賓州電力 (PPL) 2023 Q1 法說會逐字稿

Good day, and welcome to the PPL Corporation First Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Mr. Andy Ludwig, Vice President and Investor Relations. Please go ahead, sir.

美好的一天，歡迎參加 PPL 公司 2023 年第一季度收益電話會議。 （操作員說明）請注意此事件正在被記錄。現在我想將會議轉交給負責投資者關係的副總裁安迪·路德維格 (Andy Ludwig) 先生主持。請繼續，先生。

Good morning, everyone, and thank you for joining the PPL Corporation Conference Call on First Quarter 2023 financial results. We have provided slides for this presentation on the Investors section of our website. We'll begin today's call with updates from Vince Sorgi, PPL President and CEO; and Joe Bergstein, Chief Financial Officer and conclude with a Q&A session following our prepared remarks.

大家早上好，感謝您參加 PPL 公司關於 2023 年第一季度財務業績的電話會議。我們在我們網站的投資者部分提供了本次演示的幻燈片。我們將首先介紹 PPL 總裁兼首席執行官 Vince Sorgi 的最新情況；首席財務官喬·伯格斯坦 (Joe Bergstein)，並在我們準備好的發言後以問答環節結束。

Before we get started, I'll draw your attention to Slide 2 and a brief cautionary statement. Our presentation today contains forward-looking statements about future operating results or other future events. Actual results may differ materially from these forward-looking statements. Please refer to the appendix of this presentation and PPL's SEC filings for a discussion of some of the factors that could cause actual results to differ from the forward-looking statements.

在我們開始之前，我將提請您注意幻燈片 2 和簡短的警告聲明。我們今天的演示包含有關未來經營業績或其他未來事件的前瞻性陳述。實際結果可能與這些前瞻性陳述存在重大差異。請參閱本演示文稿的附錄和 PPL 向 SEC 提交的文件，了解可能導致實際結果與前瞻性陳述不同的一些因素的討論。

We will also refer to non-GAAP measures, including earnings from ongoing operations and adjusted gross margins on this call. For reconciliations to the comparable GAAP measures, please refer to the appendix. I'll now turn the call over to Vince.

我們還將在本次電話會議上提及非公認會計準則衡量標準，包括持續經營業務的收益和調整後的毛利率。有關可比 GAAP 衡量標準的調節表，請參閱附錄。我現在將把電話轉給文斯。

Thank you, Andy, and good morning, everyone. Welcome to our first quarter investor update. Let's start with our financial results and a few highlights from the quarter on Slide 4. Today, we announced first quarter reported earnings of $0.39 per share. Adjusting for special items, first quarter earnings from ongoing operations were $0.48 per share compared with $0.41 per share a year ago. This increase was supported by solid results from our newly acquired Rhode Island business as well as lower O&M expenses, partially offset by lower sales volumes due to the mild winter weather and higher interest expense.

謝謝你，安迪，大家早上好。歡迎來到我們的第一季度投資者更新。讓我們從幻燈片 4 中的財務業績和本季度的一些亮點開始。今天，我們宣布第一季度報告的每股收益為 0.39 美元。調整特殊項目後，第一季度持續經營業務收益為每股 0.48 美元，而去年同期為每股 0.41 美元。這一增長得益於我們新收購的羅德島業務的穩健業績以及較低的運營和維護費用，但部分被溫和的冬季天氣和較高的利息費用導致的銷量下降所抵消。

We remain confident in our ability to deliver on our 2023 ongoing earnings forecast of $1.50 to $1.65 per share with a midpoint of $1.58 per share. Joe will speak to this more in his detailed review of our financial results. In addition to solid financial performance, we continue to execute on our commitment to provide safe and reliable electric and gas service to our more than 3.5 million customers. This includes managing several significant storms at our utilities, including a severe March windstorm in Kentucky, the third most significant weather event in the last 20 years in our service territory. Our teams with the help of mutual assistance from several of our peers restored power to more than 400,000 LG&E and KU customers. I thank each one of our men and women, as well as all those that provided mutual assistance for their dedication, commitment to safety and demonstrated operational excellence.

我們對實現 2023 年每股 1.50 至 1.65 美元（中值 1.58 美元）的持續盈利預測的能力仍然充滿信心。喬將在他對我們財務業績的詳細審查中對此進行更多討論。除了穩健的財務業績外，我們還繼續履行為超過 350 萬客戶提供安全可靠的電力和燃氣服務的承諾。這包括管理我們公用事業公司的幾次重大風暴，其中包括肯塔基州三月份的嚴重風暴，這是我們服務區域過去 20 年來第三大重大天氣事件。我們的團隊在多個同行的共同幫助下，為超過 400,000 個 LG&E 和 KU 客戶恢復了電力。我感謝我們的每一位男男女女，以及所有提供互助的人，感謝他們的奉獻精神、對安全的承諾和卓越的運營。

From a financial perspective, we received approval to treat nearly $20 million of Q1 O&M costs related to this extraordinary event as a regulatory asset. These types of events emphasize the importance of the investments we are making across our company to harden and improve the resiliency of our network. As the frequency of these events continues to increase, it becomes even more critical to ensure we are taking proactive steps to prepare our distribution and transmission networks.

從財務角度來看，我們獲得批准將與這一特殊事件相關的近 2000 萬美元第一季度運營和維護成本視為監管資產。此類事件強調了我們在整個公司範圍內進行投資以強化和提高網絡彈性的重要性。隨著這些事件發生的頻率不斷增加，確保我們採取積極措施準備我們的配電和傳輸網絡變得更加重要。

And we look forward to delivering on that goal in the most affordable way possible for our customers. We've also made significant progress during the first quarter in several areas that will improve our operating efficiency, deliver our clean energy strategy and improve service to our customers. First, we continue to execute our plan in transitioning Rhode Island Energy to PPL systems and remain on track to exit the remaining transition services with National Grid in 2024. We also advanced several key regulatory proceedings, which I'll discuss further on the next couple of slides.

我們期待以對我們的客戶來說最實惠的方式實現這一目標。第一季度我們還在多個領域取得了重大進展，這些領域將提高我們的運營效率、實施我們的清潔能源戰略並改善對客戶的服務。首先，我們繼續執行羅德島能源公司向 PPL 系統過渡的計劃，並繼續在 2024 年退出國家電網剩餘的過渡服務。我們還推進了幾項關鍵的監管程序，我將在接下來的幾張幻燈片中進一步討論。

Further, we successfully executed more than $3 billion of financings in the first quarter, reducing our interest rate exposure and strengthening our ability to achieve our top-tier earnings growth target. And finally, our execution of approximately $600 million in capital investments during the first quarter, keeps us on track to invest nearly $2.5 billion in infrastructure investments this year. These investments benefit both customers and share owners as we continue to advance our strategy to create the utilities of the future.

此外，我們在第一季度成功執行了超過 30 億美元的融資，降低了我們的利率風險並增強了我們實現頂級盈利增長目標的能力。最後，我們在第一季度執行了約 6 億美元的資本投資，這使我們今年有望投資近 25 億美元的基礎設施投資。隨著我們繼續推進創建未來公用事業的戰略，這些投資使客戶和股東受益匪淺。

As a result, today, we are reaffirming our plans to invest nearly $12 billion in infrastructure improvements through 2026 to modernize our electric and gas networks and replace retiring generation in Kentucky. Looking forward, we remain confident in the low-risk business plan we outlined in January and reaffirmed our projected compound annual earnings per share and dividend growth rate of 6% to 8% through at least 2026.

因此，今天，我們重申計劃到 2026 年投資近 120 億美元用於基礎設施改善，以實現電力和天然氣網絡現代化，並取代肯塔基州退休的一代。展望未來，我們對 1 月份概述的低風險業務計劃仍然充滿信心，並重申至少到 2026 年預計每股複合年收益和股息增長率為 6% 至 8%。

Turning to Slide 5. We were pleased to secure a positive outcome in our first infrastructure, safety and reliability proceedings before the Rhode Island Public Utilities Commission. ISR plans are submitted annually in Rhode Island and outline proposed capital investments and related operating costs to strengthen safety, reliability and resiliency of our electric and gas distribution networks. The approved plans address Rhode Island Energy's proposed spending from April 1, 2023, to March 31, 2024. In its decision, the Public Utilities Commission approved $290 million of the approximately $350 million Rhode Island Energy proposed in its ISR filing.

轉向幻燈片 5。我們很高興在羅德島公用事業委員會的首次基礎設施、安全和可靠性程序中取得積極成果。羅德島州每年提交 ISR 計劃，概述擬議的資本投資和相關運營成本，以加強我們的電力和天然氣分配網絡的安全性、可靠性和彈性。批准的計劃涉及羅德島能源公司從2023年4月1日到2024年3月31日的擬議支出。公共事業委員會在其決定中批准了羅德島能源公司在其ISR文件中提議的約3.5億美元中的2.9億美元。

This allowed investments on the electric side were largely tied to grid modernization and associated improvements. On the gas side, most of the disallowed investment related to roughly 10 miles of leak-prone pipe replacement. While we believe the disallowed investments are the right projects to better serve our customers, we understand the commission's desire to complete reviews of our grid modernization and advanced meter filings and to make further progress in the future of gas stakeholder proceeding before approving additional spending in those areas.

這使得電力方面的投資在很大程度上與電網現代化和相關改進掛鉤。在天然氣方面，大部分被禁止的投資與大約 10 英里的易洩漏管道更換有關。雖然我們認為被禁止的投資是更好地服務客戶的正確項目，但我們理解委員會希望完成對我們的電網現代化和先進儀表備案的審查，並在批准這些領域的額外支出之前在天然氣利益相關者的未來進程中取得進一步進展。

The investments not approved in this year's ISR plans may be recoverable in future proceedings subject to regulatory approval. This could be through future ISR filings, new base rate cases and/or reopener provisions within the base rate cases that we are currently operating under, particularly related to the grid modernization and AMF projects. Ultimately, we look forward to continued engagement on these matters with the commission, the division of public utilities and carriers and other stakeholders in Rhode Island.

今年 ISR 計劃中未批准的投資可能會在未來的程序中收回，但須經監管部門批准。這可以通過未來的 ISR 備案、新的基本費率案例和/或我們目前正在運營的基本費率案例中的重新開放條款來實現，特別是與電網現代化和 AMF 項目相關的規定。最終，我們期待與委員會、公用事業部門和運營商以及羅德島州的其他利益相關者繼續就這些問題進行接觸。

Turning to Slide 6. We continue to progress our generation investment plan in Kentucky and remain confident that this plan is the best path forward for our customers as we plan for the state's energy future. Our plan is more affordable, maintains reliability and represent significantly cleaner energy resources for our customers than continuing to operate the coal units that we have proposed to retire by 2028. In fact, we estimate that our plan provides nearly $600 million of net present value benefits for our customers compared to continuing to operate these coal units.

轉向幻燈片 6。我們繼續推進肯塔基州的發電投資計劃，並堅信該計劃是我們客戶在規劃該州能源未來時的最佳前進道路。與繼續運營我們計劃在 2028 年退役的燃煤機組相比，我們的計劃更加經濟實惠、保持了可靠性，並且為我們的客戶提供了顯著清潔的能源資源。事實上，我們估計，與繼續運營這些燃煤機組相比，我們的計劃為我們的客戶提供了近 6 億美元的淨現值收益。

As we shared in March when Senate Bill 4 became law, we're confident that the generation replacement plan we filed in December exceeds the standards set by the new law. And as a result, we have not changed our CPCN strategy. As proposed, our plan would replace 1,500 megawatts of aging coal generation with over 1,200 megawatts of new combined cycle natural gas generation, nearly 1,000 megawatts of solar generation and 125 megawatts of battery storage.

正如我們在 3 月份參議院第 4 號法案成為法律時所分享的那樣，我們有信心我們在 12 月份提交的發電更換計劃超出了新法律規定的標準。因此，我們沒有改變 CPCN 戰略。根據提議，我們的計劃將用超過 1,200 兆瓦的新聯合循環天然氣發電、近 1,000 兆瓦的太陽能發電和 125 兆瓦的電池存儲取代 1,500 兆瓦的老化煤炭發電。

In addition, our plan proposes the implementation of more than a dozen new energy efficiency programs by 2028. Altogether, the plan represents a $2.1 billion investment in Kentucky's Energy future and the least cost option to reliably meet the needs of our Kentucky customers 24 hours a day, 365 days a year. As an added benefit, our proposed plan would cut our carbon emissions nearly 25% from current levels while further diversifying our generation fleet.

此外，我們的計劃還建議到 2028 年實施十多個新的能源效率計劃。該計劃總共代表著對肯塔基州能源未來的 21 億美元投資，也是可靠地滿足肯塔基州客戶每年 365 天、每天 24 小時需求的最低成本選擇。作為一個額外的好處，我們提出的計劃將使我們的碳排放量比目前的水平減少近 25%，同時進一步使我們的發電機組多樣化。

To comply with the new law, we expect to file our retirement request with the KPSC by May 10. Given the law provides the KPSC 180 days to issue a decision on retirement requests, this timing essentially aligns the retirement ruling with the expected decision on our CPCN filing. A decision on our filings is expected by November 6. Again, we're confident the plan we proposed offers the best path forward for the customers and communities we serve. We don't see any signs of federal environmental mandates easing over time, and we believe investing hundreds of millions of dollars in environmental controls, continue operating aging, uneconomic coal plants is not in our customers' best interest.

為了遵守新法律，我們預計在 5 月 10 日之前向 KPSC 提交退休請求。鑑於法律規定 KPSC 有 180 天的時間就退休請求做出決定，這一時間安排基本上使退休裁決與我們 CPCN 備案中的預期決定保持一致。預計將於 11 月 6 日對我們的申請做出決定。我們再次相信，我們提出的計劃將為我們所服務的客戶和社區提供最佳的前進道路。我們沒有看到任何联邦環境法規隨著時間的推移而放鬆的跡象，我們相信投資數億美元用於環境控制，繼續運營老化、不經濟的燃煤電廠並不符合我們客戶的最佳利益。

However, should we be required to make such investments, we do have the environmental cost recovery mechanism, or ECR in place that would enable recovery of these investments outside of base rate cases. We'll continue to actively engage with stakeholders in Kentucky throughout the CPCN process to demonstrate how our plans best meet the needs of our customers.

然而，如果我們被要求進行此類投資，我們確實有環境成本回收機製或ECR，可以在基本費率情況之外回收這些投資。我們將在整個 CPCN 流程中繼續與肯塔基州的利益相關者積極互動，以展示我們的計劃如何最好地滿足客戶的需求。

That concludes my strategic and operational update. I'll now turn the call over to Joe for the financial update.

我的戰略和運營更新到此結束。我現在將把電話轉給喬，了解最新的財務情況。

Thank you, Vince, and good morning, everyone. Let's turn to Slide 8. PPL's first quarter GAAP earnings were $0.39 per share. We recorded special items of $0.09 per share in the first quarter, primarily due to integration and related expenses associated with the acquisition of Rhode Island Energy. Adjusting for these special items, first quarter earnings from ongoing operations were $0.48 per share, an improvement of $0.07 per share compared to Q1 2022.

謝謝你，文斯，大家早上好。讓我們轉向幻燈片 8。PPL 第一季度 GAAP 收益為每股 0.39 美元。第一季度我們記錄了每股 0.09 美元的特殊項目，主要是由於與收購羅德島能源公司相關的整合和相關費用。對這些特殊項目進行調整後，第一季度持續運營收益為每股 0.48 美元，比 2022 年第一季度每股收益增加 0.07 美元。

The addition of Rhode Island Energy to our portfolio and our focus on O&M savings were the primary drivers of the increase, partially offset by lower sales volumes of about $0.05 per share due to the unusually mild winter weather in Kentucky and Pennsylvania and higher interest expense. Overall, our team performed very well in the face of significant storms and results for the quarter were in line with expectations, apart from the weather. Heating degree days were down nearly 25% in our Kentucky service territory and 30% in our Pennsylvania territory.

羅得島能源公司加入我們的投資組合以及我們對運營和維護節省的關注是增長的主要推動力，但由於肯塔基州和賓夕法尼亞州異常溫和的冬季天氣以及較高的利息支出，每股銷量下降約 0.05 美元，部分抵消了這一增長。總體而言，我們的團隊在面對重大風暴時表現非常好，除了天氣因素外，本季度的業績符合預期。我們的肯塔基州服務區域的供暖度天數減少了近 25%，賓夕法尼亞州服務區域的供暖度天數減少了 30%。

This resulted in lower quarterly sales volumes of nearly 9% in Kentucky and 7% in Pennsylvania. We remain confident in delivering our 2023 earnings forecast as we have several potential offsets to the mild weather, including the benefit of our recent financings at attractive rates compared to our plan, incremental disk revenues in Pennsylvania, outperformance on our integration of Rhode Island Energy and effective O&M cost management.

這導致肯塔基州和賓夕法尼亞州的季度銷量分別下降了近 9% 和 7%。我們對實現 2023 年盈利預測仍然充滿信心，因為我們有幾個潛在的抵消溫和天氣的因素，包括我們最近以與我們的計劃相比有吸引力的利率進行融資的好處、賓夕法尼亞州磁盤收入的增量、我們對羅德島能源整合的優異表現以及有效的運營和維護成本管理。

While we're not relying on weather, a warmer-than-normal summer could also provide some potential upside. We have an excellent track record of achieving our targets, which we expect to continue in 2023.

雖然我們不依賴天氣，但比平常溫暖的夏季也可能帶來一些潛在的好處。我們在實現目標方面擁有良好的記錄，預計 2023 年將繼續保持這一目標。

Turning to the ongoing segment drivers for the quarter on Slide 9. Our Pennsylvania Regulated segment results were flat year-over-year. Results were primarily driven by increased transmission revenue and distribution rider recovery, offset by lower sales volumes due to the mild weather and higher interest expense due to increased borrowings and higher rates.

轉向幻燈片 9 中本季度持續的細分市場驅動因素。我們的賓夕法尼亞州監管細分市場業績同比持平。業績主要受到傳輸收入增加和配送乘客恢復的推動，但被溫和天氣導致的銷量下降以及借款增加和利率上升導致的利息支出增加所抵消。

Our Kentucky segment decreased by $0.04 per share year-over-year. Results were impacted primarily by lower sales volumes due to the mild weather and higher interest expense from increased borrowings, partially offset by lower O&M expenses. The addition of our Rhode Island segment increased earnings by $0.10 per share for the quarter. Rhode Island's Q1 results reflect the seasonal nature of gas operations during the winter months as a significant amount of annual natural gas demand and earnings occur within the heating season.

我們的肯塔基州業務每股同比下降 0.04 美元。業績主要受到天氣溫和導致銷量下降以及借款增加帶來的利息費用增加的影響，但運營和維護費用的下降部分抵消了這一影響。羅德島部門的增加使本季度每股收益增加了 0.10 美元。羅德島州第一季度的業績反映了冬季天然氣運營的季節性，因為每年大量的天然氣需求和收入發生在供暖季節。

Finally, results at Corporate and Other increased $0.01 per share compared to the prior year, primarily due to lower O&M expenses and other factors that were not individually significant, partially offset by higher interest expense due to increased debt and higher rates.

最後，企業及其他部門的業績與上一年相比每股增加了 0.01 美元，這主要是由於運營和維護費用減少以及其他個別因素並不顯著，但部分被債務增加和利率上升導致的利息費用增加所抵消。

Moving to Slide 10. During the quarter, we successfully navigated a volatile rate market and completed our financing plan for 2023. This included 5 separate transactions issuing a combined total of $3.2 billion of debt, including a $1 billion convertible offering that was the first executed in our industry in 20 years. Our first mover advantage on the convert led to strong demand from investors as our deal ended up pricing about 250 basis points lower than straight debt, resulting in roughly $25 million in annual interest expense savings.

轉到幻燈片 10。本季度，我們成功應對了波動的利率市場，並完成了 2023 年的融資計劃。其中包括 5 項單獨交易，發行了總計 32 億美元的債務，其中包括 20 年來我們行業首次執行的 10 億美元可轉換債券發行。我們在轉換方面的先發優勢引發了投資者的強勁需求，因為我們的交易最終定價比直接債務低約 250 個基點，每年節省約 2500 萬美元的利息費用。

Given these savings, this transaction is favorable to issuing straight debt and any potential share dilution as a result of significant share price appreciation will be manageable. We also executed several operating company issuances in Pennsylvania and Kentucky for combined proceeds of nearly $2.2 billion. A portion of the proceeds were used to reduce both short-term and floating rate debt while the remaining will be used primarily to fund each utility's respective CapEx plans.

考慮到這些節省，這項交易有利於發行直接債務，並且由於股價大幅上漲而導致的任何潛在股份稀釋都將是可控的。我們還在賓夕法尼亞州和肯塔基州發行了幾家運營公司，募集資金總額近 22 億美元。部分收益用於減少短期債務和浮動利率債務，其餘收益將主要用於為每個公用事業公司各自的資本支出計劃提供資金。

In total, we repaid $1.75 billion of floating rate debt, reducing our floating rate exposure to approximately $600 million, which is less than 5% of our total debt portfolio. In summary, our strong execution of the financing plan this quarter reflects PPL's excellent credit position, and we continue to target strong credit metrics and maintain one of the sector's best credit profiles without any planned equity issuances through our planning horizon.

我們總共償還了 17.5 億美元的浮動利率債務，將浮動利率風險敞口減少至約 6 億美元，不到我們總債務組合的 5%。總之，我們本季度融資計劃的強勁執行反映了 PPL 優異的信用狀況，我們繼續以強勁的信用指標為目標，並保持行業最佳的信用狀況之一，而在我們的規劃範圍內沒有任何計劃的股票發行。

That concludes my prepared remarks. I'll turn the call back over to Vince.

我準備好的發言就到此結束。我會把電話轉回給文斯。

Thank you, Joe. In closing, we remain solidly on track to deliver the midpoint of our 2023 earnings forecast. And we remain well positioned to deliver top-tier earnings and dividend growth of 6% to 8% annually through at least 2026. We're off to a strong start in 2023, executing on our $2.4 billion capital plan, continuing the integration of Rhode Island Energy, advancing our plans in Kentucky and Rhode Island to deliver least cost, reliable energy for our customers and remaining on track with our first leg of achieving at least $175 million in O&M savings by 2026. As we pursue our strategy to create the utilities of the future, we are as strong as we've been in years, and I'm convinced we're only getting stronger.

謝謝你，喬。最後，我們仍然堅定地有望實現 2023 年盈利預測的中點。我們仍處於有利位置，至少到 2026 年，每年實現 6% 至 8% 的頂級盈利和股息增長。我們將在 2023 年取得良好開局，執行 24 億美元的資本計劃，繼續整合羅德島能源公司，推進我們在肯塔基州和羅德島州的計劃，為客戶提供成本最低、可靠的能源，並繼續走上正軌，到 2026 年實現至少 1.75 億美元的運營和維護節省。創造未來公用事業的戰略，我們多年來一直如此強大，而且我相信我們只會變得更強大。

With that, operator, let's open it up for questions.

那麼，操作員，讓我們開始提問吧。

(Operator Instructions) And the first question will come from Durgesh Chopra with Evercore ISI.

（操作員說明）第一個問題將由 Evercore ISI 的 Durgesh Chopra 提出。

A lot of investor discussion, Vince, around just the legislation in Kentucky. Can you just share some initial feedback if you have any from your filings. A lot of investors are looking at this legislation, thinking about what the -- what it may mean for you and whether the state is actually going to accept your application to retire these coal plants. Just any additional color that you can share that would be appreciated.

文斯，很多投資者討論都圍繞著肯塔基州的立法。如果您的文件中有任何初步反饋，您能否分享一些初步反饋？許多投資者正在關注這項立法，思考它對您意味著什麼，以及國家是否真的會接受您退役這些燃煤電廠的申請。如果您能分享任何其他顏色，我們將不勝感激。

Sure. So look, in general, these are open proceedings. So we're going through the formal processes with the commission. So not a lot to share directly in terms of feedback from the commission. But as we think strategically, Durgesh, the CPCN that we filed with the commission is, again, our view as the least cost option to serve our customers. Again, as I mentioned in my remarks, we quantify the NPV savings to our customers at about $600 million versus continuing to operate the coal plants that we're proposing to retire. Our plan also ensures reliability. It checks all of the issues that SB4 has in it in terms of cost and reliability, et cetera. So we think we meet the requirements that have come out in the new law.

當然。所以看，總的來說，這些都是公開的程序。因此，我們正在與委員會進行正式流程。因此，就委員會的反饋而言，沒有太多可以直接分享的內容。但正如我們從戰略角度思考的那樣，我們向委員會提交的 Durgesh CPCN 再次被我們視為服務客戶的成本最低的選擇。正如我在發言中提到的，我們將與繼續運營我們打算退役的燃煤電廠相比，為客戶節省的 NPV 量化為約 6 億美元。我們的計劃還確保了可靠性。它檢查 SB4 在成本和可靠性等方面存在的所有問題。因此，我們認為我們滿足新法律中提出的要求。

So from our perspective, we still feel very confident that we can get our plans approved through the commission, engaging with our customers and the various interveners and stakeholders in the process. So overall, nothing changing from our perspective in terms of the CPCN strategy.

因此，從我們的角度來看，我們仍然非常有信心能夠讓我們的計劃獲得委員會的批准，並在此過程中與我們的客戶以及各種干預者和利益相關者進行互動。總體而言，從我們的角度來看，CPCN 戰略沒有任何變化。

Got it. That's helpful, Vince. Is there a middle road here perhaps? And I know this is early innings, but like not your plant in entirety, but a portion of your plant might get accepted and you have alternatives for the balance of the plant. I'm just thinking about the risk because it's a significant portion of your CapEx, which is included in your plan as you go into the CPCN filings and where there's a sort of a collaborative approach here to get some of it, if not all of it approved?

知道了。這很有幫助，文斯。也許這裡有一條中間道路嗎？我知道這還處於早期階段，但不像你的整個植物，而是你植物的一部分可能會被接受，並且你有植物平衡的替代方案。我只是在考慮風險，因為它是您的資本支出的重要組成部分，當您進入 CPCN 備案時，它就包含在您的計劃中，並且這裡有一種協作方法來獲得其中的一部分（如果不是全部）？

Yes. Look, I think that's a fair question, Durgesh. We'll ultimately have to see when we go through the process with our intervenors if there's a settlement scenario or a case that we ultimately can agree to, to your point. Of course, we're always open to those types of discussions. I think it's important to comment that if we do need to continue to operate the aging, uneconomic coal plants that we're proposing to retire that would require us to invest potentially significant amounts of capital to comply with existing EPA regulations, which, again, we don't think would be in the best interest of our customers.

是的。聽著，我認為這是一個公平的問題，Durgesh。我們最終必須看看當我們與乾預者一起完成這個過程時，是否存在我們最終可以同意的和解方案或案件，就您的觀點而言。當然，我們始終對此類討論持開放態度。我認為有必要評論一下，如果我們確實需要繼續運營我們打算退役的老化、不經濟的燃煤電廠，那麼我們將需要投入大量資金來遵守現有的 EPA 法規，而我們再次認為這不符合我們客戶的最佳利益。

But if we're required to do that, we would have to make those capital investments. If you look at all of the plants that we're talking about retiring, again, we'd have to evaluate the final EPA regs once they come out in final form and then analyze all that. But sitting here today, that could be between $0.5 billion and $1.5 billion of environmental investments alone, not to mention the maintenance capital that we would have to incur to keep those plants operating. So quite a significant amount potentially of investment that would be required there.

但如果我們需要這樣做，我們就必須進行這些資本投資。如果你再看看我們正在討論的所有即將退役的工廠，我們就必須在最終的 EPA 法規以最終形式出台後對其進行評估，然後對所有這些進行分析。但今天坐在這裡，僅環境投資就可能達到 5 億至 15 億美元，更不用說我們為維持這些工廠的運營而必須承擔的維護資本了。因此，那裡可能需要相當大量的投資。

And as I discussed, again, in my remarks that would recover -- be recovered through the ECR mechanism, which basically provides real-time recovery for our share owners should we need to make those investments. We have other -- if we're not going to spend $2.1 billion on gen replacement, I mean, from an affordability perspective, we have other investments we can make in Kentucky primarily in the T&D businesses. Again, we're seeing increased severity and frequency of storms in the state. We saw that just this quarter, so continuing to strengthen the grid in Kentucky. We certainly have the opportunity to do that as well.

正如我在發言中再次討論的那樣，這將通過 ECR 機制來恢復，如果我們需要進行這些投資，該機制基本上可以為我們的股東提供實時恢復。我們還有其他投資——如果我們不打算花費 21 億美元進行發電機更換，我的意思是，從負擔能力的角度來看，我們可以在肯塔基州進行其他投資，主要是輸配電業務。我們再次看到該州風暴的嚴重程度和頻率增加。我們在本季度就看到了這一點，因此繼續加強肯塔基州的電網。我們當然也有機會這樣做。

And then from a capital plan perspective, we really don't have a lot of the IIJA project funding in our plans. So specific to Kentucky, we have about $300 million worth of projects that we submitted with the DOE, $150 million would be funded by us and $150 million would be funded by the DOE. So at the end of the day, we're feeling really good about the overall capital plan, Durgesh. And obviously feeding the earnings targets that we've laid out.

然後從資本計劃的角度來看，我們的計劃中確實沒有太多 IIJA 項目資金。具體到肯塔基州，我們向能源部提交了價值約 3 億美元的項目，其中 1.5 億美元將由我們資助，1.5 億美元將由能源部資助。因此，歸根結底，我們對整體資本計劃感覺非常好，Durgesh。顯然，這滿足了我們制定的盈利目標。

The next question will come from David Arcaro with Morgan Stanley.

下一個問題將由摩根士丹利的大衛·阿卡羅提出。

Let's see -- wondering if you could just maybe give an update on your confidence level in achieving your previously planned cost cuts for this year. What you're seeing for inflationary pressures? And I guess, how hard of a stretch is it to dig deeper and also offset the weather headwinds that you're facing?

讓我們看看 - 想知道您是否可以更新您對實現今年先前計劃的成本削減的信心水平。您認為通脹壓力如何？我想，深入挖掘並抵消你所面臨的天氣逆風有多困難？

Yes, sure. So I'll ask Joe maybe to comment on that.

是的，當然。所以我會請喬對此發表評論。

Yes, sure. Dave. Well, first of all, for the O&M targets that we've set for this year, we are on track to achieve those, and we feel really good about our ability to do so. As far as offsets for this year and the weather impact that we saw in the first quarter, I had a number of them during my prepared remarks, but those include the benefits from the strong execution of the convert that we issued earlier this year. And that's about $0.01 to $0.02 better than our expectations.

是的，當然。戴夫.嗯，首先，對於我們今年設定的運維目標，我們正在實現這些目標，並且我們對我們實現這一目標的能力感到非常滿意。至於今年的抵消額和我們在第一季度看到的天氣影響，我在準備好的講話中提到了其中的一些內容，但其中包括我們今年早些時候發布的轉換的強勁執行所帶來的好處。這比我們的預期高出約 0.01 至 0.02 美元。

We're also anticipating that this mechanism in Pennsylvania provides additional earnings. It could be -- by about another $0.01 to $0.02 there. And then any potential outperformance on the integration of Rhode Island Energy. We're very focused on that integration process there and always try to do better than our plan. And that could be another $0.01, maybe $0.02. And then so if you're looking beyond that, we always have the ability to flex our O&M spending, which we could do on top of that.

我們還預計賓夕法尼亞州的這一機制可以提供額外的收入。可能會再增加約 0.01 至 0.02 美元。然後是羅德島能源整合方面任何潛在的優異表現。我們非常關注那裡的整合過程，並且總是努力比我們的計劃做得更好。這可能是另外 0.01 美元，也許是 0.02 美元。然後，如果你的目光超越這一點，我們總是有能力靈活我們的運營和維護支出，我們可以在此基礎上做到這一點。

Number of levers we have at our disposal, David.

我們可以使用的槓桿數量，大衛。

Yes. Great. Yes, you anticipated my other question, which was to get a little more clarity on those other levers. So that's really helpful. And then -- just wondering if you could touch on Rhode Island and just following the ISR decision. Maybe one, do you think there's still interest in pursuing those projects by the commission that didn't get approval? And then -- just wondering maybe more holistically, are there other opportunities that you would look for additional CapEx upside in Rhode Island more broadly?

是的。偉大的。是的，你預料到了我的另一個問題，那就是更清楚地了解其他槓桿。這真的很有幫助。然後——只是想知道你是否可以談談羅德島並遵循情監偵的決定。也許第一，您認為委員會仍有興趣繼續那些未獲得批准的項目嗎？然後，也許更全面地想知道，您是否還有其他機會可以在羅德島州更廣泛地尋找額外的資本支出優勢？

Yes, sure. So first of all, I'd say, I think the process in Rhode Island was very constructive. And as I talked about in my prepared remarks, the projects that did not get approved were really associated with other proceedings that are currently in front of the commission. In particular, the grid modernization on the electric side and the leak-prone pipe on the gas side. So because we have other proceedings in front of the Commission on those areas, it wasn't a total surprise to me that they decided to temper some of the increase in those areas pending getting a little further down the road on those proceedings.

是的，當然。首先，我想說，我認為羅德島州的進程非常有建設性。正如我在準備好的發言中談到的那樣，未獲得批准的項目實際上與委員會目前正在審理的其他程序有關。特別是電力側的電網現代化和燃氣側容易洩漏的管道。因此，由於委員會正在處理有關這些領域的其他程序，因此他們決定在這些領域進一步推進之前，決定緩和這些領域的一些增長，這對我來說並不完全令人驚訝。

We will have the opportunity, to your question, to request those projects in future proceedings. Again, those could be future ISR proceedings, they could be future base rate cases depending on the timing of when we file our next base rate case. We also have reopener provisions in the current rate case for both grid mod and the AMF filing. So we could also potentially use that avenue as well.

對於你的問題，我們將有機會在未來的訴訟中請求這些項目。同樣，這些可能是未來的 ISR 程序，它們可能是未來的基本費率案件，具體取決於我們提交下一個基本費率案件的時間。在當前的費率情況下，我們還針對電網調整和 AMF 備案製定了重新開放條款。所以我們也可以使用這條途徑。

But I think it's important to point out that the $290 million, almost $300 million of investments that we did get approval for, right? Those are vital in strengthening the safety, reliability and resiliency of our networks. And so I think it highlights the importance of the ISR mechanism for our customers, but it also demonstrates the constructive regulatory framework for our investors.

但我認為有必要指出的是，我們確實獲得了 2.9 億美元、近 3 億美元的投資批准，對嗎？這些對於加強我們網絡的安全性、可靠性和彈性至關重要。因此，我認為這凸顯了 ISR 機制對我們客戶的重要性，同時也為我們的投資者展示了建設性的監管框架。

In terms of additional capital opportunities, I think probably the biggest one would be, again, in the IIJA buckets. We have about $480 million worth of projects that we've applied for with the DOE, $330 million of that would be PPL funded, $150 million of that would be DOE funded. Obviously, that helps the economics on those projects. So we could, again, funnel those through the ISR or other mechanisms to get approval. We would need regulatory approval for those projects.

就額外的資本機會而言，我認為最大的機會可能還是來自 IIJA。我們已經向 DOE 申請了價值約 4.8 億美元的項目，其中 3.3 億美元將由 PPL 資助，其中 1.5 億美元將由 DOE 資助。顯然，這有助於這些項目的經濟效益。因此，我們可以再次通過情監偵或其他機制來獲得批准。這些項目需要監管部門的批准。

But again, with the DOE kicking in, about 30% funding on those, it really helps the cost benefit analysis on those projects. So hopefully, we would get a lot of support in the state to do those types of projects.

但同樣，隨著美國能源部的介入，為這些項目提供大約 30% 的資金，這確實有助於這些項目的成本效益分析。因此，希望我們能夠在該州獲得大量支持來開展此類項目。

The next question will come from Paul Zimbardo with Bank of America.

下一個問題將由美國銀行的保羅·津巴多 (Paul Zimbardo) 提出。

Thank you for the color on Kentucky, in particular. And just if I add up the pieces that you mentioned, is it fair to say that in a worst-case scenario, you could offset the majority of that 2.1 generation plan with other spending if you needed to?

特別感謝您對肯塔基州的顏色。如果我把你提到的各個部分加起來，是否可以公平地說，在最壞的情況下，如果需要的話，你可以用其他支出來抵消 2.1 代計劃的大部分？

Yes, Paul, we're very confident in being able to meet our earnings targets and trajectory. I think how we get there under different scenarios of a CPCN approval process, we have to look at that depending on what exactly gets approved. So like I was saying, if some of that capital ends up being environmental spend, on coal plants where we earn cash recovery on that spend pretty much as we're spending it where as we know, our base plan is assuming under -- the $2.1 billion we'll be spending under the CPCN, $1.6 billion in our time period that requires a base rate case for cash funding.

是的，保羅，我們對實現我們的盈利目標和發展軌跡非常有信心。我認為我們如何在 CPCN 審批流程的不同場景下實現這一目標，我們必鬚根據具體批准的內容來考慮。所以就像我說的，如果其中一些資本最終成為環境支出，在燃煤電廠上，我們從這些支出中獲得的現金回收與我們所知道的支出幾乎一樣，我們的基本計劃假設是——我們將在 CPCN 下支出 21 億美元，在我們的時間段內需要現金融資的基本利率情況為 16 億美元。

So we'll get -- we would get some potential upside on the earnings profile by recovering quicker. Again, we have to see how much the impact on the overall capital plan is, if any, coming out of the CPCN. But really, really, we feel confident in our ability to hit our targets under various scenarios coming out of the CPCN filing. So it's a little tough to just say this capital bucket for that capital bucket because you also have the positive effect of the ECR mechanism in there.

因此，我們將通過更快的恢復來獲得一些潛在的盈利增長。同樣，我們必須看看 CPCN 對整體資本計劃的影響有多大（如果有的話）。但實際上，我們對 CPCN 文件中提出的各種情況下實現目標的能力充滿信心。因此，僅僅用這個資本桶說那個資本桶有點困難，因為那裡也有 ECR 機制的積極作用。

Okay. No, I think that's good context as well. I appreciate it. And then switching topics. Joe mentioned that the outperformance of the Rhode Island integration could be $0.01 or $0.02 favorable for 2023. Should we think of that as more of a timing element? Or if you're successful there, would that accrue to 2024 plus?

好的。不，我認為這也是很好的背景。我很感激。然後就轉換話題了。 Joe 提到，羅德島州整合的優異表現可能會對 2023 年有利 0.01 美元或 0.02 美元。我們是否應該將其視為更多的時機因素？或者如果你在那裡取得了成功，這會持續到 2024 年以後嗎？

Yes, Joe, do you want...?

是的，喬，你想……嗎？

Yes. No, I think it's more on just our overall performance against our expectations there and being able to integrate at a lower cost than we expect -- the TSA period goes through 2024. So my comments were really focused on '23 and our ability to offset the negative weather start to the year.

是的。不，我認為這更多的是我們的整體表現與我們的預期不符，並且能夠以比我們預期更低的成本進行整合——TSA 期限持續到 2024 年。所以我的評論實際上集中在 23 年以及我們抵消年初不利天氣的能力。

The next question will come from Angie Storozynski with Seaport.

下一個問題將由 Seaport 的 Angie Storozynski 提出。

So first maybe something completely different. So we're probably halfway through the earnings season. And we haven't yet heard from any utility about some additional O&M efficiencies associated with reduced office space. Is that even something that you guys are considering? I mean it seems like this hybrid work model has persisted even in your industry. And I just wonder if that -- it's a lever that you might pull in the future from an O&M perspective or it's not something that you're currently considering?

所以首先可能是完全不同的東西。所以我們的財報季可能已經過半了。我們還沒有從任何公用事業公司那裡聽說與減少辦公空間相關的一些額外的運營和維護效率。你們正在考慮這件事嗎？我的意思是，這種混合工作模式似乎在你們的行業中也一直存在。我只是想知道，從運營和維護的角度來看，這是否是您未來可能使用的槓桿，或者您目前沒有考慮？

Yes, Angie, I think that's a great question, great point. So I think generally, why you haven't probably heard a lot about it is either utilities own their buildings, their office buildings that they're operating out of or they have leases that they're -- fixed leases that they're currently paying under. And so maybe not an immediate source of operating efficiency or O&M savings.

是的，安吉，我認為這是一個很好的問題，很重要的一點。所以我認為一般來說，為什麼你可能沒有聽說過很多關於它的原因要么是公用事業公司擁有他們的建築物、他們正在運營的辦公樓，要么他們有租約——他們目前正在支付的固定租約。因此，這可能不是運營效率或運營維護成本節省的直接來源。

But clearly, in the post-pandemic world and as we think about hybrid or remote working versus in the office working, I think it's an area that you will see most of corporate America focusing on over the years to come. So I think specifically to answer your question -- or not necessarily seeing it right away or even in the next year or so, but certainly, I think that could be an opportunity longer term as we rightsize our real estate needs for sure.

但顯然，在大流行後的世界中，當我們考慮混合或遠程工作與辦公室工作時，我認為這是美國大多數企業在未來幾年關注的一個領域。因此，我想專門回答你的問題 - 或者不一定會立即看到它，甚至在明年左右看到它，但當然，我認為這可能是一個長期的機會，因為我們肯定會調整我們的房地產需求。

Okay. And then just taking it one step further. Are you seeing any sort of slowdown on the -- among commercial customers, again, somehow linked to office buildings and downsizing or any other signs of economic slowdown like any leading indicators that you see among your customers, not only on the commercial side, but also industrial.

好的。然後再更進一步。您是否看到商業客戶出現任何形式的放緩，與辦公樓和規模縮小或任何其他經濟放緩跡像有關，例如您在客戶中看到的任何領先指標，不僅在商業方面，而且在工業方面。

Yes, Joe, do you want to talk about, maybe just load in general?

是的，喬，你想談談，也許只是一般性的負載？

Yes, sure. Angie, it's Joe. We are -- we continue to see a number of positive economic factors in both of our jurisdictions in Pennsylvania and Kentucky, including continued low unemployment rates and strong GDP growth. And in Kentucky, as we've talked about a number of times, we saw back-to-back record years of economic development with over $10 billion of announced investments in each of 2021 and '22. That includes the [40V] battery plant initiative that we've talked about a number of times that's recently broken ground and well under construction. And we continue to see strong industrial growth, primarily in the manufacturing and agriculture sector. So we have not seen that in our territories. And Rhode Island is decoupled and less reliant on those things.

是的，當然。安吉，是喬。我們在賓夕法尼亞州和肯塔基州兩個司法管轄區繼續看到許多積極的經濟因素，包括持續的低失業率和強勁的 GDP 增長。在肯塔基州，正如我們多次談到的那樣，我們看到經濟發展連續多年創紀錄，2021 年和 22 年每年宣布的投資都超過 100 億美元。其中包括我們多次討論過的 [40V] 電池廠計劃，該計劃最近破土動工並正在建設中。我們繼續看到強勁的工業增長，主要是在製造業和農業領域。所以我們在我們的領土上還沒有看到這種情況。羅德島州是脫鉤的，對這些東西的依賴也更少。

Yes. I think just in general, you're seeing people catch up from the lull in COVID, right? Whether that was supply chain driven or just the lull in the economy during COVID and kind of the bow wave to not only catch up to pre-COVID levels, but then the growth, we're seeing some of our major industrials, not only getting back to pre-COVID, but talking also about expansion, expanding their footprints and their production facilities. So in our jurisdictions, generally, I think we're feeling really good about our local economies and where the growth that we're seeing in our areas.

是的。我認為總的來說，你看到人們從新冠疫情的平靜中恢復過來，對嗎？無論是供應鏈驅動的還是新冠疫情期間經濟的平靜，以及某種弓波的推動，不僅趕上了新冠疫情前的水平，而且隨後實現了增長，我們看到我們的一些主要工業不僅回到了新冠疫情前的水平，而且還在談論擴張、擴大其足跡和生產設施。因此，總的來說，在我們的管轄範圍內，我認為我們對當地經濟以及我們在我們地區看到的增長感覺非常好。

And then just one last follow-up on Kentucky. And again, I should know that. So I mean the purpose of the bill was to basically continue the usage of the coal that is mined in Kentucky? Or is it continued operations of the coal plants? I mean, it might be a subtle difference. But how about just running these coal plants on gas and that's checking that box of continued operations of these plants while sourcing energy from those new gas plants, which given the gas price environment just became even more beneficial to the end user?

然後是肯塔基州的最後一個後續行動。再說一遍，我應該知道這一點。所以我的意思是該法案的目的是基本上繼續使用肯塔基州開采的煤炭？還是燃煤電廠的持續運營？我的意思是，這可能是一個微妙的差異。但是，僅使用天然氣來運行這些燃煤電廠，並檢查這些電廠的持續運營，同時從這些新的天然氣電廠採購能源，考慮到天然氣價格環境，這對最終用戶來說變得更加有利，怎麼樣？

Well, look, I don't want to comment on the purpose of the bill. I think we'd have to probably hear that from the folks that wrote the bill. But in general, I would say, coming out of the winter storm Elliott, there was a general concern on just ensuring that reliability is kind of at the forefront of generation decisions in the state. There was concern that the clean energy transition is happening too quickly and making sure that reliability again is front and center.

好吧，聽著，我不想評論該法案的目的。我想我們可能必須從起草該法案的人那裡聽到這一點。但總的來說，我想說，在經歷了冬季風暴艾略特之後，人們普遍擔心確保可靠性處於該州發電決策的最前沿。有人擔心清潔能源轉型發生得太快，因此確保可靠性再次成為首要和中心。

I will say that, that has always been an area that we and our commission have focused incredibly on as we put together our generation planning, our CPCN filings, what the form of generation replacement looks like, et cetera. It's why we have 2 combined cycle units in our CPCN and it's not 100% renewables. We were absolutely as focused on reliability as I think the legislature is in the state to ensure that we can deliver that power 24 hours a day, 7 days a week.

我想說的是，這一直是我們和我們的委員會非常關注的一個領域，因為我們將我們的發電規劃、我們的 CPCN 文件、發電更替的形式等等放在一起。這就是為什麼我們的 CPCN 中有 2 台聯合循環機組，但它不是 100% 可再生能源。我們絕對像我認為州立法機構一樣關注可靠性，以確保我們能夠每週 7 天、每天 24 小時提供電力。

And so I think we were already operating under the reliability issues that were addressed in the bill. In terms of driving either coal mining or running coal plants, I can't necessarily speak to that per se. However, I would say we will continue to put forth plans that ensure reliability, but do that in the least cost manner for our customers, which the bill also has in it as well. And again, we think our CPCN plan absolutely balances all of those in the most productive way for our customers.

因此，我認為我們已經在該法案中解決的可靠性問題下運營。就推動煤炭開採或運營燃煤電廠而言，我不一定能談論這一點。然而，我想說，我們將繼續提出確保可靠性的計劃，但以最低成本的方式為我們的客戶做到這一點，該法案也包含了這一點。再說一次，我們認為我們的 CPCN 計劃絕對以對我們的客戶最有效的方式平衡了所有這些。

The next question will come from Paul Patterson with Glen Rock Associates.

下一個問題將由 Glen Rock Associates 的 Paul Patterson 提出。

With respect to the -- back to the Rhode Island gas modernization program, I guess what sort of comes to mind when looking at that case is, again, sort of dating myself. Is there any -- how do you think about the potential for stranded investment with electrification efforts in places like Rhode Island and what have you. I know it's different in different jurisdictions, but I'm just sort of wondering sort of broad picture when you're thinking about this, does the -- how does the idea of electrification or these sort of really aggressive carbon -- greenhouse gas reduction efforts, how do you think about that with essentially your gas CapEx plans and what have you?

關於——回到羅德島州天然氣現代化計劃，我想在看到這個案例時，我想到的又是一種與我自己約會的感覺。您如何看待羅德島等地的電氣化投資擱淺的潛力？我知道在不同的司法管轄區情況有所不同，但當你思考這個問題時，我只是想知道某種廣泛的情況，電氣化的想法或這些真正積極的碳溫室氣體減排工作，你如何看待你的天然氣資本支出計劃以及你有什麼？

Yes. I think there's a number of factors that go into that, Paul. One is the cost of electrification. The second is the reliability of supplying electricity if the bulk of the economy is -- or the vast majority of the economy becomes electrified and then ultimately, the benefits of fuel diversity by having natural gas in addition to electricity.

是的。我認為這有很多因素造成，保羅。一是電氣化成本。第二個是電力供應的可靠性，如果大部分經濟體實現電氣化，或者最終實現除了電力之外還使用天然氣來實現燃料多樣性的好處。

Obviously, the state has targets to be economy-wide net zero by 2050; on the electricity side, net -- basically 100% renewable driven by 2033. Our investment plans on the T&D networks are geared towards that 2033, 100% renewable date. We are actively engaged with numerous stakeholders in Rhode Island, including the PUC on the future of gas docket. And so we're actively engaged with doing analysis on various scenarios on how we could see the future of the Rhode Island energy sector, feeding the economy there and how the natural gas system will ultimately be used or not.

顯然，國家的目標是到 2050 年實現整個經濟的淨零排放；在電力方面，淨電力——到 2033 年基本上實現 100% 可再生能源驅動。我們對 T&D 網絡的投資計劃面向 2033 年、100% 可再生能源這一日期。我們正在積極與羅德島州的眾多利益相關者（包括公用事業委員會）就天然氣的未來進行接觸。因此，我們積極參與對各種情景的分析，以了解如何看待羅德島州能源行業的未來、為那裡的經濟提供動力以及天然氣系統最終將如何使用。

We would expect to have our initial view of that and issue a report to the PUC late fall of this year. In the spring of next year, the PUC would then target issuing its report to the government agency that's in charge of implementing the act on climate rules within the state. And then we would expect that organization, EC4, to issue their report in 2025.

我們預計將對此做出初步看法，並於今年秋末向 PUC 發布一份報告。明年春天，公用事業委員會將向負責在州內實施氣候規則法案的政府機構發布報告。然後我們預計 EC4 組織將在 2025 年發布報告。

So great question. There's a lot of work and actually a formal docket within the commission to exactly answer that question. And I think you could see various possibilities there, right? Whether or not we're blending different molecules through the pipes, maybe it's not all natural gas, we're using more renewable natural gas. We're using hydrogen, a combination of those things. So really, we're right in the middle of it right now, Paul. And more to come as I think we make progress on that analysis and ultimately, those reports coming out of those various agencies.

很好的問題。為了準確回答這個問題，有很多工作要做，實際上委員會內部有一個正式的文件。我想你可以在那裡看到各種可能性，對吧？無論我們是否通過管道混合不同的分子，也許並不全是天然氣，我們正在使用更多的可再生天然氣。我們正在使用氫氣，這些物質的組合。所以說真的，我們現在正處於困境之中，保羅。我認為我們在分析以及最終來自各個機構的報告方面取得了進展，還會有更多的事情發生。

Okay, awesome. And then you obviously have a reliability initiative in Kentucky and what have you. And obviously, things are a little bit more limited in places like Pennsylvania and Rhode Island just given the structure there. But as you know, there's some alarm bells ringing off or have been ringing off for some time in PJM regarding reliability. We're seeing some stuff in New Hampshire with respect to long-term PPAs potentially and what have you.

好吧，太棒了。然後你顯然在肯塔基州有一個可靠性計劃等等。顯然，考慮到賓夕法尼亞州和羅德島州等地的結構，情況會受到一些限制。但如您所知，PJM 關於可靠性的警鐘已經敲響或已經敲響了一段時間。我們在新罕布什爾州看到了一些關於長期購電協議的潛在信息，以及您所擁有的。

And I'm just wondering, is there any potential on the electric side that you guys are thinking about here, either in terms of longer-term PPAs, maybe in terms of on the reliability side, batteries, virtual power plants. I don't know, or just own generation or what have you, in terms of addressing these issues as opposed to maybe the way the construct has been, which is sort of like relying on PJM, the RPM model or capacity markets or what have you. That maybe it's time to sort of pivot at least a little bit and look at terms of maybe other structures than yet another sort of capacity market remake if you follow what I'm saying? Or I don't know.

我只是想知道，你們在這裡考慮的電力方面是否有任何潛力，無論是在長期購電協議方面，還是在可靠性方面、電池、虛擬發電廠方面。我不知道，或者只是我們這一代人或者你們有什麼，在解決這些問題方面，而不是像過去的構建方式，這有點像依賴 PJM、RPM 模型或容量市場或者你們有什麼。如果你聽懂了我的意思，也許是時候至少稍微調整一下，看看可能有其他結構的條款，而不是另一種容量市場重塑？或者我不知道。

I'm just thinking about -- we're just hearing a lot about (inaudible) hearing with FERC. I'm just sort of -- I'm just wondering what your thoughts are on that.

我只是在想——我們剛剛聽到了很多關於 FERC 聽證會（聽不清）的信息。我只是——我只是想知道你對此有何想法。

I would say yes to all of that. This is an area that I spend a lot of time thinking about and we're starting to formulate our strategy along the lines of many of the things that you just mentioned. So to your point, PJM themselves, I think, are very concerned about 40 to 45 gigawatts of thermal generation amounts to be retired between now and 2030. That's an incredible amount of a very reliable, dispatchable generation that is scheduled to come out of the ISO, out of the gen stack.

我會對這一切說“是”。這是我花了很多時間思考的一個領域，我們開始按照您剛才提到的許多事情制定我們的戰略。因此，就你的觀點而言，我認為 PJM 本身非常擔心從現在到 2030 年之間將有 40 至 45 吉瓦的火力發電量退役。這是一個令人難以置信的數量，非常可靠、可調度的發電量，計劃從 ISO 和發電堆棧中產生。

The vast majority, almost all of the replacement generation are intermittent renewables. And developers are having a hard time getting the siting and permitting, getting any of it built. So even if it does get built, which there's a lot of, I think, concern in terms of the timing of when this replacement generation gets built, you're replacing very reliable, dispatchable energy with intermittent energy. And so I do think PJM is concerned as they're looking at their generation stack and thinking about the ISO itself, which of course then makes me focus on how do we ensure we have electrons flowing through our wires in Pennsylvania and Rhode Island.

絕大多數、幾乎所有的替代發電都是間歇性可再生能源。開發商在獲得選址和許可、建造任何項目方面都遇到了困難。因此，即使它確實建成了，我認為，人們對這一替代一代的建成時間有很多擔憂，你正在用間歇性能源取代非常可靠、可調度的能源。因此，我確實認為 PJM 很擔心，因為他們正在研究自己的發電堆棧並思考 ISO 本身，這當然讓我關注如何確保電子流過賓夕法尼亞州和羅德島州的電線。

And so yes, we are absolutely focused on this -- laser-focused on this, I would say. And some of the things that you had mentioned, I would say all of those, I think, are areas that we think we can take a look at to try to shore up the gen supply in our own jurisdictions. Great question.

所以，是的，我們絕對專注於此——我想說，全神貫注。您提到的一些事情，我認為所有這些都是我們認為可以考慮的領域，以嘗試支撐我們自己管轄範圍內的發電供應。很好的問題。

Just a quick follow-up on that. do you think the people and the legislature or whatever the -- whatever, the officials in those states are open to those ideas as well because I would assume it might have to take changes on the part of the regimes in those states, you follow what I'm saying? I mean are they open to this? Do you think or do they recognize it or...?

只是對此進行快速跟進。你是否認為人民和立法機關或者其他國家的官員也對這些想法持開放態度，因為我認為這些國家的政權可能需要做出改變，你明白我的意思嗎？我的意思是他們對此持開放態度嗎？你認為或者他們認識到這一點還是......？

I think it's new -- this is a new topic for them. We will be engaging with not only our legislators, but our regulators just to make sure that we're all on the same page as we look at security of energy going forward. But we have flexibility within the current rules to do a lot of what you suggested. So not all of this requires legislative change. And so we'll certainly use as much of the levers within current legislation and regulation to shore up gen supply. But to your point, if we need to go beyond that, that might require legislative change. I can't handicap today the likelihood of that happening or not.

我認為這是新的——這對他們來說是一個新話題。我們不僅將與立法者合作，還將與監管者合作，以確保我們在未來能源安全問題上達成共識。但我們在現行規則內具有靈活性，可以做您建議的很多事情。因此，並非所有這些都需要立法改革。因此，我們肯定會在現行立法和監管範圍內使用盡可能多的槓桿來支撐發電供應。但就你的觀點而言，如果我們需要超越這一點，可能需要立法改革。今天我無法阻止這種情況發生或不發生的可能性。

Your next question will come from Ross Fowler with UBS. .

您的下一個問題將來自瑞銀集團的羅斯·福勒。 。

Most of my questions have been asked and answered. But maybe let me ask this one, and apologies if I drag out the past here. But can you sort of give us the context or at least the contention in this fraudulent conveyance claim against PPL Hydro that's out there with Talen and sort of if there's any process here or time line around actually resolving that.

我的大部分問題都已被提出並得到解答。但也許讓我問這個問題，如果我在這裡拖延過去的事情，我深表歉意。但是，您能否向我們介紹一下 Talen 提出的針對 PPL Hydro 的欺詐性轉讓索賠的背景情況，或者至少是其中的爭論，以及是否有任何流程或時間線來實際解決該問題。

Sure. So the case itself relates to or -- when we still owned PPL Montana, when PPL still owned PPL Montana, we had sold the hydro assets to Northwestern and the proceeds of those assets, $700 million about we distributed those proceeds back to PPL following the sale. That was known and negotiated when we created Talen Energy as part of spinning out energy supply and merging that with Riverstone's assets. And so -- all of that was well understood, well documented. The contention is that we somehow by doing that we made PPL Montana insolvent. And so that is the fraudulent conveyance charge.

當然。因此，案件本身涉及或 - 當我們仍然擁有 PPL Montana 時，當 PPL 仍然擁有 PPL Montana 時，我們已將水電資產出售給西北航空，並將這些資產的收益（約 7 億美元）出售後我們將這些收益返還給 PPL。當我們創建 Talen Energy 作為分拆能源供應並將其與 Riverstone 資產合併的一部分時，我們就知道並協商了這一點。所以——所有這些都很好理解，有據可查。爭論的焦點是，我們這樣做使 PPL Montana 破產。這就是欺詐性運輸費用。

We feel extremely confident in our position in defense that PPL Montana was not only in compliance with all applicable laws at the time the distributions were made, but that it was also solvent at all relevant times as it relates to the law and those distributions. So we -- just in terms of an update on the situation with the case, we did go into mediation between the parties recently. We could not come to agreement in that mediation. And so we have discontinued that. And so we're basically back in the bankruptcy court. We would expect to resolve this with the court proceeding hopefully by the end of the year, Ross. So Talen has indicated certain time frames on coming out of bankruptcy within the next couple of months. This issue will not and does not necessarily need to be resolved before they can do that but we do expect it will be resolved by the end of the year.

我們對自己的辯護立場非常有信心，即 PPL Montana 不僅遵守分配時的所有適用法律，而且在與法律和這些分配相關的所有相關時間也具有償付能力。因此，就案件情況的最新情況而言，我們最近確實在雙方之間進行了調解。我們未能在那次調解中達成一致。所以我們已經停止這樣做了。所以我們基本上又回到了破產法庭。羅斯，我們希望法院能在今年年底前解決這個問題。因此，塔倫已經表明了在未來幾個月內擺脫破產的具體時間表。在他們能夠做到這一點之前，這個問題不會也不一定需要得到解決，但我們確實預計它將在今年年底得到解決。

This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Vince Sorgi for any closing remarks. Please go ahead, sir.

我們的問答環節到此結束。我想將會議轉回文斯·索爾吉先生髮表閉幕詞。請繼續，先生。

Well, thanks again for joining us this morning. We look forward to speaking with investors at our Annual Shareowners Meeting in a couple of weeks or perhaps we'll see you on the road here soon. So thanks again for joining us, and we'll close out.

好的，再次感謝您今天早上加入我們。我們期待在幾週後的年度股東大會上與投資者交談，或者也許我們很快就會在這裡見到您。再次感謝您加入我們，我們就結束了。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。