NiSource Q3 2021 Earnings Call Transcript

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Provided by Quartr
November 2, 2021

There are 11 speakers on the call.

Operator

Good morning. My name is Julie and I will be your conference operator today. At this time, I would like to welcome everyone to the Q3 2021 LiSource Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.

Operator

Followed by the number 1 on your telephone keypad. Thank you. Chris Turner, you may begin your conference. And

Speaker 1

A Good morning, and welcome to the NiSource Third Quarter 2021 Investor Call. And A. Joining me today are Joe Hamrock, our Chief Executive Officer Donald Brown, our Chief Financial Officer Shawn Anderson, our Chief Strategy and Risk Officer and Randy Hulen, our VP of Investor Relations and Treasurer. The purpose of this presentation is to review NiSource's financial performance for the Q3 of 2021 as well as provide an update on our operations and growth drivers. And A.

Speaker 1

Following our prepared remarks, we'll open the call to your questions. Slides for today's call are available on nisource.com. Information concerning such risks and uncertainties is included in the MD and A Risk Factors sections of our periodic SEC filings. Additionally, some of the statements made on this call relate to non GAAP measures. For additional information on the most directly comparable GAAP measure and A reconciliation of these measures, please refer to the supplemental slides and segment information, including our full financial schedules available on nisource.com.

Speaker 1

And A. With all of that out of the way, I'd like to turn the call over to Joe.

Speaker 2

Thanks, Chris. Good morning, everyone, and thank you for joining Hopefully, you've all had a chance to read our Q3 earnings release, which we issued earlier today. Strong execution of NiSource's significant renewable energy investments continues to be the highlight of our foundation for future growth. And we continue to expect that our core infrastructure programs and renewable generation investments will drive industry leading compound annual growth of 7% to 9% in diluted net operating earnings per share through 2024, growth As we begin to refine our outlook for longer term growth, the preferred path from NIPSCO's 2021 Integrated Resource Plan identifies additional investment opportunities while advancing the retirement of remaining coal fired generation Between 20262028 and it supports our plan to reduce greenhouse gas emissions 90% by 2,030. For 2021 to target the top end of the range of $1.32 to $1.36 per share in non GAAP Diluted Net Operating Earnings or NOEPS.

Speaker 2

We are also initiating guidance for 2022 of $1.42 to $1.48 and that is consistent with our 5% to 7% near term growth commitment. Our long term diluted No EPS guidance of 7% to 9% through 2024 is now based on the expected top end of our 2021 guidance range, and we reaffirm 5% to 7% growth in 2023. As I mentioned a moment ago, the preferred plan from NIPSCO's 2021 IRP advances our plans to retire remaining coal fired generation between 20262028 It will be better understood following further evaluation of the proposals we solicited associated with the IRP. Our regulatory execution progresses with a proposed order approving a settlement in Pennsylvania, A settlement filed in Kentucky and a proposed order in Maryland. In addition, we filed a gas rate case in Indiana in September.

Speaker 2

We achieved non GAAP diluted and no EPS of $0.11 in the Q3 of 2021 versus $0.09 in 2020. Now let's look at some NiSource utilities highlights for the Q3, starting with our gas operations on Slide 9. The Columbia Gas of Ohio rate case continues to progress. Net of the trackers being rolled into base rates, the filing requests An annual revenue increase of approximately $221,000,000 Pending a decision next year from the Public Utilities Commission of Ohio, New rates would be effective in mid-twenty 22. NIPSCO filed a gas rate case on September 29th Requesting a revenue increase of $115,000,000 annually.

Speaker 2

The case is focused on infrastructure modernization and providing safe, reliable Post order recommending that the Pennsylvania Public Utility Commission approve a settlement in our rate case. The settlement would increase revenue by $58,500,000 with new rates effective December 29 this year. The adjusted rates will help to continue investments in infrastructure upgrades, system reliability and maintenance enhancements. We expect the Commission's final order by mid December. In Kentucky, we have filed a proposed settlement of our rate case.

Speaker 2

The settlement includes an overall increase in revenues of $18,600,000 to support continued investments in safety and replacing aging infrastructure. Columbia Gas of Maryland received a proposed order from an administrative law Judge on Friday recommending an increase of approximately $2,560,000 in revenues as compared to our request of approximately $4,800,000 We expect a final order from the Maryland Public Service Commission in December. Before we move on, I'd like to note that Columbia Gas of Ohio, our largest LDC, is ranked number 1 in the Midwest region in J. B. Power's 2021 Gas Utility Business Customer Satisfaction Study.

Speaker 2

Also congratulations to our customer experience team for the successful launch of the Columbia Gas and NIPSCO mobile apps. They're an important step forward in building our connected digital customer experience. Let's now turn to our electric operations on Slide 10. And A. Nipsco's electric T Disc plan is pending before the Indiana Utility Regulatory Commission or IURC.

Speaker 2

This is a 5 year $1,600,000,000 proposal that would replace the previous plan, which NIPSCO filed in April to terminate. The pending plan includes newly identified projects aimed at enhancing service and reliability for customers as well as some previously identified projects. The other items on this slide relate to our renewable generation strategy, and I'll turn it over to Sean Anderson to give more detail. Thank you, Joe. The selection of the preferred path from NIPSCO's 2021 IRP is a Significant milestone in our transition from coal fired generation toward cleaner and reliable forms of generation, all of which are expected to save Nipsco customers approximately $4,000,000,000 over the long term.

Speaker 2

The preferred path from the 2021 IRP Refines the timeline to retire coal fired generation at the Michigan City Generating Station to between 20262028. It also calls for retirement of 2 vintage gas peaking units, 16A and 16B, which are both located At the Shaffer Generating Station site, the most viable replacement option calls for a portfolio of resources including investments of up to $750,000,000 will be required to support the retirement of these units. We expect to be able to quantify the NIPSCO portion of this investment opportunity in the first half of next year after further evaluating bids and the request for proposals and completing due diligence on projects which align with the preferred path. Meanwhile, We continue to execute on the plan for retirement of remaining coal fired generation at Schaeffer. Units 14 and 15 retired as of October 1st and Units 17 18 are on track to retire by 2023.

Speaker 2

We are making steady progress on the renewables project build out informed by the preferred path from NIPSCO's 2018 IRP. Our partners on these projects are some of the strongest developers in the renewable energy space and we remain in close contact regarding the progress of and A portion of the Q3 projects. We continue to expect to invest approximately $2,000,000,000 in renewable generation by 2023 to replace the retiring capacity at Schaeffer. As part of the execution of this plan, Construction continues on the Indiana Crossroads 1 wind project, which is on track to become operational Is being constructed by a subsidiary of NextEra Energy Resources under a build transfer agreement. EDP Renewables North America is building the Indiana Crossroads Solar Project, which will be operated as a joint venture.

Speaker 2

Both are expected to enter service next year. The IURC provided regulatory approval Of the Indiana Crossroads 2 wind project on September 1. And with that action, all paper generating stations have In addition to the slate of renewables projects we have announced, NYSER's plans to evaluate Technologies. It's important for us to gain a risk informed understanding of the and A portion of our financial performance and financial results. We will now turn the call over to Donald, who will discuss our 3rd quarter financial performance.

Speaker 3

Thanks, Sean, And good morning, everyone. Before getting into the specific results, I'd just like to highlight the solid execution and A session in progress that now has a range of $1.32 to $1.36 This new 2021 expectation also conference call from the 2021 top end. Turning to our Q3 2021 results on Slide 4, We had non GAAP net operating earnings of about $47,000,000 or $0.11 per diluted share Q3 of 2020. The 2021 results reflect Our ongoing execution of infrastructure investments, offset somewhat by the sale of Columbia Gas of Massachusetts, which closed in October of 2020. Looking more closely at our segment 3 month non GAAP $15,000,000 due to the sale of CMA.

Speaker 3

Operating expenses also net of the cost of energy and track expenses were lower by about $26,000,000 mostly due to the CMA sale offset slightly by higher employee related costs and outside services spending. In our electric segment, 3 month non GAAP operating earnings were about $130,000,000 We're nearly flat compared to 2020. Now turning to Slide 6, I'd like to briefly touch on our debt and credit profile. Our debt level as of June 30 was about $9,600,000,000 of which about $9,200,000,000 was long term debt. The weighted average maturity on our long term debt was approximately 14 years and the weighted average interest rate was approximately 3.7%.

Speaker 3

At the end of the Q3, we maintained net available liquidity of about $1,700,000,000 consisting of cash and available and A session. Under our credit facility and other accounts receivable securitization programs. As we noted last quarter, all 3 major rating Please have reaffirmed our investment grade credit ratings with stable outlooks in 2021. Taken together, this represents a solid financial foundation to continue the support for our long term safety and infrastructure investments. As you can see on Slide 7, we've narrowed our 2021 capital investment commitment for approximately $2,000,000,000 and reiterated our 2022 capital forecast of $2,400,000,000 to $2,500,000,000 financing plan.

Speaker 3

There are no changes to our plans since April's equity unit issuance. I would As I mentioned earlier, we have updated our 2021 earnings guidance, issued guidance for 2022 and reaffirmed our long term growth commitment. I would also remind everyone that we're planning to provide an extension to our growth plan at an Investor Day during the first half of next year. So please stay tuned. Thank you all for participating today and for your ongoing interest in and support of NiSource.

Speaker 3

We're ready now to take your questions.

Operator

Thank you. Your first question comes from Richard Sunderland from JPMorgan. Please go ahead.

Speaker 4

Curious if you could outline the progress on the potential investment in any gaming items here as you progress to the update in the first half of next year. You just in terms of the high low and where that could realistically fall in the $7,000,000 to $2,000,000

Speaker 2

Yeah, Thanks for that question. Good morning. This is Sean. So ultimately, as you can imagine, the rent we believe will provide the capacity, We need to step through the due diligence now to better understand those projects and that will inform in some way, shape or They can be constructed those CapEx for it. I'd also note that the MISO and the Q3 and full year results.

Speaker 2

We I think that we've modeled those out and incorporated that in the indicative pathway. Yes. Thanks, Sean. Rich, let me just these assets as we step through this next progression, And the value proposition for doing so, as you said, do include the MISO seasonal capacity factor, ultimate requirements and the evaluation of the proposals that quarter, but also the federal policy landscape that is a bit unpredictable right now, but that could shape timing and mix of investments

Speaker 4

Thanks for the color there. And maybe just following up on the federal aspect a little bit more in terms of What could specifically impact the 2021 IRP considerations Or maybe even more broadly, whether it's your financing plan, how could something like direct pay change

Speaker 3

I can take the Direct and A question. Certainly think that, that provides some additional flexibility in how we finance our renewable Certainly positive if it allows us or external financing needs in terms of tax equity, But certainly need to understand how direct pay would be treated by our 6 jurisdictions from a base rate base and deferred tax standpoint.

Speaker 2

And then I'd just add on as it relates to how federal policy could shape the technology cost that we certainly can't speculate to that. The 7.50 is a derivative of what we saw come through the RFP in May related to the capacity and the technology required to meet That capacity, to the extent that the marketplace changes that efficiency, again, it could get you back into a different selection of technology to comprise the capacity necessary. But you'd have to see how that federal policy landscape would impact that marketplace versus the due diligence which we're performing on actionable projects that came through the RFP that we expect to be able to execute against.

Speaker 4

Understood. Thank you for the time here. Thanks.

Speaker 2

Team. Thanks, Rich.

Operator

Your next question comes from Insoo Kim from Goldman Sachs. Please go ahead.

Speaker 5

Yes, thank you. My first question is just going back to the IRP. That $750,000,000 potential, is that the total opportunity Whether it's PPA owned or does it contemplate some percentage of ownership there? And then a follow-up to that is, If we're taking the more accelerated retirement options and the 2026 retirements, how much of that potential investment could come in Q25 time period.

Speaker 2

The amount of investment is expected to be able to functionally deliver the capacity Once the capacity gap is created through the retirement of Michigan City and Shaffer's Units A and B, so it would be everything included also inclusive of the transmission that we anticipate necessary to construct to enable that to occur. And then in terms of timing, there is some flexibility because these projects in some ways could be a little bit modular in nature. It provides A fair amount of flexibility to optimize that. The transmission work, for example, is going to begin immediately and it could take up to 3 years to complete the transmission work necessary to take those units offline. So the other resources could be feathered in likely starting in that 2024 time horizon.

Speaker 2

But we'll know a lot More through the first half of twenty twenty two after we've gone through the due diligence process and started to select the exact projects that we think can deliver that capacity.

Speaker 5

Got it. That's good color. And my second question is on The dividend policy, I think over the past or this time around and then the past couple of years, I think the growth in the dividend has been A little bit more modest versus history and as we get back into this more robust EPS growth cycle Q. And I think you had a 60% to 70% payout ratio target as of the last disclosure. How should we think about some of the future dividend growth trends that we could see over the next few years.

Speaker 3

At this point, we will revisit our dividend on our In January, as we normally do with the Board, but when you look at our long term plan and the 7% to 9% EPS CAGR that we've indicated, you certainly would expect to see growth in that range, staying growth along annually because of the earnings growth in that range of 60% to 70%. But again, we'll provide an update in January.

Speaker 6

Got it. Thank you so much.

Operator

Your next question comes from Julien Dumoulin Smith with Bank of America. Please go ahead.

Speaker 7

Hey, good morning. This is actually Cody Clark on for Julien. Thanks for taking my questions.

Speaker 2

Good morning, Cody.

Speaker 7

So first, kind of a housekeeping item and just to clarify. If I'm thinking about 2023 EPS, what base should I be using for the 5% to 7% growth? Is it the top end of 2021 or the midpoint of the new 2022 guidance?

Speaker 3

I would use the top end of 2021 as The guidance going forward for 2022 and for our long term 7% to 9% EPS CAGR.

Speaker 7

Okay. The CapEx side of the IRP would be the breakdown of ownership versus PPA and certainly understand the bias to own here. Wondering if you can talk about

Speaker 3

the range of the resources. Have

Speaker 7

You had any conversations here? Or how do you think that's going to shake out?

Speaker 2

[SPEAKER JACQUES VAN DEN BROEK:] Thanks for that question. We have not had any discussions Regarding ownership percentages, we've just focused on the tranche of technology to deliver the capacity the way we expect to transpire. And then we would need to complete the full due diligence necessary on the projects themselves to better understand that ownership Percentage, although I'd note that certain of these asset classes track towards a higher ownership percentage. For example, Sugar Creek upgrade would make a lot of sense for us to own at our own plant. So There is a bias down in some of these asset classes could track toward that.

Speaker 2

However, we'd need to complete the full due diligence to have a final point of view, which we expect in the midpoint of next year. Yes, Cody, I'd only add to that. I'd note that key drivers ultimately the cost to customers over the life of the projects. Q2. That's probably the first variable we look at for comparability across different ownership structures.

Speaker 7

Okay. So looking forward to the first half update then. And we've seen some of your peers to highlight kind of the runway for spending. Do you see It should become a little bit more clear in the first half of next year.

Speaker 3

Yes, absolutely. We are intending to have an Analyst Day Somewhere in the first half of next year, the goal of that Analyst Day would be to provide more clarity around the next generation investments to replace the Michigan City, as well as to extend the long range plan for both our gas and Electric Businesses.

Speaker 7

Got it. That's very helpful. Thanks so much for the time and looking forward to seeing you all next week.

Speaker 3

Thank you.

Operator

And your next question comes from Travis Miller from Morningstar. Please go ahead.

Speaker 2

Good morning, everyone. Thank you. Hey, good morning, Travis.

Speaker 8

A question on the electric side of NIPSCO, back to the IRP. How do you think about the timing and relationship between the IRP and as you go through the process, the RFPs, etcetera, and the T DISC. Are regulators thinking about these in terms of the need for new transmission and distribution To supply and support the IRP and how does that work?

Speaker 2

Yes. That's a good question, Travis. The TDISC really operates on kind of the existing transmission assets on maintenance and reliability improvements, not so much new capacity related to new generation or retiring generation. So there's not a direct relationship between T DISC, the pending T DISC, As you note, doesn't really depend it in a meaningful way on the IRP. Typically, the projects we're looking at From the RFP within the integrated resource plan are tied to specific transmission investments that are inside the bids that we solicited.

Speaker 2

So those Really don't cross over in a meaningful way.

Speaker 8

Okay. So we could see more transmission investment as you roll out some of the IRP steps.

Speaker 2

That's right. Just like we have in the current cycle, we're in the $2,000,000,000 includes a pretty healthy transmission investment as well.

Speaker 8

Okay, Great. And then on the gas side, what are your latest thoughts on all the discussion about methane emissions? Where does that fit into your CapEx plan as obviously referred domestically and internationally?

Speaker 2

Yes. So the EPA methane rule is out now. We see clearly opportunities to improve the emissions profile, Particularly that's focused on the upstream assets, exploration, production, transmission, storage, a little bit of a light touch on our asset portfolio. But overall, we believe the right way to drive a cleaner profile for the gas business and the gas supply chain. I would go to the other side and say, one of the provisions inside the pending legislation or the proposed legislation Is the methane tax, which we think is a bad mechanism that basically just drives cost to customer without having the same or the same effectiveness as the EPA methane rule.

Speaker 2

Those 2 certainly work together, but The methane rule is a better mechanism. And that helps to drive sustainability of natural gas and To do that in an affordable way, which we think is the right recipe.

Speaker 8

Okay. Is there any upside to the CapEx, gas CapEx, if The government, U. S. Or even international, were to come down really hard on methane emissions?

Speaker 2

PHMSA will handle the methane rule for the distribution entity. So it remains to be seen. We have to see how that rule plays out.

Speaker 8

Okay, great. Thanks so much.

Speaker 2

Thank you.

Operator

Your next question comes from David Peters from Equity Wolf Research. Please go ahead. Yes.

Speaker 6

Hey, good morning, guys.

Speaker 2

Good morning, David.

Speaker 6

Just Could you maybe talk about some of the factors that are underlying that, that our outlook in the interim and then through 24? And I know you have a couple of bigger rate cases pending. I mean, just wondering how sensitive to the plan is to some of the outcomes there. And then just related to that, maybe you Comment where you guys are at in those cases, I guess, specifically Ohio?

Speaker 3

Yes. Thank you for the questions. Certainly, as we look at our plan, It's really built on the modernization investments that we're making. There's lots of confidence on our year to year earnings guidance. This year is a heavy year from a rate case standpoint and one other in Maryland we expect to continue

Speaker 9

to be in

Speaker 3

the range of $1,000,000,000 and then the Ohio and NPSCO case that and the Q3 we filed will have impacts significant impacts on Ohio by the middle of next year and then It gives us confidence in our earnings guidance and the strength of our overall growth plan, But that's what continues and really gives us confidence as we think about that 7% to 9% EPS growth, which includes a $2,000,000,000 of commission this year. So That's the strength of our plan and that's where really what gives us the confidence of being able to execute on that. Otherwise, it comes down to quarter over a year ago. That is going quarter. And our guidance, it really is intended to reduce costs to help offset Thank you, Steve.

Speaker 3

Thank you. Thank you. Thank you. Thank you. Thank you.

Speaker 3

Thank you. Thank you. Thank you. Thank you. Thank you.

Speaker 3

Thank you. Thank you. Thank you. Thank you. Thank you.

Speaker 3

Thank you. Thank you. Thank you. Thank you. Thank you.

Speaker 3

Thank you. Thank you. Thank you. Thank you.

Speaker 2

And let me pick it up there on the related question around Ohio, the Ohio rate case. Donald touched on its mid year expectation filing itself with the 221 of riders. So there's a rider We'll take a look at the Q3 and A session. At this time, as we all know, the PUCO has been very busy. And A.

Speaker 2

And so as we see the current workload of the commission play out, we would expect momentum to pick up No concerns with that. We're early in the schedule overall. But that said, given that we're early and not a lot of recovery activities have been heavy so far, this being the first base case since 2008 for Columbia Gas of Ohio, so no surprise there. And we believe that parties to the case recognize the long duration between the and A. And our strong investment history and commitment to the state across a range of different activities, including economic development.

Speaker 2

So we remain confident in the mid-twenty 2 resolution and that's all baked into our outlook for next year.

Speaker 6

Queue. Great. Thank you. I appreciate all the detail. I just had one follow-up just on the financing plan and around Thanks for the question.

Speaker 6

Several of your peers have talked about how meaningful direct pay could be in in helping fund future renewable investments and lowering equity needs. So assume the funding for that, But just in the RFP, the $750,000,000 you've outlined, I think historically you've said Content for new generation investments. We effectively Expect that to be materially reduced with the direct pay option?

Speaker 3

Yes. Let me address the equity content first. So So we think for the future investments, so the $750,000,000 potential investment that we've got, we would not

Speaker 9

need the same level of equity content.

Speaker 3

Our balance sheet is going to be much and A Our balance sheet is going to be in a much stronger position by the end of 2023. And so certainly, the regulatory cap structure of fifty-fifty. But having said that, direct pay does provide some flexibility and potentially reducing the need for external financing or reducing equity needs. So we do see it as a positive, but We've got to get more detail and really to understand how that would impact rate basis and deferred taxes to see what the pure impact To our financing plan.

Speaker 6

Okay, great. Thank you, guys.

Speaker 2

Thanks, David.

Operator

And your next question comes from Shariah Kareva from Cauquenes. Please go ahead.

Speaker 10

Hey, guys. It's James Moore here on for Shar. How are you doing? Good morning, James. Hey, I was just curious with the IRP, if it's taking into account cost inflation for renewables So, in determining what the actual project cost will be and if the submitting parties are going to be held to a fixed cost or if there's any allowance for cost inflation?

Speaker 10

And I have a second question on the gas side.

Speaker 2

Thanks, James. I'll take that. So the estimate that we shared that arrives from the RFP process, which was for actionable projects towards the mid part of this decade, which align with the contemplated retirement of 16 AB in Michigan City. We have asked for a period of time for us to evaluate those projects. When we go to the RFP marketplace, we ask for the opportunity to evaluate those for period of time as you can imagine, we are still within that window.

Speaker 2

So we would be able to execute against those bids for those proposals still into 2022 and then continue through the refinement and due diligence process thereafter.

Speaker 10

Right. So once you once the winners have been decided, just wanted to clarify if there's any potential Pass through for higher commodity costs, higher other input costs, anything that could delays on components, etcetera, or if it's What winners end up being? Curious if you Or if that's decided yet?

Speaker 2

It's not decided yet. Generally speaking,

Speaker 9

you

Speaker 2

think about it as a fixed cost. That would then relate to that project and that project is still executable through a window of time that it's been bid. That's really through 2024, 2025, maybe 2026 costs related to that project associated with that technology. To the extent that, that bid is executed within this, the due diligence process, you might undertake on the total investment side, most notably transmission to

Speaker 3

Got it. Thank you for

Speaker 10

taking questions on the and number of times you're seeing in excess of 10% rate base growth. First, how long should we think

Speaker 2

Yes, I'll take the sort of the long view side of that And if you look at the $40,000,000,000 of identified investments that we rolled out on Investor Day just a little over a year ago, Acute. That's really predominantly on the kinds of investments that are already in flight in the gas business in particular. Electric is a little different with the transition from coal to renewables and clean energy. So those are typically long dated programs. If you look at the underlying regulatory fiscal year 2019.

Speaker 2

There's almost $1,000,000,000 of identified investment approved in the gas This plan is multiyear beyond our 2024 guidance horizon. So it operates that way in Virginia, of the gas, SAVE program. These are annualized programs

Speaker 9

and we

Speaker 3

have a lot of good news and good news and good news and good

Speaker 2

news and good news and good news and

Speaker 4

good news and good news and good

Speaker 2

news and good news and good news and good news

Speaker 9

and good news and good news and good

Speaker 2

news and good news and good news and good news and

Speaker 9

good news and good news and good news and good news and good news and good news and good news and good news and

Speaker 2

good news and good news and good news and So I'm not going to guide to a specific point in time where 10% rate base growth is Predictable, that's the kind of update we'll give on Analyst Day next year. But the core point here is the underlying.

Speaker 10

Perfect. That's what I was hoping

Speaker 2

you'd say and expecting there.

Speaker 10

So that leads into the second part of the question. Given the recent and gas assets have been transacting at. How do you think strategically About your 10% plus rate base growers with this long term horizon and the potential and

Speaker 9

A portion of the business. J. Rice:] So, I

Speaker 2

think, we're going to take a look at the same long term strategic orientation. When we look at a portfolio of companies That have that kind of fundamental growth opportunity that we see as long dated and constructive jurisdictions that's well supported. Any rotation would have to be accretive to a plan that reflects that kind of growth engine Building across really literally each and every company that we operate has that same profile right now. So it's 1st and foremost. That said, we're very open minded, very analytical about that, very objective and work very closely with our Board to continuously assess that opportunity.

Speaker 2

As it comes to capital rotation and alternative forms of financing. Let me ask Donald to touch on that side of the question.

Speaker 3

Yes, it's a good question, and certainly one we've gotten in the past. We'll continue to evaluate all forms of financing to Finance our growth programs and our growth plan. It is a strategic question, and we certainly want to think about how we enhance that plan long term. Certainly, as we think about that next level of generation investments here, we'll evaluate that as well to see what makes the best.

Speaker 9

Thank you

Speaker 10

very much for the color and for taking my question. Thanks, James.

Operator

And there are no further questions at this time. I will turn the call back over to the presenters for closing remarks.

Speaker 2

And A Thanks, Julie, and thank you for taking my questions.

Speaker 9

And I'll now turn the call over to Steve. Thank you, Julie. And I'll turn the call over to Steve. Thank you, Julie, and thank you for taking my questions. Thank you, Julie.

Speaker 2

And thank you for taking my questions. Thank you, Julie. And I'll turn the call over to Steve. Thank you, Julie. And We're now seeing the top end of our guidance range for 2021 and we anticipate

Speaker 9

that we're going to be

Speaker 2

in the range of $1.42 to $1.48 to $1.48 That's diluted net operating earnings per share. And our long term growth commitments have been reaffirmed Our plan for NIPSCO's IRP now advances our plans to retire all coal fired generation. And Nitsco's portion of those investments needed to replace and the coming months with an expectation to roll out more clarity and precision on that at an Investor Day to be held in the latter part of the first half of next year. Our progress on the gas rate cases continues. We've got settlements on the table or orders are weighted in three and filing of a new case in Indiana along with the Ohio case that's pending.

Speaker 2

And finally, again, we do look forward to and the steps between now and an Investor Day at the end of the fiscal year. We're very pleased with the progress we made in the quarter. We're very pleased with the progress we made in the quarter. We're very pleased with the progress we made in the quarter. And A And we do appreciate you being safe for all of you.

Speaker 10

So please stay safe and make it a good day. Thank you.

Operator

This concludes today's conference call. You may now disconnect.

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