Fortis Inc. (NYSE:FTS) Q3 2023 Earnings Call Transcript

Operator: And your next question comes from the line of David Quezada from Raymond James.

David Quezada: Maybe a question just from a regulatory perspective. You’ve had a few big decisions recently. I’m just wondering where you’ll be turning your focus to going forward? And any updated thoughts around when we could see some development on the outstanding items at ITC?

David Hutchens: I’ll turn it over to Linda to comment on the ITC for timing because some of that stuff is still up in the air. But we have always got something in the hopper related to regulatory filings. We still got a very small UNS electric case going down in Arizona. We’re getting ready to file another multi-year rate plan at FortisBC. So a couple in, a couple out. We’re always in this process for sure, but no real big regulatory decisions that we’re waiting on yet — today other than those ones from FERC. And Linda, if you want to opine on your opinion on those, like the base ROE and the — some of those other ones that are hanging out there.

Linda Apsey: Sure. Of course. Yes, certainly, we don’t have any clarity around when FERC might act. I think as we have discussed and spoken about before in these calls, Certainly, the composition, I think, of the FERC commission is somewhat kind of, I think, standing in the way of some progress on decisions around many of the pending matters before FERC. Certainly, as a transmission owner group at MISO, we continue to be engaged around the base ROE matter. And certainly, with MISO TO as well as the industry continue to be engaged and discuss the other pending nope, the incentive or as well as other issues. But I would say, particularly on the base ROE issue, I think we’re going to have to wait until we have a full composition of commissioners until we see any progress or traction on that issue.

And then on the incentive NOPR issue, it is our view and it’s our read that it is not a priority issue amongst the commissioners at this point in time. And so we just continue to track and monitor and be engaged to the extent that we can on those issues.

David Hutchens: Thanks, Linda. and I totally forgot I do the round the horn in my head there at all the different utilities and what’s coming up. But Central Hudson obviously has a rate case that’s currently filed and pending as well.

David Quezada: And then maybe just one more for me. Thinking about the MISO long-range transmission plan, I’m wondering if you have any thoughts around some of the things the IMM has put out there about fleet assumptions? And do you see that having any material effect on how things could play out there?

David Hutchens: Linda?

Linda Apsey: Yes, of course. Look, I mean we have great confidence in MISO’s expertise, experience and abilities around putting these future scenarios together. I think the futures reflect all of their member utilities, carbon reduction goals, obviously, assumptions around electrification and other, how that impacts load demands as well as FERC has the insight and perspective around the generator interconnection queue and so we remain very confident and comfortable in MISO’s scenarios, their assumptions. And we think that MISO is best prepared and equipped to respond to the IMMs issues and concerns, and we have comfort and confidence that MISO will continue forward with the futures that they’ve developed and ultimately continue to work towards the transmission projects that will comprise the Tranche 2, and we obviously are — continue to be optimistic in terms of MISOs ability to continue to push forward.

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

Linda Ezergailis: Recognizing it’s not as impactful to Fortis overall as ITC, but I am curious to hear your views on Alberta and your expectations around your utilities’ ability to kind of outperform and over-earn under PBR 3.0? And what sort of efficiencies might be further squeezed out, realizing you’ve already likely done a lot on that front?