Fortis Inc (FTS) 2021 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. My name is Deborah, and I will be your conference operator today. Welcome to the Fortis Q1 2021 Conference Call and Webcast. (Operator Instructions)

女士們，先生們，謝謝你們的支持。我叫黛博拉，今天我將擔任你們的會議接線員。歡迎參加 Fortis 2021 年第一季度電話會議和網絡直播。（操作員說明）

At this time, I would like to turn the conference over to Stephanie Amaimo. Please go ahead, Ms. Amaimo.

此時，我想將會議轉交給 Stephanie Amaimo。請繼續，Amaimo 女士。

Thanks, Deborah, and good morning, everyone, and welcome to Fortis' First Quarter 2021 Results Conference Call. I'm joined by David Hutchens, President and CEO; Jocelyn Perry, Executive VP and CFO; other members of the senior management team as well as CEOs from certain subsidiaries.

謝謝黛博拉，大家早上好，歡迎來到 Fortis 2021 年第一季度業績電話會議。總裁兼首席執行官 David Hutchens 也加入了我的行列； Jocelyn Perry，執行副總裁兼首席財務官；高級管理團隊的其他成員以及某些子公司的首席執行官。

Before we begin today's call, I want to remind you that the discussion will include forward-looking information, which is subject to the cautionary statement contained in the supporting slide show. Actual results can differ materially from the forecast projections included in the forward-looking information presented today. All non-GAAP financial measures referenced in our prepared remarks are reconciled to the related U.S. GAAP financial measures in our first quarter 2021 MD&A. Also, unless otherwise specified, all financial information referenced is in Canadian dollars.

在我們開始今天的電話會議之前，我想提醒您，討論將包括前瞻性信息，這些信息受支持幻燈片中包含的警示性聲明的約束。實際結果可能與今天提供的前瞻性信息中包含的預測存在重大差異。我們準備好的評論中引用的所有非 GAAP 財務措施都與我們 2021 年第一季度 MD&A 中的相關美國 GAAP 財務措施相一致。此外，除非另有說明，否則所有引用的財務信息均以加元為單位。

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

有了這個，我會把電話轉給大衛。

Thank you, and good morning, everyone. Today, we are pleased to report a strong first quarter. On the financial front, EPS growth was supported by our record capital investments made in 2020 and during the first quarter of this year. Higher earnings in Arizona also contributed to year-over-year earnings growth.

謝謝大家，早上好。今天，我們很高興地報告第一季度表現強勁。在財務方面，我們在 2020 年和今年第一季度創紀錄的資本投資支持了每股收益增長。亞利桑那州較高的收入也促進了收入同比增長。

On the operations front, our systems continued to perform well with our people focused on delivering safe and reliable service. As a good example of this, in Arizona, our gas and electric utilities maintained reliable service to our customers throughout winter storm Uri that affected so many other surrounding states. It serves as a reminder that planning for the long-term and preserving adequate capacity is critical to the provision of energy service to our customers under an increasingly wide range of circumstances.

在運營方面，我們的系統繼續表現良好，我們的員工專注於提供安全可靠的服務。作為這方面的一個很好的例子，在亞利桑那州，我們的天然氣和電力公司在整個冬季風暴 Uri 期間一直為我們的客戶提供可靠的服務，該風暴影響了許多其他周邊州。它提醒我們，在越來越廣泛的情況下，長期規劃和保持足夠的容量對於向我們的客戶提供能源服務至關重要。

On the ESG front, we continue to advance key initiatives. As you may have read in our circular, we have 10 current directors and 2 nominees up for election. Assuming all nominees are elected at our annual meeting tomorrow, the Fortis Board will have reached gender parity for the first time in our history. This is a significant milestone in our diversity and inclusion journey. We are also strengthening our compensation metrics with the addition of new ESG-related measures. The metrics are focused on carbon reduction and climate change, building on our corporate-wide target to reduce carbon emissions 75% by 2035.

在 ESG 方面，我們繼續推進關鍵舉措。正如您在我們的通函中所讀到的，我們有 10 名現任董事和 2 名候選人待選。假設所有被提名人都在我們明天的年會上當選，富通董事會將在我們的歷史上首次實現性別均等。這是我們多元化和包容性旅程中的一個重要里程碑。我們還通過增加新的 ESG 相關措施來加強我們的薪酬指標。這些指標側重於碳減排和氣候變化，建立在我們全公司範圍內的目標之上，即到 2035 年將碳排放量減少 75%。

Additionally, we are happy to report that our credit ratings were affirmed by S&P in April and our outlook was revised to stable from negative. And yesterday, DBRS Morningstar upgraded our credit rating from BBB high to A low. These positive developments underscore our financial strength. Lastly, in April, FERC issued a supplemental notice of proposed rule-making on incentives. Effectively, FERC is proposing to eliminate the 50 basis point regional transmission organization or RTO, ROE adder for utilities that have been RTO members for more than 3 years. Not only were we surprised in the reversal of FERC's direction on the RTO adder, but we are extremely disappointed given the important role RTOs play in facilitating a reliable, cost-effective and resilient grid, while enabling clean energy goals.

此外，我們很高興地報告，標準普爾在 4 月份確認了我們的信用評級，我們的展望從負面修正為穩定。昨天，DBRS Morningstar 將我們的信用評級從 BBB 高上調至 A 低。這些積極的發展突顯了我們的財務實力。最後，在 4 月，FERC 發布了關於擬議的激勵規則制定的補充通知。實際上，FERC 提議取消 50 個基點的區域輸電組織或 RTO，已成為 RTO 成員超過 3 年的公用事業公司的 ROE 加法器。我們不僅對 FERC 在 RTO 加法器上的方向逆轉感到驚訝，而且鑑於 RTO 在促進可靠、具有成本效益和彈性的電網以及實現清潔能源目標方面發揮的重要作用，我們感到非常失望。

Turning to Slide 5. Through the first quarter, $900 million of capital was invested in our utilities to support resiliency, modernization and cleaner energy projects. For 2021, our $3.8 billion capital plan remains on track. Higher forecasted capital expenditures are expected to offset a lower foreign exchange rate. Recently, we completed the Oso Grande Wind Project to Tucson Electric Power. The 250-megawatt project is the company's largest renewable energy resource with enough power to energize nearly 100,000 homes. The project complements TEP's integrated resource plan, which calls to exit coal and add 2,400 megawatts of new wind and solar power and 1,400 megawatts of energy storage by 2035. And in Ontario, the Wataynikaneyap Transmission Power Project continues to progress. The 1,800 kilometer transmission project is the largest first nation's majority-owned infrastructure project in Canada's history. With this ownership structure, the project is a model for indigenous communities across Canada. Fortis brings a 39% equity interest and its utility expertise as project manager to the partnership.

轉到幻燈片 5。整個第一季度，我們的公用事業投資了 9 億美元，以支持彈性、現代化和清潔能源項目。2021 年，我們 38 億美元的資本計劃仍在按計劃進行。預計較高的預測資本支出將抵消較低的匯率。最近，我們完成了 Tucson Electric Power 的 Oso Grande 風能項目。這個 250 兆瓦的項目是該公司最大的可再生能源，其電力足以為近 100,000 戶家庭供電。該項目補充了 TEP 的綜合資源計劃，該計劃要求到 2035 年退出煤炭並增加 2,400 兆瓦的新風能和太陽能以及 1,400 兆瓦的儲能。在安大略省，Wataynikaneyap 輸電項目繼續取得進展。1,800 公里輸電項目是加拿大歷史上最大的第一國控股基礎設施項目。憑藉這種所有權結構，該項目成為加拿大各地土著社區的典範。Fortis 為合作夥伴帶來了 39% 的股權及其作為項目經理的公用事業專業知識。

At the end of the first quarter, 850 transmission towers have been installed with approximately 1,100 workers on site, including First Nations' members. The project is on track to be completed in 2023. By replacing diesel fuel generation with cleaner energy from the Ontario grid, the Wataynikaneyap project is estimated to reduce emissions by 6.6 million tons over a 40-year time frame. Additionally, the project is expected to generate significant benefits for First Nations communities, including access to reliable energy supply and economic benefits from construction. We are very thankful for the partnership with First Nations Communities as we work together to realize their vision while advancing the project during the pandemic.

第一季度末，現場約有 1,100 名工人安裝了 850 座輸電塔，其中包括原住民成員。該項目有望在 2023 年完工。通過用安大略省電網的清潔能源替代柴油發電，Wataynikaneyap 項目預計將在 40 年的時間框架內減少 660 萬噸的排放。此外，該項目預計將為原住民社區帶來重大利益，包括獲得可靠的能源供應和建設帶來的經濟利益。我們非常感謝與原住民社區的合作，因為我們在大流行期間推進項目的同時共同努力實現他們的願景。

As Slide 6 highlights, we expect to invest $19.6 billion in our systems through 2025, with nearly all of our capital supporting energy delivery and the transition to a cleaner energy future, we have a balanced, low-risk plan. Investments, including renewable generation, such as wind, solar and battery storage, interconnections of renewables, liquefied natural gas and renewable natural gas continue to support our sustainability strategy. The capital plan is expected to increase rate base by $10 billion from $30.5 billion in 2020 to over $40 billion in 2025, supporting average annual rate base growth of approximately 6% through 2025.

正如幻燈片 6 所強調的那樣，我們預計到 2025 年將在我們的系統上投資 196 億美元，我們幾乎所有的資本都用於支持能源輸送和向清潔能源未來的過渡，我們有一個平衡的、低風險的計劃。包括可再生能源發電在內的投資，如風能、太陽能和電池儲能、可再生能源、液化天然氣和可再生天然氣的互連，繼續支持我們的可持續發展戰略。資本計劃預計將利率基數增加 100 億美元，從 2020 年的 305 億美元增加到 2025 年的 400 億美元以上，支持到 2025 年年均利率基數增長約 6%。

Beyond the base capital plan, we are focused on incremental opportunities that expand and extend growth. First, at ITC, the Midcontinent Independent System Operator, or MISO, has initiated a long-range transmission planning process. In March, MISO outlined conceptual maps identifying potential new transmission required to enable more renewable generation in the region. Specific details regarding the size and location of MISO long-range transmission projects remain unknown until the studies are completed. But as Slide 7 highlights, ITC's assets are strategically located to interconnect the Midwest to cleaner energy resources. Also at ITC, the proposed Lake Erie Connector transmission project continues to progress. In April, the Canada Infrastructure Bank announced that it will fund up to 40% of the project cost.

除了基本資本計劃之外，我們還專注於擴大和延長增長的增量機會。首先，在 ITC，中大陸獨立系統運營商 (MISO) 啟動了遠程傳輸規劃流程。3 月，MISO 概述了概念圖，確定了在該地區實現更多可再生能源發電所需的潛在新傳輸。在研究完成之前，關於 MISO 遠程傳輸項目的規模和位置的具體細節仍然未知。但正如幻燈片 7 所強調的那樣，ITC 的資產處於戰略位置，可將中西部與更清潔的能源資源互連起來。同樣在 ITC，擬議的伊利湖連接器傳輸項目繼續取得進展。4 月，加拿大基礎設施銀行宣布將資助高達 40% 的項目成本。

ITC will own the transmission line and be responsible for all aspects of design, engineering, construction, operations and maintenance. The project is expected to bring an estimated $100 million in annual savings to Ontario customers by connecting their grid to the PJM interconnection, the largest electricity market in North America. Additionally, the project is expected to reduce greenhouse gases by up to 3 million tons per year. While the project is fully permitted and shovel-ready, it is not included in the current 5-year plan as we continue to negotiate transmission service agreements. Once finalized, construction of the projects would take 4 years to complete. In Arizona, the team is working to advance its clean energy goals, which requires investments in the range of $4 billion to $6 billion to execute Tucson Electric Power's integrated resource plan. And in British Columbia, we continue to pursue further development of the Tilbury site, long-term contracted LNG opportunities and additional investments required to attain FortisBC's target to reduce customer greenhouse gas emissions 30% by 2030.

ITC 將擁有輸電線路，並負責設計、工程、施工、運營和維護的各個方面。通過將安大略客戶的電網連接到北美最大的電力市場 PJM 互連繫統，該項目預計每年可為安大略客戶帶來約 1 億美元的節省。此外，該項目預計每年最多可減少 300 萬噸溫室氣體排放。雖然該項目已獲得完全許可並準備就緒，但由於我們繼續談判輸電服務協議，因此它未包含在當前的 5 年計劃中。一旦完成，項目的建設將需要 4 年才能完成。在亞利桑那州，該團隊正在努力推進其清潔能源目標，這需要 40 億至 60 億美元的投資來執行 Tucson Electric Power 的綜合資源計劃。在不列顛哥倫比亞省，我們繼續尋求蒂爾伯里工廠的進一步開發、長期合同液化天然氣機會和實現 FortisBC 到 2030 年將客戶溫室氣體排放量減少 30% 的目標所需的額外投資。

Lastly, the Biden's administration recently released its proposed infrastructure plan calling for carbon-free power from the electricity sector by 2035. This could accelerate capital investments in our U.S. utilities through transmission interconnections at ITC, clean generation and energy storage in Arizona and electric vehicle infrastructure in the 9 U.S. states that we serve today. With a strong track record of increasing dividends for the past 47 consecutive years, coupled with our low-risk growth strategy, we remain confident in our 6% average annual dividend growth guidance through 2025.

最後，拜登政府最近發布了其擬議的基礎設施計劃，呼籲到 2035 年電力部門實現無碳發電。這可以通過 ITC 的輸電互連、亞利桑那州的清潔發電和儲能以及我們今天服務的美國 9 個州的電動汽車基礎設施，加速對我們美國公用事業的資本投資。憑藉過去連續 47 年增加股息的良好記錄，再加上我們的低風險增長戰略，我們對到 2025 年 6% 的年均股息增長目標仍然充滿信心。

Now I will turn the call over to Jocelyn for an update on our first quarter financial results.

現在我將把電話轉給 Jocelyn，了解我們第一季度財務業績的最新情況。

Thank you, David, and good morning, everyone. For the quarter, adjusted net earnings was $360 million or $0.77 per common share, $0.09 higher than the first quarter of 2020. As David mentioned, increased rate base at our regulated utilities and higher earnings in Arizona were the main growth drivers for the quarter.

謝謝你，大衛，大家早上好。本季度調整後淨收益為 3.6 億美元或每股普通股 0.77 美元，比 2020 年第一季度高出 0.09 美元。正如大衛所提到的，我們受監管的公用事業公司的利率基數增加以及亞利桑那州的收益增加是本季度的主要增長動力。

Slide 12 highlights EPS drivers for the quarter by segment. Our U.S. electric and gas utilities provided the most significant contribution, growing EPS by $0.05 for the quarter compared to the same period last year.

幻燈片 12 按部門突出顯示了本季度的 EPS 驅動因素。我們在美國的電力和天然氣公用事業做出了最顯著的貢獻，與去年同期相比，本季度每股收益增長了 0.05 美元。

Our Arizona business contributed a $0.04 EPS increase, this was driven by new rates at Tucson Electric Power effective January 1, offset by higher operating costs associated with planned generation maintenance. Additionally, the $0.02 impact of losses on retirement investments recognized in March of 2020, favorably impacted the quarter-over-quarter change. In New York, Central Hudson increased EPS by $0.01, driven mainly by rate base growth and timing of operating costs and the $0.02 EPS increase for both ITC and our Western Canadian utilities was mainly due to rate-base growth.

我們的亞利桑那州業務貢獻了 0.04 美元的每股收益增長，這是由圖森電力公司 1 月 1 日生效的新費率推動的，但被與計劃發電維護相關的更高運營成本所抵消。此外，2020 年 3 月確認的退休投資虧損 0.02 美元的影響對環比變化產生了有利影響。在紐約，Central Hudson 的每股收益增加了 0.01 美元，這主要是由於費率基礎增長和運營成本的時間安排，而 ITC 和我們的加拿大西部公用事業公司每股收益增加 0.02 美元主要是由於費率基礎增長。

Our energy infrastructure segment contributed a $0.01 EPS increase driven by production at the Belize hydroelectric generating facilities. And in our corporate and other segment, the $0.01 EPS increase mainly reflects losses on foreign exchange contracts that were recognized in the first quarter of last year. This increase was tempered by higher weighted average shares outstanding issued through our dividend reinvestment program. And lastly, a lower U.S. dollar to Canadian dollar exchange rate unfavorably impacted quarterly results by $0.02. All in all, a very strong quarter with minimal financial impacts from the pandemic.

在伯利茲水力發電設施的生產推動下，我們的能源基礎設施部門貢獻了 0.01 美元的每股收益增長。在我們的公司和其他部門，0.01 美元的每股收益增長主要反映了去年第一季度確認的外匯合同損失。這一增長受到通過我們的股息再投資計劃發行的更高加權平均流通股的影響。最後，美元兌加元匯率走低對季度業績產生了 0.02 美元的不利影響。總而言之，這是一個非常強勁的季度，大流行對財務的影響很小。

Turning now to an update on our credit ratings and liquidity. Earlier this year, we highlighted the significant improvements in our cash flow to debt and holding company debt ratios over the past couple of years. Throughout the pandemic, we have maintained a strong credit profile as our utilities have managed cost and regulatory mechanisms that serve to stabilize cash flows and earnings have operated as expected. As David mentioned, in April, S&P affirmed our A minus issuer credit rating and our BBB+ unsecured debt rating and also revised our outlook to stable from negative. And just yesterday, DBRS Morningstar upgraded our corporate and unsecured debt credit ratings from BBB high to A low. Both rating agencies highlighted our improved credit profile and operational and financial stability throughout the pandemic.

現在轉向我們的信用評級和流動性的更新。今年早些時候，我們強調了過去幾年我們的現金流與債務和控股公司債務比率的顯著改善。在整個大流行期間，我們一直保持著良好的信用狀況，因為我們的公用事業公司控制了成本，並且有助於穩定現金流和收益的監管機制按預期運作。正如大衛提到的那樣，標準普爾在 4 月份確認了我們的 A-發行人信用評級和 BBB+ 無擔保債務評級，並將我們的展望從負面修正為穩定。就在昨天，DBRS Morningstar 將我們的企業和無擔保債務信用評級從 BBB 高升級為 A 低。兩家評級機構都強調了我們在整個大流行期間改善的信用狀況以及運營和財務穩定性。

Overall, our credit metrics, coupled with Fortis' low business risk profile positions us well within our existing investment-grade credit ratings. And finally, we continue to maintain strong liquidity with over $4 billion available on our credit facilities.

總的來說，我們的信用指標加上 Fortis 的低業務風險狀況使我們處於現有的投資級信用評級之內。最後，我們繼續保持強勁的流動性，我們的信貸額度超過 40 億美元。

Now turning to Slide 14 for an update on our ongoing regulatory proceedings, at ITC, FERC issued a supplemental notice of proposed rule-making related only to the incentive adder for participation in the RTO. Notably, the commission modified the initial NOPR from March 2020, which proposed to increase the RTO adder to 100 basis points. However, the supplemental NOPR now seeks to eliminate the 50 basis point RTO adder for transmission owners that have been a part of the RTO for more than 3 years, including ITC.

現在轉到幻燈片 14，了解我們正在進行的監管程序的最新情況，在 ITC，FERC 發布了一份補充通知，擬議的規則制定僅與參與 RTO 的激勵加法器有關。值得注意的是，委員會從 2020 年 3 月開始修改了最初的 NOPR，提議將 RTO 加法器增加到 100 個基點。然而，補充 NOPR 現在尋求為已經加入 RTO 超過 3 年的傳輸所有者（包括 ITC）取消 50 個基點的 RTO 加法器。

As David highlighted, we were disappointed with FERC's proposal given the current public policy goals to encourage investment in transmission to enhance grid reliability and transition to a cleaner energy future. We believe utility participation in an RTO provides customers with benefits that far outweigh the cost.

正如 David 強調的那樣，我們對 FERC 的提案感到失望，因為當前的公共政策目標是鼓勵輸電投資以提高電網可靠性和向更清潔能源的未來過渡。我們相信公用事業參與 RTO 為客戶提供的收益遠遠超過成本。

ITC is reviewing the supplemental NOPR and will be providing comments, which are due to FERC later this month. There's no stipulated time frame for FERC to issue a final rule and any impacts would be prospective. As a reminder, every 10 basis points change in ROE at ITC impacts Fortis' annual EPS by approximately $0.01. In New York, settlement discussions are ongoing in Central Hudson's general rate application, and we do expect the decision later this year. Earlier this year, the British Columbia Utilities Commission initiated a generic cost of capital proceeding for all regulated utilities in BC, including our gas and electric businesses. The proceeding is expected to set cost of capital parameters effective January 1, 2022. In March, FortisAlberta received a decision on the 2022 generic cost of capital proceeding, current cost of capital parameters remain in place for 2022.

ITC 正在審查補充 NOPR 並將提供意見，這些意見將於本月晚些時候提交給 FERC。FERC 發布最終規則沒有規定的時間框架，任何影響都是預期的。提醒一下，ITC 的股本回報率每變化 10 個基點，富通的年度每股收益就會受到大約 0.01 美元的影響。在紐約，Central Hudson 的一般費率申請正在進行和解討論，我們預計將在今年晚些時候做出決定。今年早些時候，不列顛哥倫比亞省公用事業委員會針對不列顛哥倫比亞省所有受監管的公用事業啟動了通用資本成本程序，包括我們的天然氣和電力業務。該程序預計將設定自 2022 年 1 月 1 日起生效的資本成本參數。3 月，FortisAlberta 收到了關於 2022 年通用資本成本程序的決定，當前資本成本參數在 2022 年保持不變。

And lastly, in conjunction with the expiration of FortisAlberta's current performance-based rate-making, or PBR term, ending in 2022, and the AUC has initiated a process to gather stakeholder feedback on how a cost of service rebasing can be completed to establish base rates after 2022. Concurrently, the AUC is evaluating the effectiveness of past and current PBR plans to determine whether a third PBR term should be established. Reports on the findings are expected in mid-2021.

最後，隨著 FortisAlberta 當前基於績效的費率制定或 PBR 期限將於 2022 年到期，AUC 已啟動一個流程來收集利益相關者關於如何完成服務成本重新調整以建立基礎的反饋2022 年後的利率。同時，AUC 正在評估過去和當前的 PBR 計劃的有效性，以確定是否應建立第三個 PBR 期限。有關調查結果的報告預計將於 2021 年年中發布。

Before wrapping up my remarks, I would like to discuss the potential implications of the recently proposed tax changes in infrastructure spending. From a U.S. tax perspective, the proposed increase in the corporate tax rate from 21% to 28% if passed, is expected to increase earnings and cash flow as it will have some of the reverse effects of the 2017 U.S. tax reform. The Made in America tax plan also includes proposals to introduce transmission investment tax credits. This is expected to encourage large regional projects, while the newly proposed department of Energy Grid Development Authority should streamline permitting and planning of regional and interregional transmission investment.

在結束我的發言之前，我想討論一下最近提議的基礎設施支出稅收變化的潛在影響。從美國稅收的角度來看，將公司稅率從 21% 提高到 28% 的提議如果獲得通過，預計將增加收益和現金流，因為這將對 2017 年美國稅制改革產生一些反向影響。美國製造的稅收計劃還包括引入輸電投資稅收抵免的提議。預計這將鼓勵大型區域項目，而新提議的能源電網發展局部門應簡化區域和區域間輸電投資的許可和規劃。

While not depicted on the slide, the Made in America tax plan also introduces a minimum tax on book income, which could impact timing of cash flows as well as changes to international taxation. The Federal -- the Canadian Federal Government also released its budget last month, including proposed changes to interest deductibility, which could also impact timing of cash flows and changes in international taxation. Draft legislation in both countries has not yet been released. We will continue to assess and we'll provide further information as more details become available.

雖然沒有在幻燈片中描述，但美國製造的稅收計劃還對賬面收入徵收最低稅，這可能會影響現金流的時間安排以及國際稅收的變化。聯邦——加拿大聯邦政府上個月也發布了預算，包括對利息扣除額的擬議修改，這也可能影響現金流的時間安排和國際稅收的變化。兩國的立法草案尚未公佈。我們將繼續評估，並在獲得更多詳細信息後提供更多信息。

With respect to infrastructure spending, while we recognize the America job plan requires final approval, we are pleased to see a strong focus on the critical role transmission plays in facilitating new renewable generation and grid resiliency. This emphasis on investments in clean energy aligns with Fortis' focus on improving our low carbon footprint and our goal to deliver a cleaner energy future.

關於基礎設施支出，雖然我們認識到美國的工作計劃需要最終批准，但我們很高興看到人們非常關注傳輸在促進新的可再生能源發電和電網彈性方面發揮的關鍵作用。這種對清潔能源投資的重視與 Fortis 對改善低碳足蹟的關注以及我們提供更清潔能源未來的目標相一致。

That concludes my remarks, and I'll now turn the call back to David.

我的發言到此結束，現在我將把電話轉回給大衛。

Thank you, Jocelyn. In summary, we remain steadfast in providing safe and reliable service with the safety of our employees and customers top of mind. We have a strong 5-year growth outlook supporting our 6% average annual dividend growth guidance through 2025. And as we look forward, we are optimistic about the growth prospects in our business including the heightened focus on the clean energy transition across North America.

謝謝你，喬斯林。總而言之，我們始終將員工和客戶的安全放在首位，堅定不移地提供安全可靠的服務。我們有一個強勁的 5 年增長前景，支持我們到 2025 年 6% 的年均股息增長指導。展望未來，我們對我們業務的增長前景感到樂觀，包括對北美清潔能源轉型的高度關注。

I will now turn the call back over to Stephanie.

我現在將把電話轉回給斯蒂芬妮。

Thank you, David. This concludes the presentation. At this time, we'd like to open the call to address questions from the investment community.

謝謝你，大衛。介紹到此結束。在這個時候，我們想打開電話來解決投資界的問題。

(Operator Instructions) Your first question comes from the line of Maurice Choy with RBC Capital Markets.

（操作員說明）您的第一個問題來自加拿大皇家銀行資本市場的 Maurice Choy。

My first question relates to the FERC NOPR. Recognizing that the RTO adder was obviously the main topic of the supplemental NOPR, but can you discuss the potential upside to ROE from other matters in the March 2020 NOPR, such as the cost-benefit, reliability? And also, how do you see this decision in April impacting the Transco Independent adder??

我的第一個問題與 FERC NOPR 有關。認識到 RTO 加法器顯然是補充 NOPR 的主要主題，但您能否討論 2020 年 3 月 NOPR 中其他事項對 ROE 的潛在好處，例如成本效益、可靠性？而且，您如何看待 4 月份的這一決定對 Transco Independent 加法器的影響？

Yes. As you know, the March 2020 incentive NOPR that came out had several different categories, it actually, as you mentioned, on the RTO adder side of things, it actually was increasing that 50 basis point current adder to 100, that was part of that original proposal, which is why we are so surprised with that switch of going from 50 to 100 and then to 0.

是的。如您所知，2020 年 3 月的激勵 NOPR 有幾個不同的類別，實際上，正如您提到的，在 RTO 加法器方面，它實際上是將 50 個基點的當前加法器增加到 100，這是其中的一部分原始提案，這就是為什麼我們對從 50 到 100 再到 0 的轉換感到如此驚訝。

But it also included another 100 basis points for reliability projects. 100 basis points for new technology and then another 50 basis point for projects that improved efficiency or reduced costs. So overall, there was 350 basis points of additional incentive opportunities there on a project-by-project basis. Although within that NOPR, it did cap the total of any 1 project at 250 basis points. So we obviously are very strong proponents of looking at ways to incentivize new transmission on a going-forward basis. Again, surprised that, that it's the RTO reduction, but frankly, it's early days. It is just a NOPR. Basically, we have the original NOPR and the supplemental NOPR sitting here at basically a bid-ask spread of 0 and 100.

但它還包括可靠性項目的另外 100 個基點。新技術 100 個基點，提高效率或降低成本的項目再增加 50 個基點。因此，總體而言，在逐個項目的基礎上，那裡有 350 個基點的額外激勵機會。儘管在該 NOPR 範圍內，它確實將任何 1 個項目的總數限制在 250 個基點。因此，我們顯然強烈支持尋找在未來的基礎上激勵新傳輸的方法。再次，令人驚訝的是，這是 RTO 的減少，但坦率地說，現在還為時過早。這只是一個 NOPR。基本上，我們有原始的 NOPR 和補充的 NOPR，買賣價差基本上為 0 和 100。

So we don't know where that will end up, and we will obviously make comments accordingly on the importance of the RTO adder for trends for basically for getting people inside those RTOs. It is extremely important to recognize that the bigger the markets are, the lower the costs are, the higher the reliability and the more renewable energy that we can integrate into the system. So we really think that, that was wrong direction to send. On the independence adder, we've been fighting those for a while, and I don't think this provides us any additional insight on where that might go.

所以我們不知道最終會在哪裡結束，我們顯然會相應地評論 RTO 加法器對於趨勢的重要性，基本上是為了讓人們進入這些 RTO。認識到市場越大，成本越低，可靠性越高，我們可以整合到系統中的可再生能源越多，這一點非常重要。所以我們真的認為，這是錯誤的發送方向。在獨立加法器上，我們已經與這些問題抗爭了一段時間，我認為這並沒有為我們提供任何關於它可能走向何方的額外見解。

Great. And maybe related to that, on my second question. Your outlook comments noted that there were obviously further expansion in terms of electric transmission grid in the U.S. and that visibility on initial projects could be as early as this year. Can you elaborate a little bit more about this visibility? Where do you see this growth coming from? And also timing in terms of how potential projects could fall within -- or just a little bit outside of your 5-year plan?

偉大的。關於我的第二個問題，也許與此有關。您的展望評論指出，美國的輸電網顯然有進一步擴張，初期項目的可見性最早可能在今年顯現。您能否詳細說明一下這種可見性？您認為這種增長來自何處？以及潛在項目如何落入您的 5 年計劃內或略微超出您的 5 年計劃的時間安排？

Yes. So I'll turn this over to Linda Apsey, the CEO of ITC here in a second. Just real high level. MISO is in that planning process, and they put out -- there's a ton of great information on their website related to the -- basically, these 3 different futures that they are analyzing that will have different percentages of renewable integration as well as different growth scenarios.

是的。所以我馬上把這個交給 ITC 的首席執行官 Linda Apsey。只是真正的高水平。MISO 正在規劃過程中，他們發布了——在他們的網站上有大量與——基本上，他們正在分析的這 3 種不同的未來將具有不同百分比的可再生能源整合以及不同的增長場景。

I would point out, though, that when you look at those futures, even the most aggressive, one might seem a little bit stale these days as we have cranked up our level of greenhouse gas reductions in the United States, at least the targets that we're putting out there from the Biden administration. So even that might be, I would say -- I wouldn't say conservative, but might not be as aggressive as what we might see over the next 20 years because it is that 20-year outlook.

不過，我要指出的是，當你審視這些未來時，即使是最激進的未來，這些天也可能看起來有點陳舊，因為我們已經提高了美國的溫室氣體減排水平，至少是我們的目標我們正在從拜登政府那裡推出。所以即便如此，我會說——我不會說保守，但可能不會像我們在未來 20 年看到的那樣激進，因為這是 20 年的展望。

I would suggest there might be the need for a future for to see if we actually followed the Biden energy plan and had those -- that 50%, 50% to 52% greenhouse gas reductions by 2030 and what that would look like. But I'll turn it over to Linda so that she can tell us about the time frame and expectations there.

我建議可能需要一個未來，看看我們是否真的遵循了拜登的能源計劃並實現了這些計劃——到 2030 年將溫室氣體減排 50%、50% 到 52%，以及那會是什麼樣子。但我會把它交給琳達，這樣她就可以告訴我們那裡的時間框架和期望。

Great. Thanks, Dave. Yes, as Dave mentioned, I would characterize MISO as perhaps the most advanced in their long-range planning efforts. And as Dave I think outlined in terms of the different features, the different scenarios, we are expecting MISO to announce kind of their, what I would call their basket or portfolio of first-mover projects later this year, probably in the October time frame. And the hope is that there would be a sort of a set of projects, these first-mover projects that would be included in MISO's, their MTEP plan that's their annual transmission expansion plan that goes to their Board of Directors for approval.

偉大的。謝謝，戴夫。是的，正如 Dave 提到的，我認為 MISO 可能是他們長期規劃工作中最先進的。正如 Dave 我認為根據不同的功能、不同的場景概述的那樣，我們期待 MISO 在今年晚些時候宣布他們的，我稱之為他們的籃子或先發項目組合，可能是在 10 月的時間框架內.希望會有一組項目，這些先行者項目將包含在 MISO 中，他們的 MTEP 計劃是他們的年度傳輸擴展計劃，將提交給他們的董事會批准。

So if all goes as planned and as indicated, we could anticipate seeing a portfolio of projects in the latter part of this year. I would say, consistent with that, there is a group of MISO transmission owners that is also advancing principles around cost allocation that would be coincident with the projects that are put forth. I think as we have talked about previously, the biggest sort of hurdles, if you will, to realizing these regional transmission projects, obviously, the planning, collaboration coordination, but certainly also having a cost allocation methodology that can realize the projects that are put forth.

因此，如果一切按計劃和指示進行，我們可以預期在今年下半年看到一系列項目。我想說的是，與此一致，有一群 MISO 傳輸所有者也在推進成本分配原則，這些原則與提出的項目一致。我認為，正如我們之前所討論的那樣，如果你願意的話，實現這些區域輸電項目的最大障礙顯然是規劃、協作協調，但當然還有可以實現所投入項目的成本分配方法向前。

So we are very optimistic, given, I would say, a lot of the activity, the conversation, the collaboration, the engagement across MISO. And so certainly, I think as Dave suggested, I think as we move forward, we'll continue to see MISO refine their future studies based on assumptions around penetration of renewable levels. But overall, very optimistic on the MISO planning process. And meanwhile, SPP, they too are actively engaged and involved in a long-term transmission planning effort, not quite the same visibility at this point in time in terms of timing, but again, I would say all of this is in a very constructive positive direction.

所以我們非常樂觀，我想說，MISO 有很多活動、對話、協作和參與。所以當然，我認為正如 Dave 所建議的那樣，我認為隨著我們的前進，我們將繼續看到 MISO 根據圍繞可再生水平的滲透率的假設改進他們未來的研究。但總的來說，對 MISO 規劃過程非常樂觀。與此同時，SPP，他們也積極參與長期輸電規劃工作，目前在時間點上的知名度不盡相同，但我要說的是，所有這些都是非常有建設性的積極的方向。

And your next question comes from the line of Linda Ezergailis with TD Securities.

你的下一個問題來自道明證券的 Linda Ezergailis。

Looking at some of the recent positive actions from some of the debt rating agencies, I'm wondering when you expect to next get an update from Moody's and what sort of changes, if any, might come on that front?

看看一些債務評級機構最近採取的一些積極行動，我想知道你預計什麼時候會收到穆迪的最新消息，以及這方面可能會發生什麼樣的變化（如果有的話）？

And I guess as a follow-up question. I'm just wondering how the debt rating agencies reflect some of the uncertainties around the FERC NOPR, the -- recently, the Biden infrastructure plan, some of the proposed tax changes in Canada and U.S., there's a few moving parts. And I'm just wondering how that's reflected in their base outlook and scenarios?

我想這是一個後續問題。我只是想知道債務評級機構如何反映圍繞 FERC NOPR 的一些不確定性，最近，拜登基礎設施計劃，加拿大和美國的一些擬議稅收變化，還有一些活動部分。我只是想知道這如何反映在他們的基本前景和情景中？

Linda, it's Jocelyn. Yes. With respect to Moody's next update, I would suspect it will be over the next couple of months. We have recently met with all 3 rating agencies, DBRS, S&P and Moody's, just to give them an update on our annual 2020 results. So a lot of those discussions went very well and as you can see in this quarter, we did receive an upgrade from DBRS and the negative outlook was removed from S&P, which we were pleased about.

琳達，是喬斯林。是的。關於穆迪的下一次更新，我懷疑會在接下來的幾個月內進行。我們最近會見了所有 3 家評級機構，DBRS、標準普爾和穆迪，只是為了向他們提供我們 2020 年年度業績的最新情況。所以很多討論進行得非常順利，正如你在本季度看到的那樣，我們確實收到了 DBRS 的升級，標準普爾的負面展望也被取消了，我們對此感到高興。

Our conversations with Moody's were good, and I can't predict the outcome of that, but I'm not anticipating much change there. Like I said, I think all rating agencies were pleased with the improvements that we've moved in our balance sheet over the last couple of years. So we had good discussions.

我們與穆迪的對話很好，我無法預測結果，但我預計不會有太大變化。就像我說的，我認為所有評級機構都對過去幾年我們在資產負債表上所做的改進感到滿意。所以我們進行了很好的討論。

With respect to how they reflect the NOPR, you've probably seen, I think it was S&P came out with some commentary around the NOPR that suggested that they would expect the NOPR, if approved, would temper cash flow metrics for Fortis, down to the lower end of the range but not drive us down below the range, which is a fair point, if that is the only thing that's approved in isolation of everything else.

關於它們如何反映 NOPR，你可能已經看到，我認為是標準普爾圍繞 NOPR 發表了一些評論，表明他們預計 NOPR 如果獲得批准，將會降低 Fortis 的現金流量指標，降至範圍的下限，但不會使我們下降到範圍以下，這是一個公平的觀點，如果這是孤立於其他所有事物而獲得批准的唯一事物。

So they recognize that. They're all aware of the NOPR. They're all aware of the Biden infrastructure plan. They're all aware of the tax. But as you say, they're moving pieces, and it's hard to nail down exactly what any of them potentially mean. And Fortis has worked through this in the past, and I envision we're going to work through all of this going forward. So no real red flags here with the credit rating agencies, and we'll continue to communicate with them and keep them apprised of any developments.

所以他們承認這一點。他們都知道 NOPR。他們都知道拜登的基礎設施計劃。他們都知道稅收。但正如你所說，它們是移動的碎片，很難準確地確定它們中的任何一個可能意味著什麼。Fortis 過去曾解決過這個問題，我預計我們將在未來解決所有這些問題。因此，信用評級機構沒有真正的危險信號，我們將繼續與他們溝通，並讓他們了解任何進展。

And as a follow-up with respect to some of these additional potential opportunities, Tilbury, like Erie Connector, et cetera, if they were to reach a positive FID this year, what are the thoughts on how they might be optimally financed?

作為對其中一些額外潛在機會的後續行動，Tilbury，如 Erie Connector 等，如果他們今年要達到積極的 FID，他們對如何獲得最佳融資有何想法？

For the Tilbury?

對於蒂爾伯里？

Well just generally adding like additive to your already pretty robust rate base growth outlook. Just wondering where the incremental capital might come from?

好吧，通常只是在您已經相當強勁的利率基礎增長前景中添加類似的添加劑。只是想知道增量資本可能來自哪裡？

Yes. No, sorry, Linda. Yes. No, you're right. We've also stated that when we looked at our $19.6 billion capital plan, we were expecting that the DRIP would be a little bit of a lower participation. But as you know, participation is back up to, I'm going to say, pre-1990 -- 2019 levels. So back up to that 35% participation.

是的。不，對不起，琳達。是的。不，你是對的。我們還表示，當我們查看 196 億美元的資本計劃時，我們預計 DRIP 的參與度會稍微低一些。但正如你所知，我要說的是，參與度又回到了 1990 年之前 - 2019 年的水平。所以回到 35% 的參與度。

So we'll have some extra capacity under our DRIP. And I've always said that if we're in a position where we're growing even faster than that then I say this to David all the time, everything goes back on the table from a funding perspective. But right now, we do have some current flexibility with our DRIP program, giving us extra, above than what we thought when we set that $19.6 billion plan.

所以我們的 DRIP 下會有一些額外的容量。而且我一直說，如果我們處於比這更快增長的位置，那麼我一直對大衛說這件事，從資金的角度來看，一切都會回到桌面上。但現在，我們的 DRIP 計劃確實有一些當前的靈活性，給了我們額外的，超出了我們在製定 196 億美元計劃時的想法。

And just a question around your cash flows from operations. Notice that your accounts receivable is creeping up a little bit, recognizing that there's been some relief provided to customers during the pandemic what's the outlook and the trend for whether that might continue to grow through the year, whether that might be recovered through regulatory mechanisms over time or potentially stay flat for a while? How might we think of that trending?

只是關於您的運營現金流量的問題。請注意，您的應收賬款略有上升，認識到在大流行期間為客戶提供了一些救濟，今年的前景和趨勢是否會繼續增長，是否可以通過監管機制恢復時間或可能保持一段時間？我們如何看待這種趨勢？

Linda, that's a great question. And last year, certainly, with the start of the pandemic, it was an area that a lot of companies focused on, no doubt, including Fortis. We did see an increase in receivables last year. I do feel like we've -- it's hard to predict entirely, but I do feel that we're in a good place right now. We adjusted our reserves to reflect the fact that our receivables were increasing feel that we've hit a plateau and that we're in a good spot. And we're not seeing it worsen, which I think is a very good point.

琳達，這是一個很好的問題。去年，當然，隨著大流行的開始，這是許多公司關注的領域，毫無疑問，包括 Fortis。去年我們確實看到應收賬款有所增加。我確實覺得我們已經——很難完全預測，但我確實覺得我們現在處在一個好地方。我們調整了我們的準備金以反映我們的應收賬款增加的事實，感覺我們已經達到了一個穩定的狀態並且我們處於一個好的位置。而且我們沒有看到它惡化，我認為這是一個很好的觀點。

Clearly, we're all looking for this pandemic to be over and to get back to more normal operations, and we're not going to take our eye off of this, but I would say that, yes, you are correct. We did see it increase, but we're starting to see it levelized, and we're in a good position from how we provided for that in the previous year.

顯然，我們都在期待這場大流行病結束並恢復更正常的運營，我們不會將注意力從這一點上移開，但我要說的是，是的，你是對的。我們確實看到它增加了，但我們開始看到它趨於穩定，而且我們在前一年的準備工作中處於有利地位。

I would just add to that probably the 2 utilities that are most exposed to that, that don't have the regulatory mechanisms defined as clearly as others would be UNS and CH. And I'd add that as we're coming out of the pandemic here, those are 2 of the states that are probably coming out pretty quick here. So we would expect that positive recovery to obviously impact us in a positive manner from a customer payment perspective.

我只想補充說，可能最容易受到影響的 2 家公用事業公司沒有像其他公司那樣明確定義監管機制，那就是 UNS 和 CH。我要補充一點，隨著我們從這裡走出大流行病，這兩個州可能很快就會走出困境。因此，我們預計，從客戶支付的角度來看，積極的複蘇顯然會對我們產生積極的影響。

And your next question will come from the line of Rob Hope with Scotiabank.

你的下一個問題將來自加拿大豐業銀行的 Rob Hope。

First question just on the Lake Erie Connector. So it looks like the Feds are on board with the project. However, we still need to offtake, which we expect will be driven by the provincial government. Are the Feds talking to the provincial government is the Canadian infrastructure bank's kind of actions a precursor to contracts there? Or maybe more broadly, where are we in that project right now?

關於伊利湖連接器的第一個問題。所以看起來聯邦調查局已經參與了這個項目。然而，我們仍然需要承購，我們預計這將由省政府推動。美聯儲是否正在與省政府交談，加拿大基礎設施銀行的那種行動是否預示著在那裡簽訂合同？或者更廣泛地說，我們現在在那個項目中處於什麼位置？

Yes. So we can't really tell exactly what's going on behind the scenes, but we're obviously having a lot of conversations with the provincial government in Ontario there related to this project. But having the federal government involved in having the Canada infrastructure bank come out in support of this project, I think, is all very positive for us to progress that project. It's a great project. I mean, just laid out there. It's got a great savings story. It's got a great greenhouse gas reduction story. It's got a great reliability story. It is a really, really good project. This is kind of the things that when you think about big transmission projects in interconnect markets that we should be focused on longer term. In fact, this is one of them that's called out specifically and in 1 of the most recent studies that show all these basically shovel-ready projects that are raring to go.

是的。所以我們不能真正說出幕後發生的事情，但我們顯然與安大略省政府就這個項目進行了很多對話。但我認為，讓聯邦政府參與讓加拿大基礎設施銀行出來支持這個項目，對我們推進這個項目來說都是非常積極的。這是一個偉大的項目。我的意思是，只是躺在那裡。它有一個很棒的儲蓄故事。它有一個偉大的溫室氣體減排故事。它有一個很好的可靠性故事。這是一個非常非常好的項目。當您考慮互連市場中的大型傳輸項目時，我們應該長期關注這些事情。事實上，這是其中一個被特別提到的項目，並且在最近的一項研究中顯示了所有這些基本準備就緒的項目，這些項目都很少進行。

Lake Erie Connector was on that list. So yes, we think that the positive momentum, the positive conversations among government, whether it's at the state or provincial level, are going to do nothing other than help us get this project move and get TSAs finalized and get -- I was going to say wires in the air, but it's actually wire underwater. So we're looking forward to starting this project.

伊利湖連接器在該列表中。所以是的，我們認為積極的勢頭，政府之間的積極對話，無論是在州還是省級，除了幫助我們推動這個項目並最終確定 TSA 並獲得 - 我打算說是空中的電線，其實是水下的電線。所以我們期待著啟動這個項目。

All right. And then I just want to go back to the NOPR. Glick was out yesterday saying I was battled by the criticism of the changes of the NOPR and that you didn't need an incentive to be part of an RTO. However, you also mentioned that if you need to incent transmission, there would be kind of other ways to do it, including a higher base ROE. So could this NOPR change then kind of once again lead to another fulsome review of the ROE for ITC?

好的。然後我只想回到 NOPR。Glick 昨天出去說我對 NOPR 的變化的批評感到困惑，並且你不需要激勵來成為 RTO 的一部分。但是，您還提到，如果您需要激勵傳輸，還有其他一些方法可以做到，包括更高的基礎 ROE。那麼，這種 NOPR 的變化是否會再次導致對 ITC 的 ROE 進行另一次全面審查？

Yes, Rob, I don't think -- I wouldn't go that far on the tail end of your question there. This basically brings up the base ROE conversation again. But I'll point out a couple of things. First, reading the dissents from Danly and Chatterjee, Commissioners Danly and Commissioner Chatterjee, related to this RTO adder removal is very insightful. There's a couple of points. One, they obviously argue the reason for having this RTO adder from a market perspective to -- we need bigger markets, as I mentioned before, that is the solution to integrating renewables. We need bigger markets. We need more participants, the bigger the market, the better cost allocation is, the better reliability is, the more renewable energy we can integrate. That should be the key focus, which is -- that leads me to the second point, which is both Commissioners Danly and Chatterjee bring up is legally, the Federal Power Act requires that there is an incentive to participate in the RTO. And there is 14 years of precedent that is related to exactly doing that.

是的，Rob，我不認為 - 我不會在你的問題的尾部走那麼遠。這基本上再次提出了基本的 ROE 對話。但我要指出幾件事。首先，閱讀 Danly 和 Chatterjee 專員的異議，Danly 專員和 Chatterjee 專員與此 RTO 加法器刪除相關的意見非常有見地。有幾點。第一，他們顯然從市場角度爭論擁有這個 RTO 加法器的原因——我們需要更大的市場，正如我之前提到的，這是整合可再生能源的解決方案。我們需要更大的市場。我們需要更多的參與者，市場越大，成本分配越好，可靠性越好，我們可以整合的可再生能源就越多。這應該是重點，這讓我想到了第二點，Danly 和 Chatterjee 委員提出的是合法的，《聯邦權力法》要求有參與 RTO 的動機。並且有 14 年的先例與這樣做有關。

So it's odd that this would be a focus of a supplemental NOPR and we obviously will make comments that I think will sound a lot like the dissent from those 2 -- the 2 minority commissioners there. So we -- while it is -- I understand commissioners, commissioner Glick's opinion that this is a different mechanism than the project incentives. I think our answer is, yes, but you need both. One is for projects, the other is for RTO participation. Those are 2 very different incentives. And you got to make sure you have both, especially given the accelerated renewable energy transition that we're trying to push across the United States under the current Biden administration.

因此，這將成為補充 NOPR 的焦點是很奇怪的，我們顯然會發表評論，我認為這聽起來很像來自那 2 位——那裡的 2 位少數派委員的異議。所以我們——儘管如此——我理解專員，格里克專員的觀點，即這是一種與項目激勵機制不同的機制。我認為我們的答案是，是的，但你需要兩者。一個用於項目，另一個用於 RTO 參與。這是兩種截然不同的激勵措施。而且你必須確保你兩者兼得，特別是考慮到我們正試圖在現任拜登政府的領導下在美國推動加速的可再生能源轉型。

And your next question comes from the line of Mark Jarvi with CIBC Capital Markets.

你的下一個問題來自 CIBC Capital Markets 的 Mark Jarvi。

Just wanted to go to the transmission tax credits. I'm wondering that have you gone through them, your understanding of how broadly applicable there might be things like they come into fold in terms of Lake Erie project? And then any idea in terms of loosely quantifying what could impact you said, it could be positive to EPS and cash flow?

只是想去傳輸稅收抵免。我想知道您是否了解過它們，您對它們在伊利湖項目方面的適用範圍有多大的理解？然後關於鬆散量化可能影響你所說的任何想法，它可能對每股收益和現金流產生積極影響？

Yes. So the question there is around the investment tax credits for transmission projects on a going-forward basis because there is a lot of incentives and a lot of the tension being paid on transmission. Obviously, the -- when you look at the infrastructure plan and the $100 billion of set aside basically for grid upgrades to improve both regional and interregional transmission. There's loan guarantees. There's obviously structural changes that they're making to try to get things permitted more quickly partnerships between DOE and DOT down here in the U.S., a lot of that stuff.

是的。因此，問題在於未來輸電項目的投資稅收抵免，因為在輸電方面有很多激勵措施和很多壓力。顯然，當您查看基礎設施計劃和主要用於電網升級以改善區域和區域間輸電的 1000 億美元撥款時。有貸款擔保。很明顯，他們正在進行結構性改變，試圖讓事情在美國這裡更快地得到許可，DOE 和 DOT 之間的合作夥伴關係，很多這樣的東西。

And obviously, tax credits are going to be part of that overall push towards new transmission projects as well. I'm going to kick that to Linda to talk a little bit about. But generally, what we see from a tax credit perspective from a transmission perspective is this will hopefully bring some of those projects that might be around the edges into fruition. It might be the thing that puts some of these projects over the edge from an economic standpoint. Do you have any additional color on that, Linda?

顯然，稅收抵免也將成為新輸電項目整體推動的一部分。我要把它踢給琳達談談。但總的來說，我們從傳輸角度的稅收抵免角度看到的是，這有望使一些可能處於邊緣的項目取得成果。從經濟角度來看，這可能是將其中一些項目置於邊緣的原因。琳達，你還有其他顏色嗎？

Yes, Dave, not a whole lot of additional color. I mean, certainly, we're still awaiting sort of further clarity or insight in terms of specifically how would those projects that may be eligible for the investment tax credit, how would they come to fruition? There's talk about sort of you can sort of make some options around kind of taking advantage of the tax benefit. I think the positive news is that we see all of these things, not only a positive from a tax perspective. But certainly, we do not view them as eroding any -- the rate base of the project. But more to come. The details, I think, are still pretty great at this point in time. But I think overall, and most importantly, I think it's just all of the positive momentum around incentivizing transmission.

是的，戴夫，沒有太多額外的顏色。我的意思是，當然，我們仍在等待進一步明確或深入了解那些可能有資格獲得投資稅收抵免的項目，它們將如何實現？有人說你可以圍繞利用稅收優惠做出一些選擇。我認為好消息是我們看到了所有這些事情，而不僅僅是從稅收角度來看是積極的。但可以肯定的是，我們不認為它們會侵蝕任何項目的費率基礎。但還有更多。我認為，在這個時間點上，細節仍然非常棒。但我認為總體而言，最重要的是，我認為這只是圍繞激勵傳播的所有積極勢頭。

Obviously, from our perspective, whether that be through sort of the FERC avenue in perspective or whether it be through tax incentives. So I think more to come as the sort of the legislative proposals gets more substantives, we'll be able to, I think, share more information on that on that.

顯然，從我們的角度來看，無論是通過某種 FERC 途徑還是通過稅收激勵。因此，我認為隨著立法提案的實質性越來越多，我認為我們將能夠就此分享更多信息。

But just based on those comments, it seems like it's based on what ITC is contemplating what's in your outlook. It wouldn't be a lot to be more on the fringe as opposed to a lot of your core investments?

但僅根據這些評論，它似乎是基於 ITC 正在考慮您的展望。與您的許多核心投資相比，更多地處於邊緣不是很多嗎？

Yes, that's correct. I mean we would envision that the typical, what I would call regional transmission projects would continue to go through the RTO planning process be included in a rate base, I suppose if there are some projects that meet certain criteria that perhaps legislation specifies than perhaps those could be -- they could take advantage of the tax credit. But as we sit here right now, our belief is that most of the sort of what I would call traditional regulated transmission projects will continue to go through the RTO planning process and that perhaps there will be sort of other definition or categories of transmission projects that meet certain criteria that may be eligible for certain tax benefits. But like I said, all of those details have not been developed yet, so we're going to have to continue to work with congressional folks, the administration to help kind of flush those details out.

對，那是正確的。我的意思是我們可以設想典型的，我稱之為區域輸電項目將繼續通過 RTO 規劃過程被包含在費率基礎中，我想如果有一些項目符合某些標準，可能是立法規定的，而不是那些可能是——他們可以利用稅收抵免。但是當我們現在坐在這裡時，我們相信大多數我稱之為傳統監管的輸電項目將繼續通過 RTO 規劃過程，並且可能會有其他定義或類別的輸電項目滿足可能有資格獲得某些稅收優惠的某些標準。但就像我說的，所有這些細節都還沒有製定出來，所以我們將不得不繼續與國會議員和政府合作，以幫助清除這些細節。

Okay. Got it. And then Jocelyn, the question is for you. I know you still are looking for a lot more details around some of the proposed tax changes here in Canada and the U.S. But if you had to say one versus the other is being potentially more impactful, is it the U.S. changes on minimum taxes, international tax treatment? Or any kind of comments in terms of the relative impact of what you've seen so far from those proposals?

好的。知道了。然後是 Jocelyn，這個問題是給你的。我知道您仍在尋找有關加拿大和美國的一些擬議稅收變化的更多細節。但是，如果您不得不說一個與另一個相比可能具有更大的影響力，那麼美國對最低稅收的變化，國際稅收待遇？或者就您目前從這些提案中看到的內容的相對影響發表任何評論？

So Mark, that's a tough question because we have limited information, both in the U.S. and in Canada. But when you look at the impacts for Fortis, the increase in taxes is a pretty -- is a simpler one because we're going to likely see partial reversal of what we had seen with U.S. tax reform. So we will see an increase in taxes, increase in cash flow. When it comes to the, like interest deductibility limits in Canada and the 15% minimum tax in the U.S., both of those are going to be driven by how they define tax EBITDA or the minimum book income.

所以馬克，這是一個棘手的問題，因為我們在美國和加拿大的信息都有限。但是當你看看對 Fortis 的影響時，稅收的增加是一個相當 - 一個更簡單的，因為我們很可能會看到我們在美國稅收改革中看到的部分逆轉。所以我們會看到稅收增加，現金流增加。談到加拿大的利息扣除限額和美國 15% 的最低稅率，這兩者都將受到它們如何定義稅收 EBITDA 或最低賬面收入的驅動。

So -- and we don't really have clarity on that, just cash flow on that particular one, but still important, it will be timing of cash flow. But it's hard for us to say which one is really going to be more impactful because it's going to depend on the definitions, I think.

所以——我們真的不清楚這一點，只是那個特定的現金流，但仍然很重要，這將是現金流的時機。但我們很難說哪個真的會更有影響力，因為我認為這將取決於定義。

Okay. And then just one last question around the NOPR. If it was passed as it's been proposed today, would there be any retroactive adjustments or you just be solely on a go-forward basis in terms of impact on your rates and revenues?

好的。然後是關於 NOPR 的最後一個問題。如果它像今天提議的那樣獲得通過，是否會進行任何追溯調整，或者就對您的費率和收入的影響而言，您只是在前進的基礎上？

Yes. It's solely on a going-forward basis.

是的。這完全是在前進的基礎上。

And your next question comes from the line of Michael Sullivan with Wolfe Research.

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

I first wanted to just ask on the CapEx plan. You guys noted for the year that higher CapEx could potentially offset FX headwinds. Where would that be coming from? And how material could that be?

我首先想問一下資本支出計劃。你們今年註意到更高的資本支出可能會抵消外匯逆風。那會從哪裡來？那會有多重要？

It's coming from a couple of different places this year. Some has to do with the timing of Oso Grande investments that we have made, basically some that leaked over from 2020 into 2021 and getting that project completed. There's a little bit additional at the Wataynikaneyap project as well and also a Scotia of it at FortisAlberta. So right now, those 3 pieces are basically covering the FX delta between what we had in the -- what we used for the $19.6 billion capital budget and this year's capital budget and what the current rate is.

今年它來自幾個不同的地方。有些與我們所做的 Oso Grande 投資的時間有關，基本上有些是從 2020 年洩漏到 2021 年並完成該項目。Wataynikaneyap 項目還有一些額外的項目，還有 FortisAlberta 的 Scotia 項目。所以現在，這 3 個部分基本上涵蓋了我們用於 196 億美元資本預算和今年資本預算以及當前匯率之間的外匯增量。

Got you. Okay. And then kind of similarly, if the NOPR does -- and sorry to be a dead horse on this, but if the NOPR were to -- the supplemental NOPR were to go forward as proposed, are there any potential offsets that you guys would have there to the, I guess, $0.05 or so of downside?

明白了好的。然後有點類似，如果 NOPR 確實如此——很抱歉在這方面成為死馬，但如果 NOPR 是——補充 NOPR 將按提議推進，你們是否有任何潛在的補償我猜，還有 0.05 美元左右的下行空間？

Yes. I mean it's the offset and the growth that we're always looking for. This is really about not just focusing on the ROE, the adders, the incentives, all of that stuff. That obviously is extremely important. And definitely, the topic de jure, that's for sure. But what we have to look at, too, is longer term. How we're going to be growing that transmission business. I mean, as I mentioned previously, just all of the effort around building up the transmission system. Everybody is in alignment on the need for additional transmission infrastructure for us to even -- even to have a prayer of becoming -- getting close to meeting the clean energy transition targets that we are putting out in the United States.

是的。我的意思是這是我們一直在尋找的抵消和增長。這真的不僅僅是關注 ROE、加法器、激勵措施，所有這些東西。這顯然是極其重要的。當然，法律上的話題，這是肯定的。但我們也必須關注更長期的問題。我們將如何發展傳輸業務。我的意思是，正如我之前提到的，只是圍繞建立傳輸系統所做的所有努力。每個人都同意需要額外的輸電基礎設施，以便我們甚至 - 甚至祈禱成為 - 接近實現我們在美國提出的清潔能源轉型目標。

So it's really -- there's 2 different topics. That's the return side of things, but the other is what we call the pie side of things. And this pie is going to be growing enormously. So we have to see basically how those 2 are going to balance out. And as we talked about from a transmission planning process, MISO is in the middle of SPPs, getting after it. Obviously, a lot of independent transmission investments are going on throughout the United States. We have to take a look at that bigger, broader picture, see how that applies to things that we can invest in. And then put that whole story together. Unfortunately, you're probably chomping at a bit like we are trying to figure out how much of this is out there, but it will take some time for us to figure this out. And then we'll have a better balance of that growth and return picture on a going-forward basis.

所以它真的 - 有 2 個不同的主題。那是事物的回報面，但另一面是我們所說的事物的餡餅面。這個餡餅會越來越大。所以我們基本上必須看看這兩個將如何平衡。正如我們在傳輸規劃過程中談到的那樣，MISO 正處於 SPP 的中間，正在追趕它。顯然，美國各地正在進行大量獨立輸電投資。我們必須看看更大、更廣的圖景，看看它如何適用於我們可以投資的事物。然後把整個故事放在一起。不幸的是，你可能有點像我們試圖弄清楚其中有多少這樣的東西，但我們需要一些時間才能弄清楚。然後我們將在未來的基礎上更好地平衡增長和回報。

Okay. Appreciate the color there. And then my last question was back to the Lake Erie project. Any better sense or clarity on how long the TSAs could take? Like what is within the balance of the year reasonable? And would you guys get AFUDC on that once it starts construction?

好的。欣賞那裡的顏色。然後我的最後一個問題又回到了伊利湖項目。關於 TSA 可能需要多長時間，是否有更好的認識或清晰度？比如什麼是合理的年度餘額？一旦開始建設，你們會得到 AFUDC 嗎？

Yes. I would have pined on that, but I don't want to get in trouble with Linda and putting out a date that she doesn't agree with. So I'm going to shoot straight to her to answer that one.

是的。我會寄希望於此，但我不想惹上琳達的麻煩並提出她不同意的日期。所以我要直接向她開槍回答那個問題。

Yes. Thanks, Dave. Certainly, we're hopeful that we can continue to see progress and that we can reach an agreement within the coming months by the end of the year. But certainly, as you can imagine, with any type of negotiation in 2 party negotiation, it takes 2 of us, obviously, to come to term. So are we hopeful, is it possible? Absolutely. And I'm sorry, I cannot specifically answer the AFUDC question. I don't know, maybe perhaps Jocelyn can.

是的。謝謝，戴夫。當然，我們希望我們能夠繼續看到進展，並且我們能夠在今年年底前的未來幾個月內達成協議。但可以肯定的是，正如您可以想像的那樣，在 2 方談判中進行任何類型的談判，顯然需要我們中的 2 個人才能達成共識。那麼我們有希望嗎，這可能嗎？絕對地。抱歉，我無法具體回答 AFUDC 的問題。我不知道，也許 Jocelyn 可以。

Yes. No, Mike, that's all part of one same negotiations of the whole project cost and how we finance that. But it's a nonregulated business, as you know, Michael.

是的。不，邁克，這都是整個項目成本以及我們如何為其融資的同一談判的一部分。但這是一項不受監管的業務，正如你所知，邁克爾。

Your next question comes from the line of Andrew Kuske with Crédit Suisse.

你的下一個問題來自瑞士信貸銀行的 Andrew Kuske。

Maybe if we could just focus a little bit on Arizona. And obviously, there's some pretty big capital plans there from Intel, TSMC, among others, this just naturally happens in the state, but with those 2 semi-manufacturers, it's very big capital. It looks like it falls outside of your service territory. But could you maybe give us a little bit of color and context on opportunities you think will happen just from the capital flows into the state?

也許我們可以稍微關注亞利桑那州。顯然，英特爾、台積電等公司有一些相當大的資本計劃，這在該州很自然地發生，但對於這兩家半製造商來說，這是一筆非常大的資本。它看起來不屬於您的服務範圍。但是，您能否給我們一些關於您認為僅從資本流入該州就會發生的機會的色彩和背景？

Yes, Andrew, that's a great question. And a lot of times, when you look at some of the economic data in Arizona. It's obviously driven mostly around the Phoenix area, Maricopa County, which is obviously one of the fastest growing, if not the fastest-growing county in all of the U.S. Some of that does leak out to areas around the Phoenix area down into Arizona. We have seen an increase in economic development inquiries in Southern Arizona. We have an economic development organization that both me and Susan Gray the new President and CEO of UNS Energy are both part of.

是的，安德魯，這是一個很好的問題。很多時候，當你查看亞利桑那州的一些經濟數據時。它顯然主要在鳳凰城地區、馬里科帕縣附近行駛，這顯然是美國發展最快的縣之一，即使不是全美增長最快的縣。其中一些確實洩漏到鳳凰城地區周圍的地區，一直延伸到亞利桑那州。我們看到亞利桑那州南部的經濟發展諮詢有所增加。我們有一個經濟發展組織，我和 UNS Energy 的新總裁兼首席執行官 Susan Gray 都是其中的一員。

So we are seeing some visibility into that. And we do see that we're going to -- and it is Arizona. I mean, this is a strong growth state. And will continue to be a strong growth state on a going-forward basis. And we obviously are looking to attract as much business as we can. Economic development is the best of all things from a utility standpoint that's what brings in customer growth that actually brings in KWH with it so that when you're investing to add these customers, you're adding the usage to the to the formula as well. And some of these larger customers like the Rosemont mine that's still sitting out there, waiting to get through its legal hurdles and get started. Those big customers like that are beneficial for our overall customer base and our rates because we can spread those costs out among more customers and more kilowatt hours.

所以我們看到了一些可見性。我們確實看到我們要去 - 這是亞利桑那州。我的意思是，這是一個強勁的增長狀態。並且在未來的基礎上將繼續保持強勁的增長狀態。我們顯然希望盡可能多地吸引業務。從公用事業的角度來看，經濟發展是最好的，它帶來了客戶增長，實際上帶來了千瓦時，所以當你投資增加這些客戶時，你也在將使用量添加到公式中.其中一些較大的客戶，如 Rosemont 礦山，仍然坐在那裡，等待解決其法律障礙並開始行動。像這樣的大客戶有利於我們的整體客戶群和我們的費率，因為我們可以將這些成本分攤給更多的客戶和更多的千瓦時。

That's helpful context. And maybe just still staying within the state, do you foresee any opportunities to do renewable generation outside of your existing rate base activities? To maybe support corporate customers that are seeking to have cleaner power?

這是有用的上下文。也許只是留在州內，您是否預見到在現有費率基礎活動之外進行可再生能源發電的任何機會？也許支持尋求更清潔能源的企業客戶？

Yes. We actually just announced this week when we brought when we brought the big solar project at NextEra built for us a 100-megawatt project with a 30-megawatt battery and of course, the Oso Grande project as well. We actually earmarked some of those some of those kilowatt hours for -- not -- for our University of Arizona, we entered into a long-term contract with them to provide them with 100% renewable energy, which is one of the biggest -- it's the biggest deal like that with a public university in the United States.

是的。事實上，我們本周剛剛宣布，當我們帶來 NextEra 的大型太陽能項目時，我們為我們建造了一個 100 兆瓦的項目和一個 30 兆瓦的電池，當然還有 Oso Grande 項目。實際上，我們將其中一些千瓦時指定用於——而不是——我們的亞利桑那大學，我們與他們簽訂了一份長期合同，為他們提供 100% 的可再生能源，這是最大的——這是與美國公立大學達成的最大一筆交易。

So we're really proud of that deal. We're always looking at ways to meet our customers' needs. And if there's additional renewable energy that they're looking for and that we can invest in and that we can get a long-term contract that points back to those resources, we're always looking at things like that, always have been and always will be there's also other utilities within our footprint in our control area, smaller municipalities, co-ops, et cetera, that are always opportunities for that as well. But those are things we look at, not something we have a laser focus on, but always looking to help out our customers and look for investments around the edges, even if they are unregulated or we like to call contracted energy infrastructure deals.

所以我們真的為這筆交易感到自豪。我們一直在尋找滿足客戶需求的方法。如果他們正在尋找額外的可再生能源，我們可以投資，並且我們可以獲得指向這些資源的長期合同，我們一直在關注這樣的事情，一直都是，一直都是在我們的控制區、較小的市政當局、合作社等我們的足跡內還會有其他公用事業，這也總是有機會的。但這些是我們所關注的東西，而不是我們所關注的東西，但始終希望幫助我們的客戶並在邊緣尋找投資，即使它們不受監管或我們喜歡稱之為合同能源基礎設施交易。

And your next question comes from the line of Elias Foscolos with IA Capital.

你的下一個問題來自 IA Capital 的 Elias Foscolos。

Just want to focus on the capital plan and potential inflationary pressure that you might see on it. So I was wondering if you could provide some color on that. And just also comment on the ability to absorb any sort of increases in the rate base?

只想關注資本計劃和您可能會看到的潛在通脹壓力。所以我想知道你是否可以提供一些顏色。還要評論吸收利率基礎上任何形式的增長的能力嗎？

Well, that's a great question because there's a combination of impacts when we look at our capital plan. Well, every year, we lock down a capital plan, show it to our investors, and then, of course, they're already working on the next one. So there will be, as we go forward, and we look at this next capital plan that we'll roll out in the fall for the next 5-year period, it will be a combination of things that go in there related to inflationary. We redo budgets on these all the time. Obviously, the shorter-term contracts are much more known. Some of that exposure might be hedged with on tracks or commodity, et cetera. But on a going-forward basis, that goes all back into the pot with the additional fine-tuning of project definitions and of course, the addition of new projects as we go. So we -- I probably don't have a clear view on where that might go from an inflationary pressure perspective, whether that drives the capital up of course, there's FX impacts as well.

好吧，這是一個很好的問題，因為當我們審視我們的資本計劃時，會產生多種影響。嗯，每年，我們都會鎖定一個資本計劃，向我們的投資者展示，然後，當然，他們已經在研究下一個。因此，隨著我們的前進，我們會看到我們將在未來 5 年的秋季推出的下一個資本計劃，它將是與通貨膨脹相關的事情的組合。我們一直在重新制定這些預算。顯然，短期合同更為人所知。其中一些敞口可能會通過軌道或商品等進行對沖。但在向前發展的基礎上，通過對項目定義的額外微調，當然還有在我們進行時添加新項目，這一切都回到了底池。所以我們——我可能不清楚從通脹壓力的角度來看，這是否會推動資本上漲，當然還有外匯影響。

And then when you look at it from a funding perspective, as Jocelyn noted, we have the DRIP program that we're getting really strong participation. And so all of those pieces will go back in to tell that story when we roll it out later this fall.

然後當你從資金的角度來看它時，正如 Jocelyn 指出的那樣，我們有 DRIP 計劃，我們得到了非常多的參與。因此，當我們在今年秋天晚些時候推出時，所有這些作品都會重新講述這個故事。

Okay. I know it wasn't an easy question, but it was one that I wanted to ask. And you kind of alluded to this, so I'll just make this the last follow-up. You probably have some internal tolerances on the capital plan. Should we really expect one about 6 months from now? Or if you think you're moving outside those boundaries, is there a possibility that we might get an update earlier? And I'll leave it at that.

好的。我知道這不是一個簡單的問題，但這是我想問的問題。你有點提到了這一點，所以我將把它作為最後的後續行動。您可能對資本計劃有一些內部容忍度。我們真的應該期待從現在開始大約 6 個月嗎？或者，如果您認為自己超出了這些界限，我們是否有可能提前獲得更新？我會把它留在那裡。

Yes, there's always the option to give an update early if something big happens, right? I mean we wouldn't completely redo a 5-year forecast. But if -- let's just say, if Lake Erie Connector, which is not in our 5-year capital plan, drops in and we can get that thing moving. We're going to tell you, we're not going to wait until September, October, whenever we're going to do our Investor Day to let that cat out of the bag. It's just more of the pieces behind it. The inflationary changes, the commodity price changes. Remember, a lot of the stuff that we do is infrastructure, right? So it's copper, it's steel, it's all of those things, and we're going to have to take a hard look at what those -- how those have changed and what that does to our capital budget on a going-forward basis. But anything big, we'll let you know the stuff that's kind of the details behind the scenes of rolling up a capital plan, you probably don't want us to be giving you too often updates on that.

是的，如果發生大事，總是可以選擇提前更新，對吧？我的意思是我們不會完全重做 5 年的預測。但是，如果——讓我們這麼說吧，如果不在我們 5 年資本計劃中的伊利湖連接器投入使用，我們就可以讓它動起來。我們要告訴你，我們不會等到 9 月、10 月，每當我們要舉辦投資者日時，就讓那隻貓從袋子裡出來。它只是它背後的更多部分。通脹變化，商品價格變化。請記住，我們所做的很多事情都是基礎設施，對吧？所以它是銅，它是鋼，它是所有這些東西，我們將不得不認真研究那些 - 它們是如何變化的，以及它們在未來的基礎上對我們的資本預算有什麼影響。但是任何大的事情，我們都會讓你知道一些關於啟動資本計劃的幕後細節，你可能不希望我們經常給你更新。

And you next question comes from the line of Patrick Kenny with National Bank.

你的下一個問題來自國家銀行的 Patrick Kenny。

Just looking at the long-term decarbonizing plan for FortisBC, wondering if you could provide just an update on your progress to integrate RNG, hydrogen, even some of the carbon capture initiatives that are starting to come with the surface here? I know we still got a ways to go to 2030, but would you say things are tracking on pace with your original targets or has there been any variance either way?

看看 FortisBC 的長期脫碳計劃，想知道您是否可以提供有關整合 RNG、氫氣，甚至是這裡開始出現的一些碳捕獲計劃的最新進展？我知道我們到 2030 年還有一段路要走，但你會說事情正在按照你最初的目標進行，還是有任何差異？

Yes. I'll kick that to Roger for some of the details. I was just actually on a House of Commons Natural Resource subcommittee on this topic. Last week about -- from a Canadian perspective, the opportunities for looking at clean fuels. And of course, our topic was around the use of both hydrogen and renewable natural gas in our gas systems. And FortisBC, which is a leader in this area has really been doing some great work that we probably don't tout loud enough on what we're doing from, one, from an RNG perspective and the projects that we have in the queue there. And then also the R&D and the behind the scenes things that we're looking at from a hydrogen perspective. So I'll turn that over to Roger to add a little bit of color there.

是的。我會把它踢給羅傑了解一些細節。實際上，我只是在下議院自然資源小組委員會就此主題進行討論。上週關於 - 從加拿大的角度來看，尋找清潔燃料的機會。當然，我們的主題是圍繞在我們的天然氣系統中使用氫氣和可再生天然氣。FortisBC 是這一領域的領導者，它確實做了一些偉大的工作，我們可能沒有足夠大聲地宣傳我們正在做的事情，從 RNG 的角度和我們在那裡排隊的項目.然後還有研發和幕後的事情，我們從氫的角度來看。所以我會把它交給羅傑，在那裡添加一點顏色。

Thanks, David. Appreciate the question. So on the RNG front, we've got a good line of sight to the 15% RNG target by 2030, we now have about 6 petajoules of agreements that are signed and approved by the BCUC. Those have to be built or the off-taker on those agreements. But they are signed and approved, and we have another 3 pending VCC approval. So we have about 8 petajoules ready to go with a number of projects that we have identified and are in negotiations to sign. So we feel that we've got a very good start on the 2030 target for RNG. And continue to make good progress there. Hydrogen is a little bit -- we're more in now, what I would say is the development phase. We've got a number of projects underway.

謝謝，大衛。感謝這個問題。因此，在 RNG 方面，我們對到 2030 年 15% 的 RNG 目標有了很好的預期，我們現在有大約 6 petajoules 的協議已由 BCUC 簽署和批准。必須建立這些協議或承購這些協議。但它們已簽署並獲得批准，我們還有另外 3 個正在等待 VCC 批准。因此，我們有大約 8 拍焦耳準備用於我們已經確定並正在談判簽署的一些項目。所以我們覺得我們在 RNG 的 2030 年目標上有了一個很好的開端。並繼續在那裡取得良好進展。氫有點——我們現在更多，我想說的是開發階段。我們有許多項目正在進行中。

We have a joint initiative with other utilities on technical feasibility study for hydrogen blending in BC. We have a pilot project with a large industrial site to use renewable hydrogen production to blend into the gas site, the gas supply for that industrial site. And we are looking at some northern BC blue hydrogen carbon capture opportunities to decarbonize the gas system. So quite a bit of activity in this area, the BC government is helping to find with the industry a hydrogen study.

我們與其他公用事業公司就 BC 氫氣混合的技術可行性研究開展了一項聯合倡議。我們有一個大型工業場地的試點項目，使用可再生氫氣生產混合到天然氣場地，為該工業場地提供天然氣。我們正在尋找不列顛哥倫比亞省北部的一些藍色氫碳捕獲機會，以使氣體系統脫碳。因此，在這一領域開展了大量活動，不列顛哥倫比亞省政府正在幫助該行業尋找氫氣研究。

We're also working federally with our industry peers on advancing hydrogen standards and development as well. So quite a bit of progress on that front.

我們還在聯邦政府與我們的行業同行合作推進氫標準和發展。在這方面取得了相當大的進展。

Okay. Great. That and then maybe just sticking with Western Canada, given the headlines here in Alberta and the challenges in controlling the case numbers. And I guess your peers implementing a rate freeze over the next couple of years. Not sure if you guys are considering the same or perhaps looking at other opportunities more on the social side to help out your Alberta customers?

好的。偉大的。考慮到艾伯塔省的頭條新聞以及控制病例數量的挑戰，然後可能只是堅持加拿大西部。我猜你的同行會在未來幾年實施利率凍結。不確定你們是否正在考慮相同的或者可能更多地在社交方面尋找其他機會來幫助您的艾伯塔省客戶？

Yes. I'll turn that over and actually introduce Janine Sullivan, who's the new President and CEO of Fortis Alberta. But yes, we obviously recognize with our folks on the ground there in Alberta, just the tough time that the province is having on several fronts. And obviously, I was just hearing yesterday on another call that Alberta has, I think, if this is right, that they currently have the highest per capita number of cases in North America. And so that's obviously a concern of ours. There's nothing more important to making sure that our employees and customers and communities are safe and that we're doing everything we possibly can to protect them and to taking all the precautions that we need to as a company to not just keep providing our service, but making sure that our employees and customers are safe and are taking those right precautions.

是的。我將把它翻過來，並實際介紹 Janine Sullivan，她是 Fortis Alberta 的新總裁兼首席執行官。但是，是的，我們顯然與艾伯塔省的當地人一起認識到該省在幾個方面正經歷艱難時期。顯然，我昨天剛剛在另一個電話中聽到艾伯塔省的電話，我認為，如果這是正確的話，他們目前的人均病例數是北美最高的。所以這顯然是我們關心的問題。沒有什麼比確保我們的員工、客戶和社區的安全更重要的了，我們正在盡我們所能保護他們，並採取我們作為一家公司需要採取的所有預防措施，不僅僅是繼續提供我們的服務，但要確保我們的員工和客戶安全並採取正確的預防措施。

Obviously, economic impacts from COVID from the shutdowns. There's a lot of every one of our jurisdictions has gone through it in different time periods and to different extents. And Fortis Alberta seems to be the tip of the spear on where that's focused now. So I'll turn that over to Janine and have her explain what we may be looking at doing there for our Albertan customers.

顯然，停產對 COVID 的經濟影響。我們的每個司法管轄區都有很多在不同時期和不同程度上經歷過它。而 Fortis Alberta 似乎是目前重點關注的矛尖。所以我會把它交給 Janine，讓她解釋我們可能會考慮為我們的艾伯塔省客戶做些什麼。

Thanks, Dave. And yes, we're certainly very cognizant of the challenges that are going on in Alberta right now, particularly as COVID continues to ramp up and really post some issues for our customers. We're really cognizant of the heightened focus on the cost of delivered electricity in the province and the conversation that our customers are having with the regulator and with government. And we've been a part of those conversations, and we're staying close to them. There have been some proposals as to how it can be addressed. And of course, we're watching how those play out and assessing those in light of our own specific circumstances and working on proposals as to how we might approach it in the coming months, particularly as we work through this approach to resetting rates for 2023 at the end of this PBR term.

謝謝，戴夫。是的，我們當然非常清楚艾伯塔省目前正在面臨的挑戰，尤其是在 COVID 繼續增加並確實為我們的客戶發布一些問題的情況下。我們真正意識到該省對電力輸送成本的高度關注以及我們的客戶與監管機構和政府的對話。我們參與了這些對話，並與他們保持密切聯繫。關於如何解決這個問題，已經提出了一些建議。當然，我們正在觀察這些結果如何發揮作用，並根據我們自己的具體情況對其進行評估，並就我們在未來幾個月內如何處理它制定建議，特別是在我們通過這種方法來重置 2023 年的利率時在這個 PBR 任期結束時。

So there's some opportunities coming where we will continue to work through options available to us and seeing how those have been put out already play out and how they're received and how they might work to address the issues at hand.

因此，未來會有一些機會，我們將繼續通過我們可用的選項進行工作，看看這些選項是如何推出的，它們是如何被接受的，以及它們如何解決手頭的問題。

As there are no further questions in the queue, I would now like to turn the conference over to Ms. Amaimo for closing remarks.

由於隊列中沒有其他問題，我現在想將會議轉交給 Amaimo 女士作閉幕詞。

Thank you, Deborah. We have nothing further at this time. Thank you, everyone, for participating in our first quarter 2021 results call. Please contact Investor Relations should you need anything further. Thank you for your time, and have a great day.

謝謝你，黛博拉。目前我們沒有進一步的消息。感謝大家參加我們 2021 年第一季度的業績電話會議。如果您需要任何進一步的信息，請聯繫投資者關係部。謝謝你的時間，祝你有美好的一天。

Thank you for participating, ladies and gentlemen. This concludes today's conference. You may disconnect your lines.

感謝您的參與，女士們，先生們。今天的會議到此結束。您可以斷開線路。