續領導力。過去，我曾分享過我們批准的計劃，即到 2025 年消除煤炭、減少碳排放、提高能源效率並發展可再生能源，以實現淨零排放目標，為我們的客戶和地球提供更清潔的空氣。

In late 2023, much of our clean energy targets were bolstered by Michigan's new clean energy law. This law is unique in the industry and is good for all stakeholders. It provides us with the opportunity to further reduce our carbon footprint while maintaining resource adequacy, affordable customer builds and delivering for our investors.

2023 年底，我們的大部分清潔能源目標都得到了密西根州新清潔能源法的支持。這項法律在業界是獨一無二的，對所有利害關係人都有好處。它為我們提供了進一步減少碳足跡的機會，同時保持資源充足、負擔得起的客戶建設和為我們的投資者提供服務。

On the right side of the slide, you'll see the opportunities ahead, as we prepare to meet Michigan's new clean energy law. It supports an accelerated plan with the decarbonization of our system. With an enhanced financial compensation mechanism, which provides a roughly 9% return on clean purchase power agreements.

在投影片的右側，您將看到未來的機遇，因為我們正在準備滿足密西根州的新清潔能源法。它支持我們系統脫碳的加速計劃。加強財務補償機制，為清潔購電協議提供約 9% 的回報。

In addition, there's an increased incentive on energy efficiency as we target 60% renewables by 2035 and 100% clean energy by 2040. And it gives us important flexibility as we think through how to best meet our customers' needs with renewables across the broad MISO footprint. This mechanism, the flexibility in the law, helps us balance customer affordability as we work through this transition.

此外，我們也加大了對能源效率的激勵力度，因為我們的目標是到2035 年使用60% 的再生能源，到2040 年使用100% 的清潔能源。再生能源最好地滿足客戶需求提供了重要的靈活性。這種機制，即法律的彈性，有助於我們在過渡過程中平衡客戶的承受能力。

For our customers, all this means stronger, more resilient and cleaner energy. For our investors, an exciting and robust investment runway well into the future.

對我們的客戶來說，這一切都意味著更強大、更有彈性和更清潔的能源。對我們的投資者來說，這是一條通往未來的令人興奮且強勁的投資跑道。

Now let's work the other side of this investment equation. The third focus area that I want to share today how we are helping Michigan grow and thrive, which is good for our company, and our customers.

現在讓我們研究這個投資方程式的另一面。今天我想分享的第三個重點領域是我們如何幫助密西根州發展和繁榮，這對我們的公司和我們的客戶都有好處。

Growth across our service territory is good for Michigan, helps keep bills affordable for our customers and provides headroom to the investments, I just referenced. And I couldn't be more excited about the growth we need in our state.

我剛才提到，我們服務領域的成長對密西根州來說是件好事，有助於讓我們的客戶負擔得起帳單，並為投資提供空間。我對我們州所需的成長感到非常興奮。

Michigan has a strong fiber network, access to fresh water, temperate climate, energy-ready site, and attractive energy rate. In February, we secured a contract with a large data center in the heart of our service territory. The majority of the 230 megawatts of new load is expected to be online by 2026. This is nice load growth.

密西根州擁有強大的光纖網路、淡水資源、溫和的氣候、能源就緒的場地以及有吸引力的能源價格。二月份，我們與位於我們服務區域中心的一個大型資料中心簽訂了合約。 230 兆瓦新增負載中的大部分預計將在 2026 年上線。

And I'm even more excited about the manufacturing load growth we are seeing in Michigan, which is a differentiator for us. Our statewide leadership project such as Gotion, Hemlock Semiconductor, Ford and many others, continues to drive new and expanding load in our service territory. These projects bring significant jobs, supply chain, commercial growth, housing starts and broad Michigan investment.

我對密西根州的製造負荷成長感到更加興奮，這對我們來說是一個差異化因素。我們的全州領導項目，如國軒、Hemlock Semiconductor、福特等，繼續在我們的服務領域推動新的和不斷擴大的負載。這些項目帶來了大量的就業機會、供應鏈、商業成長、住房開工和廣泛的密西根投資。

The ancillary benefit of manufacturing growth are good for all customers, can bolster our confidence in our plan for 2024 and beyond. Our customers thrive when Michigan thrives. And I'm proud of the diversity and quality of new load our leadership is working to bring to the state.

製造業成長的附帶好處對所有客戶都有好處，可以增強我們對 2024 年及以後計劃的信心。當密西根蓬勃發展時，我們的客戶也會蓬勃發展。我為我們的領導層正在努力為該州帶來的新工作的多樣性和品質感到自豪。

Now let's get into the numbers. In the first quarter, we reported adjusted earnings per share of $0.97. Although we experienced a warmer-than-normal winter, the healthy set of countermeasures we deployed in 2023 and as well as our active use of the CE Way continued to benefit us in 2024. We remain confident in this year's guidance and long-term outlook and are reaffirming all our financial objectives.

現在讓我們來看看數字。第一季度，我們報告調整後每股收益為 0.97 美元。儘管我們經歷了比平常更溫暖的冬季，但我們在 2023 年部署的一系列健康應對措施以及我們積極採用 CE 方式繼續使我們在 2024 年受益。我們所有的財務目標。

Our full year guidance remains at $3.29 to $3.35 per share with continued confidence toward the high end. Longer term, we continue to guide to the high end of our adjusted EPS growth range of 6% to 8%, which implies and includes 7% up to 8%. With that, I'll hand the call over to Rejji.

我們的全年指引仍為每股 3.29 美元至 3.35 美元，並對高端市場繼續充滿信心。從長遠來看，我們繼續將調整後每股盈餘成長範圍的上限引導至 6% 至 8%，這意味著並包括 7% 至 8%。這樣，我就把電話轉給 Rejji。

Thank you, Garrick, and good morning, everyone. On Slide 7, you'll see our standard waterfall chart, which illustrates the key drivers impacting our financial performance for the quarter and our year-to-go expectation. For clarification purposes, all of the variance analysis herein are in comparison to 2023, both on a first quarter and 9 months to go basis.

謝謝你，加里克，大家早安。在投影片 7 上，您將看到我們的標準瀑布圖，其中說明了影響我們本季財務表現和未來一年預期的關鍵驅動因素。出於澄清目的，本文中的所有變異數分析都是與 2023 年相比，無論是第一季還是未來 9 個月。

In summary, through the first quarter of 2024, we delivered adjusted net income of $288 million or $0.97 per share, which compares favorably to the comparable period in 2023 largely due to higher weather-normalized sales and lower service restoration costs of utility, partially offset by mild weather.

總之，截至2024 年第一季度，我們實現了調整後淨利潤2.88 億美元，即每股0.97 美元，與2023 年同期相比，這在很大程度上是由於天氣正常化銷售的增加和公用事業服務恢復成本的降低，部分抵消了天氣溫和。

To elaborate on the impact of weather, we experienced another warm winter in Michigan during the first quarter, which had the second lowest number of heating degree days in the past 25 years. The warm winter weather resulted in $0.06 per share of negative variance, which appears modest on the surface given the historically low number of heating degree days. However, it's important to note that last year's winter was also quite warm.

為了詳細說明天氣的影響，我們在第一季經歷了密西根州的另一個暖冬，該州的暖氣度日數是過去 25 年來第二低的。溫暖的冬季天氣導致每股 0.06 美元的負方差，考慮到歷史上供暖度日數較低，這一數字表面上看來不大。然而，值得注意的是，去年的冬天也相當溫暖。

Rate relief net of investment-related expenses resulted in $0.05 per share of positive variance due to constructive outcomes achieved in our most recent electric rate case and last year's gas rate case settlement coupled with residual benefits from our 2023 electric rate case settlement approved last January.

由於我們最近的電費案件和去年的天然氣費案件和解取得了建設性成果，加上我們去年1 月批准的2023 年電費案件和解的剩餘收益，扣除投資相關費用後的電費減免導致每股0.05 美元的正差異。

From a cost performance perspective, our financials in the first quarter of 2024 were positively impacted by lower operating and maintenance or O&M expenses primarily attributable to lower service restoration costs than we experienced last year.

從成本績效的角度來看，我們 2024 年第一季的財務狀況受到營運和維護或 O&M 費用降低的正面影響，這主要是由於服務恢復成本低於去年。

Also, as Garrick noted, we continue to see benefits from select cost reduction initiatives implemented in 2023, which have offset modest inflationary trends we've experienced in various cost categories such as wages, as planned, and we anticipate this trend to continue over the remainder of the year.

此外，正如加里克指出的那樣，我們繼續看到2023 年實施的特定成本削減舉措帶來的好處，這些舉措按計劃抵消了我們在工資等各種成本類別中經歷的溫和通脹趨勢，並且我們預計這種趨勢將在2023 年繼續下去。

And our [catch-all] category represented by the final bucket in the actual section of the chart, you'll notice a healthy pickup of $0.19 per share, largely driven by weather normalized sales, which contributed almost half of said positive variance, particularly in our residential and commercial customer classes. It's worth noting that the leap year impacts comparability with 2023 for weather-normalized sales, but even absent the effects of the leap year, our residential weather-normalized sales up about 0.5%, and our commercial customer class was up almost 2.5% versus the prior year, which highlights the continued solid performance of our higher-margin customer classes.

我們的[包羅萬象]類別由圖表實際部分中的最後一個桶代表，您會注意到每股健康回升0.19 美元，這主要是由天氣正常化銷售推動的，這幾乎貢獻了所述正方差的一半，特別是在我們的住宅和商業客戶類別中。值得注意的是，閏年影響了與2023 年天氣正常化銷售的可比性，但即使沒有閏年的影響，我們的住宅天氣正常化銷售也增長了約0.5%，我們的商業客戶類別與2023 年相比成長了近2.5%。

Looking ahead, we plan for normal weather, as always, which equates to $0.22 per share of positive variance for the remaining 9 months of the year, given the mild temperatures experienced for virtually all of 2023.

展望未來，我們一如既往地為正常天氣做好計劃，考慮到 2023 年幾乎全年氣溫溫和，這相當於今年剩餘 9 個月的每股正方差為 0.22 美元。

From a regulatory perspective, we're assuming $0.18 per share of positive variance, which is largely driven by the constructive electric rate order received from the commission in early March. We are also assuming a supportive outcome in our pending gas rate case.

從監管角度來看，我們假設每股正方差為 0.18 美元，這主要是由 3 月初從委員會收到的建設性電費命令推動的。我們也假設我們懸而未決的天然氣費率案件會得到支持性結果。

On the cost side, we anticipate lower overall O&M expense at the utility driven by the usual cost performance fueled by the CE Way, and last year's voluntary separation program, among other 2023 cost reduction initiatives that continue to bear fruit.

在成本方面，我們預計公用事業公司的整體營運和維護費用將下降，這是由於 CE 方式、去年的自願分離計劃以及其他繼續取得成果的 2023 年成本削減舉措所推動的通常成本績效的推動。

We also assumed lower service restoration costs given last year's record level of storm activity in our service territory. In aggregate, we expect these items to drive $0.09 per share of positive variance for the remaining 9 months of the year.

鑑於去年我們服務區域內的風暴活動達到創紀錄水平，我們也假設服務恢復成本較低。總的來說，我們預計這些項目將在今年剩餘 9 個月內帶來每股 0.09 美元的正方差。

Lastly, in the penultimate bar on the right-hand side, you'll note a significant negative variance which largely consists of the absence of select onetime countermeasures from last year and the usual conservative assumptions around weather-normalized sales and nonutility performance among other items. In aggregate, these assumptions equate to $0.52 to $0.58 per share of negative variance.

最後，在右側倒數第二條中，您會注意到一個顯著的負方差，這主要是由於去年沒有選擇一次性對策以及對天氣正常化銷售和非公用事業績效等項目的通常保守假設。總的來說，這些假設相當於每股 0.52 至 0.58 美元的負方差。

Slide 8 offers the latest updates on our regulatory forward calendar. As you'll note in the top section, we plan to file a Renewable Energy Plan or REP by mid-November, which will highlight our strategy for complying with the various renewable energy targets associated with Michigan's new clean energy law. We are excited by the prospects of the new law, which will support our net zero carbon by 2040 goal and look forward to socializing our filing with key stakeholders in the coming months.

第 8 張投影片提供了我們的監管遠期日曆的最新更新。正如您將在頂部部分注意到的那樣，我們計劃在11 月中旬之前提交一份可再生能源計劃或REP，這將突出我們遵守與密西根州新清潔能源法相關的各種可再生能源目標的策略。我們對新法律的前景感到興奮，它將支持我們在 2040 年實現淨零碳的目標，並期待在未來幾個月內與主要利益相關者分享我們的申請。

Once filed, the commission will have 300 days to issue an order, which will likely be in the third quarter of 2025. Therefore, as mentioned during our fourth quarter call, you should expect to the 5-year plan that will roll out in the first quarter of 2026 will incorporate a greater portion of the financial impacts of the REP.

一旦提交，委員會將有300 天的時間發布命令，這可能是在2025 年第三季。 。

Moving on to our general rate case filings. You can expect our next electric rate case to be filed in late May to early June time frame. This filing will incorporate some of the initial spend we have outlined in our 5-year electric reliability road map that Garrick touched on earlier. Given the 10-month stipulated period for rate cases in Michigan, we would expect to receive an order from the commission in the first quarter of 2025 and thus, the related financial impact.

繼續我們的一般費率案件備案。您可以預期我們的下一個電價案件將於五月底至六月初的時間範圍內提交。該文件將納入我們在加里克早些時候提到的五年電力可靠性路線圖中概述的一些初始支出。鑑於密西根州費率案件的規定期限為 10 個月，我們預計將在 2025 年第一季收到委員會的命令，從而產生相關的財務影響。

Lastly, we anticipate an order in our pending gas rate case by mid-October, absent a settlement. While we don't always include a balance sheet update on our formal presentation, it is worth noting that Moody's and Fitch reaffirmed our credit ratings in March and April, respectively, as noted at the bottom of the table on Slide 9.

最後，如果沒有達成和解，我們預計將在 10 月中旬之前對懸而未決的天然氣費率案件下達命令。雖然我們並不總是在正式簡報中包含資產負債表更新，但值得注意的是，穆迪和惠譽分別在3 月和4 月重申了我們的信用評級，如幻燈片9 表格底部所示。

Longer term, we continue to target solid investment-grade credit ratings, and we'll continue to manage our key credit metrics accordingly as we balance the needs of the business. And with that, I'll hand it back to Garrick for his final remarks before the Q&A session.

從長遠來看，我們將繼續以穩定的投資等級信用評級為目標，並且在平衡業務需求的同時，我們將繼續相應地管理我們的關鍵信用指標。接下來，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. Our simple investment thesis is how we run our business and provides us with confidence for a strong outlook this year and beyond. 21 years of consistent industry-leading financial performance, 21 proof point, regardless of conditions, no excuses, just results. With that, Drew, please open the lines for Q&A.

謝謝你，雷吉。我們簡單的投資主題是我們如何經營我們的業務，並讓我們對今年及以後的強勁前景充滿信心。 21 年始終保持業界領先的財務業績，21 個證明點，無論條件如何，沒有藉口，只有結果。那麼，德魯，請打開問答線。

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

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

I guess, firstly, just given you have an upcoming electric case. How are you thinking about any kind of incremental construct improvements there? Would you kind of seek an expanded IRM framework? And do you need to address any kind of the rate design issues with C&I rates, especially as you're trying to accommodate new load like data center growth, especially just trying to kind of balance that customer rate impact.

我想，首先，考慮到您即將推出一個電動馬達箱。您如何看待那裡的任何增量結構改進？您會尋求擴展的 IRM 框架嗎？您是否需要解決 C&I 費率方面的任何類型的費率設計問題，特別是當您試圖適應資料中心成長等新負載時，尤其是試圖平衡客戶費率影響。

Shahriar, you want me to get into rate design. You guys are all going to fall asleep on this call if I go into rate design. Let me start out with the fundamentals of this electric case. I think this is really important. You've heard me time and time again, whether it's investor meetings or in our calls and the importance of improving reliability. We've seen higher wind speeds, more frequent storm activity. And just this is our focus as a company, how we improve reliability and the longer-term resiliency of our electric system.

Shahriar，你要我進入費率設計領域。如果我進行費率設計，你們都會在這次電話會議上睡著的。讓我從這個電動機箱的基本原理開始。我認為這非常重要。無論是在投資者會議上還是在我們的電話會議中，您都一次又一次地聽到我說過提高可靠性的重要性。我們看到風速更高，風暴活動更頻繁。這正是我們作為一家公司的重點，即我們如何提高電力系統的可靠性和長期彈性。

You can also hear that from the commissioners. They're very clear about that expectation. And so I would say there's really good alignment there. And this reliability road map does just that. It's aimed at those important capital improvements. There's some O&M work associated with that as well. These are best practices in the industry, which we're deploying across our system and going to a meaningful benefit for our customers.

您也可以從委員那裡聽到這一點。他們對這個期望非常清楚。所以我想說那裡確實有很好的一致性。這個可靠性路線圖就是這樣做的。它的目標是那些重要的資本改善。還有一些與之相關的維運工作。這些是業界的最佳實踐，我們正在整個系統中部署這些實踐，並為我們的客戶帶來有意義的利益。

In addition to that, we're focused on the affordability piece. This is how the fundamentals of this, great to invest the capital, but you also have to be focused on the affordability piece for our customers. And so it's driving down unit cost through the CE Way, it's other cost offsets, there's a whole range of things we're doing to make sure this next electric rate case delivers for our customers in terms of improved reliability and offsetting from a cost perspective. So that's the fundamentals of the case.

除此之外，我們也關注負擔能力。這就是基本原理，投資資本很棒，但你也必須專注於我們客戶的承受能力。因此，它透過 CE 方式降低單位成本，這是其他成本抵消，我們正在做一系列的事情，以確保下一個電價案例為我們的客戶提供更高的可靠性和從成本角度抵消。這就是案例的基本原理。

And so we're going to look at different mechanisms in that case. As I've shared before, I would anticipate that we, again, take advantage of our infrastructure recovery mechanism that was supported in the last case. We'll look at a storm recovery mechanism. We've utilized that in previous cases. We'll continue to look at that optionality and what that could look like in this case.

因此，我們將研究這種情況下的不同機制。正如我之前分享的，我預計我們將再次利用上一個案例中支援的基礎設施恢復機制。我們將研究風暴恢復機制。我們在先前的案例中已經使用過它。我們將繼續研究這種選擇以及在這種情況下可能會是什麼樣子。

Again, longer term, we'll file this in the May, first part of June. I feel confident about what we're putting together based on the important merits of the case that are going to improve reliability, will balance the important components of affordability.

同樣，從長遠來看，我們將在五月、六月上旬提交此文件。我對我們根據案例的重要優點所做的努力充滿信心，這些優點將提高可靠性，平衡負擔能力的重要組成部分。

Now your question on rate design, there's a lot in rate design. I really will put you to sleep if I go there. We're going to make sure as the state expands, and we have this important load growth that both energy and capacity component, that cost of service mechanism is appropriately allocated to where those costs are. That's what we've done historically. That's what the commission supported. And so we'll look at that certainly within the context of this case, but it's really smaller in the grand scheme of the important work of this case.

現在你關於費率設計的問題，費率設計有很多內容。如果我去那裡我真的會讓你睡著的。我們將確保，隨著國家的擴張，能源和容量部分的負載成長，服務成本機制將適當地分配到這些成本所在的地方。這就是我們在歷史上所做的。這就是委員會所支持的。因此，我們肯定會在本案的背景下看待這一點，但在本案重要工作的宏偉計劃中，它確實較小。

Got it. Perfect. And then lastly, as we're thinking about the energy law construct (inaudible), I guess, what are some of the first changes you can implement, especially as we're thinking about the upcoming IRP update. Would you lean more on sort of that FCM construct? And is any of this kind of embedded in your long-range growth guidance?

知道了。完美的。最後，當我們考慮能量法構造（聽不清楚）時，我想，您可以實施的第一個變更是什麼，特別是當我們考慮即將到來的 IRP 更新時。您會更傾向於 FCM 結構嗎？您的長期成長指導中是否包含此類內容？

It's still early days on some of those modeling. So we'll file our REP, Renewable Energy Plan, on November 15. And as I've shared historically here or previous here, there's a broad spectrum of ownership versus PPAs. PPAs obviously have the opportunity for the financial compensation mechanism or if you're going to build everything and own everything, obviously, you have the opportunity to earn your ROE.

其中一些建模還處於早期階段。因此，我們將在 11 月 15 日提交我們的 REP（可再生能源計劃）。 正如我在這裡或之前在這裡分享的歷史，與 PPA 相比，所有權範圍很廣。購電協議顯然有機會獲得經濟補償機制，或者如果你要建造一切並擁有一切，顯然，你有機會賺取你的股本回報率。

So there's a broad spectrum. You do all either end, those are the bookends. I think it's somewhere in the mix, and there's a lot of variables we need to consider that we're modeling out right now, and that's why we're not prepared to share what that looks like. But let me hand it over to Rejji, I know he has some additional thoughts on this.

所以有一個廣泛的範圍。你做所有的兩端，那些是書擋。我認為這是混合中的某個地方，我們需要考慮很多變量，我們現在正在建模，這就是為什麼我們不准備分享它的樣子。但讓我把它交給 Rejji，我知道他對此還有一些額外的想法。

Thanks for the question. All I would add to Garrick's comments is that in our current 5-year plan, what we've incorporated is just a modest amount of PPAs with the financial compensation mechanism, and that's solely because of the fact that any PPA put in place after June of this year would be subject to the new FCM, which is around 9% versus the prior of about 5.5%. And so we have a portion of that, albeit a small portion incorporated in this 5-year plan.

謝謝你的提問。我想對加里克的評論補充的是，在我們當前的五年計劃中，我們只納入了少量帶有經濟補償機制的購電協議，而這僅僅是因為任何購電協議都是在六月之後實施的。所以我們有其中的一部分，儘管只是一小部分納入了這個五年計劃。

We've also incorporated the enhanced economic incentives associated with energy efficiency. And so that's flowing through our plan as well. And remember, historically, we've, on the electric side, been reducing load about 2% year-over-year. And before the new energy law, we get a 20% incentive on top of that spend, that's now 22.5%, so that's also a source of financial upside embedded into this plan.

我們也納入了與能源效率相關的強化經濟誘因。這也貫穿我們的計劃。請記住，從歷史上看，我們在電力方面的負載年減了約 2%。在新能源法出台之前，我們除該支出外還獲得 20% 的激勵，現在為 22.5%，因此這也是該計劃中的財務優勢來源。

But to Garrick's earlier comments, the much more expansive opportunities, whether it's scaling contracts or the ownership opportunities or more specifically the rate base opportunities. Those are not incorporated into our 5-year plan and really won't be until 2026.

但根據加里克先前的評論，更廣泛的機會，無論是擴展合約還是所有權機會，或更具體地說是利率基礎機會。這些都沒有納入我們的 5 年計劃，實際上要到 2026 年才會納入。

Okay. Perfect. Appreciate it, Garrick, for the record, your rate design answer was not boring at all.

好的。完美的。感謝它，加里克，鄭重聲明，你的費率設計答案一點也不無聊。

Our next question comes from Nick Campanella from Barclays.

我們的下一個問題來自巴克萊銀行的尼克·坎帕內拉。

I guess just thinking about the other off-site opportunities, can you maybe give us an update on your conversations around DIG and the recontracting opportunity there? And how those discussions have been progressing? Is this something that we can maybe see an update on by year-end? Or is it more a '25, '26 item? Maybe just talk about timing there.

我想只是考慮一下其他場外機會，您能否向我們介紹一下您圍繞 DIG 進行的對話以及那裡的重新簽約機會的最新情況？這些討論進展如何？我們可能會在年底看到更新嗎？還是它更像是'25、'26 的產品？也許只是談論那裡的時間。

Nick, this is Rejji. I appreciate the question. Yes, as we talked about on our fourth quarter call, we still have about 30% to 35% open margin in the outer years of our plan, really starting in sort of 2026 or second half of 2016 going through 2028. We certainly are seeing attractive reverse inquiry for that open margin on the capacity side. We're sold through on the energy side through 2028 or through the duration of this 5-year plan, but there still are opportunities in the capacity side. And we'll be thoughtful.

尼克，這是雷吉。我很欣賞這個問題。是的，正如我們在第四季度電話會議上談到的，在我們計劃的最後幾年，我們仍然有大約30% 到35% 的未平倉利潤，真正從2026 年或2016 年下半年開始，一直到2028 年。我們在 2028 年或本 5 年計畫期間的能源方面已完成銷售，但產能方面仍有機會。我們會深思熟慮。

We never are too aggressive in selling down that open margin. We like to have a little bit of optionality, particularly with a really attractive technical that we continue to see in Zone 7 with the tightening of supply and upward pressure on demand. And so we'll provide an update in our next 5-year plan, as we always do. And I expect that we'll be selling down a portion of the open margin ratably over the coming months and quarters, but should still have probably a little open margin as we provide a new 5-year plan in the first quarter next year. Is that helpful?

我們從來不會過於激進地拋售未平倉保證金。我們希望有一點選擇性，特別是隨著供應收緊和需求上行壓力，我們在第七區繼續看到真正有吸引力的技術。因此，我們將一如既往地在下一個五年計劃中提供最新資訊。我預計我們將在未來幾個月和幾季大幅減少部分未平倉保證金，但由於我們在明年第一季提供新的五年計劃，因此仍可能有一點未平倉保證金。有幫助嗎？

That is helpful. I appreciate that. And I guess thinking about the rate case cadence and outcomes. On the electric side, the last case to kind of pursue the fully litigated outcome, but on the gas side, you just received staff testimony. And I think, Rejji, I heard you say you get an order in fourth quarter absent a settlement. So just what's your reaction to staff starting point here? And what are your thoughts on being able to settle the gas case?

這很有幫助。我很感激。我想考慮一下案件的節奏和結果。在電力方面，這是追求完全訴訟結果的最後一個案件，但在天然氣方面，您剛剛收到了工作人員的證詞。我想，Rejji，我聽到你說如果沒有和解的話，你會在第四季收到訂單。那麼您對這裡的員工起點有何反應？您對解決瓦斯案有何看法？

I'd go back Nick to the fundamentals of that case, aiming for a safe natural gas system, you continue to reduce methane across that and deliver affordable natural gas to our customers. And so again, the imbalance -- that equation of making the investments in the natural gas system, also just like we're doing in the electric business, aiming for an improved affordability across the gas system through unit costs, through cost out using the CE Way and the likes.

我想讓尼克回到這個案例的基本原理，目標是建立一個安全的天然氣系統，繼續減少甲烷排放，並為我們的客戶提供負擔得起的天然氣。再一次，這種不平衡－在天然氣系統中進行投資的等式，也就像我們在電力產業中所做的那樣，旨在透過單位成本、透過使用CE方式等。

So those fundamentals are true. Staff position, I would categorize as constructive, a constructive starting point. And so we'll look, once we have that position, we're going to look for the opportunity for settlement. We've been able to work with a number of the interveners in the past and have a good track record there. But I also hear this, I'm confident in the testimony and the merits of the case. So if we need to go to full distance, we will, and get a constructive outcome both for our customers and stakeholders.

所以這些基本原理是正確的。員工職位，我將其歸類為建設性的、建設性的起點。所以我們會看看，一旦我們有了這個立場，我們就會尋找和解的機會。我們過去曾與許多幹預者合作，並擁有良好的記錄。但我也聽到了這一點，我對證詞和案件的是非曲直充滿信心。因此，如果我們需要全力以赴，我們將為我們的客戶和利害關係人取得建設性的成果。

Our next question comes from Jeremy Tonet from JPMorgan.

我們的下一個問題來自摩根大通的傑里米·託內特。

Just want to dive in, I guess, to the sales outlook, came in a bit better than expected, I guess, for the first quarter and for the balance of the year, it looks like that's trending better than expected. And just wondering by customer class, if you could dive in a bit more on the drivers that you're seeing that within each class that is leading to this uptick?

我想深入了解銷售前景，我想第一季和今年剩餘時間的銷售前景比預期要好一些，看起來趨勢比預期要好。只是想知道按客戶類別，您是否可以更深入地了解每個類別中導致這種上升的驅動因素？

Ye's. Jeremy, this is Rejji. I appreciate the question. So yes, we were pleased with the first quarter performance of non-weather sales. We provide good color on that in our earnings digest, which you probably saw. But going through the customer classes, we saw residential up just under 1.5% versus Q1 of 2023. And so on the surface that looks quite good, but it's important to note that the leap day in the quarter because it's a leap year, drove about 2/3 of that. But still even absent leap day, I mentioned in my prepared remarks, still up about 0.5%.

是的。傑里米，這是雷吉。我很欣賞這個問題。所以，是的，我們對第一季非天氣銷售的表現感到滿意。我們在收益摘要中提供了很好的說明，您可能已經看到了。但透過客戶類別，我們發現住宅與2023 年第一季相比成長了不到1.5%。的增長。但我在準備好的發言中提到，即使沒有閏日，仍上漲約 0.5%。

I still think we continue to see continued upside of the return to work or return to facilities trend, where I think we had pretty conservative assumptions about returning to facilities, and we are seeing a stickiness to folks having our corporations retaining what I would describe as a hybrid workforce. And so that is still, I think, delivering some surprise to the upside, and it is a higher margin customer class, as you know.

我仍然認為，我們繼續看到返回工作或返回設施趨勢的持續上升趨勢，我認為我們對返回設施有相當保守的假設，而且我們看到人們對讓我們的公司保留我所描述的東西的粘性混合勞動力。因此，我認為這仍然會給上行帶來一些驚喜，正如你所知，這是一個利潤率較高的客戶類別。

On the commercial side, really quite pleased with what we've seen. And so the number was just under 3.5% increase versus Q1 of 2023. And the leap year only affected about 1/3 of that. So pro forma for the leap year, we were still just under 2.5%. So very pleased with that. And our speculation, we've seen some of the subsectors within commercial that have performed pretty well. Agriculture, mining, up about 6.5%. We also saw entertainment up about 3%. And so we've seen some of the subsectors perform pretty well.

在商業方面，我們對所看到的非常滿意。因此，與 2023 年第一季相比，這一數字僅增長了不到 3.5%。因此，預計閏年，我們的成長率仍略低於 2.5%。對此非常滿意。根據我們的推測，我們已經看到商業領域的一些子行業表現相當不錯。農業、採礦業成長約6.5%。我們也看到娛樂業成長了約 3%。因此，我們看到一些子行業的表現相當不錯。

But we also think because folks are actually going to the office, at least 3 days a week, that does create foot traffic in communities and folks are going to cafes and things of that nature. So that's also part of it as well, but that's a bit more speculate there, but that's our sense.

但我們也認為，由於人們實際上每周至少 3 天去辦公室，這確實增加了社區的人流量，人們會去咖啡館和類似的地方。所以這也是其中的一部分，但這更多的是猜測，但這是我們的感覺。

And then within Industrial, if you exclude one low-margin large customer, we're just over -- sorry, just slightly up, let's say, about 20, 25 basis points, and the leap year did have a big impact on that class. And so pro forma for the leap year, you're down about 1%. I will always caveat 2 things whenever we talk about weather-normalized sales. One, remember, those numbers include the fact that we're reducing our load by 2% each year in electric due to energy efficiency. So all these numbers should be on a gross basis, up 2%. And so you should provide that color to these industrial numbers.

然後在工業領域，如果你排除一個低利潤的大客戶，我們就結束了——抱歉，只是稍微上漲，比如說，大約 20、25 個基點，而閏年確實對該類別產生了很大的影響。因此，預計閏年，下降了約 1%。每當我們談論天氣正常化銷售時，我總是會警告兩件事。首先，請記住，這些數字包括由於能源效率的原因，我們每年將電力負載減少 2%。因此，所有這些數字按總量計算應該會增加 2%。因此，您應該為這些工業數字提供該顏色。

The other thing I always caveat is that weather normalization math as good as our team is, as hard as they work to get it right, is a very imperfect science. And so it is very difficult to get these numbers exactly right.

我總是警告的另一件事是，天氣正常化數學與我們的團隊一樣出色，儘管他們努力使其正確，但它是一門非常不完美的科學。因此很難準確地得到這些數字。

But what I would say in terms of industrial that we feel very good, as Garrick noted in his prepared remarks about the economic outlook and just have a robust pipeline and a very diversified pipeline of industrial opportunities, which really aren't reflected in our numbers at this point. It won't be until the outer years of our plan, and we'll be disappointed if that opportunity doesn't continue to bear fruit for the next couple of years.

但我想說的是，就工業而言，我們感覺非常好，正如加里克在他準備好的有關經濟前景的演講中指出的那樣，我們擁有強大的管道和非常多樣化的工業機會管道，這實際上並沒有反映在我們的數據中在此刻。直到我們計劃的最後幾年，如果這個機會在接下來的幾年裡無法繼續取得成果，我們將會感到失望。

Now that's the color I can offer across each customer class, but certainly happy to take any follow-ups as needed.

現在，這就是我可以為每個客戶類別提供的顏色，但當然很樂意根據需要採取任何後續行動。

That's very helpful. And maybe just pivoting a bit here, it seems on the side that they lay out there's a bit of cushion to hitting the guide in '24. And so just wondering, I guess, how you feel confidence level guide at this point, does it put you in a position to start thinking about '25? Just wanted to get a sense for how that stands.

這非常有幫助。也許只是在這裡稍微旋轉一下，從側面來看，他們似乎為 24 年的指南提供了一些緩衝。所以我想知道，你此時的信心程度指導如何，這是否讓你能夠開始考慮「25」？只是想了解一下這是怎麼回事。

Yes. I would say, Jeremy, early days. Obviously, we're delighted that 2024 is not 2023 in that we don't have a big storm as well as mild weather to start off the year, which we obviously saw last year. But to be clear, we still saw negative variance in terms of weather, top line-related weather. And so there's still some work to do. And so we are countermeasuring and again, very confident in the outlook. But it's a little early before we start thinking about derisking 2025 and beyond.

是的。我想說，傑里米，早期。顯然，我們很高興 2024 年不是 2023 年，因為今年伊始沒有大風暴，也沒有溫和的天氣，這顯然是我們去年看到的。但需要明確的是，我們仍然看到天氣方面的負面差異，也就是與營收相關的天氣。所以還有一些工作要做。因此，我們正在採取對策，並且再次對前景充滿信心。但我們現在開始考慮消除 2025 年及以後的風險還為時過早。

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大衛·阿卡羅。

I was wondering what you're seeing in terms of maybe data center demand in the pipeline. Any uptick in further requests to connect beyond the big kind of megawatt addition that you called out? And wondering if that customer class, I guess, would potentially be involved in the voluntary renewables plan? Any upside potential there?

我想知道您在管道中可能對資料中心的需求方面看到了什麼。除了您所說的大規模增加兆瓦之外，進一步的連線請求是否增加？我想知道該客戶階層是否可能參與自願性再生能源計畫？有什麼上升潛力嗎？

Thanks for your question, David. A couple of things on this. I typically don't like to talk about the pipeline just because it's pretty speculative on that. And many of these data center companies are testing the waters in a variety of different utilities. And so we typically talk in terms of contracts. And when we talk about economic development, whether it's manufacturing or data centers, it's secured contracts, which we, again, feel really good about. Let me reflect a little bit on this project, and then I'll talk -- I will highlight the pipeline. I will get to your answer.

謝謝你的提問，大衛。關於這一點有幾點。我通常不喜歡談論管道，因為它非常具有推測性。許多資料中心公司正在各種不同的公用事業領域進行測試。因此，我們通常會根據合約進行討論。當我們談論經濟發展時，無論是製造業還是資料中心，它都是有保障的合同，我們再次對此感到非常滿意。讓我稍微思考一下這個項目，然後我會談談——我將重點放在管道上。我會得到你的答案。

This particular project, this data center expansion that we mentioned in the prepared remarks, is 230 megawatts, online by 2025, a majority of the load in place by 2026. And so that does speak to our ability and capabilities to be able to deliver for these customers.

這個特殊的項目，即我們在準備好的發言中提到的資料中心擴建項目，到2025 年上線容量為230 兆瓦，到2026 年大部分負載到位。和能力。

And then you see Michigan, and I said this in some of my remarks, temperate climate, which is great for the heating and cooling load of a data center, a lot of freshwater and then energy-ready sites, attractive energy rates, good fiber network, all that comes together to make Michigan really attractive.

然後你看到密西根州，我在一些演講中說過，氣候溫和，非常適合數據中心的供暖和製冷負荷，有大量淡水和能源就緒站點，有吸引力的能源價格，良好的光纖網絡，所有這些共同使密西根州真正具有吸引力。

I will say within the state of Michigan, there is a sales and use tax that exists where there's roughly a dozen states that have the sales and use tax in place, about 6%. There is an exemption process as being a build that are being considered in the House and Senate. It's passed the House in a bipartisan way. It's moved over to the Senate for consideration. We think that's going to move forward, that exemption, probably in the June, July time frame at the end of the session before they go on summer break. And that will open up Michigan a bit more for that pipeline.

我要說的是，在密西根州，有大約 12 個州徵收銷售和使用稅，稅率約為 6%。眾議院和參議院正在考慮一項豁免程序。它已以兩黨的方式在眾議院獲得通過。它已移交給參議院審議。我們認為，這項豁免將會向前推進，可能會在六月、七月的會議結束時、暑假之前進行。這將為密西根州的管道開放更多一點。

There are companies that are exploring Michigan right now, large data center providers, names that you would recognize. But again, it's a little bit -- they're testing the water in a lot of different locations. And so we'll see how Michigan progresses. We're certainly an attractive place to do business, and we'll look to track that low growth appropriately.

現在有一些公司正在探索密西根州，大型資料中心提供商，您可能會認識這些名字。但同樣，這有點——他們正在許多不同的地方測試水。所以我們將看看密西根州的進展如何。我們當然是一個有吸引力的做生意的地方，我們將適當地追蹤這種低成長。

And but as I stated in my previous remarks, we want to make sure there's a good balance that they're picking up the costs associated with that load as well, both from an energy and capacity perspective. So that's all the things that work in the balance, David. Hopefully, that provides some light to your question. Let me know if I didn't strike the right balance there.

但正如我在先前的評論中所說，我們希望確保有一個良好的平衡，從能源和容量的角度來看，他們也承擔與該負載相關的成本。這就是平衡的所有因素，大衛。希望這能為您的問題提供一些線索。如果我沒有達到適當的平衡，請告訴我。

It does. That's helpful. Yes. And are you thinking there could be upside to your long-term load growth expectations? Or is it still early?

確實如此。這很有幫助。是的。您是否認為您的長期負載成長預期可能會有上升空間？還是現在還早嗎？

We've got a -- we have -- between the manufacturing load this contract and the data center load that's contracted. As Rejji said, it's a nice piece of load growth that we factored in the later years of this 5-year plan, but future 5-year plans. And we're excited about what that means. And there's a strong pipeline, both from a manufacturing perspective and to a degree, the data center perspective as well. I'd be disappointed if some of those projects in the pipeline didn't materialize.

我們在這份合約的製造負載和簽訂合約的資料中心負載之間有一個——我們有——。正如 Rejji 所說，這是我們在本 5 年計劃的後期以及未來 5 年計劃中考慮到的負載增長的一個很好的部分。我們對這意味著什麼感到興奮。無論是從製造角度還是在某種程度上，從資料中心角度來看，都有一條強大的管道。如果其中一些項目沒有實現，我會感到失望。

Okay. Great. That's helpful. And a separate topic. I was wondering you're just latest expectations for the performance-based rates process in terms of timing and where that outcome might be headed.

好的。偉大的。這很有幫助。還有一個單獨的主題。我想知道您對基於績效的費率流程在時間安排和結果可能走向方面的最新期望。

That's progressed in a constructive way. We had close to 10 or a dozen metrics that were originally proposed. It's narrowed to 4 metrics that are benchmarkable and there's good standards. And so again, a constructive process plays out. There's more work to do from our perspective when we filed comments in the February, March time frame.

這已經以建設性的方式取得了進展。我們最初提出了近十個或十幾個指標。它縮小到 4 個可作為基準的指標，並且有很好的標準。如此一來，建設性的進程再次展開。當我們在二月、三月的時間範圍內提交評論時，從我們的角度來看，還有更多工作要做。

We're expecting a report from the Michigan Public Service Commission staff in May, and so we'll see the next round of thinking. I would suggest that a couple of electric rate cases away, not this case, perhaps the next case before we see implementation. But again, this is an evolving process with the Public Service Commission.

我們期待密西根公共服務委員會工作人員在五月提交一份報告，因此我們將看到下一輪的思考。我建議在我們看到實施之前，先考慮幾個電價案例，而不是這個案例，也許是下一個案例。但同樣，這對公共服務委員會來說是一個不斷發展的過程。

Our next question today comes from Michael Sullivan from Wolfe.

今天我們的下一個問題來自沃爾夫的邁克爾·沙利文。

Just sticking with the data center conversation, it sounds like you're kind of optimistic on this legislation and if that does pass and start to bring more interest to the state, what do you think about the potential for DIG being used in its entirety as like a behind-the-meter solution for like a larger type data center build-out? I know there's been a lot of focus on that on the nuclear side of things elsewhere, but people talking about gas as well. So just curious of your thoughts there.

繼續討論資料中心，聽起來您對這項立法持樂觀態度，如果該立法確實通過並開始給國家帶來更多興趣，您認為 DIG 被整體使用的潛力如何？解決方案？我知道其他地方的核問題受到了很多關注，但人們也在談論天然氣。所以只是好奇你的想法。

Similar to Rejji's comments, from an energy perspective, energy tools and a capacity of the bilateral contracts, much of DIG has been spoken for at attractive -- really attractive position that either meets our expectations or is above our expectations. And so there's really unless you're beyond 2028, and maybe in the 2030s decade, DIG's really not available because it's already been secured and with, again, attractive energy tools and bilateral contracts for capacity.

與Rejji 的評論類似，從能源角度、能源工具和雙邊合約的能力來看，DIG 的大部分都被認為處於有吸引力的位置，要么滿足我們的預期，要么超出我們的預期。因此，除非 2028 年之後，也許在 2030 年代，DIG 確實無法使用，因為它已經得到了保障，並且擁有有吸引力的能源工具和雙邊產能合約。

Okay. Fair enough. Makes sense. And then just on your upcoming [audit rate] case filing here just to set expectations. I know 1 of your peers in the state recently filed and got a pretty quick response from the AG. Are you anticipating something similar with yours? Should we just be prepped for that?

好的。很公平。說得通。然後就您即將在此提交的[審核率]案例進行設定，以設定預期。我知道您所在州的一位同行最近提出了申請，並得到了總檢察長的快速回應。您是否期待與您類似的事情？我們應該為此做好準備嗎？

It is -- we got primaries in August, and that means early (inaudible) balance start in June. And so its political season already in Michigan. And so I would anticipate that. Look, the Attorney General participates in all our cases, that's been a historical practice. Sometimes those are more public than other times. We stand, as I shared earlier, by the merits of the case, both in our gas case that's underway right now and this electric rate case.

是的——我們在八月進行了初選，這意味著六月會提前（聽不清楚）開始平衡。密西根州已經進入政治季節了。所以我會預料到這一點。看，總檢察長參與我們所有的案件，這是歷史慣例。有時這些比其他時候更公開。正如我之前分享的那樣，我們堅持該案的優點，無論是目前正在進行的天然氣案件還是電價案件。

The team just went through a walk through this week, and I couldn't be more proud of the work the team's put together on it. As I shared earlier in my questions or responses to questions, we're focused on reliability. That's going to improve for our customers. That is absolutely the right thing to do, well aligned with the Public Service Commission.

團隊本週剛進行了一次演練，我對團隊為此所做的工作感到非常自豪。正如我之前在問題或問題答覆中所分享的，我們關注的是可靠性。這將為我們的客戶帶來改善。這絕對是正確的做法，與公共服務委員會保持一致。

We're working hard to create affordability, and we're good at that through the CE Way, the reducing power supply cost, their unit costs from execution of capital. And when you get that mix right, that equation, right, it makes it I mean you get good outcomes. And so I'm excited about this case. It's certainly going to be a step-up in capital. There's going to be some O&M work too, that's focused on reliability, but there's also some offsets that are really exciting that make us -- get me excited, as you can tell by the tone of my voice about what we're filing and what we put it together because it's going to be good for customers, and it's going to be good for all stakeholders.

我們正在努力創造可負擔性，我們擅長透過CE方式來實現這一點，即透過資本執行來降低供電成本和單位成本。當你得到正確的組合，那個方程式，正確的時候，我的意思是你會得到好的結果。所以我對這個案子感到很興奮。這肯定會是資本的一個提升。也會有一些營運和維護工作，重點是可靠性，但也有一些真正令人興奮的補償，讓我們——讓我興奮，你可以從我的語氣中看出我們正在提交什麼以及我們把它放在一起是因為這對客戶有好處，對所有利害關係人都有好處。

Our final question comes from Andrew Weisel from Scotiabank.

我們的最後一個問題來自豐業銀行的安德魯·韋塞爾。

Follow up on the rate cases here. Just a couple of follow-ups on the rate cases. So first, I think you just alluded to this to the electric side. You're going to have more capital and more O&M. Just from a headline perspective, should we expect a larger revenue increase request than what we've seen in past [dialings] in terms of percent increase to customer bills.

在此跟進費率案例。只是對利率案件的一些後續行動。首先，我認為您剛剛提到了電力方面的問題。你將擁有更多的資本和更多的維運。僅從整體角度來看，我們是否應該期望比我們過去[撥號]中看到的客戶帳單成長百分比更大的收入成長請求。

Yes. The short answer is yes. But again, important work from a capital investment perspective and reliability, and we've done a lot to offset some of the O&M costs components of this to strike that right balance. And that's what I mean by the important fundamentals or merits of the case.

是的。簡短的回答是肯定的。但同樣，從資本投資和可靠性的角度來看，這是一項重要的工作，我們已經做了很多工作來抵消其中的一些營運和維護成本，以達到適當的平衡。這就是我所說的案件的重要基礎或優點的意思。

Okay. Very good. And then procedurally on the gas side. I know this case is unique in that there's no ALJ. Does that change the time line at all or the potential for settlement? You talked a bit about settlement, but the lack of ALJs that factor in at all?

好的。非常好。然後按程序進行氣體側。我知道這個案例很獨特，因為沒有 ALJ。這是否會改變時間線或和解的可能性？您談到了和解問題，但是缺少 ALJ 是其中的一個因素嗎？

No. The team seems excited about the opportunity to get to the table. Now that we have staff position now that we know where intervenors are at, to talk settlement. And as I shared, we've been able to navigate that with success in the past with all interveners, all stakeholders. And so we'll look to do that, but also hear my confidence in the merits of the case that if we need to go to full distance, we will. And I know that will get a good outcome for our customers and for stakeholders.

不。現在我們有了工作人員位置，我們知道幹預者在哪裡，可以討論和解。正如我所分享的，我們過去已經能夠與所有乾預者、所有利益相關者一起成功地解決這個問題。因此，我們會努力做到這一點，但也會聽到我對案件優點的信心，如果我們需要全力以赴，我們會的。我知道這將為我們的客戶和利害關係人帶來良好的結果。

That concludes the Q&A portion of today's call. I'll now hand back over to Garrick.

今天電話會議的問答部分到此結束。現在我將把事情交還給加里克。

Thanks, Drew. I'd like to thank you for joining us today. I look forward to seeing you on the road soon. Take care and stay safe.

謝謝，德魯。我要感謝您今天加入我們。我期待很快在路上見到你。小心並保持安全。

That concludes today's call. Thank you for your participation. You may now disconnect your lines.

今天的電話會議到此結束。感謝您的參與。現在您可以斷開線路。