第一能源 (FE) 2024 Q2 法說會逐字稿

Hello, and welcome to the FirstEnergy Corp second quarter 2024 earnings conference call. As a reminder, this conference is being recorded.

您好，歡迎參加 FirstEnergy Corp 2024 年第二季財報電話會議。提醒一下，本次會議正在錄製中。

It is now my pleasure to turn the call over to Irene Prezelj, Vice President, Investor Relations and Communications. Please go ahead, Irene.

現在我很高興將電話轉給投資者關係和傳播副總裁 Irene Prezelj。請繼續，艾琳。

Thank you. Good morning, everyone, and welcome to FirstEnergy's second quarter 2024 earnings review.

謝謝。大家早安，歡迎來到 FirstEnergy 2024 年第二季財報回顧。

Our President and Chief Executive Officer, Brian Tierney, will lead our call today, and he will be joined by Jon Taylor, our Senior Vice President and Chief Financial Officer. Our earnings release, presentation slides, and related financial information are available on our website at firstenergycorp.com.

我們的總裁兼執行長布萊恩·蒂爾尼 (Brian Tierney) 將主持今天的電話會議，我們的高級副總裁兼財務長喬恩·泰勒 (Jon Taylor) 也將加入我們的行列。我們的收益發布、簡報投影片和相關財務資訊可在我們的網站firstenergycorp.com 上取得。

Today's discussion will include the use of non-GAAP financial measures and forward-looking statements. Factors that could cause our results to differ materially from these forward-looking statements can be found in our SEC filings. The appendix of today's presentation includes supplemental information along with the reconciliation of non-GAAP financial measures.

今天的討論將包括非公認會計準則財務指標和前瞻性陳述的使用。可能導致我們的結果與這些前瞻性陳述有重大差異的因素可以在我們向 SEC 提交的文件中找到。今天簡報的附錄包括補充資訊以及非公認會計準則財務指標的調節表。

Now, it's my pleasure to turn the call over to Brian.

現在，我很高興將電話轉給布萊恩。

Thank you, Irena. Good morning, everyone. Thank you for joining us today and for your interest in FirstEnergy.

謝謝你，伊雷娜。大家早安。感謝您今天加入我們並感謝您對 FirstEnergy 的興趣。

Today, I will review our financial performance and highlights for the second quarter as well as our progress executing our business plan. I'll also provide updates on recent regulatory and legacy issue developments, discuss trends we are seeing in the industry and review the value proposition we offer our shareholders.

今天，我將回顧我們第二季的財務表現和亮點，以及我們執行業務計劃的進展。我還將提供有關最新監管和遺留問題發展的最新信息，討論我們在行業中看到的趨勢，並審查我們為股東提供的價值主張。

Looking at our second quarter results, GAAP earnings were $0.08 per share in the second quarter of 2024 compared to $0.41 per share last year. We recorded a number of special items that impacted second quarter GAAP results, which Jon will address in a few minutes.

從我們第二季的業績來看，2024 年第二季的 GAAP 收益為每股 0.08 美元，而去年為每股 0.41 美元。我們記錄了一些影響第二季度 GAAP 業績的特殊項目，喬恩將在幾分鐘內解決這些問題。

Operating earnings for the quarter were $0.56 per share versus $0.47 per share last year, an increase of 19%. Positively impacting second quarter operating earnings were rate adjustments and associated investments to better serve our customers. Customer demand was also a positive impact for the quarter with weather adjusted residential and commercial sales up 4% and 7%, respectively. These positive impacts were partially offset by higher planned operations and maintenance expenses and expected dilution from the 30% sale of FET.

本季營業利潤為每股 0.56 美元，較去年同期的每股 0.47 美元成長 19%。對第二季營業收入產生正面影響的是費率調整和相關投資，以便更好地服務我們的客戶。客戶需求對該季度也產生了積極影響，經過天氣調整的住宅和商業銷售分別增加了 4% 和 7%。這些正面影響被較高的計劃營運和維護費用以及 FET 30% 銷售的預期稀釋所部分抵消。

The items driving growth for the quarter point to the expected trend of improving utility earnings quality. Our capital investments to improve the customer experience increased 22% for the first six months of the year. This is reflective of our improved balance sheet that enables our Energize365 capital plan.

推動本季成長的項目顯示公用事業獲利品質改善的預期趨勢。今年前六個月，我們用於改善客戶體驗的資本投資增加了 22%。這反映了我們資產負債表的改善，使我們的 Energize365 資本計畫得以實現。

We are executing well in 2024 and are on track to achieve the goals we've outlined. Today, we are reaffirming our 2024 operating earnings guidance range of $2.61 per share year to $2.81 per share. We are reaffirming our 2024 CapEx plan of $4.3 billion versus $3.7 billion in 2023. And we are reaffirming our 6% to 8% long-term annual operating earnings growth rate.

2024 年，我們的執行情況良好，並有望實現我們概述的目標。今天，我們重申 2024 年營業利潤指引範圍為每股 2.61 美元至 2.81 美元。我們重申 2024 年資本支出計畫為 43 億美元，而 2023 年為 37 億美元。我們重申 6% 至 8% 的長期年度營業利潤成長率。

June 1 mark my one-year anniversary with FirstEnergy, our employees have made a significant amount of progress in the last year, positioning the company for success. From an operations standpoint, we have organized FirstEnergy into four new segments, representing our five major businesses. We have restructured the company into strong operating company model and recruited external and promoted internal executives to lead these businesses. These changes, put leadership, responsibility, and decision making closer to the customer.

6 月 1 日是我加入 FirstEnergy 一週年紀念日，我們的員工在去年取得了顯著的進步，為公司的成功奠定了基礎。從營運的角度來看，我們將 FirstEnergy 分為四個新的部門，代表我們的五項主要業務。我們將公司重組為強大的營運公司模式，並招募外部和提拔內部高階主管來領導這些業務。這些變化使領導力、責任和決策更貼近客戶。

We are investing in our people by engaging with our unions to enact mid-cycle pay adjustments to help ensure we are paying competitive wages to our represented workforce. We started an effort to higher journey level line workers to better serve our customers, and we are forming a new apprenticeship program to further support a skilled and well-trained trained workforce to serve our customers going forward.

我們透過與工會合作制定中期薪資調整來投資我們的員工，以幫助確保我們向我們所代表的員工支付有競爭力的薪資。我們開始努力培養更高級別的生產線工人，以更好地服務我們的客戶，並且我們正在製定新的學徒計劃，以進一步支持技術熟練且訓練有素的員工隊伍，為我們的客戶提供服務。

Regarding capital investment, we initiated our new five-year $26 billion capital investment program, Energize365 to enable the energy transition and improve reliability and the customer experience. Energize365 represents a 44% increase in investment over our previous five-year plan.

在資本投資方面，我們啟動了新的五年期 260 億美元資本投資計畫 Energize365，以實現能源轉型並提高可靠性和客戶體驗。Energize365 的投資比我們之前的五年計畫增加了 44%。

On the regulatory front, we concluded constructive regulatory engagements in Maryland, New Jersey, and West Virginia, representing 35% of FirstEnergy's rate base. In Ohio, we currently have three traditional rate proceedings in flight. We received the constructive border in May for our ESP V case, but one that left a number of unresolved issues, we have asked for rehearing on those issues and are seeking to obtain more clarity during this phase.

在監管方面，我們在馬裡蘭州、新澤西州和西維吉尼亞州達成了建設性監管協議，佔 FirstEnergy 費率基數的 35%。在俄亥俄州，我們目前正在進行三種傳統的費率程序。我們於 5 月收到了 ESP V 案件的建設性邊界，但該案件留下了許多未解決的問題，我們已要求就這些問題進行重新聽證，並尋求在此階段獲得更多澄清。

We found a partial settlement agreement in our Grid Mod II case in April, focused on deploying automated meters for all of our customers. Hearings concluded on this non-controversial issue on July 2, and we are anticipating an order in the fourth quarter.

4 月份，我們在 Grid Mod II 案件中達成了部分和解協議，重點是為所有客戶部署自動化電錶。關於這一無爭議問題的聽證會於 7 月 2 日結束，我們預計將在第四季度發出訂單。

We filed our base rate case in late May, requesting a 10.8% ROE and an average equity ratio of approximately 55%. We will be updating that filing today to reflect changes from the ESP V order and other updates. We expect this case to continue well into 2025.

我們於 5 月底提交了基本利率申請，要求 10.8% 的股本回報率和約 55% 的平均股本比率。我們今天將更新該文件，以反映 ESP V 訂單的變更和其他更新。我們預計這種情況將持續到 2025 年。

In Pennsylvania, we filed a base rate case in early April, requesting a $502 million rate adjustment including an 11.3% ROE and an equity ratio of 53.8%. As is customary in Pennsylvania, we will engage with intervening parties in an effort to reach a settlement prior to the scheduled hearings in mid-August. New rates are expected to be effective January 1, 2025.

在賓州，我們在 4 月初提交了基本利率案件，要求 5.02 億美元的利率調整，包括 11.3% 的 ROE 和 53.8% 的股本比率。按照賓州的慣例，我們將與幹預方接觸，並努力在 8 月中旬舉行的聽證會之前達成和解。新費率預計將於 2025 年 1 月 1 日生效。

Also in Pennsylvania, we filed our long-term infrastructure investment plan three on July 22. This five-year plan will result in approximately $1.6 billion in investments to support enhanced reliability. The proposed LTIIP III is about twice the investment of prior plan and demonstrates our ability to invest our strong balance sheet for the benefit of our customers.

同樣在賓州，我們於 7 月 22 日提交了長期基礎設施投資計畫三。該五年計劃將帶來約 16 億美元的投資，以支持增強的可靠性。擬議的 LTIIP III 大約是先前計劃投資的兩倍，這表明我們有能力投資我們強大的資產負債表，以造福我們的客戶。

Finally, in New Jersey, we are currently in settlement discussions for Energize New Jersey plan, which was filed in November and updated in February. This is a $935 million plan designed to upgrade Jersey Central Power & Light Electric Grid infrastructure, using modern technology and smart devices to help reduce the size and duration of outages. We are currently in settlement discussions and hope to reach a constructive outcome.

最後，在新澤西州，我們目前正在就 Energize New Jersey 計劃進行和解討論，該計劃於 11 月提交並於 2 月更新。這是一項 9.35 億美元的計劃，旨在升級澤西中央電力和照明電網基礎設施，利用現代技術和智慧設備來幫助減少停電規模和持續時間。目前我們正在就和解事宜進行討論，希望能達成建設性的成果。

From a financial standpoint, the strides FirstEnergy made over the past year to improve its balance sheet were nothing short of remarkable. On March 25, the company closed its transaction to sell 30% of FET. This was the final transaction of a multiyear $7 billion equity raise that has transformed future prospects of the company.

從財務角度來看，FirstEnergy 在過去一年中在改善其資產負債表方面取得的進展堪稱引人注目。3月25日，該公司完成了出售30% FET 股份的交易。這是多年來 70 億美元股權融資的最後一筆交易，改變了該公司的未來前景。

On July 17, the company received the last $1.2 billion of the $3.5 billion sale. This cash has been used to pay down short- and long-term debt and re-equitize our operating companies.

7 月 17 日，該公司收到了 35 億美元銷售中的最後 12 億美元。這筆現金已用於償還短期和長期債務以及重組我們營運公司的股權。

Rating agencies have taken notice with all three rating FirstEnergy Corp's senior unsecured rating as investment grade and S&P and Fitch retaining positive outlooks. Last week, S&P increased FETs senior unsecured rating from BBB- to BBB+ and retains its positive outlooked. This two-notch upgrade reflects FETs enhancements and liquidity, governance, and cash management practices and places FET senior unsecured credit rating at or above the ratings of our fully regulated utilities.

評級機構已經注意到，FirstEnergy Corp 的優先無擔保評級全部為投資級，標準普爾和惠譽均維持正面展望。上週，標準普爾將 FET 的高級無抵押評級從 BBB- 上調至 BBB+，並維持正面展望。此次升級反映了 FET 的增強以及流動性、治理和現金管理實踐，並將 FET 高級無擔保信用評級置於或高於我們完全監管的公用事業公司的評級。

This significantly strengthened balance sheet represents a major transformation for FirstEnergy as well as a significant differentiator for many of our peers. It is on the basis of this balance sheet that we were able to introduce Energize365 and make the investments needed to enable the energy transition and improve reliability and the customer experience.

資產負債表的顯著增強代表著 FirstEnergy 的重大轉型，也是我們許多同業的顯著差異化優勢。正是在此資產負債表的基礎上，我們才能夠推出 Energize365 並進行所需的投資，以實現能源轉型並提高可靠性和客戶體驗。

Many of our peers still have to raise significant amounts of equity to continue to grow or will have to issue large debt volumes at higher rates. FirstEnergy does not have to do either. The balance sheet component of our transformation is complete. We are now focused on executing our operating and and regulatory plans for the benefit of our customers.

我們的許多同行仍然需要籌集大量股本才能繼續成長，或者必須以更高的利率發行大量債務。FirstEnergy 也不必這麼做。我們轉型的資產負債表部分已經完成。我們現在專注於執行我們的營運和監管計劃，以造福我們的客戶。

Turning to slide 9, let's talk about data centers. We are getting a fair number of loads study requests from data center developers across our service area. Large load studies for this type of developments have more than doubled from last year. We are fortunate that in much of our service territory, we have excess transmission capacity to serve this and other economic development and priorities. This capacity comes from previous manufacturing, processing, and generating facilities.

前往投影片 9，我們來談談資料中心。我們從整個服務區域的資料中心開發人員收到了大量的負載研究請求。此類開發的大負荷研究比去年增加了一倍以上。幸運的是，在我們的大部分服務領域，我們擁有過剩的輸電能力來服務於此和其他經濟發展和優先事項。這種能力來自先前的製造、加工和發電設施。

We are also participating in the PJM open windows related to data center and other load growth. We were successful last year in the Window 3 RTEP solicitation process, and we'll be submitting proposals for the current one. Generation resource adequacy has become a very hot topic over the past year. It appears that load growth and baseload generating retirements could outpace dispatchable generating resource additions.

我們也參與了與資料中心和其他負載成長相關的 PJM 開放視窗。去年我們在 Window 3 RTEP 徵集過程中取得了成功，我們將為目前的徵集程序提交提案。過去一年，發電資源充足性已成為一個非常熱門的話題。看來負載成長和基本負載發電退役的速度可能超過可調度發電資源的增加。

A you know in four of our five states, we are wires-only utilities. We are working with customers, states and other interested parties to help ensure there is adequate capacity to meet growing load and enable the energy transition.

您知道，在我們五個州中的四個州，我們只提供有線公用事業服務。我們正在與客戶、州政府和其他相關方合作，幫助確保有足夠的能力來滿足不斷增長的負荷並實現能源轉型。

Finally, regarding potential retail tariff changes, we are reviewing our current tariffs and think there is enough flexibility to us to negotiate terms for us to serve new loads and at the same time, maintain existing customer protections. We need to be able to serve all loads affordably. If we find the need for future tariff adjustments, we will file them on a state-by-state basis.

最後，關於潛在的零售關稅變化，我們正在審查當前的關稅，並認為我們有足夠的靈活性來協商條款，以便我們為新的負載提供服務，同時維持現有的客戶保護。我們需要能夠以經濟實惠的方式為所有負載提供服務。如果我們發現未來需要調整關稅，我們將逐州備案。

During the second quarter, we made significant progress resolving legacy issues. On July 21, the US Attorney's Office for the Southern District of Ohio filed a status report confirming that FirstEnergy successfully completed the obligations. It was required to perform for three year period under the deferred prosecution agreement, including remediation measures and the implementation of a compliance and ethics program. As a result, the reporting requirements related to those obligations have ended.

第二季度，我們在解決遺留問題方面取得了重大進展。7月21日，美國俄亥俄州南區檢察官辦公室提交了一份狀態報告，確認FirstEnergy成功履行了義務。根據延期起訴協議，該公司必須履行三年的義務，包括採取補救措施以及實施合規和道德計劃。因此，與這些義務相關的報告要求已經結束。

As provided under the DPA, we will continue to fully cooperate with the DOJ and other outstanding matters, and we will continue other reporting obligations. This was an important step as we put the past behind us and move forward as a stronger company with the robust culture of ethics, integrity, and compliance.

根據 DPA 的規定，我們將繼續與司法部和其他未決事項充分合作，並將繼續履行其他報告義務。這是重要的一步，我們將過去拋在腦後，成為一家擁有強大的道德、誠信和合規文化的更強大的公司。

We have reached an agreement in principle with the SEC staff subject to the approval of the commission, which would settle the SEC security claims against FirstEnergy. The proposed settlement is based on the factors set forth in the DPA. We have recorded a reserve of $100 million for this settlement.

我們已與 SEC 工作人員原則上達成協議，但須經委員會批准，這將解決 SEC 針對 FirstEnergy 的安全索賠。擬議的和解方案是基於 DPA 中規定的因素。我們已為此和解預留了 1 億美元的準備金。

Similarly, we are in the final stages of a resolution with the Ohio Organized Crime Investigations Commission. The resolution is expected to include a non-prosecution agreement based on the facts and the DPA and is expected to resolve the Ohio Attorney General Civil Case against FirstEnergy. We have recorded a reserve of $19.5 million in anticipation resolving both Ohio matters.

同樣，我們正處於與俄亥俄州有組織犯罪調查委員會達成決議的最後階段。該決議預計將包括基於事實和 DPA 的不起訴協議，並有望解決俄亥俄州總檢察長針對 FirstEnergy 的民事案件。我們已記錄了 1,950 萬美元的準備金，以期解決俄亥俄州的兩件事。

The three docketed cases related to these legacy issues continue to move forward at the PUCO. An audit report is due on August 28 on the political and charitable spending review. Discovery continues and hearing is scheduled for October 9 on the corporate separation review. Discovery is ongoing with a here scheduled for February 3 on the Rider DMR/DCR audit. We continue to cooperate in these audits and appreciate that these cases are the appropriate form for a review of this activity and not our business as usual rate cases.

與這些遺留問題相關的三個立案案件繼續在 PUCO 中取得進展。關於政治和慈善支出審查的審計報告將於 8 月 28 日到期。Discovery 仍在繼續，並定於 10 月 9 日就公司分拆審查舉行聽證會。Discovery 正在進行中，計劃於 2 月 3 日對 Rider DMR/DCR 進行審核。我們將繼續配合這些審計，並認識到這些案例是審查此活動的適當形式，而不是我們照常進行評級的案例。

Let's take a moment to review FirstEnergy's value proposition to shareholders. Our 6% to 8% operating earnings growth rate is predicated on an average annual growth in rate base of 9%. Our ability to invest in our system for the benefit of our customers as enabled by strong balance sheet. We have the need, opportunity, and means to make the necessary investments, to enable the energy transition, and improve reliability, and the customer experience.

讓我們花點時間回顧一下 FirstEnergy 對股東的價值主張。我們 6% 至 8% 的營業利潤成長率是以 9% 的年平均成長率為基礎的。強大的資產負債表使我們能夠為客戶的利益投資我們的系統。我們有必要、有機會、有手段進行必要的投資，以實現能源轉型、提高可靠性和客戶體驗。

FirstEnergy has an attractive low-risk profile that supports solid BBB credit metrics. We are targeting a 14% to 15% FFO to debt profile over the horizon and do not anticipate incremental equity needs for our Energize365 investment plan beyond our employee benefit programs. The increase of traditional utility earnings means that our earnings quality has improved and our customer affordability is expected to remain strong for the foreseeable future.

FirstEnergy 具有有吸引力的低風險特徵，支援可靠的 BBB 信用指標。我們的目標是在未來將 FFO 與債務比例提高 14% 至 15%，並且預計我們的 Energize365 投資計畫不會超出員工福利計畫之外的增量股本需求。傳統公用事業收入的增加意味著我們的獲利品質有所改善，並且在可預見的未來，我們的客戶負擔能力預計將保持強勁。

Our long-term annual operating earnings growth rate, combined with our dividend represents a total shareholder return proposition of 10% to 12%. We have made significant progress on strengthening our balance sheet, restructuring our business, putting legacy issues behind us, and focusing on our operational, regulatory and financial plans. The men and women of FirstEnergy are singularly focused on that execution and serving our customers.

我們的長期年度營業利潤成長率，加上我們的股息，代表了 10% 至 12% 的股東總回報率。我們在加強資產負債表、重組業務、解決遺留問題以及專注於營運、監管和財務計劃方面取得了重大進展。FirstEnergy 的員工非常專注於執行和服務我們的客戶。

Before I turn the call over to Jon, I would like to mark to significant management transitions for FirstEnergy. two executives have recently notified of many of their decision to retire after many years of service to the company. Chris Walker, our Chief Human Resources Officer, will be retiring with nearly 39 years of service. I would like to thank Chris personally for all she has done for me over the past year and also thank you for many years of dedicated service on behalf of our employees. We owe Chris, a debt of gratitude and wish her well in retirement.

在將電話轉給喬恩之前，我想先談談 FirstEnergy 的重大管理層變動。兩位高階主管最近通知了許多人，他們在為公司服務多年後決定退休。我們的首席人力資源長 Chris Walker 即將退休，他已經工作了近 39 年。我要親自感謝克里斯在過去一年中為我所做的一切，並感謝您多年來代表我們的員工提供的竭誠服務。我們欠克里斯一份感激之情，並祝她退休後一切順利。

After more than 40 years of service, Irene Prezelj has decided to retire. Many of you have gotten to know Irene, as our Head of Investor Relations and Communications. For many years, Irene has been the face of the company to investors in the public alike. We are grateful to Irene for her leadership and dedication to serving our employees, investors, customers, and the public. We wish her the best going forward.

服務 40 多年後，Irene Prezelj 決定退休。你們中的許多人都認識艾琳，她是我們的投資者關係和傳播主管。多年來，艾琳一直是公眾投資者心目中公司的代言人。我們感謝艾琳（Irene）的領導和為我們的員工、投資者、客戶和公眾服務的奉獻精神。我們祝福她未來一切順利。

With that, I will turn the call over to Jon.

這樣，我會將電話轉給喬恩。

Thank you, Brian, and good morning, everyone.

謝謝你，布萊恩，大家早安。

I also want to extend my sincere gratitude and best wishes to Chris and Irene. They have been great to work with over the years, and I've always been there for me and the employees of the company. I wish them every bit of happiness in their retirement.

我還要向克里斯和艾琳致以誠摯的謝意和良好的祝愿。多年來與他們合作非常愉快，我也一直為我和公司的員工提供支援。我祝福他們在退休後幸福快樂。

Today, I'll review our financial performance, discuss economic and customer trends, and provide enough date on our regulatory and financial initiatives. Let's start by reviewing the larger special items that impacted our second quarter GAAP results. These include increased asset retirement obligations recognized in connection with the planned transfer of a legacy impoundment site to a third-party and the impact from the new EPA legacy coal combustion residuals rule.

今天，我將回顧我們的財務業績，討論經濟和客戶趨勢，並提供有關我們的監管和財務舉措的足夠數據。讓我們先回顧一下影響我們第二季度 GAAP 業績的較大特殊項目。其中包括因計劃將遺留蓄水場轉讓給第三方而確認的資產報廢義務增加，以及新的 EPA 遺留煤燃燒殘留物規則的影響。

Costs associated with redeeming high-cost debt using the proceeds from the FET transaction, charges connected to the anticipated resolution of the OOCIC and SEC investigations, partially offset by the receipt of insurance proceeds associated with the shareholder derivative lawsuit settlement and regulatory charges resulting from a commitment in the Ohio ESP V order.

與使用 FET 交易收益贖回高成本債務相關的成本、與 OOCIC 和 SEC 調查的預期解決方案相關的費用，部分被收到與股東衍生訴訟和解相關的保險收益以及因俄亥俄州ESP V 訂單中的承諾。

We continue to see strong execution on our Energize365 capital investment program, solid financial discipline, and a culture of continuous improvement. And because of that, we delivered second quarter operating earnings of $0.56 per share, which is above the midpoint of our guidance and compares to $0.47 per share for the second quarter of 2023.

我們繼續看到 Energize365 資本投資計畫的強勁執行力、紮實的財務紀律以及持續改進的文化。因此，我們第二季的營運收益為每股 0.56 美元，高於我們指引的中位數，而 2023 年第二季的營運收益為每股 0.47 美元。

The results primarily reflect new base rates in our integrated business, strong invested capital across all of our businesses and formula rate investment programs and significantly higher year-over-year customer demand.

業績主要反映了我們綜合業務的新基本利率、我們所有業務和公式利率投資計劃的強勁投資資本以及同比顯著提高的客戶需求。

Looking at our segment results for the quarter, in our distribution business, operating earnings were $0.22 per share compared to $0.24 per share in the second quarter of last year. This reflects planned increases in operating expenses we discussed previously, partially offset by higher customer demand and rate base growth rate investment programs and a lower customer rate credit in Ohio as part of our 2021 earnings test settlement.

從本季的分部業績來看，我們的分銷業務的營業利潤為每股 0.22 美元，而去年第二季的每股營業利潤為 0.24 美元。這反映了我們之前討論的營運費用的計劃增加，部分被更高的客戶需求和利率基礎增長率投資計劃以及俄亥俄州較低的客戶信用利率（作為我們 2021 年收益測試結算的一部分）所抵消。

In our Integrated segment, operating earnings were $0.21 per share versus $0.12 per share in the second quarter of last year. Results primarily reflect new base rates in Maryland, West Virginia, and New Jersey that went into effect over the past eight months. Rate base growth in distribution and transmission formula rate investment programs and the impact of higher customer demand, partially offset by a higher effective tax rate.

在我們的綜合部門，營業利潤為每股 0.21 美元，而去年第二季為每股 0.12 美元。結果主要反映了馬裡蘭州、西維吉尼亞州和新澤西州在過去八個月內生效的新基本利率。配電和輸電公式費率投資計畫的費率基礎成長以及客戶需求增加的影響，部分被較高的有效稅率所抵銷。

Operating earnings in our stand-alone transmission segment were $0.14 per share compared to $0.18 per share in the second quarter of 2023. Year-over-year rate base increased more than 10% as a result of our transmission investment program, but this was offset by the dilution from the 30% interest sale of FirstEnergy Transmission LLC to Brookfield, which closed in March of this year.

我們獨立輸電部門的營運收益為每股 0.14 美元，而 2023 年第二季為每股 0.18 美元。由於我們的輸電投資計劃，費率基礎同比增長了 10% 以上，但這被今年 3 月結束的 FirstEnergy Transmission LLC 向 Brookfield 出售 30% 利息的稀釋所抵消。

Finally, in our Corporate, segment losses were $0.01 per share versus $0.07 per share in the second quarter of 2023. This improvement is the result of ongoing lower financing costs from the redemption high-cost debt. More detail on our second quarter and year-to-date results can be found in the strategic and financial highlights document we posted to our IR website yesterday afternoon.

最後，在我們的企業中，部門虧損為每股 0.01 美元，而 2023 年第二季為每股 0.07 美元。這一改善是由於贖回高成本債務而導致的融資成本持續降低的結果。有關我們第二季度和年初至今業績的更多詳細信息，請參閱我們昨天下午發佈到投資者關係網站上的戰略和財務亮點文件。

Looking ahead, we are providing guidance of $0.85 $0.95 per share for the third quarter, which reflects the continued impacts of new base rates in our integrated business, continued rate base growth, and higher customer demand, partially offset by a lower planned earnings contribution from Signal Peak.

展望未來，我們為第三季提供每股0.85 美元0.95 美元的指導，這反映了我們綜合業務中新基本利率的持續影響、持續的利率基本增長以及更高的客戶需求，但部分被較低的計劃盈利貢獻所抵消。

And as Brian mentioned earlier, we are reaffirming our 2024 guidance of $2.61 to $2.81 per share as well our long-term 6% to 8% annual operating earnings growth rate. In his remarks, Brian shared a look at the trends related to data center growth in our service territory. I want to expand on that by taking a quick look at some of the broader economic and load activity in our region.

正如布萊恩之前提到的，我們重申 2024 年每股 2.61 美元至 2.81 美元的指導，以及 6% 至 8% 的長期年營業利潤增長率。Brian 在演講中分享了我們服務領域中與資料中心成長相關的趨勢。我想透過快速瀏覽我們地區的一些更廣泛的經濟和負荷活動來擴展這一點。

Recent trends over the past year are positive in our region, including GDP that has averaged just over 2% for the past year, and employment growth of just under 1.5% over the past 12 months. And from a customer demand perspective, we're seeing positive weather-adjusted customer demand of 1% over the last 12 months, primarily resulting from increases of 1.3% in the commercial and 1.1% in the industrial customer classes.

我們地區過去一年的近期趨勢是正面的，包括過去一年 GDP 平均成長率略高於 2%，過去 12 個月就業成長率略低於 1.5%。從客戶需求的角度來看，我們看到過去 12 個月內經天氣調整後的客戶需求增加了 1%，這主要是由於商業客戶類別增長了 1.3%，工業客戶類別增長了 1.1%。

With demand in the auto and services sectors, up 14% and 7%, respectively. And so we believe we're in a great position to serve our customers and our investment program will adjust as needed to ensure capacity and reliable service.

汽車和服務業的需求分別成長14%和7%。因此，我們相信我們有能力為客戶提供服務，我們的投資計劃將根據需要進行調整，以確保產能和可靠的服務。

From a financing plan perspective, earlier this month, we received the remaining $1.2 billion in proceeds from the $3.5 billion, 30% FET interest sale to Brookfield. You'll recall that we received the initial proceeds of $2.3 billion when the transaction closed in March, the remaining $1.2 billion in interest-bearing notes that were extinguished with Brookfield's final payment on July 17. We're deploying those proceeds in a credit accretive manner, consistent with our plan to further transform our balance sheet, and support our Energize365 grid investment program.

從融資計劃的角度來看，本月早些時候，我們收到了向 Brookfield 出售 35 億美元、30% FET 利息的剩餘 12 億美元收益。您可能還記得，3 月交易結束時，我們收到了 23 億美元的初始收益，其餘 12 億美元的帶息票據已隨著 Brookfield 7 月 17 日的最後付款而消失。我們將以信貸增值的方式部署這些收益，這符合我們進一步改造資產負債表的計劃，並支持我們的 Energize365 電網投資計劃。

As we've discussed, the sale completes a series of transactions over the last two and half years that resulted in nearly $7 billion in equity capital at an equivalent share price of $87 a share or 36 times trailing PE multiple. In total, these proceeds were used for over $3 billion in high-cost debt reductions at FE Corp, including the remaining $460 million of the 2031 bonds in the second quarter, nearly $2 billion in utility long-term debt redemptions and $2 billion to pay off short-term debt that would have otherwise been financed with long-term debt at our utilities.

正如我們所討論的，此次出售完成了過去兩年半的一系列交易，以每股 87 美元的等值股價或 36 倍的往績 PE 倍數獲得了近 70 億美元的股本。這些收益總共用於 FE Corp 超過 30 億美元的高成本債務削減，其中包括第二季 2031 年債券剩餘的 4.6 億美元、近 20 億美元的公用事業長期債務贖回以及 20 億美元的支付擺脫短期債務，否則這些債務將由我們公用事業公司的長期債務融資。

Following the closing of this transaction in March, our corporate credit rating was upgraded by Moody's and S&P, restoring it to investment grade at all three rating agencies. The credit ratings at our subsidiaries were also upgraded and this momentum continued last week as S&P further upgraded FET and its subsidiaries.

3月交易完成後，穆迪和標準普爾將我們的企業信用評等上調，三大評等機構將其恢復至投資等級。我們子公司的信用評級也得到了上調，上週標普進一步升級了 FET 及其子公司的信用評級，這一勢頭得以延續。

Going forward, our focus is on continued execution of our plan, achieving cross-supportive regulatory outcomes, moving past legacy issues, and financing our robust investment plan in a credit-supportive manner, consistent with a BBB flat credit profile.

展望未來，我們的重點是繼續執行我們的計劃，實現交叉支持性監管成果，解決遺留問題，並以信貸支持方式為我們穩健的投資計劃提供資金，符合 BBB 扁平信用狀況。

Additionally, earlier this month, we launched a request for proposal for a second pension lift-out transaction to eliminate the remaining $700 million in non-regulated pension liability. This transaction is successful would eliminate all non-regulated pension liability, further reduce pension volatility, and improve the quality of earnings of the company.

此外，本月早些時候，我們發起了第二次退休金取消交易的徵求建議書，以消除剩餘的 7 億美元非監管退休金負債。本次交易成功將消除所有非監管退休金負債，進一步降低退休金波動性，並提高公司獲利品質。

Recall that in December of last year, we executed the first pension lift-out transaction, removing approximately $720 million of pension liability at $0.95 on the dollar.

回想一下，去年 12 月，我們執行了第一筆退休金取消交易，以 0.95 美元的價格取消了約 7.2 億美元的退休金負債。

Turning now to recent regulatory activity. In Ohio, we filed our base rate review on May 31, request was for a $94 million rate adjustment on rate base of $4.3 billion, a 10.8% proposed on equity and a 55% equity capitalization ratio based on a 2024 test year.

現在轉向最近的監管活動。在俄亥俄州，我們於5 月31 日提交了基本利率審查，要求在43 億美元的利率基礎上進行9,400 萬美元的利率調整，建議股權為10.8%，股權資本化比率為55%（基於2024 年測試年）。

The rate adjustment supports recovery investments in the distribution system and customer experience enhancements, while keeping rates affordable for customers. The case includes recovery of investments in Riders DCR and AMI, which includes the Grid Mod I capital investments in base rates and resetting those writers to zero.

費率調整支援回收分配系統的投資和增強客戶體驗，同時保持客戶負擔得起的費率。該案件包括收回對 Riders DCR 和 AMI 的投資，其中包括 Grid Mod I 基本費率的資本投資並將這些寫入者重置為零。

It also includes a request to change the recovery of pension costs from service cost only to total pension costs, including previously incurred actuarial losses as well as a request for pension tracking mechanism to avoid volatility in the future. And it includes recovery of other costs previously incurred, including the major storm restoration costs, and a program to convert street lights LEDs.

它還包括要求將退休金成本的回收從僅服務成本改為退休金總成本，包括先前發生的精算損失，以及要求建立退休金追蹤機制以避免未來的波動。它還包括收回先前產生的其他成本，包括重大風暴恢復成本，以及將路燈改造成 LED 燈的計劃。

Today, the Ohio companies will file an update to the base rate case review filing with an updated rate request. The update is necessary to include the impacts addressed in the May 15 ESP V order and to update 2024 test year financial information through May 31 to reflect actual operating results.

今天，俄亥俄州公司將提交基本費率案件審查備案的更新以及更新的費率請求。此次更新必須包含 5 月 15 日 ESP V 命令中所解決的影響，並更新截至 5 月 31 日的 2024 年測試年財務信息，以反映實際營運結果。

Our initial request represents an estimated overall bill impact for typical residential customers ranging from a rate decrease of 1.3% in Toledo Edison to a 3.5% increase in CEI or an average increase of 1.4% across Ohio. Also in Ohio, on May 15, the PUCO issued an order approving our ESP V with modifications, which became effective June 1.

我們最初的請求代表了對典型住宅客戶的估計總體帳單影響，範圍從托萊多愛迪生 (Toledo Edison) 費率下降 1.3% 到 CEI 增長 3.5% 或俄亥俄州平均增長 1.4%。同樣在俄亥俄州，5 月 15 日，PUCO 發布了一項命令，批准我們的 ESP V 進行修改，該命令於 6 月 1 日生效。

The order extended Rider DCR through the conclusion of the base rate case, but excluded certain investments from recovery in Rider DCR. The order also provided for recovery of vegetation management expenses for the first two years the ESP and prospective deferral of major storm expenses.

該命令透過基本利率案例的結論延長了 Rider DCR，但排除了 Rider DCR 恢復中的某些投資。該命令還規定收回 ESP 頭兩年的植被管理費用，並預計將推遲重大風暴費用。

While we appreciate the support for key terms of our ESP V in the near-term, the order did not provide clarity regarding these key terms of the ESP for entire five-year period. With many directed to the base rate case for resolution.

雖然我們感謝近期對 ESP V 關鍵條款的支持，但該命令並未明確說明整個五年期間 ESP 的這些關鍵條款。許多問題都針對基本費率的情況進行解決。

We subsequently filed an application for rehearing seeking greater certainty regarding key terms as well as proposed modifications, which included shortening the ESP V term to three years, providing full recovery of investments in the DCR through the conclusion of the base rate case, and other proposals that preserve the economic value of the order for customers.

我們隨後提交了重審申請，尋求關鍵條款和擬議修改的更大確定性，其中包括將 ESP V 期限縮短至三年、通過基本費率案件的結論完全收回 DCR 的投資以及其他提案為客戶保留訂單的經濟價值。

Earlier this month, the PUCO granted the applications for rehearing filed by all parties for the purposes of further consideration. This step gives the PUCO more time to make its final decision, there’s no statutory deadline for the decision.

本月初，PUCO批准了各方提出的再審申請，以供進一步考慮。這一步驟使 PUCO 有更多時間做出最終決定，但沒有法定的決定期限。

The summer hearings were held in our Ohio Grid Mod II settlement, and we anticipate an order during the fourth quarter. In Pennsylvania, earlier this month, we filed the third phase of our long-term infrastructure improvement plan known as LTIP III, which is part of our Energize365 investment program.

夏季聽證會在我們的 Ohio Grid Mod II 和解地舉行，我們預計將在第四季度收到訂單。本月早些時候，我們在賓州提交了長期基礎設施改善計畫的第三階段，稱為 LTIP III，這是我們 Energize365 投資計畫的一部分。

Delta three includes a total projected investment of $1.6 billion over five years. Building on the projects completed an LTE one and relative to the third phase of the program supplements reliability investments and includes both grid modernization and system resiliency projects. This includes targeted investments to accelerate infrastructure improvements and help enhance service reliability for them more for more than and 2 million customers in the state while remaining focused on affordability.

達美三號預計五年投資總額達 16 億美元。在完成的 LTE 專案的基礎上，相對於該計劃的第三階段，補充了可靠性投資，包括電網現代化和系統彈性專案。這包括有針對性的投資，以加速基礎設施改進，並幫助提高該州超過 200 萬名客戶的服務可靠性，同時繼續專注於可負擔性。

Investments are recovered through a distribution system improvement charge or disk based on actual capital structure and the benchmark ROE, which is currently 9.8%. The cumulative average residential customer rate impact recovered through this is Tom and $0.88 or 2% increase. Pending PUC approval e expect capital deployment to begin in the first quarter of 2025 with disk revenues estimated to be in the second quarter of 2026.

根據實際資本結構和基準股本回報率（目前為 9.8%），透過分配系統來改善費用或磁碟回收投資。透過此恢復的累積平均住宅客戶費率影響是 Tom 和 0.88 美元，即 2% 的成長。等待 PUC 批准，預計資本部署將於 2025 年第一季開始，磁碟收入預計將在 2026 年第二季實現。

Also in Pennsylvania in mid-August, hearings will begin in our base rate review filed in April. As we discussed on last quarter's call. This is a request for a $502 million rate adjustment on rate base of $7.2 billion with an 11.3% proposed return on equity and a 53.8% equity capitalization ratio. The review builds on our service reliability enhancements in Pennsylvania with additional investments in a smart modern electric grid and customer focused programs while keeping rates comparable to other utilities in the state. Key components include implementing a 10-year enhanced vegetation management program to reduce tree caused outages, reduced outage restoration time and reduce future maintenance costs, recovery of costs associated with major storms, COVID-19 and LED street light conversions. Changing pension recovery from average cash contributions to traditional pension expense, including previously recognized actuarial losses.

同樣在 8 月中旬在賓州，我們將在 4 月提交的基本費率審查聽證會開始。正如我們在上個季度的電話會議中所討論的那樣。該請求要求在 72 億美元的利率基礎上進行 5.02 億美元的利率調整，建議股本回報率為 11.3%，股本比率為 53.8%。此次審查建立在我們在賓夕法尼亞州增強服務可靠性的基礎上，透過對智慧現代電網和以客戶為中心的計劃進行額外投資，同時保持與該州其他公用事業公司相當的費率。關鍵組成部分包括實施為期 10 年的強化植被管理計劃，以減少樹木造成的停電、減少停電恢復時間並降低未來的維護成本、回收與重大風暴、COVID-19 和 LED 路燈轉換相關的成本。將退休金回收率從平均現金繳款改為傳統退休金支出，包括先前確認的精算損失。

The review also includes a blended federal statutory tax rate of approximately 27%, but also continues to provide customer savings from previous legislative changes to federal and state tax rates.

此次審查還包括約 27% 的混合聯邦法定稅率，但也繼續為客戶節省先前聯邦和州稅率立法變更帶來的費用。

Additionally, the application proposes a pension OPEB normalization mechanism to track and defer differences between actual and test year expense to reduce volatility from the pension. And as Brian mentioned, we are engaging with the intervening parties in an effort to reach settlement prior to the scheduled hearings in mid-August.

此外，該申請還提出了退休金 OPEB 標準化機制，以追蹤和推遲實際費用與測試年費用之間的差異，以減少退休金的波動性。正如布萊恩所提到的，我們正在與幹預方接觸，並努力在八月中旬舉行的聽證會之前達成和解。

Finally, in addition to the settlement discussions on our Energize New Jersey infrastructure improvement proposal, we are also engaged in settlement discussions for our New Jersey Energy Efficiency and Conservation Plan. This plan, which was filed with the BPU in December 2023, covers the period from January 1, 2025, through June 30, 2027, with a proposed budget of approximately $964 million.It consists of a portfolio of programs addressing energy efficiency, peak demand reduction, and building decarbonization with recovery of lost revenues and provides a return on the investments.

最後，除了就我們的新澤西州能源基礎設施改善提案進行和解討論外，我們還參與了對新澤西州能源效率和節約計劃的和解討論。該計劃於 2023 年 12 月向 BPU 提交，涵蓋期間為 2025 年 1 月 1 日至 2027 年 6 月 30 日，擬議預算約為 9.64 億美元。碳排放，透過恢復收入損失實現脫碳，並提供投資回報。

The BPU suspended the procedural schedule July 1st in light of these settlement discussions. A final BPU decision and order is required no later than October 15th of this year.

鑑於這些和解討論，BPU 於 7 月 1 日暫停了程序安排。BPU 需要在今年 10 月 15 日之前做出最終決定和命令。

So, we're making good progress in 2024, we're executing well. We have a strong strategy and opportunities to continue our positive momentum and growth.

所以，我們在 2024 年取得了良好進展，我們執行得很好。我們擁有強大的策略和機會來繼續我們的積極勢頭和成長。

Thank you for your time today, and I'll open the call to your questions.

感謝您今天抽出時間，我將開始回答您的問題。

(Operator Instructions) Shahriar Pourreza, Guggenheim Partners.

（操作員說明）Shahriar Pourreza，古根漢合夥人公司。

Brian, just on the growth numbers out there, obviously, you're highlighting the opportunities around data centers andlarge energy-intensive consumers, you have transmission capacity to take on the load, but you still have this kind of 1% load growth figure out there. A lot of your peers have been raising expectations, some are quantifying the impact. I guess, what's holding back? And how and when are you thinking about updating investors around potential upside there? Thanks.

Brian，就成長數字而言，顯然，您強調了資料中心和大型能源密集型消費者周圍的機會，您有傳輸能力來承擔負載，但您仍然有這種 1% 的負載增長數字在那裡。許多同行一直在提高期望，有些人正在量化其影響。我想，是什麼阻礙了？您如何以及何時考慮向投資者通報潛在的上漲空間？謝謝。

Thank you for that, Shar. We're going through our evaluation of our future load growth rate right now. Look, we're seeing some things that are positive from the data center side. Some of those still a few years out. We're seeing some positive impacts from adoption of EVs in places like Maryland and New Jersey. But overall, we're still seeing modest, steady low growth and not it knock out of the park at this point.

謝謝你，莎爾。我們現在正在評估未來的負載成長率。看，我們從資料中心方面看到了一些正面的事情。其中一些還需要幾年的時間。我們看到馬裡蘭州和新澤西州等地採用電動車帶來了一些正面影響。但總體而言，我們仍然看到溫和、穩定的低成長，目前還沒有超出預期。

There's been so much talk about data center, Shar. And when we look at it, even if we get the load growth, they're generally taking service at a transmission level, which isn't as earnings impactful. Today, it could be rate impactful in a positive way to our existing customers as we spread some of that existing capacity over more units. But the real opportunity for us around data centers has been around things like the PJM Open Window 3, where we were awarded about $800 million worth of opportunity to invest in the transmission system to serve some of that data center load that's that Northern Virginia, Panhandle, Maryland area.

Shar，關於資料中心的討論已經很多了。當我們看到它時，即使我們得到負載成長，他們通常也在傳輸層級上提供服務，這對獲利影響不大。如今，隨著我們將部分現有產能分散到更多單位，它可能會對我們現有的客戶產生正面的影響。但我們在數據中心周圍的真正機會是圍繞 PJM Open Window 3 等項目，我們獲得了價值約 8 億美元的投資傳輸系統的機會，為北弗吉尼亞州 Panhandle 的部分數據中心負載提供服務，馬裡蘭州地區。

So that's where we've seen more impact from the data centers, but more to be seen, and I anticipate probably around EEI, we'll be able to update you on the load growth.

因此，我們已經看到資料中心產生的更多影響，但還有更多影響，我預計可能在 EEI 周圍，我們將能夠向您通報負載成長的最新情況。

And then lastly and maybe somewhat related. It's been noise around co-located nuclear data center deals in PJM. I mean some of your current states like in Pennsylvania and Ohio could see similar deals like we saw with Susquehanna and AWS. I guess, why haven't you filed at FERC around the Susquehanna ISA docket when most of your peers have? And what's stance on the current complaint out there? Thanks.

最後，也許有些相關。PJM 核子資料中心合址交易一直引起爭議。我的意思是，目前的一些州，例如賓夕法尼亞州和俄亥俄州，可能會看到類似的交易，就像我們在 Susquehanna 和 AWS 上看到的那樣。我想，為什麼你沒有向 FERC 提交關於 Susquehanna ISA 案卷的文件，而你的大多數同行都已經這樣做了？對於目前的投訴持什麼立場？謝謝。

Look, I think those are things that FERC will figure out in time. It's not as business impactful to us at this point, given our service territory and where we are. And I'm interested in what FERC has to say about that. I'm not sure what their tools are to be able to block something like that, what their view is on whether or not it takes net capacity out of the market, and what that would do for existing customers.

我認為 FERC 會及時解決這些問題。考慮到我們的服務範圍和所處位置，目前這對我們的業務影響不大。我對 FERC 對此有何評論感興趣。我不確定他們的工具是什麼，能夠阻止類似的事情，他們對是否將淨容量排除在市場之外有何看法，以及這會對現有客戶產生什麼影響。

We just saw some pretty high prints on the PJM capacity auction yesterday. I think people are looking to that mechanism to solve generation resource adequacy. I'm not sure it really does, right? That's one print in that auction that happened yesterday. There was virtually no new generating capacity was offered and I don't think that a one-year print or a two-year print or a three-year print is going to solve that problem and attract significant increased investment into the PJM region.

昨天我們剛在 PJM 容量拍賣中看到了一些相當高的印刷品。我認為人們正在尋求這種機制來解決發電資源充足性問題。我不確定它是否真的如此，對吧？這是昨天拍賣會上的一張印刷品。實際上沒有提供新的發電能力，我認為一年期、兩年期或三年期的印刷不會解決這個問題並吸引 PJM 地區大幅增加的投資。

So something we need to figure out. It's important for our customers. We're actively engaged in that discussion. But I don't think the PJM auction is the place where that issue is going to be solved.

所以我們需要弄清楚一些事情。這對我們的客戶很重要。我們正在積極參與這項討論。但我不認為 PJM 拍賣能夠解決這個問題。

Got it, Brian. And just a quick follow-up on that. Are you referring to potentially owning a certain amount of peaking assets and rates? Is that what the discussions are?

明白了，布萊恩。對此進行快速跟進。您指的是可能擁有一定數量的峰值資產和利率嗎？討論的內容就是這樣嗎？

So the issue is how could we help that happen. And in certain of our states today, we're not allowed to own capacity. In West Virginia, we do in Maryland under circumstances we could in Ohio under certain circumstances we could. But in other states, we'd have to have legal challenges to allow that to happen.

所以問題是我們如何幫助實現這一目標。今天，在我們的某些州，我們不允許擁有自己的能力。在西維吉尼亞州，我們在馬裡蘭州在某些情況下可以這樣做，在俄亥俄州在某些情況下我們可以這樣做。但在其他州，我們必須面臨法律挑戰才能實現這一點。

And if our states were to come to us and say, we would like you to invest in some form of dispatchable generation for the life of the asset at a regulated return. Those are things that we think would benefit our customers. If other people aren't adding the capacity and today, they're not. And those are discussions that we think would be constructive on behalf of our customers.

如果我們的州來找我們說，我們希望你們在資產的整個生命週期中投資某種形式的可調度發電，並獲得受監管的回報。我們認為這些事情將使我們的客戶受益。如果其他人沒有增加容量，那麼今天他們就沒有增加容量。我們認為這些討論對我們的客戶來說是有建設性的。

Steve Fleishman, Wolfe Research.

史蒂夫‧弗萊什曼，沃爾夫研究中心。

First, I don't know if Irene started working there when she was 10 years old, but congrats to Irene on 40 years and her retirement.

首先，我不知道Irene是否是10歲時開始在那裡工作的，但恭喜Irene已經40歲了，退休了。

I guess, first question, just on Pennsylvania, you mentioned you're getting close to settlement actions there. Just any sense yet on the likelihood that you might be able to reach a settlement in Pennsylvania?

我想，第一個問題，就賓州而言，您提到您即將在那裡採取和解行動。您對在賓州達成和解的可能性有任何了解嗎？

So thanks for that, Steve. Those talks are in early discussions. And it's we would always like to reach a settlement and present that to the commission, but I'd say early stages at this point, and we're optimistic that we'll be able to get something done hopefully before the hearings in August.

所以謝謝你，史蒂夫。這些會談正處於早期討論中。我們總是希望達成和解並將其提交給委員會，但我想說目前還處於早期階段，我們樂觀地認為我們將能夠在八月的聽證會之前完成一些工作。

Okay. And then just on the -- going to Ohio on the ESP V, the -- I guess, the benefit you're seeking to keep it shorter period, it sounds like the benefit of that is that you'll have less time to just be there with an ESP with this limited definition? Or do you really want to just get better definition over the life of the ESP of some these clauses?

好的。然後就--乘坐 ESP V 去俄亥俄州，--我想，你尋求縮短時間的好處，聽起來這樣做的好處是你將有更少的時間ESP 的定義如此有限嗎？或者您真的想對這些條款的 ESP 生命週期有更好的定義嗎？

Here's what happened, the commission punted some key aspects of ESP V to the base rate case. And so it's hard for us to accept a five-year plan when there's uncertainty beyond the current rate case. And so if we were to time those things up a little better, and get more certainty on it, it's easier for us to accept an ESP V over a five-year term with more certainty. It's really hard for us to know what's going to happen to certain of those items that got punted after we get resolution of the base rate case.

事情是這樣的，委員會將 ESP V 的一些關鍵方面轉嫁給了基本費率案例。因此，當存在超出當前利率情況的不確定性時，我們很難接受五年計劃。因此，如果我們能更好地安排這些事情的時間，並獲得更多的確定性，我們就更容易更確定地接受五年期的 ESP V。我們真的很難知道在我們解決基本費率案例後，某些被拋售的物品會發生什麼。

And then obviously, it's your decision whether to accept an ESP or not. So that's part of the --

顯然，是否接受 ESP 由您決定。這就是其中的一部分--

Yes. That's correct.

是的。這是正確的。

Got it. Okay. I know you mentioned that you are, I guess, far enough on some the Ohio issues to take a reserve on those this quarter. Just maybe you could just talk to and then resolving the DPA 2 period. So just could you maybe just talk to kind of your overall take on the environment there and how FirstEnergy is viewed these days?

知道了。好的。我知道你提到過，我想你在俄亥俄州的一些問題上已經足夠深入，可以在本季度對這些問題採取保留態度。也許您可以直接與 DPA 2 期間交談並解決該問題。那麼您能否談談您對當地環境的整體看法以及目前對 FirstEnergy 的看法？

Yeah. So thank you for that, Steve. Look, we've worked very, very hard to take responsibility for what happened in the past, make any payment and penalties that we need to move on beyond that. The thing that was very positive this quarter was in three of those issues, we made some real significant progress. First, there was the filing by the US Attorney's Office for the Southern District of Ohio recognizing that the three-year term of the DPA had ended and that we've been fully compliant with the requirements during that term.

是的。所以謝謝你，史蒂夫。看，我們非常非常努力地為過去發生的事情承擔責任，支付我們需要繼續前進的任何付款和罰款。本季非常積極的事情是在其中三個問題上，我們取得了一些真正重大的進展。首先，美國俄亥俄州南區檢察官辦公室提交的文件承認，DPA 的三年期限已經結束，我們在該期限內完全遵守了要求。

Second, we were able to make progress on the OOCIC and we were able to take a reserve for the amount that we think will be required to put that behind us. And then third, we were able to make progress achieving an agreement in principle subject to commission approval with the SEC. So across all fronts, we're making real progress on putting those legacy issues behind us and focusing on future. And I think, it's being well received in all of those venues.

其次，我們能夠在 OOCIC 方面取得進展，並且能夠取得我們認為將其拋在腦後所需的金額的儲備金。第三，我們能夠在原則上達成一項協議方面取得進展，但須經美國證券交易委員會委員會批准。因此，在各個方面，我們在將這些遺留問題拋在腦後並著眼於未來方面取得了真正的進展。我認為，它在所有這些場所都受到了好評。

Jeremy Tonet, JPMorgan Chase.

傑里米·託內特，摩根大通。

I just wanted to follow up a little bit more on some of the earlier points on power prices here. And given the rise in both capacity and energy prices. Just wondering, how you think about this impacts customers build headroom there. And just, do you see any potential efforts out there to curb this? Could you share any thoughts on potential for state legislation to support new generation, state to form a strategic reserve, multiple VIUs coming together for a larger consolidated IRP, greater FRR use? Or just in general, do you see anything happening to stem higher prices?

我只是想進一步跟進之前有關電價的一些觀點。考慮到產能和能源價格的上漲。只是想知道，您如何看待這會影響客戶在那裡建立的空間。只是，您是否認為有任何潛在的努力可以遏制這種情況？您能否分享一下關於州立法支持新一代、州形成戰略儲備、多個 VIU 聯合起來形成更大的綜合 IRP、更多 FRR 使用的潛力的想法？或者總的來說，您認為有什麼事情會阻止價格上漲嗎？

Jeremy, you use just about every acronym we have in the industry in that question. That was amazing.

傑里米（Jeremy），在這個問題中，您幾乎使用了業內所有的縮寫詞。太棒了。

Here are some of the things that we're doing right now, right? It was late breaking news yesterday afternoon. So we're going by a jurisdiction-by-jurisdiction analysis of the impact of a couple of things. One is the higher capacity print that we saw yesterday. But we also still have some energy prices in there that are reflective of the Ukrainian impact on gas prices and electricity in the United States and some of those are rolling off, at the same time, those higher capacity prices will be rolling in. So we're trying to determine right now on a jurisdiction-by-jurisdiction basis, how that will happen and what the impact to our customers will be.

這是我們現在正在做的一些事情，對嗎？這是昨天下午的突發新聞。因此，我們將對各個司法管轄區的一些因素的影響進行分析。其中之一是我們昨天看到的更高容量的印刷品。但我們仍然有一些能源價格反映了烏克蘭對美國天然氣和電力價格的影響，其中一些價格正在下降，同時，更高的容量價格也將隨之而來。因此，我們現在正試圖在每個司法管轄區的基礎上確定這種情況將如何發生以及對我們的客戶有何影響。

In West Virginia, we think the impact will be a wash. We have about the amount of capacity that our West Virginia customers need and buying and selling at those amounts, we don't expect there to be a significant impact in the state of West Virginia.

在西維吉尼亞州，我們認為影響將是巨大的。我們擁有西維吉尼亞州客戶所需的產能，並且按照這些數量進行買賣，我們預計不會對西維吉尼亞州產生重大影響。

As we look forward to the other states, right, we have, what I would say, among most progressive energy policy states in the country and among the most traditional as well. So I think West Virginia has traditionally been responsive to being pro-coal, but also all of the above. We've added some solar there recently. And I'd like to see if in our next IRP, we might be able to add some combined cycle gas in West Virginia in addition to that.

正如我們期待其他州一樣，我想說的是，我們是全國能源政策最進步的州之一，也是最傳統的州之一。因此，我認為西維吉尼亞州傳統上​​一直對支持煤炭做出反應，但也支持上述所有內容。我們最近在那裡增加了一些太陽能。我想看看在我們的下一個 IRP 中，除此之外我們是否能夠在西維吉尼亞州添加一些聯合循環天然氣。

And then in some of the other states where we're wires only, we're open to any construct that would allow us to invest in capacity on something that looks like a regulated basis. So, if we were to have in Pennsylvania and Ohio, something that looked like NYSERDA or NYPA, where a state agency could buy at long-term capacity that they might hold an auction for that anyone competitive generators -- regulated generators could offer into that, those auctions. If it looked like a regulated basis and we could offer at a price that would allow us something that looked like a regulated return and allow us to recover on a pass-through basis, fuel and energy, those are things that we'd be willing to do.

然後，在其他一些我們只提供有線服務的州，我們對任何允許我們在看似受監管的基礎上進行容量投資的結構持開放態度。因此，如果我們在賓夕法尼亞州和俄亥俄州有類似NYSERDA 或NYPA 的東西，國家機構可以以長期容量購買，他們可能會為任何有競爭力的發電機舉行拍賣——受監管的發電機可以提供這種服務，那些拍賣。如果它看起來像一個受監管的基礎，我們可以提供一個看起來像受監管的回報的價格，並允許我們在傳遞的基礎上收回燃料和能源，這些都是我們願意的去做。

The thing we wouldn't be willing to do would be start competitive generation of our own. That's something that we've recently come out of. We paid a heavy price for that. We've rebuilt our balance sheet in the wake of that, and that's not a place that we're going to be going back to. But other things, other opportunities that could benefit our customers have the capacity that they need be responsive from a price standpoint are all things that are on the table and are all things we're talking to our states about.

我們不願意做的就是開始我們自己的競爭性發電。這是我們最近才解決的問題。我們為此付出了慘痛的代價。在那之後，我們重建了我們的資產負債表，這不是我們要回到的地方。但其他事情、其他機會可以使我們的客戶受益，他們需要從價格的角度做出反應，這些都是擺在桌面上的事情，也是我們正在與我們的州討論的所有事情。

Competitive generation been there, done that. Just wanted to pivot a bit here, a smaller question. Just wondering, if you could speak to the size of cost savings that you guys are expecting with some of the facility optimization moves you're making, shrinking, changing location, just where those initiatives stand today? And what can we expect for timing impact of that and other cost saving initiatives on radar?

有競爭力的世代已經在那裡，做到了這一點。只是想在這裡轉一下，一個較小的問題。只是想知道，您是否可以談談您們正在採取的一些設施優化舉措（縮小規模、改變地點）所期望的成本節省規模，以及這些舉措目前的情況？我們對這項措施和其他成本節約措施對雷達的時間影響有何預期？

Hi, Jeremy, it's Jon. I think we'll see some savings associated with, for instance, getting out of the general office headquarters here in Akron moving over to an owned building. But those savings, I would say, are fairly minimal in the grand scheme of things. Where we're really trying to focus our efforts on continuous improvement and taking cost out of the business is really around our productivity of workforce, investing in infrastructure and data and technology that will help us drive better decision-making, faster decision-making. And we have some pretty aggressive targets on productivity of our workforce, so we can make sure that we get contractors off the property that we do our work ourselves.

嗨，傑里米，我是喬恩。我認為我們會看到一些節省，例如，從阿克倫的總辦公室總部搬到自有大樓。但我想說的是，從宏偉的計劃來看，這些節省的費用相當小。我們真正努力將精力集中在持續改善和降低業務成本上，實際上是圍繞我們的員工生產力、對基礎設施、數據和技術的投資，這將幫助我們做出更好、更快的決策。我們對員工的生產力製定了一些相當激進的目標，因此我們可以確保我們讓承包商離開我們自己工作的地方。

That's where the bulk of the savings are coming from. And in fact, if you look over the last couple of years, we've done a pretty nice job of taking cost out with about $200 million of cost savings in 2023. About $100 million of that was sustainable, and we're targeting $70 of cost savings this year. So we'll continue to do what we can to offset inflation going forward, and that's part of our plan.

這就是大部分節省的來源。事實上，如果你回顧過去幾年，我們在降低成本方面做得非常好，到 2023 年節省了約 2 億美元的成本。其中約 1 億美元是可持續的，我們今年的目標是節省 70 美元的成本。因此，我們將繼續盡我們所能抵消未來的通貨膨脹，這是我們計劃的一部分。

I forgot to mention with my earlier question, as far as offshore wind is concerned, is that anything that on your radar at all or really just the transmission side? I just wanted to check on that.

我忘了提到我之前的問題，就離岸風電而言，這是您雷達上的任何東西還是實際上只是傳輸側？我只是想檢查一下。

I'll tell you what our favorite part of offshore wind is, it's the on-land part. And we are investing a significant amount of money to shore up the transmission system in New Jersey to enable their initiatives to have significant offshore wind commissure in our service territory, and we're making hundreds of millions of dollars of investments to enable that, and that's the part of offshore wind that we want to participate in.

我會告訴你離岸風電中我們最喜歡的部分是陸上部分。我們正在投入大量資金來支撐新澤西州的輸電系統，以使他們的舉措能夠在我們的服務區域內建立重要的離岸風電合營點，並且我們正在進行數億美元的投資來實現這一目標，並且這就是我們想要參與的離岸風電的一部分。

Nick Campanella, Barclays.

尼克·坎帕內拉，巴克萊銀行。

I know a lot of talk on PJM. Just I wanted to follow-up on that, Brian, I know you said that one print is not a signal, but we'll have another one in December. And my guess is that not much changes just given the lead times to build this generation. And I guess my question is, is there a tipping point if this is truly a step change in the environment, is there any need to reevaluate how you deploy capital? Or you being very comfortable where you are right now? Thanks.

我知道很多關於 PJM 的言論。我只是想跟進這一點，布萊恩，我知道你說過一份印刷品不是一個信號，但我們將在 12 月再印刷一份。我的猜測是，考慮到建立這一代的交付時間，不會有太大變化。我想我的問題是，如果這確實是環境的一步變化，是否存在轉折點，是否需要重新評估如何部署資本？還是你現在所處的位置非常舒服？謝謝。

Look, thank you for the question, Nick. Look, I think it's interesting. I'd call yesterday's print, the canary in the coal mine and the canary didn't make it. If you look at what's happened with the IPP prices over the course of the year, they are all anticipating higher prices in the years going forward.

聽著，謝謝你的提問，尼克。看看吧，我覺得很有趣。我打電話給昨天的印刷品，煤礦裡的金絲雀，金絲雀沒有成功。如果你看看一年來 IPP 價格的變化，你會發現他們都預計未來幾年價格會更高。

If you look at the amount of new generation that cleared in the auction yesterday, according to PJM's auction report, it was like 100 megawatts, so essentially nil. Same in the auction prior to that, it was about 300 megawatts, again, not the right amount.

如果你看看昨天拍賣中清算的新一代發電量，根據 PJM 的拍賣報告，它大約是 100 兆瓦，所以基本上是零。之前的拍賣也是如此，大約是 300 兆瓦，同樣，這個數字也不合適。

If people were to respond to yesterday's print and say, yes, I think it's a good idea to invest in baseload dispatchable generation PJM, it would be six years before that capacity would come online. The reality is that we can increase load and build data centers almost immediately and it takes years of planning, permitting and procuring and construction to build a power plant. So I think it's indicative of the future, but it certainly doesn't solve the problem.

如果人們對昨天的印刷品做出回應並說，是的，我認為投資基本負載可調度發電 PJM 是個好主意，那麼該容量將需要六年時間才能上線。現實情況是，我們幾乎可以立即增加負載並建造資料中心，而建造發電廠需要多年的規劃、許可、採購和建造。所以我認為它預示著未來，但它肯定不能解決問題。

So what we're going to do is what we need to do is enable the energy transmission you need a robust grid to be able to do that. PJM keeps opening these open windows. There's a current one open that we will be submitting proposals to. We just had significant action that we won in the last one, and we'll continue to do that. And we're going to engage in the discussion constructively with our states, regulators and customers to see if there's a way that we could deploy our balance sheet capacity for generation that looked regulated like to us and our investors. But that's how we're viewing the lay of the land right now.

因此，我們要做的就是我們需要做的是實現能量傳輸，您需要一個強大的電網才能做到這一點。PJM 不斷打開這些打開的視窗。目前有一個開放的項目，我們將向其提交提案。我們剛剛在上一場比賽中取得了重大勝利，我們將繼續這樣做。我們將與我們的州、監管機構和客戶進行建設性的討論，看看是否有一種方法可以部署我們的資產負債表發電能力，讓我們和我們的投資者看起來受到監管。但這就是我們現在看待這片土地的方式。

I don't have the silver bullet. That's the solution that will solve this tomorrow or in two years or in three years, but we're engaged in that discussion. I just don't think the PJM construct is going to fix the issue even if it sends some positive price signals.

我沒有靈丹妙藥。這就是明天、兩年或三年後解決這個問題的解決方案，但我們正在進行討論。我只是不認為 PJM 結構能夠解決問題，即使它發出了一些積極的價格訊號。

And then you brought up the balance sheet capacity. And one thing that we noticed that obviously, you've done a great job derisking the balance sheet this year. You're really not relying much on capital market this year either. And I know you are working towards another update maybe in the fall or later in the year, just as you roll forward, presumably the CapEx plan fees pressure higher and how you thinking about financing that is the plan of contents continues to have sizable balance sheet capacity where we could see no equity on a roll forward. Thank you.

然後你提出了資產負債表容量。我們注意到的一件事顯然是，今年你們在消除資產負債表風險方面做得非常出色。今年你對資本市場的依賴確實不大。我知道您正在努力可能在秋季或今年晚些時候進行另一次更新，就像您向前推進一樣，大概資本支出計劃費用壓力會更高，並且您如何考慮融資，即內容計劃，繼續擁有相當大的資產負債表我們看不到前滾的公平性。謝謝。

Hey, Nick, this is John. So we'll work through that as we do our long-term plan and update the investment community and the new springtime or wintertime of next year. I would tell you, listen, we got to balance and a couple of different things. We want to be at a BBB flat credit rating with the rating agencies were not there yet. I f you look at where there are thresholds are versus where our plan targets are, we do have some balance sheet capacity.

嘿，尼克，這是約翰。因此，我們將在製定長期計劃並更新投資界和明年新的春季或冬季的同時解決這個問題。我會告訴你，聽著，我們必須保持平衡，還有一些不同的事情。我們希望獲得 BBB 固定信用評級，但評級機構尚未達到這一水平。如果你看看門檻與我們的計畫目標的位置，我們確實有一定的資產負債表能力。

I would say 4% of the CapEx program is probably in the right neighborhood, but there's going to be a lot of puts and takes as we think about the capital plan over the next 5 to 10 years that will have to consider.

我想說，4% 的資本支出計劃可能是在正確的範圍內，但是當我們考慮未來 5 到 10 年的資本計劃時，將會有很多的調整和調整。

As a base capital that you'll have regulatory lag or as a formula rate, transmission capital. Those are all things that are going to go into the mix, but we do have some balance sheet capacity, but I would probably peg it at less than 5% of the CapEx program.

作為基礎資本，您將存在監管滯後或作為公式利率，傳輸資本。這些都是要考慮的因素，但我們確實有一定的資產負債表能力，但我可能會將其固定在資本支出計劃的 5% 以下。

Carly Davenport, Goldman Sachs.

卡莉·達文波特，高盛。

Just wanted to quickly go back to the growth piece, strong presence across both commercial and residential customer classes this quarter. Could you just talk a little bit about what's driving that and how you see that evolving going forward?

只是想快速回到成長部分，即本季在商業和住宅客戶類別中的強勁表現。您能否簡單談談推動這一趨勢的因素以及您如何看待未來的發展？

Yes, Carly, let me start with residential. I mean, we're just generally seeing at least this quarter higher average usage per customer across all of our jurisdiction jurisdictions. Especially in areas like New Jersey and Maryland, which have a much more progressive energy policy with respect to electrification of vehicles or electrification of other industries.

是的，卡莉，讓我從住宅開始。我的意思是，我們至少在本季度普遍看到我們所有司法管轄區的每個客戶的平均使用量有所增加。特別是在新澤西州和馬裡蘭州等地區，這些地區在車輛電氣化或其他行業電氣化方面擁有更進步的能源政策。

We also can continue to see some higher customer and growth in Maryland given some of the economic activity that we're seeing in that part of our service territory. So that's really what's driving the residential growth for the quarter.

鑑於我們在馬裡蘭州服務區域的部分經濟活動中看到的一些經濟活動，我們也可以繼續看到馬裡蘭州的一些更高的客戶和成長。所以這確實是推動本季住宅成長的因素。

If you look at commercial and commercial for us is our small and medium sized businesses. This is a customer class. It took a pretty hard hit after the COVID pandemic. So pretty significant drop off. Now we're starting to see some of that rebound. And if you look at the last four quarters, three of the four have been higher quarter over quarter and is getting closer to what I would call pre pandemic level usage. So those are really what are the drivers for the residential and commercial prints for the quarter.

如果你看看商業，對我們來說商業就是我們的中小型企業。這是一個客戶類別。新冠疫情大流行後，它受到了相當嚴重的打擊。下降幅度相當大。現在我們開始看到一些反彈。如果你看看過去的四個季度，四個季度中的三個季度比上個季度更高，並且越來越接近我所說的大流行前的使用水準。因此，這些確實是本季住宅和商業印刷品的驅動因素。

Michael Lonegan, Evercore ISI.

羅根 (Michael Lonegan)，Evercore ISI。

So in Ohio rate case, obviously, it's early on, but just wondering if you see an opportunity for ultimately reaching a settlement there. You reached a partial settlement in Grid Mod II this year, a settlement with the House Rule 6 refunds credits a few years ago. Now you're resolving some of the legacy issues in the state. But that being said, ESP V, there are some issues with that. So just wondering what your thoughts are about ultimate settlement there.

因此，在俄亥俄州利率案件中，顯然，現在還為時過早，但只是想知道您是否看到最終在那裡達成和解的機會。你們今年在 Grid Mod II 中達成了部分和解，這是幾年前與《眾議院規則 6》退款積分達成的和解。現在您正在解決該州的一些遺留問題。但話雖這麼說，ESP V 存在一些問題。所以只是想知道你對那裡的最終解決方案有何想法。

Michael, it's always our desire to reach a settlement in any these rate cases. This one is something that I think is very much to the early stages will be filing our update to the rate case filing later today. And then, of course, we'll be engaging with interveners and other interested parties as we work our way through the balance of 2024 and well into 2025. So yes, always want to reach a settlement, always open to that and always striving to do that in any case that we file.

邁克爾，我們始終希望在任何這些費率案件中達成和解。我認為這是非常早期階段的事情，我們將在今天晚些時候提交我們對費率案件歸檔的更新。當然，在我們努力度過 2024 年餘下時間並進入 2025 年的過程中，我們將與乾預者和其他感興趣的各方進行接觸。所以，是的，我們總是希望達成和解，並始終對此持開放態度，並且在我們提交的任何案件中始終努力做到這一點。

And then secondly, from me, obviously, the big CapEx increase earlier this year were 44%, an expectation is that you'll file more regular rate cases. Obviously, you have the two big ones going on in Ohio and Pennsylvania right now, and you recently reached settlement in your other states. Just wondering how we should think about the jurisdictions and timings of your next rate cases?

其次，對我來說，很明顯，今年早些時候的資本支出大幅增加了 44%，預計您將提交更多常規費率案例。顯然，俄亥俄州和賓夕法尼亞州現在正在發生兩件大事，而且您最近在其他州達成了和解。只是想知道我們應該如何考慮您下一個費率案件的司法管轄區和時間安排？

Yeah. So thank you for that as well. Michael, I look, I have the belief that a a well run and growing utility should be going as we have a strong balance sheet. We have Energize365, the CapEx plan that we're pursuing. By the way, we have a significant amount of our capital is covered under the riders and trackers, but I think gave a very regular interaction with our regulators on is something that we should be doing regularly.

是的。所以也謝謝你。邁克爾，我看，我相信，隨著我們擁有強大的資產負債表，公用事業應該運作良好且不斷成長。我們有 Energize365，這是我們正在追求的資本支出計劃。順便說一句，我們有很大一部分資金是由騎士和追蹤器覆蓋的，但我認為與監管機構進行定期互動是我們應該定期做的事情。

So I think in most jurisdictions, we should be going into every two to three years at the max and UPS dating rates, clearing out trackers and riders, getting them reflected in base rates and then and then moving forward with those again. So I just think it's up a hallmark of a growing utility data that you should be regularly engaging with regulators.

因此，我認為在大多數司法管轄區，我們應該每兩到三年進行一次最高和 UPS 約會費率，清除追蹤器和騎手，將它們反映在基本費率中，然後再次推進這些費率。所以我認為這是公用事業數據不斷增長的一個標誌，你應該定期與監管機構接觸。

Paul Patterson, Glenrock Associates.

保羅·帕特森，Glenrock Associates。

I wanted to echo what Steve's -- congratulations to Irene first of all. Then a lot of my questions have been answered, but just back to the regulated or central procurement ideas that you were throwing out there. I'm just wondering what jurisdictions in your distribution-only service territories do you think are more receptive to that that idea than others?

我想呼應史蒂夫的話——首先要祝賀艾琳。然後我的許多問題都得到了解答，但回到您提出的受監管或集中採購的想法。我只是想知道您認為您的僅分發服務區域中的哪些司法管轄區比其他司法管轄區更容易接受這個想法？

Sometimes those logical issues would have you, I mean, for whatever reason, some might be as logical as something might be some might be a little bit more resistant or a little bit more receptive than others. I was just thinking any thoughts about in your discussion about who might be a little bit more open to that idea?

有時，這些邏輯問題會讓你感到困惑，我的意思是，無論出於何種原因，有些人可能會像某些人一樣合乎邏輯，有些人可能會比其他人更具抵抗力或更容易接受。我只是在想，在你們的討論中，誰可能對這個想法持更開放的態度？

Yeah. So, Paul, you asked a politically-fraught question. Look, I think the real need here in the near term is for baseload dispatchable generation. And we are ready, willing and able to engage in all of our jurisdictions for anyone who would like to add that on a regulated type basis.

是的。所以，保羅，你問了一個充滿政治色彩的問題。看，我認為短期內真正的需求是基本負載可調度發電。我們已經準備好、願意並且能夠參與我們所有的司法管轄區，為任何想要在監管類型的基礎上添加該司法管轄區的人提供服務。

West Virginia has really said to us that coal is important to them, but everything should be in the tool bag in West Virginia, we're willing to engage with them on that basis. Maryland and Ohio under certain circumstances, we could add generation there, and Pennsylvania would take a legislative change. So we are open to all. And if they're open to us, we'd be willing to engage on that regulated type basis.

西維吉尼亞州確實對我們說過，煤炭對他們很重要，但一切都應該在西維吉尼亞州的工具包裡，我們願意在此基礎上與他們接觸。馬裡蘭州和俄亥俄州在某些情況下，我們可以在那裡增加發電量，賓州將進行立法改革。所以我們對所有人開放。如果它們對我們開放，我們願意在這種受監管的基礎上參與。

And again, there are people that get upset and say, you're going back to regulation. I don't think you have to go back to regulation. I think you can still have energy markets. I think you can still have retail choice where you have it today. But I also think you could have constructs like NYSERDA or NYPA where they could buy on behalf of the state's residents. And that doesn't have to be an end to competition.

再次，有人感到不安並說，你要回歸監管。我認為你不必回到監管。我認為你仍然可以擁有能源市場。我認為您仍然可以在今天擁有的零售店中進行選擇。但我也認為你可以有像 NYSERDA 或 NYPA 這樣的結構，他們可以代表州居民購買。這並不一定意味著競爭的結束。

And they can even have auctions where all people could participate in that, utilities, independent power producers, and others. So for the people that say it has to be one or the other, I just don't think that's a valid premise.

他們甚至可以舉辦所有人都可以參與的拍賣，包括公用事業公司、獨立電力生產商等。因此，對於那些說必須是其中之一的人來說，我認為這不是一個有效的前提。

Andrew Weisel, Scotia Bank.

安德魯‧韋塞爾，豐業銀行。

I want to also congratulate Irene on into the incredible career. And Chris, I don't know you were looking at the number of new leaders who joined us in the last year. I think you certainly deserve congratulations as well. Looks like -- The couple of quick ones on the balance sheets, I know you're targeting 14% to 15% FFO to debt consistent with prior guidance. We still on track to reach that by year end, where does that metric stand as of June 30 after the FAT proceeds? And I see you're still reiterating equity needs of up to $100 million per year. You've taken of $120 million of reserves.

我還要祝賀艾琳進入了令人難以置信的職業生涯。克里斯，我不知道您是否在關注去年加入我們的新領導者的數量。我認為你當然也值得祝賀。看起來——資產負債表上的幾個快速項目，我知道你們的目標是 14% 到 15% 的 FFO 債務，與之前的指導一致。我們仍有望在年底前實現這一目標，那麼截至 FAT 啟動後的 6 月 30 日，該指標處於什麼位置？我看到您仍然重申每年高達 1 億美元的股權需求。您已經動用了 1.2 億美元的儲備金。

Should those turn into cash outflows? Would that Ulta typically require incremental equity as a one-timer? Or would that be able to or would you be able to satisfy that without more equity? And I recognize the timing of that would be very uncertain, but maybe just some thoughts on that.

這些應該轉化為現金流出嗎？Ulta 通常需要一次性增加股本嗎？或者如果沒有更多的股權，這是否能夠或你能夠滿足這一點？我認識到具體時間非常不確定，但也許只是對此的一些想法。

Yeah, Andrew, this is Jon. -- Jon. So we've made significant improvements in the metrics. Just if you look at where we are as of the trailing 630 numbers close to 200 basis points of improvement, a lot of that is coming from higher FFO . But if you just look at our debt levels there about $2 billion below where they were this time last year, I do think we're going to be a little bit challenged this year to hit the 14%. A lot of that is because of the SEC and OCIC accrual. If you were to back those out, we would be closer to the 14%. But longer term, we're going to be a 14% to 15%.

是的，安德魯，這是喬恩。 ——喬恩.所以我們在指標上做了重大改進。只要你看看我們在追蹤 630 個數字中接近 200 個基點的改進，其中很大一部分來自於更高的 FFO。但如果你看看我們的債務水準比去年同期低了約 20 億美元，我確實認為今年要達到 14%，我們將面臨一些挑戰。這很大程度是由於 SEC 和 OCIC 的應計費用。如果你支持這些，我們會更接近 14%。但從長遠來看，我們的比例將是 14% 到 15%。

Does that mean by next year or will it be a --

這是否意味著明年或將是--

It would be next year. So sometime like in probably the first, second or third quarters of next year on a trailing basis, we would probably get to that 14% level.

那將是明年。因此，在過去的某個時候，例如明年第一、第二或第三季度，我們可能會達到 14% 的水平。

Then just a quick follow-up . Remind me if you were to do a pension lift out, would that be cash or non-cash?

然後快速跟進。提醒我，如果您要提領退休金，是現金還是非現金？

Well, it would be funded through the pension plan. It would be non-cash to the Company, but the pension plan would have to funded, which would the investments that it has on hand to fund that.

嗯，它將透過退休金計劃提供資金。對於公司來說，這將是非現金，但退休金計劃必須提供資金，這將是其手頭上的投資為其提供資金。

But it wouldn't require external finance?

但這不需要外部融資嗎？

No, that's right. If you think about what we did in December, we eliminated a $720 million liability by paying $0.95 on the dollar to the pension plan. So no, no extra, no financing to the company.

不，沒錯。如果你想想我們 12 月所做的事情，我們透過向退休金計畫支付 0.95 美元，消除了 7.2 億美元的負債。所以不，沒有額外的資金，沒有為公司提供融資。

Gregg Orrill, UBS.

格雷格·奧裡爾，瑞銀集團。

Irene, I appreciate it. Just a couple of timing questions. Just on the potential construct of -- NYSERDA type agency, what is the earliest you think something like that could get started in any of your states?

艾琳，我很感激。只是幾個時間問題。就 NYSERDA 類型機構的潛在結構而言，您認為類似的事情最早可以在您所在的任何州啟動是什麼時候？

And then just on Grid Mod II mean, we had a partial settlement there. What's your thinking on the timing to get that done? What has to be done there?

然後就 Grid Mod II 而言，我們在那裡進行了部分解決。您認為完成這項工作的時機是什麼？那裡必須做什麼？

So let me take grid month to first Gregg. I would anticipate an order in the fourth quarter of this year on the settlement that we propose. So we hope to get that done, like I said this year and we could start making those investments right away in the airline.

讓我先向格雷格介紹一下網格月。我預計今年第四季將就我們提議的和解方案下達命令。因此，我們希望能夠實現這一目標，就像我今年所說的那樣，我們可以立即開始對航空公司進行這些投資。

On the NYSERDA of it would require legislation changes in all of our jurisdictions to make that happen. And then they would have to have a process where they would run an auction to do that. So I'd say it's not a short term process. It would require legislation change and then activation of that new entity to do with it needs to do on behalf of its customers.

在 NYSERDA 上，需要我們所有司法管轄區的立法進行修改才能實現這一目標。然後他們必須有一個流程來進行拍賣來做到這一點。所以我想說這不是一個短期過程。這將需要修改立法，然後啟動該新實體來代表其客戶進行需要做的事情。

So on behalf of the residents of the state rather than customers, the important thing about that is it could be a structural change that could be a path forward rather than an auction to auction, d o I build, don't I build, I would actually be a structure for how the state would procure. It's incremental needs that could survive auctions, administrations, and the like, and it could be truly sustainable. And I think we need assistance sustainable solution here, even if it's not a short-term fix.

因此，代表該州居民而不是客戶，重要的是這可能是一種結構性變化，可能是前進的道路，而不是拍賣到拍賣，我建造，我不建造，我會實際上是國家如何採購的結構。增量需求可以在拍賣、管理等過程中存活下來，並且可以真正實現永續發展。我認為我們需要永續解決方案的援助，即使這不是短期解決方案。

Anthony Crowdell, Mizuho Securities.

安東尼克勞德爾，瑞穗證券。

Just one quick one, Brian, you talked about the PGM contracting at South Ellwood struggled to attract new generation canary in a coal mine. All this, you think as we're in this period, while they're trying to figure out how to incentivize new generation that could delay the economic growth or stall the economic growth or at a low growth that you should see it in the region?

布萊恩，簡單說一下，您談到了南埃爾伍德的 PGM 合約很難吸引煤礦中的新一代金絲雀。所有這一切，你認為我們正處於這個時期，而他們正在試圖找出如何激勵新一代，這可能會延遲經濟成長或阻礙經濟成長或以你應該在該地區看到的低成長速度？

I don't think so, Anthony, obviously we have capacity to use still. I think, we're still serving capacity. We're still adding load. We still have transmission capacity to serve people. I think long term, it could be a problem for economic development and load growth . And I think that's why we need to solve it.

我不這麼認為，安東尼，顯然我們還有能力使用。我認為，我們仍在發揮作用。我們仍在增加負載。我們仍然有傳輸能力為人民服務。我認為從長遠來看，這可能會成為經濟發展和負荷成長的問題。我認為這就是我們需要解決這個問題的原因。

So it's not happening now. It could happen going forward. And I think on a regional and state wide basis, that's why we need to think about this. And we can't seed our competitiveness to other regions because we don't have the energy to serve them, and it's our job to make sure that doesn't happen.

所以現在還沒有發生。未來這可能會發生。我認為在地區和州範圍內，這就是我們需要考慮這個問題的原因。我們無法將我們的競爭力傳播到其他地區，因為我們沒有精力為他們服務，我們的工作就是確保這種情況不會發生。

We've reached the end of our question-and-answer session. And ladies and gentlemen, that does conclude today's teleconference webcast. You may disconnect your lines at this time and have a wonderful day. We thank you for your participation.

我們的問答環節已經結束。女士們先生們，今天的電話會議網路廣播到此結束。此時您可以斷開線路並度過美好的一天。我們感謝您的參與。