Emera Incorporated

Good morning, ladies and gentlemen, and welcome to the AmeriInc Q1 2023 Analyst Conference Call. At this time, all lines are in listen-only mode. Following the presentation, we'll conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Friday, May 12, 2023. I would now like to turn the conference over to Dave Bazanson, VP of Investor Relations. Please go ahead.

Thank you, Colin, and thank you all for joining us this morning for AMIRA's first quarter 2023 conference call and live webcast. AMIRA's first quarter earnings release was distributed this morning via Newswire, and the financial statements, management's discussion and analysis, and the presentation being referenced on this call are available on our website at AMIRA.com. Joining me for this morning's call are Scott Balfour, AMIRA's President and Chief Executive Officer, Greg Blunden, AMIRA's Chief Financial Officer, and other members of AMIRA's management team. Before we begin, I would like to take a moment to advise you that this morning's discussion will include forward-looking information, which is subject to the cautionary statement contained in the supporting slide. Today's discussion and presentation will also include references to non-GAAP financial measures. You should refer to the appendix for definitional information and reconciliations of historical non-GAAP measures to the closest GAAP financial measure. And now I will turn things over to Scott.

Thank you, Dave. And good morning, everyone. Ameri reported strong first quarter results this morning with 99 cents of adjusted earnings per share and a 36% increase in operating cash flow before working capital compared to the first quarter of 2022. The 8% increase in adjusted earnings per share year over year was primarily driven by higher earnings from our marketing and trading business and the impact of new rates and an asset management agreement at New Mexico Gas. The benefit of new rates at Tampa Electric and Nova Scotia Power were offset by the impact of higher interest rates, as well as milder weather in both Florida and Nova Scotia. In addition, results at Nova Scotia Power were negatively impacted by the requirement to recognize the full provision for the $10 million penalty related to the province's renewable energy standards. As a result of the delays in the commissioning of the Labrador Island Link, and the ongoing testing in 2022, we received less renewable energy from Newfoundland and Labrador, which put Nova Scotia Power modestly below the 40% renewable energy requirement. However, I'm pleased to say that with flows of energy from the block this year continuing to stabilize and increase, Nova Scotia Power's energy supply year to date has exceeded the 40% renewable requirement. While accounting rules required us to recognize the penalty in the quarter, We respectfully disagree with the penalty and intend to appeal it to the regulator and we would anticipate a decision on that before the end of the year. Last month, Newfoundland and Labrador Hydro successfully completed high power testing on the Labrador Island Link and as such, received the confirmation of commissioning from the independent engineer. Nova Scotia Power customers have already received more than one million megawatt hours of clean hydro energy over the maritime link. which has meaningfully reduced carbon emissions in the province. This investment also saved customers in Nova Scotia almost $100 million in 2022 by reducing the need to purchase high carbon fuel at elevated prices. With commissioning complete, we've now begun recognizing cash earnings on our LIL investment, an important step forward towards our cash flow and credit metric targets. We deployed over $600 million in capital in the first quarter of 2023, and we're on track to deliver our capital plan of almost $3 billion this year. Over 75% of our three-year capital program will be invested in our Florida operations, driven largely by the significant economic growth in the state. Florida was the fastest growing state in the U.S. last year, and it's also one of the 20 largest economies in the world. With significant customer growth in excess of 2% at Tampa Electric in 2022 and approximately 5% at Peoples Gas, our capital deployment reflects the capital investment necessary to service that growth and deliver reliable energy for our customers. At Tampa Electric, we continue to invest in solar, with another 239 megawatts to be installed by the end of the year. which will bring Tampa Electric's total solar generation capacity to over 1,200 megawatts, representing approximately 22% of Tampa Electric's generation capacity and 14% of expected actual energy production. We're also making significant investments in grid hardening and reliability through Tampa Electric's Storm Protection Plan. These projects are transforming the grid in Tampa for benefit of our customers. We're also highly focused on investments in system reliability in Nova Scotia and at our gas utilities, as well as to support customer growth and in continuing to strengthen these systems from the impacts of severe weather events. We continue to manage our capital plans to ensure we are meeting legislative requirements, as well as customer and regulator expectations, while at the same time managing the pace of investments in the energy transition in order to minimize cost impacts for our customers. Our investments in cleaner and more reliable energy across the business are enabling significant progress towards the first milestone in our climate commitment, a 55% reduction in CO2 emissions by 2025. Last year, we achieved a 41% reduction in carbon emissions compared to 2005, thanks in large part to our investments in solar, and clean hydro energy being delivered over the maritime link. With over 60% of our capital plan focused on investments in cleaner and more reliable energy, we remain on track to achieve our first climate goal in less than two years. As we continue to work towards meeting the federal and provincial government's ambitious climate goals for Nova Scotia, we continue to believe that the Atlantic Loop is the most cost-effective solution for our customers without putting system reliability at risk. The federal government reinforced its support for the project in its March budget, and I'm pleased to say we're supporting active negotiations in an effort to make this transformative project a reality. Given the scale of this capital project, and with 2030 quickly approaching, it's critical that we get started as soon as possible, with clarity needed on the path forward this summer. With the recent successful conclusion of several major regulatory proceedings, it's a little quieter on the regulatory front this year. During the quarter, the Florida Public Service Commission approved Tampa Electric's fuel and storm cost recovery request as filed. The timely recovery of these previously incurred costs will allow us to make important progress on key credit metrics this year as we pay down the related short-term debt. The team at People's Gas also filed their petition for a future rate increase with the regulator for a requested $138 US million in new rates effective January 1st of 2024. Since their last rate increase in 2021, People's Gas has deployed more than $1 billion of rate-based investment to serve the growing population of Florida and to ensure their system continues to operate safely and reliably. We expect hearings for the rate case to take place in late summer with a decision in the fourth quarter. Overall, our businesses are performing well. Weather, of course, will always be a variable in our industry, but the underlying growth in our core utilities is strong. We remain intensely focused on strengthening our balance sheet and looking forward to the rest of the year with new base rates at three of our four core utilities we expect to continue to deliver solid earnings growth and cash flow performance. And with that, I'll turn it over to Greg to take you through our financial results.