Q2 2023 NextEra Energy Inc Earnings Call

July 25, 2023

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I'd now like to turn the conference over Christian Rose Director of Investor Relations. Please go ahead.

Thank you Anthony good morning, everyone and thank you for joining our second quarter 2023, combined earnings conference call for Nextera Energy and Nextera Energy partners with me. This morning are John Ketchum, Chairman, President and Chief Executive Officer of Nextera Energy Kirk crews Executive Vice President and Chief Financial Officer of Nextera energy.

<unk>, Rebecca <unk>, President and Chief Executive Officer of Nextera Energy resources, and Mark Hickson Executive Vice President of Nextera Energy all of whom are also officers of Nextera energy partners as well as Armando Pimentel, President and Chief Executive Officer of Florida Power and light company.

Kirk will provide an overview of our results and our executive team will then be available to answer your questions. We will be making forward looking statements. During this call based on current expectations and assumptions, which are subject to risks and uncertainties actual results could differ materially from our forward looking statements. If any of our key assumptions are incorrect or because of.

Kirk Crews: Since our Q1 call, Energy Resources placed over 1,800MW into commercial operations and has added approximately 1,665MW of new renewables and storage projects to our backlog, which now stands at roughly 20GW, keeping us on track to achieve our renewable development expectations through 2026. Given all of our competitive advantages, Energy Resources is uniquely positioned to continue to lead the decarbonization of the US economy and be the renewables partner of choice supporting power, commercial and industrial, and eventually hydrogen customers. We are pleased with the progress we have made at NextEra Energy so far in 2023. For over 18 months, we have operated in a challenging macroeconomic environment with various headwinds, and yet we have leveraged our competitive advantages to serve customers and deliver on our financial expectations.

Other factors discussed in today's earnings news release, and the comments made during the conference call and the risk factors section of the accompanying presentation or in our latest reports and filings with the Securities and Exchange Commission.

Each of which can be found on the website www dot nextera energy Dot com and www Dot Nextera energy Partners' Dot com, we do not undertake any duty to update any forward looking statements today's presentation.

Presentation also includes references to non-GAAP financial measures.

Should refer to the information contained in the slides accompanying today's presentation for additional information and reconciliations of historical non-GAAP measures to the closest GAAP financial measure with that I will turn the call over to Kirk.

Thanks, Kristen and good morning, Nick.

Nextera energy continued its track record of solid execution as reflected in our second quarter results.

Kirk Crews: Through the first half of the year, both businesses have executed well, delivering adjusted EPS growth of approximately 11%. With FPL comprising more than two-thirds of NextEra Energy's business, our well-established capital plan through 2025 provides investors with long-term growth visibility. At Energy Resources, we are leveraging our competitive advantages to continue adding new renewables and storage to our backlog, providing clear visibility to our future earnings growth through 2026. Combined, we believe we are well-positioned with strong visibility to deliver on our expectations and create long-term value for shareholders. With that, let's turn to the detailed results, beginning with FPL. For Q2 2023, FPL reported net income of approximately $1.152 billion, or $0.57 per share, an increase of $0.07 year over year. The principal driver of this performance was FPL's regulatory capital employed growth of approximately 12.1% year over year.

Adjusted earnings per share grew by approximately eight 6% as we deploy capital for the benefit of FPL customers and leverage our competitive advantages to extend energy Resources' renewables leadership position.

As the fastest growing state in the U S. Florida has underlying population growth and an economy that continues to drive clearer investment needs.

For years <unk>.

<unk> strategy has been simple keep bills affordable the grid reliable and our customer service exceptional.

With our most recent settlement agreement.

<unk> has a well established capital plan with clear visibility through 2025 to deliver on this strategy.

This quarter, we executed our capital plan with new solar and transmission and distribution infrastructure investments.

Which led to a greater than 12% increase in regulatory capital employed versus the same quarter last year.

As a result.

<unk> earnings per share increased by seven year over year.

Kirk Crews: We continue to expect FPL to realize roughly 9% average annual growth in regulatory capital employed over our current settlement agreement's four-year term, which runs through 2025. FPL's capital expenditures were approximately $2.5 billion for the quarter, and we now expect FPL's full-year 2023 capital investments to be between $8.5 and 9.5 billion. For the 12 months ending June 2023, FPL's reported ROE for regulatory purposes will be approximately 11.8%. During the quarter, we used approximately $78 million of reserve amortization, leaving FPL with a balance of approximately $1 billion. Our capital projects continue to progress well. As we indicated in our recent 10-year site plan, solar continues to be the lowest-cost alternative for our customers. FPL placed into service roughly 225MW of cost-effective solar in the quarter, bringing the total year-to-date solar additions to nearly 1,200MW.

We progress these capital initiatives, while keeping customer bills affordable.

We continue to run the business efficiently with multiple opportunities to reduce and manage cost.

We deploy smart capital that reduces O&M and fuel cost, we embrace innovation and new technologies.

And we identify cost savings through our various initiatives.

Customers benefit from these actions, including bills that are among the lowest in Florida and well below the national average.

FPL is uniquely positioned to extend its best in class customer value proposition and deliver long term growth.

Energy resources more than two decade track record of originating developing constructing and operating renewables remains as strong as ever.

This quarter on the strength of new investments energy resources grew adjusted earnings by over 14% year over year.

We continue to see solid renewables and storage demand.

Since our first quarter call energy resources placed over 1800 megawatts into commercial operations.

Kirk Crews: Over the last two years, FPL has commissioned over 1,600MW of new solar generation. With two and a half years remaining under the current settlement agreement, FPL expects to add roughly 3,100MW of incremental solar through 2025. FPL's solar investments allow us to serve strong customer growth while providing clean, affordable generation and avoiding volatile fuel purchases. Over the current four-year settlement agreement, we continue to expect FPL to make capital investments of between $32 to $34 billion. Of that total, we anticipate investing approximately $10 billion in new solar generation and approximately $14 to $16 billion in transmission and distribution infrastructure. We remain confident in our total capital plan through 2025, as our cumulative capital investments of approximately $14 billion through June of 2023 are a little ahead of our original timeline.

And it's added approximately 1665 megawatts of new renewables and storage projects to our backlog.

Which now stands at roughly 20, gigawatts keeping us on track to achieve our renewable development expectations through 2026.

FPL is uniquely positioned to extend its best in class customer value proposition and deliver long term growth.

Given all of our competitive advantages energy resources is uniquely positioned to continue to lead the decarbonization of the U S economy.

Energy resources more than two decade track record of originating developing constructing and operating renewables remains as strong as ever.

And B, the renewables partner of choice supporting power.

Commercial and industrial and eventually hydrogen customers.

This quarter on the strength of new investments energy resources grew adjusted earnings by over 14% year over year.

We are pleased with the progress we have made at Nextera energy so far in 2023.

For over 18 months, we have operated in a challenging macroeconomic environment with various headwinds and <unk>.

We continue to see solid renewables and storage demand.

Since our first quarter call energy resources placed over 1800 megawatts into commercial operations.

Yet we have leveraged our competitive advantages to serve customers and deliver on our financial expectations.

<unk> added approximately 1665 megawatts of new renewables and storage projects to our backlog.

Through the first half of the year, both businesses have executed well delivering adjusted EPS growth of approximately 11%.

Kirk Crews: Our capital investment plan is well-established, and by executing on solar deployment and transmission and distribution investments, we are enhancing what we believe is one of the best customer value propositions in the industry. I'll turn now to the Florida economy, which continues to demonstrate strong growth. Over the past year, Florida has created roughly 412,000 new private-sector jobs, and its unemployment rate continues to decline, currently standing at approximately 2.6%, which is nearly 30% below the US average. Florida consumer sentiment improved roughly 14% compared to the prior year and remains above the US average, while mortgage delinquency rates declined by 55 basis points compared to the prior year. Florida's GDP continues to trend upward and increased over 9% versus a year ago. During the quarter, FPL had solid customer growth, with the average number of customers increasing by more than 66,000 from the comparable prior year period.

It now stands at roughly 20, gigawatts keeping us on track to achieve our renewable development expectations through 2026.

With FPL comprising more than two thirds of Nextera Energy's business.

Our well established capital plan through 2025 provides investors with long term growth visibility.

Given all of our competitive advantages energy resources is uniquely positioned to continue to lead the decarbonization of the U S economy.

At energy resources, we are leveraging our competitive advantages to continue adding new renewables and storage to our backlog, providing clear visibility to our future earnings growth through 2026.

And B, the renewables partner of choice supporting power.

Commercial and industrial and eventually hydrogen customers.

Combined we believe we are well positioned with strong visibility to deliver on our expectations and create long term value for shareholders.

We are pleased with the progress we have made at Nextera energy so far in 2023.

For over 18 months, we have operated in a challenging macroeconomic environment with various headwinds and yet we have leveraged our competitive advantages to serve customers and deliver on our financial expectations.

With that let's turn to the detailed results beginning with FPL.

For the second quarter of 2023, FPL reported net income of approximately 1.152 billion or <unk> 57 per share an increase of <unk> <unk> year over year.

Through the first half of the year, both businesses have executed well delivering adjusted EPS growth of approximately 11%.

The principal driver of this performance was Fpl's regulatory capital employed growth of approximately 12, 1% year over year.

With FPL comprising more than two thirds of Nextera Energy's business are well established capital plan through 2025 provides investors with long term growth visibility.

We continue to expect FPL to realize roughly 9% average annual growth in regulatory capital employed over our current settlement agreements four year term, which runs through 2025.

Kirk Crews: FPL's second quarter retail sales increased by approximately 0.3% year-over-year. We estimate that weather had a slightly negative impact on usage per customer of approximately 0.3% on a year-over-year basis. After taking these factors into account, second quarter retail sales increased roughly 0.6% on a weather-normalized basis from the comparable prior year period, driven primarily by continued solid underlying population growth. Now, let's turn to Energy Resources, where second quarter 2023 GAAP earnings were approximately $1.462 billion, or $0.72 per share. Adjusted earnings for the second quarter were approximately $781 million, or $0.39 per share, which is an increase in adjusted earnings per share of $0.04 year-over-year. Contributions from new investments increased $0.10 per share year-over-year. Contributions from our existing clean energy portfolio declined $0.06 per share.

At energy resources, we are leveraging our competitive advantages to continue adding new renewables and storage to our backlog, providing clear visibility to our future earnings growth through 2026.

Fpl's capital expenditures were approximately $2 5 billion.

For the quarter and we now expect Fpl's full year 2023 capital investments to be between eight five and $9 5 billion.

Combined we believe we are well positioned with strong visibility to deliver on our expectations and create long term value for shareholders.

For the 12 months ending June 2023, Fpl's reported ROE for regulatory purposes will be approximately 11, 8%.

With that let's turn to the detailed results beginning with FPL.

For the second quarter of 2023, FPL reported net income of approximately $1.152 billion or <unk> 57 per share an increase of <unk> <unk> year over year.

During the quarter, we used approximately $78 million of reserve amortization, leaving FPL with a balance of approximately $1 billion.

Our capital projects continued to progress well as.

The principal driver of this performance was Fpl's regulatory capital employed growth of approximately 12, 1% year over year.

As we indicated in our recent 10 year site plan solar continues to be the lowest cost alternative for our customers.

We continue to expect FPL to realize roughly 9% average annual growth in regulatory capital employed over our current settlement agreements four year term, which runs through 2025.

FPL placed into service roughly 225 megawatts of cost effective solar in the quarter.

Bringing the total year to date solar additions to nearly 1200 megawatts.

Kirk Crews: This decline was mostly due to a large swing in year-over-year wind resource. This quarter was the lowest second quarter of wind resource on record over the past 30 years, while last year was the highest. The contribution from our customer supply and trading business increased by $0.09 per share, primarily due to higher margins in our customer-facing businesses compared to a relatively weak contribution in the prior year quarter. All other impacts reduced earnings by $0.09 per share. This decline reflects higher interest costs of $0.06 per share, half of which is driven by new borrowing costs to support new investments, and half of which is due to higher interest rates. The remaining impact is due to a combination of other factors, including additional costs to support early-stage renewable development investments as we plan for growth in the latter part of the decade.

Fpl's capital expenditures were approximately $2 $5 billion for the quarter and we now expect <unk> full year 2023 capital investments to be between eight five and $9 5 billion.

Over the last two years FPL has commissioned over 1600 megawatts of new solar generation.

With two and a half years remaining under the current settlement agreement.

<unk> expects to add roughly 3100 megawatts of incremental solar through 2025.

For the 12 months ending June 2023.

<unk> reported ROE for regulatory purposes will be approximately 11, 8%.

FPL solar investments allow us to serve strong customer growth, while providing clean affordable generation.

During the quarter, we used approximately $78 million of reserve amortization, leaving FPL with a balance of approximately $1 billion.

And avoiding volatile fuel purchases.

Over the current four year settlement agreement, we continue to expect FPL to the capital investments of between $32 billion to $34 billion.

Our capital projects continued to progress well.

As we indicated in our recent 10 year site plan solar continues to be the lowest cost alternative for our customers.

Of that total we anticipate investing approximately $10 billion of new solar generation and approximately 14% to $16 billion.

FPL placed into service roughly 225 megawatts of cost effective solar in the quarter.

In transmission and distribution infrastructure.

We remain confident in our total capital plan through 2025, as our cumulative capital investments of approximately $14 billion through June of 2023 are a little ahead of our original timeline.

Bringing the total year to date solar additions to nearly 1200 megawatts.

Kirk Crews: Energy Resources had a solid quarter of new renewables and storage origination, adding approximately 1,665MW to the backlog. With these additions, our backlog now totals roughly 20GW after taking into account over 1,800MW of new projects placed into service since our first quarter call, which keeps us on track to achieve our renewable development expectations through 2026. Having shared our new expectations just six months ago, we are already within the 2023 to 2024 development expectations range and only need roughly 15GW over the next 3.5 years to achieve the midpoint of the 2023 to 2026 development expectations range. As part of our backlog additions, this quarter we signed our first contract for a standalone battery storage project co-located with an existing wind facility.

Over the last two years FPL has commissioned over 1600 megawatts of new solar generation.

Our capital investment plan is well established and by executing on sulfur deployment and transmission and distribution investments. We are enhancing what we believe is one of the best customer value propositions in the industry.

With two and a half years remaining under the current settlement agreement FPL expects to add roughly 3100 megawatts of incremental solar through 2025.

FPL solar investments allow us to serve strong customer growth, while providing clean affordable generation and avoiding volatile fuel purchases.

I'll turn now to the Florida economy, which continues to demonstrate strong growth.

Over the past year, Florida has created roughly 412000, new private sector jobs and its unemployment rate continues to decline currently standing at approximately two 6%, which is nearly 30% below the U S average.

Over the current four year settlement agreement, we continue to expect FPL to make capital investments of between $32 billion to $34 billion.

Of that total we anticipate investing approximately $10 billion of new solar generation and approximately $14 billion to $16 billion.

Florida consumer sentiment improved roughly 14% compared to the prior year and remains above the U S average, while mortgage delinquency rates declined by 55 basis points compared to the prior year.

In transmission and distribution infrastructure.

We remain confident in our total capital plan through 2025 is our cumulative capital investments of approximately $14 billion through June of 2023 are a little ahead of our original timeline.

Kirk Crews: This 65MW storage project is expected to serve our customers' growing capacity needs in the Southwest Power Pool and be available to monetize pricing arbitrage opportunities in this renewable-rich area of the country. As we have highlighted, we believe there are many more opportunities to monetize the value of our existing 29GW operating renewables portfolio, including deploying co-located storage like we did here. We are excited to bring this facility into commercial operation. During the quarter, we continue to see solid demand for renewables and storage across power and commercial and industrial customers. After a period of underlying commodity price inflation, supply chain disruption, and trade policy risk premiums, we are finally seeing signs of stability, which will be helpful in our customer conversations.

Florida's GDP continues to trend upward and increased over 9% versus a year ago.

Our capital investment plan is well established and by executing on solar deployment and transmission and distribution investments. We are enhancing what we believe is one of the best customer value propositions in the industry.

During the quarter FPL had solid customer growth with the average number of customers increasing by more than 66000 from the comparable prior year period.

Fpl's second quarter retail sales increased by approximately 0.3% year over year.

I'll turn now to the Florida economy, which continues to demonstrate strong growth.

We estimate that weather had a slightly negative impact on usage per customer of approximately 0.3% on a year over year basis.

After taking taking these factors into account second quarter retail sales increased roughly 0.6% on a weather normalized basis from the comparable prior year period, driven primarily by continued solid underlying population growth.

Florida consumer sentiment improved roughly 14% compared to the prior year and remains above the U S average, while mortgage delinquency rates declined by 55 basis points compared to the prior year.

Now, let's turn to energy resources, where second quarter 2023, GAAP earnings were approximately 146 2 billion.

Kirk Crews: We believe renewables remain economically attractive to alternative forms of generation and have positioned ourselves to meet long-term customer demand by expanding our significant pipeline of renewable projects. Today, we have a pipeline of roughly 250 gigawatts of renewables and storage projects in various stages of development. This includes projects in early-stage diligence in our current backlog and is supported by roughly 145 gigawatts of interconnection queue positions. When you combine our significant competitive advantages with our renewable pipeline, we believe Energy Resources is well-positioned for growth in our renewables business for years to come. We also remain excited about the opportunity to serve hydrogen customers by leveraging our best-in-class renewables development expertise and early-stage development positions. Throughout the quarter, we continue to advocate for smart hydrogen policy that we believe would help the US establish a robust green hydrogen market and drive increased renewables penetration.

Florida's GDP continues to trend upward and increased over 9% versus a year ago.

<unk> 72 per share.

Adjusted earnings for the second quarter were approximately $781 million or <unk> 39 per share.

During the quarter FPL had solid customer growth with the average number of customers increasing by more than 66000 from the comparable prior year period.

Which is an increase in adjusted earnings per share of <unk> year over year.

Contributions from new investments increased <unk> per share year over year.

Fpl's second quarter retail sales increased by approximately 0.3% year over year.

Contributions from our existing clean energy portfolio declined <unk> <unk> per share.

We estimate that weather had a slightly negative impact on usage per customer of approximately 0.3% on a year over year basis.

This decline was mostly due to a large swing in year over year wind resource.

This quarter was the lowest second quarter of wind resources on record over the past 30 years, while last year was the highest.

The contribution from our customer supply and trading business increased by <unk> <unk> per share primarily due to higher margins in our customer facing businesses compared to a relatively weak contribution in the prior year quarter.

Now, let's turn to energy resources, where second quarter 2023, GAAP earnings were approximately 1.4 dollars $62 billion or <unk> 72 per share.

All other impacts reduced earnings by <unk> <unk> per share.

This decline reflects higher interest costs of <unk> <unk> per share half of which is driven by new borrowing cost to support new investment and half of which is due to higher interest rates.

Adjusted earnings for the second quarter were approximately $781 million or <unk> 39 per share.

Kirk Crews: We also progressed our pipeline of potential green hydrogen opportunities by executing an additional memorandum of understanding to explore developing green hydrogen and related facilities that would integrate into our customers' operations and serve their energy needs. Hydrogen should be thought of as simply another renewables customer class, and as all our hydrogen-related projects could potentially translate into additional new renewables, and with the appropriate regulations begin to contribute to Energy Resources' growth later this decade. Turning now to our consolidated results, for the second quarter of 2023, GAAP earnings attributed to NextEra Energy were approximately $2.795 billion, or $1.38 per share. NextEra Energy recorded approximately $1.777 billion of adjusted earnings and $0.88 of adjusted EPS in the second quarter. Adjusted earnings from the corporate and other segment decreased results by $0.04 per share year-over-year, primarily driven by higher interest costs.

Which is an increase in adjusted earnings per share of <unk> <unk> year over year.

The remaining impact is due to a combination of other factors, including additional costs to support early stage renewable development investments as we plan for growth in the latter part of the decade.

Contributions from new investments increased <unk> per share year over year.

Contributions from our existing clean energy portfolio declined <unk> <unk> per share.

Energy resources had a solid quarter of new renewables and storage origination, adding approximately 1665 megawatts to the backlog.

This decline was mostly due to a large swing in year over year wind resource.

This quarter was the lowest second quarter of wind resource on record over the past 30 years, while last year was the highest.

With these additions our backlog now totals roughly 20 gigawatts after taking into account over 1800 megawatts of new projects placed into service since our first quarter call, which keeps us on track to achieve our renewable development expectations through 2026.

All other impacts reduced earnings by <unk> <unk> per share.

Having shared our new expectations, just six months ago, we are already within the 2023 to 2024 development expectations range and only need roughly 15 gigawatts over the next three and one half years to achieve the midpoint of the 2023 to 2026 development expectations range.

This decline reflects higher interest costs of <unk> <unk> per share half of which is driven by new borrowing cost to support new investment and half of which is due to higher interest rates.

The remaining impact is due to a combination of other factors, including additional cost to support early stage renewable development investments as we plan for growth in the latter part of the decade.

As part of our backlog additions this quarter, we signed our first contract for our Standalone battery storage project co located with an existing wind facility.

Kirk Crews: We continue to proactively manage interest rates in multiple ways. First, NextEra Energy has $16 billion of various interest rate swaps to help mitigate the impact of future increases in rates. Second, FPL has features in its settlement agreement to offset higher interest rates, such as reserve amortization and the ROE adjustment mechanism, which became effective on 1 September 2022, due to a sustained rise in the 30-year US Treasury yield. Finally, our focus on continuous improvement through our annual Velocity productivity initiative has yielded over $725 million in annual run rate savings ideas over the last two years, creating cost savings opportunities to help offset higher interest costs. As always, the current interest rate environment is taken into account in our financial expectations.

Energy resources had a solid quarter of new renewables and storage origination, adding approximately 1665 megawatts to the backlog.

This 65 megawatt storage project is expected to serve our customers growing capacity needs in the southwest power pool and be available to monetize pricing arbitrage opportunities in this renewable rich area of the country.

As we have highlighted we believe there are many more opportunities to monetize the value of our existing 29 gigawatt operating renewables portfolio, including deploying co located stores like we did here.

Our renewable development expectations through 2026.

We are excited to bring the facility into commercial operation.

During the quarter, we continued to see solid demand for renewables and storage across power and commercial and industrial customers.

After a period of underlying commodity price inflation.

Slide chain disruption and trade policy risk premiums, we are finally seeing signs of stability, which will be helpful. In our customer conversations.

Kirk Crews: Our long-term financial expectations remain unchanged, and we will be disappointed if we're not able to deliver financial results at or near the top end of our Adjusted EPS expectation ranges in each year from 2023 to 2026, while at the same time maintaining our strong balance sheet and credit ratings. From 2021 to 2026, we continue to expect that our average annual growth in operating cash flow will be at or above our Adjusted EPS compound annual growth rate range. We continue to expect to grow our dividends per share at roughly 10% per year through at least 2024 off a 2022 base. As always, our expectations assume our usual caveats, including normal weather and operating conditions. Now, I'd like to turn to NextEra Energy Partners. Second quarter Adjusted EBITDA and cash available for distribution were $486 million and $200 million, respectively, reflecting weaker wind resource.

As part of our backlog additions this quarter, we signed our first contract for our Standalone battery storage project co located with an existing wind facility.

We believe renewables remain economically attractive to alternative forms of generation and <unk>.

Position ourselves to meet long term customer demand by expanding our significant pipeline of renewable projects.

Today, we have a pipeline of roughly 250 gigawatts of renewables and storage projects in various stages of development.

This includes projects in early stage diligence and our current backlog and is supported by roughly 145 gigawatts of interconnection queue positions.

We are excited to bring the facility into commercial operation.

During the quarter, we continue to see solid demand for renewables and storage across power and commercial and industrial customers.

When you combine our significant competitive advantages with our renewable pipeline, we believe energy resources is well positioned for growth in our renewables business for years to come.

After a period of underlying commodity price inflation.

Why chain disruption and trade policy risk premiums. We are finally seeing signs of stability, which will be helpful. In our customer conversations.

We also remain excited about the opportunity to serve hydrogen customers by leveraging our best in class renewables development expertise and early stage development position.

Kirk Crews: NextEra Energy Partners remains well-positioned to deliver on its 2023 run rate expectations for adjusted EBITDA and cash available for distribution. Yesterday, NextEra Energy Partners' board declared a quarterly distribution of $0.854 per common unit, or $3.42 per common unit on an annualized basis, up approximately 12% from a year earlier. Inclusive of this quarter, NextEra Energy Partners has grown its LP distribution per unit over 355% since the IPO. Since our last earnings call, NextEra Energy Partners completed its previously announced acquisition of approximately 690MW of wind and solar assets. With this acquisition, NextEra Energy Partners' renewable portfolio is over 10,000MW, further strengthening its position as the world's seventh-largest producer of electricity from the wind and sun. The partnership is well-positioned to execute on its simplification plans to become a 100% renewables-focused company.

We believe renewables remain economically attractive to alternative forms of generation and position ourselves to meet long term customer demand by expanding our significant pipeline of renewable projects.

Throughout the quarter, we continue to advocate for smart hydrogen policy that we believe would help the U S establish a robust green hydrogen market and drive increased renewable penetration.

Today, we have a pipeline of roughly 250 gigawatts of renewables and storage projects in various stages of development.

We also progressed our pipeline of potential green hydrogen opportunities by executing an additional memorandum of understanding to explore developing green hydrogen and related facilities that would integrate into our customers' operations and serve their energy needs.

This includes projects in early stage diligence and our current backlog and is supported by roughly 145 gigawatts of interconnection queue positions.

Hydrogen should be thought of as simply another renewables customer class and as all our hydrogen related projects could potentially translate into additional new renewables and with the appropriate regulations begin to contribute to energy resources growth later this decade.

When you combine our significant competitive advantages with our renewable pipeline, we believe energy resources is well positioned for growth in our renewables business for years to come.

We also remain excited about the opportunity to serve hydrogen customers by leveraging our best in class renewables development expertise and early stage development position.

Turning now to our consolidated results for the second quarter of 2023 GAAP earnings attributed to next era energy for approximately $2 795 billion or $1 38 per share.

Throughout the quarter, we continue to advocate for smart hydrogen policy that we believe would help the U S established a robust green hydrogen market and drive increased renewables penetration.

Nextera energy recorded approximately $1 777 billion of adjusted earnings and <unk> <unk> of adjusted EPS in the second quarter.

Kirk Crews: Regarding these simplification plans, in May, we launched the sales process for the Texas natural gas pipeline portfolio and are pleased with our progress as we remain on track to sell the assets by later this year. NextEra Energy Partners expects to use the proceeds from the planned Texas pipeline portfolio sale together with a Meade natural gas pipeline sale in 2025 to eliminate the equity buyouts on the three near-term convertible equity portfolio financings: STX Midstream, NEP Renewables II, and 2019 NEP Pipeline. Upon successful execution of the Texas pipeline portfolio sale, the partnership does not expect to require equity through 2024 other than opportunistic equity issuances under our At the Market program to fund future growth beyond 2024. Now to the detailed results.

Adjusted earnings for <unk> from the corporate and other segment decreased results by <unk> <unk> per share year over year, primarily driven by higher interest costs.

We continue to proactively manage interest rates in multiple ways.

First Nextera energy has $16 billion of various interest rate swaps to help mitigate the impact of future increases in rate.

Hydrogen should be thought of as simply another renewables customer class.

As all our hydrogen related projects could potentially translate into additional new renewables and with the appropriate regulations begin to contribute to energy resources growth later this decade.

Second FPL has features and its settlement agreement to offset higher interest rates, such as reserve amortization and the ROE adjustment mechanism, which became effective on September one 2022 due to a sustained rise in the 30 year U S treasury yield.

Turning now to our consolidated results for the second quarter of 2023, GAAP earnings attributed to Nextera energy for approximately $2 $795 billion.

Finally, our focus on continuous improvement through our annual velocity productivity initiative has yielded over $725 million in annual run rate savings ideas over the last two years, creating cost savings opportunities to help offset higher interest costs.

$1 38 per share.

Nextera energy recorded approximately $1 777 billion of adjusted earnings and <unk> <unk> of adjusted EPS in the second quarter.

Kirk Crews: NextEra Energy Partners delivered second quarter adjusted EBITDA and cash available for distribution of $486 million and $200 million, respectively, reflecting the adverse impacts of weaker wind resource. The adjusted EBITDA and cash available for distribution contribution from existing projects declined by approximately $99 million and $49 million, respectively, primarily driven by a large swing in year-over-year wind resource. This quarter was the lowest second quarter of wind resource on record over the past 30 years, while last year was the highest. New projects contributed approximately $49 million of adjusted EBITDA and $5 million of cash available for distribution. Second quarter results for adjusted EBITDA and cash available for distribution were positively impacted by the incentive distribution rights fee suspension, and provided approximately $38 million of benefit this quarter, partially offsetting the impact of poor wind resource performance.

As always the current interest rate environment is taken into account in our financial expectations.

Adjusted earnings for <unk> from the corporate and other segment decreased results by <unk> <unk> per share year over year, primarily driven by higher interest costs.

Our long term financial expectations remain unchanged and we will be disappointed if we're not able to deliver financial results at or near the top end of our adjusted EPS expectation ranges and each year from 2023 to 2026, while at the same time, maintaining our strong balance sheet and credit ratings.

We continue to proactively manage interest rates in multiple ways first nextera energy has $16 billion of various interest rate swaps to help mitigate the impact of future increases in rates.

From 2021% to 2026, we continue to expect that our average annual growth in operating cash flow will be at or above our adjusted EPS compound annual growth rate range.

And we continue to expect to grow our dividends per share at roughly 10% per year through at least 2024 off a 2022 base.

As always our expectations assume our usual caveat, including normal weather and operating conditions.

Now I'd like to turn to Nextera energy partners.

As always the current interest rate environment is taken into account in our financial expectations.

Second quarter, adjusted EBITDA and cash available for distribution were $486 million and $200 million, respectively, reflecting weaker wind resource.

Kirk Crews: As we previously shared, we expect strong double-digit growth in the second half of the year in adjusted EBITDA and cash available for distribution to support NextEra Energy Partners' LP distribution per unit growth expectations range for the full year 2023. Additional details are shown on the accompanying slide. From a base of our fourth quarter 2022 distribution per common unit at an annualized rate of $3.25, we continue to see 12% to 15% growth per year in LP distributions per unit as being a reasonable range of expectations through at least 2026. However, as we previously shared with you, we expect to grow at or near the bottom end of that range. For 2023, we expect the annualized rate of the fourth quarter 2023 distribution that is payable in February of 2024 to be in a range of $3.64 to $3.74 per common unit.

Nextera energy partners remains well positioned to deliver on its 2023 run rate expectations for adjusted EBITDA and cash available for distribution.

Yesterday, the Nextera energy Partners' Board declared a quarterly distribution of 0.8 hundred 54 cents per share per common unit or $3 four.

From 2021 to 2026, we continue to expect that our average annual growth in operating cash flow will be at or above our adjusted EPS compound annual growth rate range.

Two per common unit on an annualized basis up approximately 12% from a year earlier.

And we continue to expect to grow our dividends per share at roughly 10% per year through at least 2024 off a 2022 base.

Inclusive of this quarter Nextera energy partners has grown as LP distribution per unit over 355% since the IPO.

As always our expectations assume our usual caveat, including normal weather and operating conditions.

Since our last earnings call next era energy partners completed its previously announced acquisition of approximately 690 megawatts of wind and solar assets.

Now I'd like to turn to Nextera energy partners.

Second quarter, adjusted EBITDA and cash available for distribution were $486 million and $200 million, respectively, reflecting weaker wind resource.

With this acquisition Nextera energy partners' renewable portfolio is over 10000 megawatts further strengthening its position as the world's seventh largest producer of electricity from the wind and Sun.

Kirk Crews: NextEra Energy Partners continues to expect run rate contributions for adjusted EBITDA, and cash available for distribution from its forecasted portfolio at 31 December 2023, to be in the ranges of $2.2 to $2.42 billion and $770 to $860 million, respectively. As a reminder, year-end 2023 run rate projections reflect calendar year 2024 contributions from the forecasted portfolio at year-end 2023. As always, our expectations are subject to our usual caveats, including normal weather and operating conditions. In summary, we believe that NextEra Energy and NextEra Energy Partners are well-positioned to continue delivering long-term value for shareholders and unit holders. At NextEra Energy, the plan is simple. Our two businesses are deploying capital in renewables and transmission for the benefit of customers, providing visible growth opportunities for shareholders. At FPL, we're executing on our well-established capital investment plan, which allows us to extend our customer value proposition.

Nextera energy partners remains well positioned to deliver on its 2023 run rate expectations for adjusted EBITDA and cash available for distribution.

The partnership is well positioned to execute on its simplification plans to become a 100% renewables focused company.

Yesterday, the Nextera energy Partners' Board declared a quarterly distribution of 0.854 cents per share per common unit or $3 four.

Regarding this simplification plan in May we launched the sales process for the Texas natural gas pipeline portfolio and are pleased with our progress as we remain on track to sell the assets by later this year.

Two per common unit on an annualized basis up approximately 12% from a year earlier.

Inclusive of this quarter Nextera energy partners has grown as LP distribution per unit over 355% since the IPO.

Next enter next.

Nextera energy partners expects to use the proceeds from the planned Texas pipeline portfolio sale together with the <unk> natural gas pipeline sale in 2025 to eliminate the equity buyouts on the three near term convertible equity portfolio financings.

Since our last earnings call next era energy partners completed its previously announced acquisition of approximately 690 megawatts of wind and solar assets.

<unk> midstream and.

In EP renewables two.

And 2019 in EP pipeline.

Upon successful execution of the Texas pipeline portfolio sell the partnership does not expect to require equity through 2024 other than opportunistic equity issuances under our at the market equity program to fund future growth beyond 2024.

Kirk Crews: Florida's strong population growth drives smart capital investment, and running the business efficiently allows us to manage costs for the benefit of both customers and shareholders. FPL comprises more than two-thirds of NextEra Energy's business and provides a significant amount of visibility into capital deployment and earnings growth. At Energy Resources, we're leveraging our more than 20 years of experience and competitive advantages to grow our market share and add to our now roughly 20-gigawatt backlog, providing terrific growth visibility through 2026. We believe these competitive advantages will enable Energy Resources to serve power, commercial and industrial, and eventually hydrogen customers. With an opportunity set of $20 billion of capital investment requiring more than 15 gigawatts of new renewables, Energy Resources is well-positioned to be the green hydrogen partner of choice, potentially creating new opportunities toward the end of the decade.

The partnership is well positioned to execute on its simplification plans to become a 100% renewables focused company.

Now to the detailed results Nextera energy partners delivered second quarter, adjusted EBITDA and cash available for distribution of $486 million and $200 million, respectively, reflecting the adverse impact of weaker wind resource.

Next enter.

The adjusted EBITDA and cash available for distribution contribution from existing projects declined by approximately $99 million.

Nextera energy partners expects to use the proceeds from the planned Texas pipeline portfolio sell together with a meet natural gas pipeline sale in 2025 to eliminate the equity buyouts on the three near term convertible equity portfolio financings.

And $49 million, respectively, primarily driven by a large swings in year over year wind resource. This.

This quarter was the lowest second quarter wind resource on record over the past 30 years, while last year was the highest.

T X midstream and.

In EP renewables two.

And 2019 in EP pipeline.

New projects contributed approximately $49 million of adjusted EBITDA and $5 million of cash available for distribution.

Second quarter results for adjusted EBITDA and cash available for distribution were positively impacted by the incentive distribution rights fee suspension and provided approximately $38 million of benefit this quarter, partially offsetting the impact of poor wind resource performance.

Kirk Crews: At NextEra Energy Partners, we're executing on our plans to sell our natural gas pipelines and simplify the business. We continue to add to our renewables and storage portfolio, which now stands at over 10,000MW. With the sale of the Texas natural gas pipeline portfolio expected to be completed by the end of the year, NextEra Energy Partners remains on track to transition to a 100% pure-play renewables company while continuing to deliver LP distribution per unit growth for unit holders. With that, we're happy to answer your questions. We will now begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. If using a speakerphone, please pick up the handset before pressing the keys. To withdraw from the question queue, please press star then two. At this time, we will pause momentarily to assemble our roster.

Now to the detailed results.

Nextera energy partners delivered second quarter, adjusted EBITDA and cash available for distribution of $486 million and $200 million, respectively, reflecting the adverse impact of weaker wind resource.

As we previously shared we expect strong double digit growth in the second half of the year and adjusted EBITDA and cash available for distribution to support Nextera Energy Partners LP distribution per unit growth expectations range for the full year 2023.

The adjusted EBITDA and cash available for distribution contribution from existing projects declined by approximately $99 million and $39 million, respectively, primarily driven by a large swing in year over year wind resource.

Additional details are shown on the accompanying slide.

From a base of our fourth quarter 2022 distribution per common unit at an annualized rate of $3 25.

This quarter was the lowest second quarter of wind resource on record over the past 30 years, while last year was the highest.

We continue to see 12% to 15%.

Growth per year in LP distributions per unit as being a reasonable range of expectations through at least 2026.

New projects contributed approximately $49 million of adjusted EBITDA and $5 million of cash available for distribution.

However, as we've previously shared with you we expect to grow at or near the bottom end of that range.

Kirk Crews: Our first question will come from Steve Fleischmann with Wolfe Research. You may now go ahead. Yeah. Hey, good morning. Thanks. Hope you're all well. So a couple first, just on the quarter, the customer supply trading business continues to do well, and you mentioned higher margins. I think Constellation's been talking about that too. Could you just talk more about what you think is driving that in the supply business? Yeah, sure. Steve, this is John Ketchum, and good morning to you as well. In the customer supply and trading business, we've just seen a lot less competition, number one.

Kirk Crews: Our first question will come from Steve Fleischmann with Wolfe Research. You may now go ahead.

For 2023, we expect the annualized rate of the fourth quarter 2023 distribution that is payable in February of 2024 to be in a range of $3 64 to.

Kirk Crews: Yeah. Hey, good morning. Thanks. Hope you're all well. So a couple first, just on the quarter, the customer supply trading business continues to do well, and you mentioned higher margins. I think Constellation's been talking about that too. Could you just talk more about what you think is driving that in the supply business?

To $3 74 per common unit.

As we previously shared we expect strong double digit growth in the second half of the year adjusted EBITDA and cash available for distribution to support next era energy partners LP distribution per unit growth expectations range for the full year of 2023.

Nextera Energy partners continues to expect run rate contributions for adjusted EBITDA and cash available for distribution and it's forecasted portfolio at December 31, 2023 to be in the ranges of $2 two to 2.42 billion.

John Ketchum: Yeah, sure. Steve, this is John Ketchum, and good morning to you as well. In the customer supply and trading business, we've just seen a lot less competition, number one.

And $770 million to $860 million respectively.

Additional details are shown on the accompanying slide.

From a base of our fourth quarter 2022 distribution per common unit at an annualized rate of $3 25.

As a reminder, year end 2023 run rate projections reflect calendar year 2020 for contributions from the forecasted portfolio at year end 2023.

We continue to see 12% to 15% growth per year in LP distributions per unit as being a reasonable range of expectations through at least 2026. However.

Kirk Crews: And number two, remember, most of the business activity that we do in that group is customer-facing business, our full requirements business, for example, where we're working with municipalities and cooperatives to help provide their power needs and arrange the capacity, ancillaries, and other regulatory requirements they need to manage their business, particularly up in the Northeast. That business, because it's had a lot less competition, has benefited from significant margins. And one of the points I want to make is these arrangements that we enter into in the full requirements business are typically two or three years, and we're immediately going out back-to-back hedging those positions. So feel great about the risk profile and, again, terrific margins that really match up well with our skill sets, our competitive advantages, and our core operations. So that's really the main driver.

John Ketchum: And number two, remember, most of the business activity that we do in that group is customer-facing business, our full requirements business, for example, where we're working with municipalities and cooperatives to help provide their power needs and arrange the capacity, ancillaries, and other regulatory requirements they need to manage their business, particularly up in the Northeast. That business, because it's had a lot less competition, has benefited from significant margins. And one of the points I want to make is these arrangements that we enter into in the full requirements business are typically two or three years, and we're immediately going out back-to-back hedging those positions. So feel great about the risk profile and, again, terrific margins that really match up well with our skill sets, our competitive advantages, and our core operations. So that's really the main driver.

As always our expectations are subject to our usual caveat, including normal weather and operating conditions.

In summary, we believe that Nextera energy and Nextera energy partners are well positioned to continue delivering long term value for shareholders and unit holders.

However, as we previously shared with you we expect to grow at or near the bottom end of that range for.

For 2023, we expect the annualized rate of the fourth quarter 2023 distribution that is payable in February of 2024 to be in a range of $3 64 to.

Nextera energy the plan is simple our two businesses are deploying capital in renewables and transmission for the benefit of customers, providing visible growth opportunities for shareholders.

To $3 74 per common unit.

Nextera Energy partners continues to expect run rate contributions for adjusted EBITDA and cash available for distribution is forecasted portfolio at December 31, 2023 to be in the ranges of two two to 2.42 billion.

At FPL, we are executing on our well established capital investment plan, which allows us to extend our customer value proposition.

Florida's strong population growth drives smart capital investment and running the business efficiently allows us to manage costs for the benefit of both customers and shareholders.

And $770 million to $860 million respectively.

As a reminder, year end 2023 run rate projections reflect calendar year 2020 for contributions from the forecasted portfolio at year end 2023.

PL comprises more than two thirds of Nextera Energy's business.

And provides a significant amount of visibility into capital deployment and earnings growth.

At energy resources, we are leveraging our more than 20 years of experience and competitive advantages to grow our market share and add to our now roughly 20 gigawatt backlog, providing terrific growth visibility through 2026, we.

As always our expectations are subject to our usual caveat, including normal weather and operating conditions.

In summary, we believe that Nextera energy and Nextera energy partners are well positioned to continue delivering long term value for shareholders and unitholders.

Kirk Crews: I also want to remind folks that when you think about our customer and supply business, we run it at a very, very low bar. For example, the last quarter, we ran that business roughly at a 2% bar. So it's very, very small business, risk exposure overall for NEE. Okay. Next question just on. Steve, one other point I want to make too on the customer supply business is that that business, historically, you can go back 10 years, and the customer supply and trading business, including this year, has never contributed more than 10% of NextEra Energy's net income. I think that's important to keep in mind as well. We have a lot of complementary businesses. Obviously, FPL has done well. We have other complementary businesses at Energy Resources on top of our renewable business.

John Ketchum: I also want to remind folks that when you think about our customer and supply business, we run it at a very, very low bar. For example, the last quarter, we ran that business roughly at a 2% bar. So it's very, very small business, risk exposure overall for NEE. Okay. Next question just on. Steve, one other point I want to make too on the customer supply business is that that business, historically, you can go back 10 years, and the customer supply and trading business, including this year, has never contributed more than 10% of NextEra Energy's net income. I think that's important to keep in mind as well. We have a lot of complementary businesses. Obviously, FPL has done well. We have other complementary businesses at Energy Resources on top of our renewable business.

We believe these competitive advantages will enable energy resources to serve power commercial and industrial and eventually hydrogen customers.

Nextera energy the plan is simple our two businesses are deploying capital in renewables and transmission for the benefit of customers, providing visible growth opportunities for shareholders.

With an opportunity set of $20 billion of capital investment required more than 15, Gigawatts of new renewables energy resources is well positioned to be green hydrogen partner of choice essentially creating new opportunities towards the end of the decade.

At FPL, we are executing on our well established capital investment plan, which allows us to extend our customer value proposition.

Florida's strong population growth drives smart capital investment and running the business efficiently allows us to manage costs for the benefit of both customers and shareholders.

And next LNG partners, we're executing on our plans to sell our natural gas pipelines and simplify the business we.

We continue to add to our renewables and storage portfolio, which now stands at over 10000 megawatts with the sale that Texas natural gas pipeline portfolio expected to be completed by the end of the year.

<unk> comprises more than two thirds of Nextera Energy's business and provides a significant amount of visibility into capital deployment and earnings growth.

At energy resources, we are leveraging our more than 20 years of experience competitive advantages to grow our market share and add to our now roughly 20 gigawatt backlog, providing terrific growth visibility through 2026.

Nextera energy partners remains on track to transition to a 100% pure play renewables company, while continuing to deliver LP distribution per unit growth for unit holders with that we're happy to answer your questions.

We believe these competitive advantages will enable energy resources to serve our.

Yes.

Kirk Crews: But that business has always stayed under 10%, and that's one of the commitments that we make to the rating agencies. And that's true this year as well. Okay. Great. Maybe just the latest you're hearing on the green hydrogen rules from Treasury, both kind of timing and any color on where they are on some of the key issues like matching and additionality. Thanks. Yeah. We have been very vocal around the hydrogen regulations that need to come together. And there's been a debate, for those that aren't familiar with it, between whether we have hourly matching or annual matching. And for us, it's very simple. As part of a hydrogen project, you buy an expensive asset called an electrolyzer, which everyone is familiar with.

John Ketchum: But that business has always stayed under 10%, and that's one of the commitments that we make to the rating agencies. And that's true this year as well.

We will now begin the question and answer session.

<unk> and industrial and eventually hydrogen customers.

To ask a question press Star then one on your Touchtone phone.

With an opportunity set of $20 billion of capital investment required more than 15 Gigawatts of new renewables energy resources is well positioned to beat green hydrogen partner of choice potentially creating new opportunities towards the end of the decade.

If you're using a speakerphone please pick up your handset before pressing the keys.

Steve Fleishman: Okay. Great. Maybe just the latest you're hearing on the green hydrogen rules from Treasury, both kind of timing and any color on where they are on some of the key issues like matching and additionality. Thanks.

To withdraw from the question queue. Please press Star then two.

At this time, we will pause momentarily to assemble our roster.

And next LNG partners, we are executing on our plans to sell our natural gas pipelines and simplify the business we.

Our first question will come from Steve.

Policemen with Wolfe research.

You May now go ahead.

Yeah, Hey, good morning. Thanks.

John Ketchum: Yeah. We have been very vocal around the hydrogen regulations that need to come together. And there's been a debate, for those that aren't familiar with it, between whether we have hourly matching or annual matching. And for us, it's very simple. As part of a hydrogen project, you buy an expensive asset called an electrolyzer, which everyone is familiar with.

Hope you're all well.

So a couple first just on the quarter the customer.

Supply trading business continues to do well and you mentioned higher margins I think constellation has been talking about that too could you just talk.

More about what what do you think is driving that.

The supply business.

Yes sure Steve This is.

This is John Ketchum, and good morning to you as well.

Kirk Crews: And if you have hourly matching, the net capacity factor, the number of hours a day that you use that electrolyzer are probably less than half a day in most parts of the country. If you have an annual construct, we're able to use that electrolyzer around the clock. And so it's really easy math. I mean, when you have an expensive capital asset and you can use it around the clock, the price of green hydrogen is going to be a lot lower if you can only use it less than half the time. And so the industry has come forward with a very constructive proposal, which would have the hourly matching construct not kick in until 2028. You'd have annual until that time period. And we also have supported the fact that you have to have additionality if you're going to qualify for annual.

John Ketchum: And if you have hourly matching, the net capacity factor, the number of hours a day that you use that electrolyzer are probably less than half a day in most parts of the country. If you have an annual construct, we're able to use that electrolyzer around the clock. And so it's really easy math. I mean, when you have an expensive capital asset and you can use it around the clock, the price of green hydrogen is going to be a lot lower if you can only use it less than half the time. And so the industry has come forward with a very constructive proposal, which would have the hourly matching construct not kick in until 2028. You'd have annual until that time period. And we also have supported the fact that you have to have additionality if you're going to qualify for annual.

We will now begin the question and answer session.

And the customer supply and trading business, we've just seen a lot less competition number one.

To ask a question press Star then one on your Touchtone phone.

It's using a speakerphone please pick up your handset before pressing the keys.

And number two remember a lot of most of the business activity that we do in that group is customer facing business.

To withdraw from the question queue. Please press Star then two.

At this time, we will pause momentarily to assemble our roster.

Our full requirements business for example, we're working with municipalities.

Our first question will come from Steve.

Policemen with Wolfe research.

Cooperatives to help provide their power needs and arrange the capacity and ancillary.

You May now go ahead.

Yeah, Hey, good morning. Thanks.

Hope you're all well.

In other regulatory requirements that need to manage their business, particularly up in the northeast.

Yes.

So a couple first just on the quarter the customer.

That business is because it's had a lot less competition.

<unk> trading business continues to do well and you mentioned higher margins I think.

It has benefited from significant margins and.

Constellation has been talking about that too could you just talk.

Please one of the points I want to make is.

More about what you think is driving that.

<unk>.

The supply business.

Arrangements that we enter into in the full requirements business.

Yes sure Steve This is a this.

This is John Ketchum, and good morning to you as well.

Are typically two or three years, and we're immediately going back to back hedging those physicians, so feel great about the risk profile and again terrific margins that really match up well with our skill sets are competitive advantages.

Kirk Crews: So if you're qualifying for annual in the hours that the wind is not blowing or the sun is not shining, the power, the electrolyzer behind the meter, and you are buying off the grid, well, you're buying from an additional renewable asset that has been constructed and developed to provide electrons to that newly built hydrogen facility. So from an NGO perspective, you're getting additional decarbonization benefits on the grid. So we think we've been very constructive in what we have come forward with. We think it's really important because we want to send the right price signal to OEMs to ramp up production on electrolyzers because electrolyzers being produced at scale is going to be critically important to declines in green hydrogen prices over time. And so that's where we are in terms of your question around timing. We expect Treasury to probably come out with regulations now.

John Ketchum: So if you're qualifying for annual in the hours that the wind is not blowing or the sun is not shining, the power, the electrolyzer behind the meter, and you are buying off the grid, well, you're buying from an additional renewable asset that has been constructed and developed to provide electrons to that newly built hydrogen facility. So from an NGO perspective, you're getting additional decarbonization benefits on the grid. So we think we've been very constructive in what we have come forward with. We think it's really important because we want to send the right price signal to OEMs to ramp up production on electrolyzers because electrolyzers being produced at scale is going to be critically important to declines in green hydrogen prices over time. And so that's where we are in terms of your question around timing. We expect Treasury to probably come out with regulations now.

And the customer supply and trading business, we've just seen a lot less competition number one.

And number two remember a lot of most of the business activity that we do in that group is customer facing business.

And our core operations.

So that's really the main driver and I also want to remind folks. So when you think about our customer.

Our full requirements business for example, we're working with municipalities.

Cooperatives to help provide their power needs in a range the capacity and ancillary.

Supply business.

We run it at a very very low vol. For example, the last quarter, we ran that business.

Other regulatory requirements that need to manage their business, particularly up in the northeast.

Roughly.

At a 2% bar so its very very small business.

That business is because it's had a lot less competition.

Risk exposure overall.

It has benefited from significant margins and.

For PMI.

Okay.

Please one of the points I want to make is.

Okay.

Next question.

One other one other point I want to make too on the customer supply business is that that business.

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Arrangements that we enter into in the full requirements business are typically two or three years and we're immediately going to back to back hedging those positions. So feel great about the risk profile and again terrific margins that really match up well with our skill sets are competitive advantages.

Historically, you can go back 10 years, and the customer supply and trading business, including this year has never contributed more than 10% of Nextera Energy's.

Kirk Crews: We're hoping for August, but it's starting to sound more like September or October. But again, we have built a significant hydrogen pipeline. Parts of it work under either construct, and that pipeline is well over $20 billion. And we have the land team out, and we've had them out very aggressively lining up land positions for our hydrogen portfolio. That the nice thing about that, and Kirk said it in the remarks, that pipeline's about 250 gigawatts when you include early due diligence sites. Nobody in our industry has a pipeline like that. Nobody. And what's terrific about it is it can be used for dual purpose because hydrogen customers are just a third customer class to sell renewables to. So if the site doesn't work for hydrogen, it will work for our power C&I customers.

John Ketchum: We're hoping for August, but it's starting to sound more like September or October. But again, we have built a significant hydrogen pipeline. Parts of it work under either construct, and that pipeline is well over $20 billion. And we have the land team out, and we've had them out very aggressively lining up land positions for our hydrogen portfolio. That the nice thing about that, and Kirk said it in the remarks, that pipeline's about 250 gigawatts when you include early due diligence sites. Nobody in our industry has a pipeline like that. Nobody. And what's terrific about it is it can be used for dual purpose because hydrogen customers are just a third customer class to sell renewables to. So if the site doesn't work for hydrogen, it will work for our power C&I customers.

Net income and.

<unk>.

And our core operations.

I think that's important to keep in mind as well we run our we have a lot of complementary businesses. Obviously FPL has done well we have other complementary businesses that energy resources on top of our renewable business, but that business is always stayed.

So that's really the main driver and I also want to remind folks that when you think about our customer and.

And supply business, we run it at a very very low vol. For example, the last quarter, we ran that business.

Under 10% and that's one of the commitments that we make to the rating agencies.

Roughly.

At a 2% bar so its very very small business.

And that's true this year as well.

Risk exposure overall.

Okay great.

Just maybe just the latest you are hearing on the hydrogen green hydrogen rules from treasury, both kind of timing and any color of.

For for PMI.

Okay.

Question one.

One other one other point I want to make too on the customer supply business is that that business.

Where they are on some of the key.

Issues like matching and additionality. Thanks.

<unk> you can go back 10 years, and the customer supply and trading business, including this year has never contributed more than 10% of Nextera Energy's.

We have been very vocal.

And the hydrogen regulations that debt that need to come together and there's been a debate.

Kirk Crews: So I feel like we're really well positioned, and hydrogen is one of those things that can really provide a nice boom to the development expectations that we've already laid out for you. So we're eager to see what the final regulations say. But I also want to remind folks that hydrogen has a long development cycle, so the contribution that we'll see from hydrogen investments, you would expect over the latter part of the decade. Okay. Last question just on the Texas sale. So I think you said you still expect to get it done by year-end. When would you need to or expect to or need to kind of announce transaction to make the year-end? And just how should we think about the recent data points we've seen, like the TransCanada, the TC sell-down, Columbia sell-down, and Cove Point?

John Ketchum: So I feel like we're really well positioned, and hydrogen is one of those things that can really provide a nice boom to the development expectations that we've already laid out for you. So we're eager to see what the final regulations say. But I also want to remind folks that hydrogen has a long development cycle, so the contribution that we'll see from hydrogen investments, you would expect over the latter part of the decade.

Net income and I think that's important to keep in mind as well we run our we have a lot of complementary businesses. Obviously FPL has done well we have other complementary businesses that energy resources on top of our renewable business, but that business is always stayed.

For those that are familiar with it between whether we have hourly matching or annual matching.

And for US, it's very simple as part of hydrogen project you buy an expensive asset call then electrolyze youre, which everyone is familiar with and if you have hourly matching the net capacity factor the number of hours a day that you use that electrolyze or are probably less than half a day in most parts.

Under 10% and that's one of the commitments that we make to the rating agencies.

And that's true this year as well.

Steve Fleishman: Okay. Last question just on the Texas sale. So I think you said you still expect to get it done by year-end. When would you need to or expect to or need to kind of announce transaction to make the year-end? And just how should we think about the recent data points we've seen, like the TransCanada, the TC sell-down, Columbia sell-down, and Cove Point?

Of the country.

Okay great.

If you have an annual construct we're able to use that electrolyze or around the clock and so it's really easy math I mean, when you have an expensive capital asset and you can use it around the clock the price of green hydrogen is going to be a lot lower if you can only use it less than half the time and so.

Just maybe just the latest you are hearing on the hydrogen green hydrogen rules from treasury, both kind of timing.

Timing and any color of where.

Where they are and some of the key.

Issues like matching and additionality. Thanks, yes.

The industry has come forward with a very constructive proposal, which would have.

Yes, we are.

<unk> been very vocal.

Around the hydrogen regulations that debt that need to come together and there's been a debate.

The hourly matching construct not kick in until 2028 you'd have annual until.

Kirk Crews: I know they're different assets, but just in the context of views on valuation of NET. Thank you. Yeah. Thank you, Steve. So let me take those in order. So in terms of timing, we would hope to be in a position end of Q3, early Q4 in order to support that end-of-the-year sales timeline that we have earmarked. In terms of valuation, we view these assets as unique. Again, as a reminder, the Texas pipelines provide 25% of the natural gas supply to Mexico through contracts with Pemex. And the other pipeline assets that support the Texas pipeline are fully integrated with that pipe. And they provide gas to Mexico through Agua Dulce, which is a very liquid trading point. And if you look around that area, these are very, very strategic for a number of players.

Steve Fleishman: I know they're different assets, but just in the context of views on valuation of NET. Thank you.

For those that are familiar with it between whether we have hourly matching or annual matching.

John Ketchum: Yeah. Thank you, Steve. So let me take those in order. So in terms of timing, we would hope to be in a position end of Q3, early Q4 in order to support that end-of-the-year sales timeline that we have earmarked. In terms of valuation, we view these assets as unique. Again, as a reminder, the Texas pipelines provide 25% of the natural gas supply to Mexico through contracts with Pemex. And the other pipeline assets that support the Texas pipeline are fully integrated with that pipe. And they provide gas to Mexico through Agua Dulce, which is a very liquid trading point. And if you look around that area, these are very, very strategic for a number of players.

That time period and.

And for US, it's very simple as part of hydrogen project you buy an expensive asset called an electrolyzed youre, which everyone is familiar with and if you have hourly matching the net capacity factor the number of hours a day that you use that electrolyze or are probably less than half a day in most parts.

We also have supported the fact that you have to have additionality, if youre going to qualify for annually. So if you are qualifying for annual and the hours that the wind is not blowing or the sun is not shining the power the electrolyze or <unk>.

Behind the meter and you are buying off the grid, while you're buying from an additional renewable asset that has been.

Of the country.

If you have an annual construct we're able to use that electrolyze or around the clock and so it's really easy math I mean, when you have an expensive capital asset.

Constructed and develops.

To provide electrons to that.

You can use it around the clock the price of green hydrogen is going to be a lot lower if you can only use it less than half the time and so the.

<unk> built hydrogen facility so from an NGL perspective, you're getting additional de carbonization benefits on the grid. So we think we've been very constructive.

The industry has come forward with a very constructive proposal, which would have.

We have come forward with we think it's really important because we want to send the right price signal to Oems to ramp up production on Electrolyze, others. Because electrolyze is being produced at scale is going to be critically important to declines in green hydrogen prices.

Yeah.

The hourly matching construct not kick in until 2028 you'd have annual until you know.

That time period and.

We also have supported the fact that you have to have additionality, if youre going to go qualify for annually. So if you are qualifying for annual and the hours that the wind is not blowing or the sun is not shining and the power the electrolyze or <unk>.

Kirk Crews: So again, as you all know, it's hard to compare one pipe comp to another. But again, we remain pleased with the progress that we continue to make on the sales transaction. Okay. Great. Thank you. Thank you, Steve. Oh, and Steve, I think I said 2% on the VAR. I meant 2 million on the VAR for PMI, just to correct that. Thank you. Our next question will come from Shahriar Pourreza with Guggenheim Partners. You may now go ahead. Hey, good morning, guys. Morning, Shar. Good morning. Let me just, as we kind of look at the latest renewable portfolio transactions, the valuations have come in fairly noticeably.

John Ketchum: So again, as you all know, it's hard to compare one pipe comp to another. But again, we remain pleased with the progress that we continue to make on the sales transaction.

Over time, and so that's where we are in terms of your question around timing.

We.

<unk>.

Treasury to probably come out with regulations now we're hoping for August , but it's starting to sound more like.

Steve Fleishman: Okay. Great. Thank you.

Behind the meter and you are buying off the grid, while you're buying from an additional renewable asset that has been <unk>.

John Ketchum: Thank you, Steve. Oh, and Steve, I think I said 2% on the VAR. I meant 2 million on the VAR for PMI, just to correct that.

September or October .

But again, we have built up significant hydrogen pipeline.

Constructed and develops.

To provide electrons to that.

Steve Fleishman: Thank you.

Parts of it work on the either construct and.

Operator: Our next question will come from Shahriar Pourreza with Guggenheim Partners. You may now go ahead.

<unk> built hydrogen facility so from an NGL perspective, you're getting additional de carbonization benefits on the grid. So we think we've been very constructive and what we have come forward with we think it's really important because we want to send the right price signal to Oems to ramp.

That pipeline is well over $20 billion and we have the land team out and we've had them out very aggressively lining up.

Shar Pourreza: Hey, good morning, guys.

John Ketchum: Morning, Shar.

Land positions for our hydrogen.

Shar Pourreza: Good morning. Let me just, as we kind of look at the latest renewable portfolio transactions, the valuations have come in fairly noticeably.

Portfolio that.

The nice thing about that Kirk said it in the remarks that pipeline is now about 250 Gigawatts. When you include early due diligence sites nobody in our industry has a pipeline like that nobody.

Production on Electrolyze, others, because electrolyze is being produced at scale is going to be critically important to declines in green hydrogen prices.

Kirk Crews: Do you guys see any opportunities to kind of leverage NextEra's platform and either picking up existing assets or developer books, especially sort of given what seems to still be a tight financing and supply chain position for some of your competitors while you're seeing improvements with yours, right? Yeah, we are. I mean, first of all, let me just comment on the valuations that you see. I mean, I think that, look, I'm not going to be critical of some of the assets that have come to sale. But if you read between the lines and into the details of the structures of those transactions, those are not what I would characterize as high-quality renewable assets. When you look back at what we have developed over the last 20 years and what we continue to develop are very high-quality renewable assets. Most of them are busbar.

Shar Pourreza: Do you guys see any opportunities to kind of leverage NextEra's platform and either picking up existing assets or developer books, especially sort of given what seems to still be a tight financing and supply chain position for some of your competitors while you're seeing improvements with yours, right?

And.

And what's terrific about it is it can be used for dual purpose, because hydrogen customers or just a third customer class to sell renewables too. So the site doesn't work for.

Over time, and so that's where we are in terms of your question around timing.

We expect.

John Ketchum: Yeah, we are. I mean, first of all, let me just comment on the valuations that you see. I mean, I think that, look, I'm not going to be critical of some of the assets that have come to sale. But if you read between the lines and into the details of the structures of those transactions, those are not what I would characterize as high-quality renewable assets. When you look back at what we have developed over the last 20 years and what we continue to develop are very high-quality renewable assets. Most of them are busbar.

Treasury to probably come out with regulations now we're hoping for August , but it's starting to sound more like <unk>.

Hydrogen for work.

For our power C&I customers, so feel like we're really well positioned and hydrogen.

September or October .

But again, we have built.

<unk> is one of those things that can really provide.

Significant hydrogen pipeline.

A nice boon.

Parts of it.

<unk> to.

Work on the either construct and.

The development expectations that we've already laid out for you. So we're eager to see what the final regulations say, but I also want to remind folks that hydrogen is a long development cycle. So the contribution that we'll see from hydrogen investments you would expect over the latter part of the decade.

That pipeline is well over $20 billion and we have the land team out and we've had them out very aggressively lining up.

Land positions for our hydrogen.

Portfolio that.

The nice thing about that and which Kirk said it in the remarks that pipeline is now about 250 Gigawatts. When you include early due diligence sites nobody in our industry has a pipeline like that nobody.

Okay.

Kirk Crews: They're with high-credit counterparty off-takers. They're well-situated in areas that benefit from our data analytics around transmission congestion, wind resource, solar resource. Because we have 20 years of experience, I like to believe, and look, we're not perfect, but we don't make some of the same mistakes that you see some of the other developers make. So I feel like we're much better positioned. Our portfolio is in much better position than some of the other players that you have seen. So I'd be very, very careful in how you assess portfolio to portfolio because they're very, very different. The second thing I would say is we look at all third-party M&A opportunities that come available, and we feel like we do have all the competitive advantages, some of which you mentioned. We buy cheap, we build cheap, we operate cheap, we have a cost-to-capital advantage.

John Ketchum: They're with high-credit counterparty off-takers. They're well-situated in areas that benefit from our data analytics around transmission congestion, wind resource, solar resource. Because we have 20 years of experience, I like to believe, and look, we're not perfect, but we don't make some of the same mistakes that you see some of the other developers make. So I feel like we're much better positioned. Our portfolio is in much better position than some of the other players that you have seen. So I'd be very, very careful in how you assess portfolio to portfolio because they're very, very different. The second thing I would say is we look at all third-party M&A opportunities that come available, and we feel like we do have all the competitive advantages, some of which you mentioned. We buy cheap, we build cheap, we operate cheap, we have a cost-to-capital advantage.

Last question just on.

The Texas sales. So I think you said you still expect to get it done by year end window when would that.

When would you need to or expect to or need to kind of announce transaction to make the year and then and just how should we think about.

And.

And what's terrific about it is it can be used for dual purpose, because hydrogen customers or just a third customer class to sell renewables too. So the site doesn't work for.

The recent data points, we've seen like the Trans Canada.

The TCE sell down Columbia sell down in Cove point, I know they are different assets, but just in the context of.

Hydrogen for work.

For our power C&I customers, so feel like we're really well positioned and hydrogen viewed as one of those things that can really provide.

Views on valuation of of any any thank you.

Yes. Thank you Steve So let me let me take those.

A nice boon.

And orders so in terms of timing.

<unk> to.

We would hope to be in a position.

End of the third quarter early fourth quarter.

In order to support that end of the year sales timeline that we have.

Earmarked in terms of valuation we view these assets as unique.

Okay.

Kirk Crews: We have a terrific team that really understands how to optimize the value of existing assets. That's the key piece. Repowering assets is something we've always had a very strong track record at. It's something that the rest of the industry has struggled with, and that gives us a real leg up in terms of being able to see value that others don't. And then, as Kirk mentioned on the call today, we have a benefit and an organic asset that nobody else has, which is the largest fleet in North America that we operate. And so we have the ability not only to repower those existing assets but to find ways to pair them up with storage and take advantage of the standalone storage ITC. As you all know, storage used to only be a unique opportunity to pair with solar.

John Ketchum: We have a terrific team that really understands how to optimize the value of existing assets. That's the key piece. Repowering assets is something we've always had a very strong track record at. It's something that the rest of the industry has struggled with, and that gives us a real leg up in terms of being able to see value that others don't. And then, as Kirk mentioned on the call today, we have a benefit and an organic asset that nobody else has, which is the largest fleet in North America that we operate. And so we have the ability not only to repower those existing assets but to find ways to pair them up with storage and take advantage of the standalone storage ITC. As you all know, storage used to only be a unique opportunity to pair with solar.

Last question just on.

As a reminder of the Texas pipelines provide.

Texas sales. So I think you said you.

Provide 25% of the natural gas play.

We'll expect to get it done by year end when do when would that.

Natural gas supply to Mexico.

When would you need to or expect to or need to kind of announce transaction to make the year and then.

Through contracts with with Pemex and.

Just how should we think about.

The other pipeline assets that support.

The recent data points, we've seen like the Trans Canada.

The Texas pipeline are fully integrated with our pipe and.

The TCE sell down Columbia sell down and co point I know, there's different assets, but just in the context of.

They provide gas to Mexico, Australia, with Dolce, which is a very liquid trading points and if you look around that area.

Views on valuation of of any NTT. Thank you.

Yes. Thank you Steve So let me let me take those.

We are very very strategic for us.

And orders so in terms of timing.

For a number of players so.

Again as you all know it's hard to it's hard to compare one pipe comp to another.

We would hope to be in a position.

End of the third quarter early fourth quarter.

But again.

You know in order to support that end of the year sales timeline that we have.

We remain.

Pleased with the progress that we continue to make them.

On the sales transaction.

Earmarked in terms of valuation we view these assets as unique.

Kirk Crews: The rules have changed with the standalone storage ITC under IRA. So now we can pair it with wind. We can build it standalone. We're making a lot of progress in that area. We announced one project today where we're starting to see an opportunity, particularly in MISO, SPP, and ERCOT, where capacity values and reliability are being priced higher than we've seen them in the past, given some of the shortfalls that they have in those markets. And that just happens to coincide with where most of our wind is. And given the massive existing fleet that we have, which very importantly includes an existing interconnection agreement, our ability to go and pair those assets up with solar or to repower them is unique in this industry, given the two-decade head start that we have.

John Ketchum: The rules have changed with the standalone storage ITC under IRA. So now we can pair it with wind. We can build it standalone. We're making a lot of progress in that area. We announced one project today where we're starting to see an opportunity, particularly in MISO, SPP, and ERCOT, where capacity values and reliability are being priced higher than we've seen them in the past, given some of the shortfalls that they have in those markets. And that just happens to coincide with where most of our wind is. And given the massive existing fleet that we have, which very importantly includes an existing interconnection agreement, our ability to go and pair those assets up with solar or to repower them is unique in this industry, given the two-decade head start that we have.

Okay, great. Thank you.

Thank you Steve.

As a reminder of the Texas pipelines provide.

I'll, let Steve I think I said, 2% on the <unk> $2 million for PMI just to correct that.

Provide 25% of the natural gas plays.

Our gas supply to Mexico.

Thank you.

You know through contracts with with Pemex and.

Our next question will come from Shar, Peru, Puza with Guggenheim partners.

The other pipeline assets that support that.

You May now go ahead.

The Texas pipeline are fully integrated with our pipe and.

Hey, good morning, guys.

Good morning Shar.

They provide gas to Mexico, Australia, with Dolce, which is a very liquid trading points and if you look around that area. These are very very strategic for us.

Good morning, let me just as we kind of look at the latest renewable portfolio transactions the valuations have come in fairly noticeably.

Do you guys seeing any opportunities to kind of leverage nears platform in either picking up the existing assets and develop our books, especially sort of given.

For a number of players so.

Again as you all know it's hard to it's hard to compare one pipe comp to another.

Which seems to still be a tight financing and supply chain position for some of your competitors, while youre seeing improvements with yours right.

But again.

We remain.

Pleased with the progress that we continue to make them.

Kirk Crews: So that's a value that we try to bring to M&A opportunities as well when we exercise our other competitive advantages, including our cost-to-capital advantage. Got it. Perfect. Then, John, it's been a little bit quiet and hasn't really been a focus for a lot of investors. But is there any sort of updates around the FEC case as of today? Any change in stances indicated by the disclosures and the opportunities to settle? Thanks. Yeah. Thank you, Shar, for the question. No new developments. There's really no new news there. Again, we would expect, just based on historical precedent with the FEC, that we would hear back whether they have a reasonable belief that they should investigate probably sometime in Q1 2024. Perfect. Thank you, guys. Appreciate it. Thanks for the time. Fantastic. Appreciate it. Thank you, Shar.

John Ketchum: So that's a value that we try to bring to M&A opportunities as well when we exercise our other competitive advantages, including our cost-to-capital advantage.

On the sales transaction.

Yes, we are I mean first of all let me just comment on the on the valuations that you see I mean I think that.

Okay, great. Thank you.

Thank you Steve.

I'll, let Steve I think I said, 2% on the volume at 2 million tonnes of ore for PMI just to correct that.

Shar Pourreza: Got it. Perfect. Then, John, it's been a little bit quiet and hasn't really been a focus for a lot of investors. But is there any sort of updates around the FEC case as of today? Any change in stances indicated by the disclosures and the opportunities to settle? Thanks.

Look I'm not going to be critical of some of the some of the assets that have come in sale, but.

If you read through it.

Thank you.

Through the lines and the end of the details of the structures of those transactions. Those are are not characterized as high quality renewable assets. When you look back at what we have developed over the last 20 years and what we continue to develop our very high quality renewable assets. Most of them are bus bar there with.

Our next question will come from Shar, Peru, Puza with Guggenheim partners.

You May now go ahead.

Hey, good morning, guys.

Good morning Shar.

John Ketchum: Yeah. Thank you, Shar, for the question. No new developments. There's really no new news there. Again, we would expect, just based on historical precedent with the FEC, that we would hear back whether they have a reasonable belief that they should investigate probably sometime in Q1 2024.

Good morning, let me just as we kind of look at the latest renewable portfolio transactions the valuations have come in fairly noticeably.

Hi, credit counterparty off takers, they're well situated in areas that benefit from our data analytics around transmission congestion wind resource solar resource because we have 20 years of experience I like to believe in <unk>.

Do you guys see any opportunities to kind of leverage nearest platform another picking up the existing assets or developer books, especially sort of given.

Which seems to still be a tight financing and supply chain positioned for some of your competitors, while youre seeing improvements with yours right.

Shar Pourreza: Perfect. Thank you, guys. Appreciate it. Thanks for the time. Fantastic. Appreciate it.

Perfect.

We don't make some of the same mistakes that you see some of the other.

John Ketchum: Thank you, Shar.

Developers.

Yes, we are I mean first of all let me just comment on the on the valuations that you see I mean I think that.

Make and so I feel like we're much better positioned our portfolio is a much better position than some of the other.

Kirk Crews: Our next question will come from Julien Dumoulin-Smith with Bank of America. You may now go ahead. Hey, good morning, John. Good morning, team. Thank you, guys, very much. So I wanted to come back to the cadence of the backlog conditions and just looking at 2023, 2024 versus 2025, 2026 there. Can you talk a little bit about what you're seeing out there in terms of the ability to execute in kind of the nearer-term sense to execute against that first bucket versus the latter here? And especially give us a little bit of an update on IRS clarity and what that means for the willingness to commit to close on contracts here, especially maybe now that you have that in hand on transferability, etc. How do you think about maybe biasing towards the later years there, just given where we stand already? Yeah. Good question, Julien.

Operator: Our next question will come from Julien Dumoulin-Smith with Bank of America. You may now go ahead.

I'm not going to be critical of some of the some of the assets that are coming to sale, but.

Julien Dumoulin-Smith: Hey, good morning, John. Good morning, team. Thank you, guys, very much. So I wanted to come back to the cadence of the backlog conditions and just looking at 2023, 2024 versus 2025, 2026 there. Can you talk a little bit about what you're seeing out there in terms of the ability to execute in kind of the nearer-term sense to execute against that first bucket versus the latter here? And especially give us a little bit of an update on IRS clarity and what that means for the willingness to commit to close on contracts here, especially maybe now that you have that in hand on transferability, etc. How do you think about maybe biasing towards the later years there, just given where we stand already?

Markers that you have seen so I'd be very very careful in how you assess portfolio the portfolio because they're very very different the second thing I would say is we.

If you read through.

Through the lines at the end of the details of the structures of those transactions those are.

We look at all third party M&A opportunities that come available and we feel like we do have all the competitive advantages.

I would characterize as high quality renewable assets. When you look back at what we have developed over the last 20 years and what we continue to develop our very high quality renewable assets. Most of them are bus bar there with high credit counter party off takers, they're well situated in there.

Some of which you mentioned and we buy cheaper we build cheaper we operate cheaper we have a cost of capital advantage we have.

A terrific team that rig.

Really understands how to optimize the value of existing assets, that's the key piece.

Areas of benefit from our data analytics around transmission congestion wind resource solar resource because we have 20 years of experience I like to believe in.

Repowering assets is something we've always had a very strong track record and it's something that the rest of the industry has struggled with and that gives us a real leg up in terms of.

John Ketchum: Yeah. Good question, Julien.

Perfect but.

Kirk Crews: So let me just start with take that in chunks because everyone knows our development expectations are 2023 to 2026. So let's just start with the first two years, and then we'll talk about the second two years. So for 2023 through 2024, we're in great shape. We're already within the range as we had expected to be. And then on 2025 and 2026, if you go back to the beginning of 2022 and you add up where we are today, we've already added 12GW just in the last six quarters. That puts us in great shape against 2025 and 2026 because now we have 15GW to get to the midpoint. And if you kind of work backwards from 2026, that's three and a half years to get 15GW. So we feel like we are really in great position and on track on that build.

John Ketchum: So let me just start with take that in chunks because everyone knows our development expectations are 2023 to 2026. So let's just start with the first two years, and then we'll talk about the second two years. So for 2023 through 2024, we're in great shape. We're already within the range as we had expected to be. And then on 2025 and 2026, if you go back to the beginning of 2022 and you add up where we are today, we've already added 12GW just in the last six quarters. That puts us in great shape against 2025 and 2026 because now we have 15GW to get to the midpoint. And if you kind of work backwards from 2026, that's three and a half years to get 15GW. So we feel like we are really in great position and on track on that build.

We don't make some of the same mistakes that you see some of the other.

Being able to see value that others don't and then as Kirk mentioned on the call today.

Developers.

Make and so I feel like we're much better positioned our portfolio is a much better position than some of the other.

We have a benefit.

And then.

Organic assets that nobody else has which is the largest fleet North America that we operate in.

Markers that you have seen so it would be very very careful in how you assess portfolio portfolio because they're very very different the second thing I would say is we.

So we have the ability not only to repower those existing assets, but to find ways to.

We look at all third party M&A opportunities that come available and we feel like we do have all the competitive advantages.

Pair them up with storage and take advantage of the Standalone storage ITC as you all know.

Storage used to only be a unique opportunity to pair with solar the rules have changed with the standalone storage ITC under IRA. So now we've apparel with wind we can build that stand alone, we're making a lot of progress in that area, We announced one project today, where we're starting to see an opportunity, particularly in MISO and SPP.

Some of which you mentioned and we buy cheaper we build cheaper we operate cheaper cost of capital advantage, we have a.

Terrific team that.

Really understands how to optimize the value of existing assets, that's the key piece.

Repowering assets is something we've always had a very strong track record at its something that the rest of the industry has struggled with and that gives us a real leg up in terms of.

In ERCOT, where capacity values and reliability are being priced higher than we've seen them.

Kirk Crews: I think there's some real tailwinds that we're going to start to see come forward. I want to explain some dynamics just around what we've seen in the renewable industry, which was part of your question, Julien. Let's just go back to 2022. I mean, in 2022, we saw a lot of supply chain issues that started to surface. Then we saw UFLPA. We saw a circumvention. That caused some delays. It also caused a shortage of supply because some developers were scrambling for panels that they thought they could get into the country, which I think for a short period of time drove prices up. The great thing is all those 2022 projects that got delayed in the 2023 are now starting to go into commercial operation.

John Ketchum: I think there's some real tailwinds that we're going to start to see come forward. I want to explain some dynamics just around what we've seen in the renewable industry, which was part of your question, Julien. Let's just go back to 2022. I mean, in 2022, we saw a lot of supply chain issues that started to surface. Then we saw UFLPA. We saw a circumvention. That caused some delays. It also caused a shortage of supply because some developers were scrambling for panels that they thought they could get into the country, which I think for a short period of time drove prices up. The great thing is all those 2022 projects that got delayed in the 2023 are now starting to go into commercial operation.

Being able to see value that others don't and then as Kirk mentioned on the call today.

In the past given some of the shortfalls that they have in those markets and that just happens to coincide with where most of our windows and given the math of it.

We have a benefit.

And then.

Organic assets that nobody else has which is the largest fleet in North America that we operate and so we have the ability not only to repower those existing assets, but to find ways to.

Existing fleet that we have which very importantly includes an existing interconnection agreement our ability to go and pair those assets up with solar.

Pair them up with storage and take advantage of a standalone storage ITC as you all know.

Order Repower them is unique in this industry.

Given the two decade head start that we have and so that's a value that we try to try to bring the M&A opportunities as well.

Storage used to only be a unique opportunity to pair with solar the rules have changed with the standalone storage ITC under IRA. So now apparel with wind we can build that stand alone, we're making a lot of progress in that area, We announced one project today, where we're starting to see an opportunity, particularly in MISO and SPP.

We exercise our other competitive advantages, including our cost of capital advantage.

Got it perfect and John it's been a little bit quiet and it hasnt really been a focus for a lot of investors, but is there any sort of updates on the FTC case as of today any change in stance as indicated by the disclosures and the opportunities to settle.

Kirk Crews: That's really good news for customers because those customers that were digesting that 2022 build and waiting for those projects to go COD in the 2023 are now coming back to the market. And so we're seeing really strong demand from those folks as we start to look forward. The other benefit of that is, as you see UFLPA issues start to get worked through, we're not seeing the UFLPA holdbacks that we used to see. So we're making a lot of progress on that front. When you take that into account with the clarity that we're now seeing around circumvention, we finally have this bright line rule with the six-part test. And as long as you meet four of the six and you're importing from Southeast Asia, you're okay. And so what we've seen is a relaxation in pricing as a result of that.

John Ketchum: That's really good news for customers because those customers that were digesting that 2022 build and waiting for those projects to go COD in the 2023 are now coming back to the market. And so we're seeing really strong demand from those folks as we start to look forward. The other benefit of that is, as you see UFLPA issues start to get worked through, we're not seeing the UFLPA holdbacks that we used to see. So we're making a lot of progress on that front. When you take that into account with the clarity that we're now seeing around circumvention, we finally have this bright line rule with the six-part test. And as long as you meet four of the six and you're importing from Southeast Asia, you're okay. And so what we've seen is a relaxation in pricing as a result of that.

In ERCOT, where capacity values and reliability are being priced.

Higher than what we've seen them.

In the past given some of the shortfalls that they have in those markets and that just happens to coincide with where most of our windows and given the math of it.

Yes. Thank you Shar for the question no new developments, there's really no new news there again, we would expect just based on historical precedent with the SEC that we would hear back where they have a reasonable.

Existing fleet that we have which very importantly includes an existing interconnection agreement our ability to go and pair those assets up with solar.

Belief that they should investigate probably sometime in the first quarter of 2024.

Order Repower them is unique in this industry.

Given the two decade head start that we have and so that's a value that we try to try to bring to M&A opportunities as well when we exercise our other competitive advantages, including our cost of capital advantage.

Perfect. Thank you guys. Appreciate it thanks for the time fantastic.

Thank you Sir.

Our next question will come from Julien Dumoulin Smith with Bank of America, You May now go ahead.

Got it perfect and John it's been a little bit quiet and it hasnt really been a focus for a lot of investors, but is there any sort of updates around the FTC case as of today any change in stance as indicated by the disclosures and the opportunities to settle.

Hey, good morning, John Good morning, Tim. Thank you guys very much so I wanted to come back to the cadence of the backlog conditions and just looking at 'twenty three 'twenty four versus 'twenty five 'twenty six there can you talk a little bit about what youre seeing out there in terms of the ability to execute and kind of the nearer term sense.

Kirk Crews: So now the risk premium that was being charged last year by the import market is starting to come down. The other terrific phenomenon that we're seeing around solar pricing is that Southeast Asia still sets the price for panels in the US, but that risk price premium is starting to come down. And Southeast Asia really wants a big part of the US market. Why do they want a big part of the US market? They sell panels for $0.20 everywhere else, right? They've been selling panels for $0.40 roughly in the US. So they have a lot of room to move. And so as that risk premium comes down around UFLPA and circumvention, it's forcing prices down in the US.

John Ketchum: So now the risk premium that was being charged last year by the import market is starting to come down. The other terrific phenomenon that we're seeing around solar pricing is that Southeast Asia still sets the price for panels in the US, but that risk price premium is starting to come down. And Southeast Asia really wants a big part of the US market. Why do they want a big part of the US market? They sell panels for $0.20 everywhere else, right? They've been selling panels for $0.40 roughly in the US. So they have a lot of room to move. And so as that risk premium comes down around UFLPA and circumvention, it's forcing prices down in the US.

To execute against that first bucket versus the latter here.

And especially you can give us a little bit of an update on IRS clarity and what that means for the willingness to commit to close on contracts here, especially maybe now that you have that in hand on transferability et cetera, How do you think about maybe biasing towards the later years, there just given where we stand erratic.

Belief that they should investigate probably sometime in the first quarter of 2024.

Yes. Good question Julien So let me just start with take that in chunks, because everyone knows our development expectations are.

Perfect. Thank you guys. Appreciate it thanks for the time fantastic.

Thank you Sir.

23 to 26, so let's just start with the first two years and then we will talk about <unk>.

Our next question will come from Julien Dumoulin Smith with Bank of America, You May now go ahead.

Kirk Crews: At the same time, you're seeing a lot more US supply come online through new module facilities that are getting announced, also through cell facilities that will come along with it. And so the bottom line is, when you look at the solar picture, it's favorable from an equipment price standpoint because I think you're starting to see a lot of capacity come online that is going to force prices down over time, particularly as you see the US market evolve. And it's no secret with some of the economic data coming out of China that some of those Southeast Asian markets are under pressure with excess capacity positions. And so they've got batteries and panels they need to find things to do with. Battery prices are coming down as well.

John Ketchum: At the same time, you're seeing a lot more US supply come online through new module facilities that are getting announced, also through cell facilities that will come along with it. And so the bottom line is, when you look at the solar picture, it's favorable from an equipment price standpoint because I think you're starting to see a lot of capacity come online that is going to force prices down over time, particularly as you see the US market evolve. And it's no secret with some of the economic data coming out of China that some of those Southeast Asian markets are under pressure with excess capacity positions. And so they've got batteries and panels they need to find things to do with. Battery prices are coming down as well.

Tears. So for 23 through 24 were in great shape Verde within the range.

Hey, good morning, John Good morning, Tim. Thank you guys very much so I wanted to come back to the cadence of the backlog additions or just looking at 'twenty three 'twenty four versus 'twenty five 'twenty six there can you talk a little bit about what youre seeing out there in terms of the ability to execute in the nearer term sense.

We had expected to be and then on 25% in 2006.

If you go back to the beginning of 'twenty, two and you add up where we are.

Today, we have already added 12 Gigawatts just in the last six quarters that puts us in great shape against 25, and 26, because now we have 15 gigawatts to get to the midpoint and if you kind of work backwards from.

Execute against that first bucket versus the latter here.

20, <unk>, three and a half years to get 15, Gigawatts. So we feel like we are really in great position and on track on that build and I think there's some real tailwind that we're going to start to see come forward and I want to explain some dynamics.

Yes. Good question Julien So let me just start with take that in chunks, because you know everyone knows our development expectations are.

Kirk Crews: We've finally seen a relaxation in battery prices, really struggling in the EV market in China, which has created very much an excess capacity around batteries. And so we're finally starting to see some relaxation there. I think there's been more of a movement around traditional lithium-ion and some of the rare mineral exposure you see there, sodium, and other battery forms. And so very encouraged about the landscape there. And then on the wind OEM side, the wind folks are really one of the only ones that can reap the full benefit of domestic content and the full manufacturer incentive. So feel really good about where wind sits as well.

John Ketchum: We've finally seen a relaxation in battery prices, really struggling in the EV market in China, which has created very much an excess capacity around batteries. And so we're finally starting to see some relaxation there. I think there's been more of a movement around traditional lithium-ion and some of the rare mineral exposure you see there, sodium, and other battery forms. And so very encouraged about the landscape there. And then on the wind OEM side, the wind folks are really one of the only ones that can reap the full benefit of domestic content and the full manufacturer incentive. So feel really good about where wind sits as well.

23 to 26, so let's just start with the first two years and then we'll talk about.

<unk>.

Just around what we've seen in the renewable industry.

Second tiers, so for 23 through 24.

Which was part of your question Julien, Let's just go back to 'twenty to 'twenty. Two we saw a lot of supply chain issues that started the surface.

Shape berardi within the range.

We had expected to be and then on 25% and 26.

If you go back to the beginning of 'twenty, two and you add up where we are today. We've already added 12 Gigawatts just in the last <unk>.

And then we saw you flipped, though we saw a circumvention that caused some delays. It also caused the shortage of supply because some developers were scrambling for panels that they thought they could get into the country, which.

Six quarters.

That puts us in great shape against 25% and 26, because now we have 15 gigawatts to get to the midpoint and if you kind of work backwards from.

I think for a short period of time drove prices up the.

Kirk Crews: So I think as you start to look forward, and we've started to move through these supply chain issues we saw in 2022 with these projects coming online in 2023, combined with excess capacity globally around the supply chain, feel great there. And let me talk about transferability for a second. There's been a lot of discussion, and I've heard a lot of questions about folks saying, "Well, how's transferability going to be accounted for, and is it going to be part of the FFO and the FFO to debt metric?" We feel very good, and we've told investors for a long time that we feel very good that it's in accordance with GAAP. It flows through the tax line for tax credits that get transferred to be included.

John Ketchum: So I think as you start to look forward, and we've started to move through these supply chain issues we saw in 2022 with these projects coming online in 2023, combined with excess capacity globally around the supply chain, feel great there. And let me talk about transferability for a second. There's been a lot of discussion, and I've heard a lot of questions about folks saying, "Well, how's transferability going to be accounted for, and is it going to be part of the FFO and the FFO to debt metric?" We feel very good, and we've told investors for a long time that we feel very good that it's in accordance with GAAP. It flows through the tax line for tax credits that get transferred to be included.

The great thing is the <unk>.

All of those 22 projects that got delayed into 'twenty three have net are now starting to go into commercial operation.

26 at three and a half years to get 15, Gigawatts. So we feel like we are really in great position and on track.

That's a really good news good news for customers because those customers that were digesting that 'twenty two build a waiting for those projects to go <unk> in the 'twenty three are now coming back to the market and so we're seeing really strong demand.

On that build and I think there's some real tailwind.

We're going to start to see come forward and I want to explain some dynamics.

Around what we've seen in the renewable industry.

From those folks as we start to look forward. The other benefit of that is as you see a flip up.

Which was part of your question Julien, Let's just go back to 'twenty to 'twenty. Two we saw a lot of supply chain issues that started to surface.

Issues start to get works worked through or not seen the flip of hold backs that we used to see so we're making a lot of progress on that front. When you take that into account with the clarity that we are sitting now seen around Sir convention. We finally have this bright line rule with the sixth Park test and as long as you meet for the six.

And then we saw you flippo, we saw circumvention that caused some delays. It also caused the shortage of supply because some developers were scrambling for panels that they thought they could get into the country, which.

Kirk Crews: And so we feel good about where that is heading, and that we'll end up in a good place there on that FFO to debt question that has surfaced around transferability. So when you put all those pieces together, as we've worked through some of these headwinds that we've had, feel very good about where things are heading. And let's just face it, we're just getting started. Renewables are here to stay. They're not going anywhere. And so while we might the development process isn't always going to be a straight line, we're in terrific shape and feel very optimistic about the future. Right. Thank you. And actually, John, to that point, though, a lot of the dynamics you just talked about are very real-time, if you will, versus kind of trailing into the quarter itself. How do you feel about just that contracting acceleration here in the back half?

John Ketchum: And so we feel good about where that is heading, and that we'll end up in a good place there on that FFO to debt question that has surfaced around transferability. So when you put all those pieces together, as we've worked through some of these headwinds that we've had, feel very good about where things are heading. And let's just face it, we're just getting started. Renewables are here to stay. They're not going anywhere. And so while we might the development process isn't always going to be a straight line, we're in terrific shape and feel very optimistic about the future.

I think for a short period of time drove prices up.

And you are importing from southeast Asia, you're okay and so.

The great thing is that all.

What we've seen is a relaxation in pricing as a result of that so now the risk premium that was being charged last year.

All of those 22 projects that got delayed into 'twenty three have net are now starting to go into commercial operation.

Hi.

That's a really good news the good news for customers because those customers that were digesting that 'twenty two build a waiting for those projects to go on the 'twenty three are now coming back to the market and so we're seeing really strong demand.

The import market is starting to come down the other terrific phenomenon that we're seeing around solar pricing is that.

Southeast Asia still sets the price for panels.

Julien Dumoulin-Smith: Right. Thank you. And actually, John, to that point, though, a lot of the dynamics you just talked about are very real-time, if you will, versus kind of trailing into the quarter itself. How do you feel about just that contracting acceleration here in the back half?

In the U S. But is at risk price premium is starting to come down in southeast Asia really wants a big part of the U S market why do they want a big part of the U S market. They sell panels for 'twenty everywhere else right they've been selling panels for 40.

From those folks as we start to look forward. The other benefit of that is as you see a flip up.

Issues start to get works work through we're not seeing the flip.

Kirk Crews: I mean, a lot of the points you made would really argue that you could see an uptick versus kind of something that was more on trend in the last quarter. Yeah. A lot of it is going to depend on, as I said before, these '22 projects continuing to come online in 2023 and those customers that had a little bit of fatigue, so to speak, around those delays coming back to market, which we're starting to see. And so that'll be the wild card. But we feel good about how the rest of the year continues to shape up. Got it. Well, stay tuned on that front. All right. Excellent. Thank you, sir. And Julien, one other thing to add to that is hydrogen. We get the right rules there. And again, I can't stress it enough. I mean, we've always only had two customer classes for renewables.

Julien Dumoulin-Smith: I mean, a lot of the points you made would really argue that you could see an uptick versus kind of something that was more on trend in the last quarter.

<unk> that we used to see so it makes it a lot of progress on that front when you take that into account with the clarity that we are sitting now seeing around server convention. We finally have this bright line rule with the sixth park tests and as long as you meet for the six and you're importing from Southeast Asia, you're okay and so.

Roughly.

John Ketchum: Yeah. A lot of it is going to depend on, as I said before, these '22 projects continuing to come online in 2023 and those customers that had a little bit of fatigue, so to speak, around those delays coming back to market, which we're starting to see. And so that'll be the wild card. But we feel good about how the rest of the year continues to shape up.

In the U S. So they have a lot of room to move.

And so as that risk premium comes down around your flipper and circumvention, that's forcing prices down in the U S. At the same time, you're seeing a lot more U S supply come online through new module facilities are getting announced also through cell facilities that will come along with it and so.

What we've seen is a relaxation in pricing as a result of that so now the risk premium that was being charged last year.

So the bottom line is when you look at the solar picture, it's favorable for them and equip price standpoint, because I think youre starting to see a lot of capacity.

Bye.

Julien Dumoulin-Smith: Got it. Well, stay tuned on that front. All right. Excellent. Thank you, sir.

The import market is starting to come down the other terrific phenomenon that we're seeing around solar pricing is that.

John Ketchum: And Julien, one other thing to add to that is hydrogen. We get the right rules there. And again, I can't stress it enough. I mean, we've always only had two customer classes for renewables.

Come online that is going to force prices down over time, particularly as you see the U S market evolve and it's no secret with some of the economic data coming out of China that.

Southeast Asia still sets the price for panels.

In the U S. But is at risk price premium is starting to come down and southeast Asia really wants a big part of the U S market why do they want a big part of the U S market. They sell panels for 'twenty everywhere else right they've been selling panels for 40.

Kirk Crews: It's been power sector. It's been the C&I sector. Now, with the right rules, we have the potential to add a third customer class, which is renewables for hydrogen customers. And that's exciting as well. Yep. Yeah. So stay tuned maybe a quarter or two after you get those rules to really see that flow through in that third customer class. Yeah. I think that's right. And then remember, those projects have longer lead time development cycles. So in terms of the contribution that investors should expect, it's going to come in the latter part of the decade. Excellent. Thank you. Our next question will come from David Arcaro with Morgan Stanley. You may now go ahead. Oh, hey, good morning. Thanks so much for taking my question.

John Ketchum: It's been power sector. It's been the C&I sector. Now, with the right rules, we have the potential to add a third customer class, which is renewables for hydrogen customers. And that's exciting as well.

Some of the southeast Asia markets are under pressure with capacity.

Uh huh.

Excess capacity positions and so they've got batteries and panels that need to find things to do with battery prices are coming down as well. We've finally seen a relaxation of battery prices.

Roughly.

The U S. So they have a lot of room to move.

Julien Dumoulin-Smith: Yep. Yeah. So stay tuned maybe a quarter or two after you get those rules to really see that flow through in that third customer class.

And so as that risk premium comes down around you flip and circumvention is foreseen.

Really struggling to see there.

They're really struggling in the EV market in China, which has created very much an excess capacity around batteries and silver finally, starting to see some relaxation. There I think there's been more of a movement around traditional lithium ion and some of the rare mineral exposure you see there sodium and other battery forms and so very encouraged.

<unk> down in the U S. At the same time, you're seeing a lot more U S supply come online.

John Ketchum: Yeah. I think that's right. And then remember, those projects have longer lead time development cycles. So in terms of the contribution that investors should expect, it's going to come in the latter part of the decade.

Through new module facilities are getting announced.

Also through cell facilities that will come along with it and so the bottom line is when you look at the solar picture its favorable from an equivalent price standpoint, because I think youre starting to see a lot of capacity.

Julien Dumoulin-Smith: Excellent. Thank you.

Operator: Our next question will come from David Arcaro with Morgan Stanley. You may now go ahead.

Charged about the landscape there and then on the wind OEM side. The wind folks are really one of the only ones that can reap the full benefit domestic content and the full manufacturer incentives. So feel really good about where <unk> sits as well. So I think as you start to look forward and we started to move.

Come online that is going to force prices down over time, particularly as you see the U S market evolve and it's no secret with some of the economic data coming out of China that.

David Arcaro: Oh, hey, good morning. Thanks so much for taking my question.

Kirk Crews: Maybe shifting a little bit to NEP, I was wondering. I know you don't in terms of the financing outlook, you don't need equity for some time here, but I was wondering if you could just give any latest thoughts on alternative financing approaches to hit longer-term growth projections at NEP? Yeah. I mean, for NEP, first of all, the focus is on the simplification strategy, which we shared with the market back in May. And we have said that our expectation as a result of that is we don't assume a successful execution on that sale, that we don't expect to have equity requirements in 2024 other than opportunistic equity issuances under our ATM to help finance growth beyond 2024.

David Arcaro: Maybe shifting a little bit to NEP, I was wondering. I know you don't in terms of the financing outlook, you don't need equity for some time here, but I was wondering if you could just give any latest thoughts on alternative financing approaches to hit longer-term growth projections at NEP?

Some of the southeast Asia markets are under pressure with capacity.

Through the supply chain issues, we saw in 22 of these projects coming online in 'twenty, three combined with excess capacity globally around the supply chain feel great. There and let me talk about transfer ability for a second there's been a lot of discussion and I've heard a lot of questions about folks, saying well Howard as transfer.

Uh huh.

Excess capacity positions and so they've got batteries and panels they need to find things to do with battery prices are coming down as well. We've finally seen a relaxation of battery prices.

John Ketchum: Yeah. I mean, for NEP, first of all, the focus is on the simplification strategy, which we shared with the market back in May. And we have said that our expectation as a result of that is we don't assume a successful execution on that sale, that we don't expect to have equity requirements in 2024 other than opportunistic equity issuances under our ATM to help finance growth beyond 2024.

I'm really struggling to see there.

Really struggling in the EV market in China, which has created very much an excess capacity around batteries and silver finally, starting to see some relaxation. There I think there has been more of a movement around traditional lithium ion and some of the rare mineral exposure you see there sodium and other battery forms and so very encouraged.

Our ability going to be accounted for and is it going to be.

Part of the <unk> and the <unk> to debt metric, we feel very good and we've told investors for a long time that we feel very good that it's in accordance with GAAP. It flows through the tax line for tax credits to get transferred to.

Or is it about the landscape there and then on the wind OEM side. The wind folks are really one of the only ones that can reap the full benefit.

To be included and so.

We feel good about where that is heading.

That will end up in a good place there.

<unk> to that question that has surfaced.

Domestic content and the four manufacturer incentives so feel really good about where <unk> sits as well. So I think as you start to look forward and we started to move through these supply chain issues. We saw in 22 of these projects coming online in 'twenty, three combined with excess capacity globally around the supply chain feel good.

Kirk Crews: But if you look, and you can see in the slides here that we have a lot of flexibility under our current metrics with the agencies in terms of the ability to add additional, what I would call traditional debt-based capital market financing mechanisms to accommodate the growth going forward. And we are very busy looking at the back end three separates that we have and some ideas around how we are going to address those as well because when we move on from the simplification transaction, that's going to be the next point of focus. But we're not waiting. We're continuing to look at that.

John Ketchum: But if you look, and you can see in the slides here that we have a lot of flexibility under our current metrics with the agencies in terms of the ability to add additional, what I would call traditional debt-based capital market financing mechanisms to accommodate the growth going forward. And we are very busy looking at the back end three separates that we have and some ideas around how we are going to address those as well because when we move on from the simplification transaction, that's going to be the next point of focus. But we're not waiting. We're continuing to look at that.

Round around transferability. So when you put all those pieces together as we've worked through some of these some of these headwinds that we've had feel very good about where things are heading in let's just face it.

We're just getting started our renewables are here to stay theyre, not going anywhere and so while we might.

Right, there and let me talk about transfer ability for a second there's been a lot of discussion and I've heard a lot of questions about folks, saying well Howard asked transferability going to be accounted for and is it going to be.

The development process isn't always going to be a straight line, we're in terrific shape and feel very optimistic about the future.

Alright, Thank you and actually John to that point there are a lot of the dynamics you just talked about are very like real time, if you will versus kind of trailing into the quarter itself. How do you feel about just that contracting acceleration here in the back half I mean, a lot of the points. You made would really argue that you could see an uptick versus kind of something that was more on trend.

Part of the <unk> and the <unk> to debt metric, we feel very good and we've told investors for a long time that we feel very good that it's in our.

Accordance with GAAP it flows through the tax line for tax credits get transfer.

Kirk Crews: And look, there continues to be a strong bid for an interest in renewable assets long-term, particularly when you think about the opportunity to do that with the world's leader in renewable development with the competitive advantages that we have, the 20-gigawatt backlog, the growth visibility that NEP has going forward, all very promising. And so we continue to engage in those discussions as well as we think about the future. Got it. Got it. Thanks for that color. Then also just had a question related to the transmission constraints that we've seen in the industry, but you made the comment about a very large interconnection position, 145 gigawatts.

John Ketchum: And look, there continues to be a strong bid for an interest in renewable assets long-term, particularly when you think about the opportunity to do that with the world's leader in renewable development with the competitive advantages that we have, the 20-gigawatt backlog, the growth visibility that NEP has going forward, all very promising. And so we continue to engage in those discussions as well as we think about the future.

To be included and so.

In the last quarter.

Yeah, a lot of it is going to depend on as as I said before these 22 projects continuing to come online in 2023, and those customers that had had a little bit of fatigue, so to speak around those delays coming back to market, which we're starting to see and so that will be the <unk>.

We feel good about where that is heading and that will end up with in a good place there.

<unk> to that question that has surfaced around around transferability. So when you put all those pieces together.

As we've worked through some of these some of these headwinds that we've had feel very good about where things are heading in let's just face it.

<unk>, but we feel good about how the rest of the year continues continues to shape up.

We're just getting started our renewables are here to stay theyre, not going anywhere and so while we might.

Got it we'll stay tuned on that front alright, Thank you, Sir and Julian one other thing to add add to that is hydrogen and we get the right rules there and.

The development process isn't always going to be a straight line, we're in terrific shape and feel very optimistic about the future.

David Arcaro: Got it. Got it. Thanks for that color. Then also just had a question related to the transmission constraints that we've seen in the industry, but you made the comment about a very large interconnection position, 145 gigawatts.

Again, I can't stress it enough I mean, we've always only had two customer classes for our renewables. It's been power sector. It's been the C&I sector now with the REIT rules, we have the potential to add a third customer class, which is the renewables for hydrogen customers.

Kirk Crews: I was just wondering if you could speak to the transmission queue challenges, and do you think that could potentially be a constraint on growth for the industry at any point, or how much visibility do you have into hitting longer-term growth targets with that massive queue that you've got in place? Yeah. So let me take that in two pieces. I mean, one is the 145GW that you're referencing, David, around the 250GW pipeline that we have, where we have the 145 interconnection positions secured. I would challenge you to find anybody in the industry that has even close to that number of projects with interconnection capacity. And don't forget, given the demand we're seeing in the market, if you have a site ready to go with interconnection capacity, that's the hard part. Finding the customer right now is not the hard part.

David Arcaro: I was just wondering if you could speak to the transmission queue challenges, and do you think that could potentially be a constraint on growth for the industry at any point, or how much visibility do you have into hitting longer-term growth targets with that massive queue that you've got in place?

In the last quarter.

That's exciting as well.

Yeah, a lot of it is going to depend on as as I said before these 22 projects continuing to come online in 2023, and those customers that had had a little bit of fatigue, so to speak around those delays coming back the market, which we're starting to see and so that will be the one.

Yeah, Yeah, so stay tuned maybe a quarter or two after you get those rules to really see that flow through in that third customer class.

John Ketchum: Yeah. So let me take that in two pieces. I mean, one is the 145GW that you're referencing, David, around the 250GW pipeline that we have, where we have the 145 interconnection positions secured. I would challenge you to find anybody in the industry that has even close to that number of projects with interconnection capacity. And don't forget, given the demand we're seeing in the market, if you have a site ready to go with interconnection capacity, that's the hard part. Finding the customer right now is not the hard part.

Yes, I think Thats right and then remember those projects have longer lead time development cycles. So in terms of the contribution that investors should expect thats going to come in the latter part of the decade.

Wildcard, but we feel good about how the rest of the year continues continues to shape up.

Excellent. Thank you.

Got it we'll stay tuned on that front alright, Thank you Sir.

Our next question will come from David Arcaro with Morgan Stanley .

Julian one other thing to add add to that is hydrogen and we get the right rules there and.

Go ahead.

Oh, Hey, good morning, Thanks, so much for taking my question.

Again, I can't stress it enough.

Maybe shifting a little bit to any P.

We've always only had two customer classes for our renewables, it's been power sector, it's been the C&I sector.

Just wondering I know you don't in terms of the financing outlook you don't need equity for some time here, but I was wondering if you could just give any latest thoughts on alternative financing approaches.

Kirk Crews: And so that's why we have such a focus on making sure that an early-stage development program is right on track. And I feel just terrific about where we stand there today. Let me take the second piece, though, that you have, which is just about transmission in general. We are not waiting. We are taking the transmission and interconnect issues into our own hands. And we're doing that through NextEra Energy Transmission. We are laser-focused on competitive transmission build-out around where our renewable assets are going and where they are going to be built. We announced a project last quarter, another $400 million opportunity in CAISO. I'm not going to talk about them today, but we have a number of various other transmission projects on the board right now that we are evaluating. That business is going terrific.

John Ketchum: And so that's why we have such a focus on making sure that an early-stage development program is right on track. And I feel just terrific about where we stand there today. Let me take the second piece, though, that you have, which is just about transmission in general. We are not waiting. We are taking the transmission and interconnect issues into our own hands. And we're doing that through NextEra Energy Transmission. We are laser-focused on competitive transmission build-out around where our renewable assets are going and where they are going to be built. We announced a project last quarter, another $400 million opportunity in CAISO. I'm not going to talk about them today, but we have a number of various other transmission projects on the board right now that we are evaluating. That business is going terrific.

Now with the REIT rules, we have the potential to add a third customer class, which is the renewables for hydrogen customers and that's exciting as well.

To hit longer term growth projections at MEP.

Yes.

Yes, I mean for any P. First of all the focus is on the simplification.

Yeah, Yeah, so stay tuned maybe a quarter or two after you get those rules to really see that flow through in that third customer class.

<unk> strategy, which we shared with the market.

Yes, I think Thats right and then remember those projects have longer lead time development cycles. So in terms of the contribution that investors should expect that's going to come in the latter part of the decade.

Back in May and we have said that our expectation as a result.

Of that is we don't.

Assuming a successful execution on that on that sale.

Excellent. Thank you.

We don't expect to have equity requirements in 2024 other than opportunistic equity issuances under our ATM to help finance growth.

Our next question will come from David Arcaro with Morgan Stanley .

You May now go ahead.

Oh, Hey, good morning, Thanks, so much for taking my question.

Beyond 2024, but if you look and you can see in the slides here that we have a lot of flexibility under our current metrics.

Maybe shifting a little bit to any P. I was wondering I know you don't in terms of the financing outlook you don't need equity for some time here, but I was wondering if you could just give any latest thoughts on alternative financing approaches.

Kirk Crews: And again, the bottom line message for investors is we're not waiting. We're taking the game we're taking that into our own hands. That's why we bought GridLiance. That's why we continue to make investments in that space. And we intend to solve those problems ourselves as we go along. Excellent. That's helpful. Thanks so much for all the color. Thanks, David. Our next question will come from Carly Davenport with Goldman Sachs. You may now go ahead. Hi. Good morning. Thanks for taking the questions. Just wanted to go back to the supply chain, and thanks for the commentary there in the earlier question. But just in terms of rate of change from a supply chain perspective relative to recent quarters, are you seeing any divergence between trends in wind projects versus solar projects? Yeah.

John Ketchum: And again, the bottom line message for investors is we're not waiting. We're taking the game we're taking that into our own hands. That's why we bought GridLiance. That's why we continue to make investments in that space. And we intend to solve those problems ourselves as we go along.

With the with the agencies in terms of the ability to add additional.

To hit longer term growth projections at NTP.

What I would call traditional debt.

Debt based capital market financing mechanisms to accommodate the growth going forward and we are very busy looking at the back end of.

Okay.

Yes.

For any P. First of all the focus is on.

David Arcaro: Excellent. That's helpful. Thanks so much for all the color.

Simplification strategy, which we shared with the market.

John Ketchum: Thanks, David.

Operator: Our next question will come from Carly Davenport with Goldman Sachs. You may now go ahead.

<unk> that we have and some ideas around.

Back in May and we have said that our expectation as a result.

How we are going to address those as well because when we move on from the simplification.

That is we don't.

Carly Davenport: Hi. Good morning. Thanks for taking the questions. Just wanted to go back to the supply chain, and thanks for the commentary there in the earlier question. But just in terms of rate of change from a supply chain perspective relative to recent quarters, are you seeing any divergence between trends in wind projects versus solar projects?

Assuming a successful execution on that on that sale.

Transaction, that's that's going to be the next point of focus we're not but we're not waiting we're continuing to look at that and look there continues to be strong bid for.

We don't expect to have equity requirements in 2024 other than opportunistic equity issuances under our ATM to help finance growth.

And interest in renewable interest in renewable assets long term, particularly when you think about the.

John Ketchum: Yeah.

Beyond 2024, but if you look and you can see in the slides here that we have a lot of flexibility under our current metrics.

Kirk Crews: I mean, in terms of wind projects, let me just make a couple of comments there. I mean, we do almost all of our businesses with GE. We've done a little bit with Siemens, and I know there's been some press on Siemens recently. We don't have any of the Siemens Gamesa turbines in our fleet. I just want to make that very clear. As we think about supply chain around wind versus solar, remember that wind turbines are made almost exclusively in the US. And so they'll be direct beneficiaries of the manufacturing incentives, and we hope domestic content. They have a couple of paperwork things they have to work out with Treasury, which hopefully we'll get there on in terms of what kind of information they have to share with their ultimate customers, and giving away the secret sauce on margins and all those things.

John Ketchum: I mean, in terms of wind projects, let me just make a couple of comments there. I mean, we do almost all of our businesses with GE. We've done a little bit with Siemens, and I know there's been some press on Siemens recently. We don't have any of the Siemens Gamesa turbines in our fleet. I just want to make that very clear. As we think about supply chain around wind versus solar, remember that wind turbines are made almost exclusively in the US. And so they'll be direct beneficiaries of the manufacturing incentives, and we hope domestic content. They have a couple of paperwork things they have to work out with Treasury, which hopefully we'll get there on in terms of what kind of information they have to share with their ultimate customers, and giving away the secret sauce on margins and all those things.

The opportunity to do that with the world's leader leader in renewable development with the competitive advantages that we have the 20 gigawatt back line logged the growth visibility.

With the with the agencies in terms of the ability to add additional.

At NEP has going forward, all very promising and so we continue to engage in those discussions as well as we think about the future.

What I would call traditional debt.

Debt based capital market financing mechanisms to accommodate the growth going forward and we are very busy looking at the back end.

Got it got it thanks for that color and then I'll.

Just had a question related to the transmission transmission constraints that we've seen in the industry, but you made the comment about a very large interconnection position of 145 Gigawatts I was just wondering if you could speak to the transmission queue challenges.

<unk> that we have and some ideas around.

How we are going to address those as well because when we move on from the simplification.

Transaction, that's that's got to be the next point of focus we're not but we're not waiting we're continuing to look at that and look there continues to be as strong bid for.

Do you think that could potentially be a constraint on growth for the industry at any point.

How much visibility do you have into hitting.

And interest in renewable interest in renewable assets long term, particularly when you think about the.

Waiting longer term growth targets would that.

<unk> Q that you've got in place.

Kirk Crews: But they continue to work through those issues. But wind just doesn't have the same exposure and issues that we've had to deal with with solar or around EUFLIPA, around circumvention. But again, as I said earlier, those issues around solar, which really plagued the industry back in 2022, have been things that we've been working through in 2023. And now we're starting to see a lot more capacity show up not only in the US but in other markets as well. And so we are capitalizing on all those opportunities and leveraging our buying power as you would expect us to do. Great. That's helpful. And then the follow-up is just a quick one on kind of the cost environment. Seems like it's starting to improve a bit, but still challenging for many.

Yeah. So let me take that in two pieces. One is the 145 gigawatts that you referenced and David around the 250 gigawatt pipeline that we have where we have the with the $1 45 interconnection positions secured I would challenge you to find anybody in the industry that has even close to that.

The opportunity to do that with the world's leaders leader in renewable development with the competitive advantages that we have the 20 gigawatt back line logged the growth visibility.

At NEP has going for all very promising and so we continue to engage in those discussions as well as we think about the future.

Number.

Projects.

With interconnection capacity and don't forget given the demand we're seeing in the market. If you have a site ready to go with interconnection capacity, that's the hard part finding the customers.

Got it got it thanks for that color and then.

Just had a question related to the transmission transmission constraints that we've seen in the industry, but you made the comment about.

<unk> right now is not the hard part.

So that's why we have such a focus on making sure that our early stage development program is right on track and I feel just terrific about where we stand there today, let me take the second piece, though that you have which is just about transmission in general we are not waiting.

Very large interconnection position of 145 Gigawatts I was just wondering if you could speak to the transmission queue challenges.

Carly Davenport: Great. That's helpful. And then the follow-up is just a quick one on kind of the cost environment. Seems like it's starting to improve a bit, but still challenging for many.

And do you think that could potentially be a constraint on growth for the industry at any point.

Or how much visibility do you have into it.

Kirk Crews: Can you just talk about how you're managing costs in this environment and kind of what levers exist that are available to pull if needed to continue to execute at a high level from an earnings perspective? Yes. Thanks, Carly. So we spoke on our last call about, and I know you're familiar with this, we run a cost savings initiative every year at the company. This year, we called it Velocity. We ran it under the same name last year. And we challenge every one of our business units. It's a bottoms-up process to come up with cost savings ideas for how we run our company. And we've had amazing success through that program over the last 10 years, and the last two years. In fact, if you look at it, we've been able to identify over $700 million of cost savings initiatives both at FPL and energy resources.

Carly Davenport: Can you just talk about how you're managing costs in this environment and kind of what levers exist that are available to pull if needed to continue to execute at a high level from an earnings perspective?

Getting longer term growth targets would that massive Q that you've got in place.

We are we are taking the transmission and interconnect issues into our own hands and we're doing that through Nextera energy transmission. We are laser focused on competitive transmission build out around where our renewable assets are going and where they are going to be built.

Yeah. So let me take that in two pieces one is the 145 gigawatts.

John Ketchum: Yes. Thanks, Carly. So we spoke on our last call about, and I know you're familiar with this, we run a cost savings initiative every year at the company. This year, we called it Velocity. We ran it under the same name last year. And we challenge every one of our business units. It's a bottoms-up process to come up with cost savings ideas for how we run our company. And we've had amazing success through that program over the last 10 years, and the last two years. In fact, if you look at it, we've been able to identify over $700 million of cost savings initiatives both at FPL and energy resources.

You referenced David around the 250 gigawatt pipeline that we have already have but with the $1 45 interconnection positions secured I would challenge you to find anybody in the industry that has even close to that number.

We announced a project last quarter.

<unk>.

Another $400 million opportunity and Cal ISO I'm not going to talk about them today, but we have a number of various other transmission projects on the board right now that we are evaluating that business is going terrific.

With interconnection capacity and don't forget given the demand we're seeing in the market. If you have a site ready to go with interconnection capacity.

The hard part.

Finding the customer right now is not the hard part and so that's why we have such a focus on making sure that our early stage development program is right on track and I feel just terrific about.

And again the bottom line message for investors is we're not waiting we're taking the game, we're taking that into our own hands. That's why we bought grid Alliance. That's why we continue to make investments in that space and we intend to solve those problems ourselves as we go along.

Where we stand there today, let me take the second piece, though that you have which is just about transmission in general we are not waiting.

Kirk Crews: So we're constantly looking for ways to continue to take cost out of the business, whether it's O&M, whether it's G&A, and how do we leverage technology. Technology is a big piece of it as well. We recently launched a massive generative AI program that we think, also leveraging all the skills that we have around technology that we've been able to build over the last 10 to 15 years, to really leverage AI in a way we never have in terms of how we run the business as well. And so all those things, I think, are going to contribute to cost declines over time for the business. But we're laser-focused on cost. And then the development business, when you're selling a commodity electricity, it's a game of inches.

John Ketchum: So we're constantly looking for ways to continue to take cost out of the business, whether it's O&M, whether it's G&A, and how do we leverage technology. Technology is a big piece of it as well. We recently launched a massive generative AI program that we think, also leveraging all the skills that we have around technology that we've been able to build over the last 10 to 15 years, to really leverage AI in a way we never have in terms of how we run the business as well. And so all those things, I think, are going to contribute to cost declines over time for the business. But we're laser-focused on cost. And then the development business, when you're selling a commodity electricity, it's a game of inches.

We are we are taking the transmission and interconnect issues into our own hands. So we're doing that through Nextera energy transmission, we're laser focused on competitive transmission build out around where our renewable assets are going and where they are going to be built.

Excellent that's helpful. Thanks, so much for all the color.

Thanks, David.

Our next question will come from Carly Davenport with Goldman Sachs you.

You May now go ahead.

Hi, good morning, Thanks for taking the questions.

Just wanted to go back to the supply chain and thanks for the commentary there and the earlier question, but just in terms of rate of change from a supply chain perspective relative to recent quarters are you seeing any divergence between trends and wind projects versus solar projects.

<unk>.

We announced a project last quarter, you know another $400 million opportunity and Cal ISO I'm not going to talk about them today, but we have a number of various other transmission projects on the board right now that we are evaluating that business is going terrific and again.

In terms of yes, I mean.

In terms of of wind projects.

Let me just make a couple of comments there I mean, we do almost.

The bottom line message for investors is we're not waiting we're taking the game, we're taking that into our own hands. That's why we bought grid Alliance. That's why we continue to make investments in that space.

All of our businesses with with GE.

We have we've done a little bit with Siemens and.

Kirk Crews: You got to be better than the next developer in line in terms of buying equipment cheaper, building it cheaper, operating it cheaper, financing it cheaper. And we have, with the A-minus balance sheet, a terrific cost of capital advantage. And when we put all those things together, we feel great about our competitive position, our market share, and how we continue to progress through our renewable development program. Great. Thanks for that color. Our next question. Pardon me. This concludes our question and answer session. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

I know theres been some press on Siemens recently, we don't have any of the Siemens Gamesa purpose in our fleet I just want to make that very clear as we think about supply chain.

And we intend to solve those problems ourselves as we go along.

Excellent that's helpful. Thanks, so much for all the color.

Around wind versus solar remember that wind turbines are made.

Thanks, David.

Yeah.

Our next question will come from Carly Davenport with Goldman Sachs.

Most exclusively in the U S.

And so there'll be direct beneficiaries of the manufacturing incentives and we hope domestic content. They have a couple of paperwork things they have to work out with treasury, which.

You May now go ahead.

Carly Davenport: Great. Thanks for that color.

Hi, good morning, Thanks for taking the questions.

Operator: Our next question. Pardon me. This concludes our question and answer session. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Hopefully we will get there on in terms of what kind of information they have to share with.

Their ultimate customers and giving away the secret sauce on margins in all of those things, but they continue to work through through those issues, but but when it.

In terms of yes, I mean in terms of of wind projects.

Yes, let me just make a couple of comments there I mean, we do almost.

It doesn't have the same.

Exposure in issues that we've had to deal with with solar or around your flip.

All of our businesses with with GE.

We have we've done a little bit with Siemens and.

Around circumvention, but again as I said earlier those issues around solar which really plagued the industry back in 22 have been things that we've been working through in 'twenty three and now we're starting to see a lot more capacity show up not only in the U S. But.

I know theres been some press on Siemens recently, we don't have any of the Siemens Gamesa Turbas in our fleet I just want to make that very clear as we think about supply chain.

Around.

Wind versus solar remember that wind turbines are made.

In other markets as well and so we are capitalizing on all of those opportunities and leveraging our buying power as you would expect us to do.

Most exclusively in the U S.

And so there'll be direct beneficiaries of the manufacturing incentives and we hope domestic content. They have a couple of paperwork things they have to work out with treasury, which.

Great. That's helpful. And then the follow up is just a quick one on on kind of the cost environment.

Hopefully we will get there on in terms of what kind of information they have to share with.

It seems like it's starting to improve a bit but still still challenging for many can.

Can you just talk about how you're managing costs in this environment and kind of what levers exists that are available to pull if needed to continue to execute at a high level from an earnings perspective.

Their ultimate customers and given away the secret sauce on margins in all of those things, but they continue to work through those issues, but but when it does.

<unk> have the same.

Yes, thanks Coralie so.

Exposure in issues that we've had the deal with with solar or around your flipper.

We spoke on our last call about.

And I know you are familiar with this we run our cost savings initiatives every year at the company. This year recall that velocity that we ran it under the same name last year and we challenge every one of our business units, it's a bottoms up process to come up with cost savings ideas for how.

Around our convention, but again as I said earlier those issues around solar which really plagued the industry back in 22 have been things that we've been working through in 'twenty three and now we're starting to see a lot more capacity show up not only in the U S. But.

In other markets as well and so we are capitalizing.

We run our company.

And we've had amazing success through that program over the last 10 years in last two years. In fact, if you look at it we've been able to identify over $700 million of cost savings.

All of those opportunities and leveraging our buying power as you would expect us to do.

Great. That's helpful. And then the follow up is just a quick one on kind of the cost environment.

Seems like it's starting to improve a bit but still it's still challenging for many.

Initiatives, both at FPL and energy resources. So we're constantly looking for ways to continue to take.

Can you just talk about how you're managing costs in this environment and kind of what levers.

This that are available to pull if needed to continue to execute at a high level from an earnings perspective.

Cost out of the business, whether it's O&M, whether it's G&A and how do we leverage technology technology is a big piece of it as well.

Yes, thanks <unk> so.

You know.

We recently launched a massive generative AI program that we think also leveraging all of the skills that we have around technology that we've been able to build over the last.

We spoke on our last call about.

And I know you are familiar with this we run our cost savings initiatives every year at the company. This year, we call that velocity that we ran it under the same name last year.

10 to 15 years to really leverage AI in a way we never have in terms of how we run the business.

And we challenge every one of our business units, it's a bottoms up process to come up with cost savings ideas for how we run our company.

As well and so all of those things I think are going to contribute to cost declines over time for the business, but we're laser focused on cost and then.

And we've had amazing success through that program over the last 10 years in last two years. In fact, if you look at it we've been able to identified over $700 million of cost savings.

The development business, when you're selling a commodity electricity. It's a game of inches you got to be better than the next developer in line in terms of buying equipment cheaper build into cheaper operated at cheaper financing a cheaper and we have with the AA minus balance sheet terrific cost of capital advantage and when you put all of those.

Initiatives, both at FPL and energy resources. So we're constantly looking for ways to continue to take.

Cost out of the business, whether it's O&M, whether it's G&A and how do we leverage technology.

Things together, we see.

Feel great about our competitive position our market share.

And how we continue to progress on our renewables development program.

Technology is a big piece of it as well, we recently launched a massive generative AI.

Great Thanks for that color.

Graham that we think also leveraging all the skills that we have around technology that we've been able to build over the last 10 to 15 years to really leverage AI in a way we never have in terms of how we run the business as.

Our next question.

Pardon me. This concludes our question and answer session. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

As well and so all those things I think are going to contribute to cost declines over time for the business, but we're laser focused on cost and then.

The development business when youre selling a commodity electricity. It's a game of inches you got to be better than the next developer in line in terms of buying equipment cheaper build in a cheaper operated a cheaper financing a cheaper and we have with the a minus balance sheet terrific cost of capital advantage and when we put all of those.

Things together.

Feel great about our competitive position our market share.

And how we continue to progress our renewables development program.

Great Thanks for that color.

Our next question.

Pardon me. This concludes our question and answer session. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Okay.

Q2 2023 NextEra Energy Inc Earnings Call

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