NiSource Inc

Thank you for standing by. Welcome to the Q2 2022 NYSource earnings conference call. After today's prepared remarks, we will conduct a question and answer session. We will have further instructions for you at that time. For opening remarks and introductions, I would like to turn the call over to Chris Turner, Director of Investor Relations. Please go ahead.

Good morning and welcome to the NYSource second quarter 2022 investor call. Joining me today are Chief Executive Officer Lloyd Yates, Chief Financial Officer Donald Brown, Chief Strategy and Risk Officer Shawn Anderson, Group President for Nicehorse Utilities Pablo Vegas, and VP of Investor Relations and Treasurer Randy Hewlin. The purpose of this presentation is to review Nicehorse's financial performance for the second quarter of 2022, as well as provide an update on our operations and growth drivers. Following our prepared remarks, we'll open the call to your questions. Slides for today's call are available in the investor relations section of our website. We would like to remind you that some of the statements made during this presentation will be forward looking. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the statements. Information concerning such risks and uncertainties is included in the MD&A and risk factors sections of our periodic SEC filings. Additionally, some of the statements made on this call relate to non-GAAP measures. Please refer to the supplemental slides, segment information, and full financial schedules for information on the most directly comparable GAAP measure and a reconciliation of these measures. I'd now like to turn the call over to Lloyd.

Thanks, Chris. Good morning, everyone, and thank you for joining us. Hopefully, you've all had a chance to read our second quarter earnings release, which we issued earlier today. In the second quarter, the NYSource team's focus on safety and operational excellence continues to drive our plans for growth and sustainability while providing the reliable service our customers deserve. While the Commerce Department's pause on solar panel tariffs does not restore the original timelines for our renewable generation projects, it does give us more confidence and clarity on the revised project timelines. We expect our renewable investments, along with the flexibility of our mitigation plan to provide the path to meeting our commitment to deliver 79 percent compound annual growth in non-GAAP NOEPS from 2021 through 2024. Let's turn now to slide three and take a closer look at our key takeaways. We are reaffirming our 2022 guidance of $1.42 to $1.48 diluted non-GAAP NOEPS. We are reaffirming our forecast for 79% compound annual growth rate from 2021 through 2024, including near-term annual growth of 5% to 7% through 2023. Our renewable generation projects remain on track to meet the revised in-service dates we shared last quarter. Retirement dates for our remaining coal generation assets are unchanged since last quarter as well. We continue to make strong progress in our regulatory agenda with a settlement approved in NIPSCO's gas rate case, and settlement discussion is underway in both Ohio and Pennsylvania. And NYSOR's posted non-GAAP diluted net operating earnings per share, or NOEPS, of 12 cents in the second quarter, versus 13 cents in the second quarter of last year. Before we move forward, I'd like to briefly cover two items. First, our strategic review continues and is progressing very well. This robust process involves our senior management team with a few board members and explores potential internal and external opportunities to maximize risk-adjusted shareholder value. As we have indicated previously, all strategic scenarios are being benchmarked against a very competitive organic plan. We intend to share the results together with our full long-term growth plan beyond 2024 at an investor day in November. Second, we've added Melody Birmingham and Bill Jefferson to our executive leadership team. Both are well-respected and highly experienced. We have also elevated Chief Human Resource Officer Melanie Berman to the team. These changes will drive clearer lines of accountability across the organization and excellence in everything we do. I'm excited about our team and the contributions they will make as we move NYSource forward. Now, I'd like to update you on the progress we are making on our regulatory agenda. Let's turn to slide 10 and the NYSource gas distribution highlights for the second quarter. We received an order from the Indiana Utility Regulatory Commission on NIPSCO's gas rate case. It provides a revenue increase of $72 million annually with new rates expected September 2022 and March 2023. This balanced outcome demonstrates a positive path toward continuing investments in essential resources that will support safe operations, upgrading aging infrastructure, and enhancing the customer experience. Columbia Gas of Ohio has requested to reschedule hearings in its rate case until October to facilitate continued settlement discussions. The company has requested an increase of $221 million net of capital expenditure program, and infrastructure replacement program riders. Columbia Gas of Pennsylvania is also in settlement discussions. Its rate case requests additional revenues of about $82.2 million, which are intended to further upgrade and replace gas lines for the long-term safety of customers and communities. It also seeks to provide additional energy efficiency options while balancing costs. We are also making progress with our rate case in Virginia. Columbia Gas of Virginia requests an increase in annual revenues of $40.6 million net of the SAVE tracker to continue safety and modernization investment. And finally, Columbia Gas of Maryland filed a rate case on May 13th. It seeks to further upgrade and replace portions of the company's underground natural gas distribution pipelines. If approved, the proposed rate adjustments will go into effect at the end of 2022. Now, for updates on our electric operations and renewables projects, I'd like to bring in Shawn Anderson. Shawn?