Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| And I'll just be honest with the entire call it's likely we're going to go the full distance and I have confidence that we can get a really constructive outcome going to a full order |
| We've talked about this in many calls in many investor meetings and it works a long and robust capital runway, a best-in-class ability to take cost out of the business, to create headroom for needed investments and keep bills affordable for customers |
| This allows us to do what is most important for our customers deliver safe, reliable, affordable energy and lead the industry in the clean energy transformation |
| We've identified the steps to improve reliability a step change and build an electric grid that can better withstand extreme weather and better serve our customers in the future |
| Garrick Rochow We feel good about our renewable build |
| All in, we remain confident in our ability to meet our EPS guidance for the year |
| We plan conservatively and those contracts are I would say, exceeding our expectations or exceeding our plan, which is great |
| We are really proud of the work done for the first three quarters of the year offsetting the headwinds we've seen on the weather side both in terms of mild weather as well as the storm activity and the organization has really rallied around the cause |
| But for those highest velocity materials, we feel like we're in really good shape at this point |
| We've also been very successful in refurbishing damage transformers and using a variety of third parties to help us with that |
| So, the team has really done a nice job of putting a good plan together |
| We've talked about -- we've seen the storms this year and certainly we have an opportunity to improve reliability, in the here and now and then prepare for the an aging system a system that's seen higher wins and more severe weather and preparing for the future |
| So I think if – to give you any confidence I think it's – we feel very good about the fact that there's a good floor at the 9.9% prevailing ROE but we're going to continue to make the case that it should be higher |
| And I think the case becomes stronger and stronger every day as we see continued hawkish monetary policy |
| We plan conservatively, but those bilaterals and the contracts that we are inking are certainly better than expectations |
| Couple that with a constructive top-tier regulatory environment and that is our recipe for premium total shareholder return |
| This is important to get started, and there's a real benefit for our customers |
| I feel good about the progress of our electric rate case |
| So again very robust continued strong interest from our commercial and industrial customers |
| And so you've got to be prepared and you've got to be planned in that but the team has just done a phenomenal job |
| We're requesting approval of a 10-mile undergrounding pilot with plans to underground over 400 miles annually beginning in 2027, which aligns with our electric reliability road map, a small but important step in building out a program that can be supported by the Michigan Public Service Commission and will deliver significant improvement for our customers |
| Our track record spans two decades of consistently delivering industry-leading results in all conditions for all stakeholders |
| As long as we can navigate all that and get to that point I feel good I feel good |
| We also recently received approval from the Michigan Public Service Commission on our gas rate case settlement providing continued value for our customers and investors |
| As always, we remain focused on maintaining a strong financial position which coupled with a supportive regulatory construct and predictable operating cash flow generation supports our solid investment-grade ratings for the benefit of our customers and investors |
| As we've shared in previous calls and in investor meetings, we continue to see the Michigan regulatory jurisdiction as constructive in providing a good balance for all stakeholders leading up to its ranking as top tier |
| Our financing strategy and strong balance sheet position us well given the market volatility we've seen recently |
| Given that confidence, we are initiating our full year guidance for 2024 at $3.27 to $3.33 per share reflecting 6% to 8% growth off the midpoint of this year's range and we are well positioned just like 2023 to be toward the high end of that range |
| This brings you a higher quality of earnings and differentiates us from others in the sector |
| And so we'll continue to operate just as we have historically in a really conservative mode and a conservative plan, but you can see we're layering in the future right now and feel good about the opportunities for growth at DIG |
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| The previously noted unfavorable weather experience in 2023 has driven $0.49 per share of negative go |
| It is also worth noting that the Q4 2022 comp for this bucket is notably soft given the higher-than-average O&M expenses incurred during that period |
| From a cost perspective, our financial performance through the third quarter has been significantly impacted by higher operating and maintenance or O&M expenses to the tune of $0.21 per share of negative variance due to higher service restoration expenses attributable to storms |
| We have really been attacking challenges in supply chain for the last 18 months or so |
| That's a problem |
| Our vendor could not meet some of the supply chain needs again considered a carryover from the pandemic and did not meet some of the read required reads out in the field |
| In fact at the utility, we've completed all of our planned first mortgage bond issuances for the year at a weighted average coupon of approximately 4.8%, which is below our planned estimate |
| And so that creates some billing issues for our customers |
| That's a known problem |
| Now Victor insulators are prone to failure |
| And we continue to see upward pressure on energy and capacity prices |
| As we've discussed previously, the key drivers here are the absence of significant discretionary actions taken in the fourth quarter of 2022 related to last year's electric rate case settlement and the filing of our voluntary refund mechanism which collectively equate to $0.12 per share |
| And that would get you the wrong answer to the wrong number |
| To put the weather we have experienced in 2023 into perspective, we are approaching a record level of storm activity this year, which further supports the needed investments in our electric system that Garrick highlighted, and we have seen heating and cooling degree days of 11% and 24% below historical levels respectively on a year-to-date basis |
| And so we'd have to assume that those don't recur as well |
| And so rather than the whole home going out you might lose the bathroom or the kitchen |
| And so we shared in our Q2 call that that issue is behind us |
| And I wouldn't put a negative take on it |
| To get to the spirit of your question, I think it's difficult to quantify to what degree the savings will be sustainable |
| But we certainly, see some upward pressure on both energy and capacity prices as you noted |
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