Q3 2023 NextEra Energy Inc Earnings Call

October 24, 2023

Shar Pourreza: Foreign.

Operator: Welcome to the NextEra Energy and NextEra Energy Partners, LP Third Quarter 2023 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Kristin Rose, Director of Investor Relations. Please go ahead.

Operator: Good day and welcome to the NextEra Energy and NextEra Energy Partners, LP Third Quarter 2023 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Kristin Rose, Director of Investor Relations. Please go ahead.

Speaker 1: transcript

Speaker 1: All participants will be in a listen-on mode. Should you need assistance please, but no a conference specialist by pressing start, then zero. After today's presentation, there will be an opportunity to ask questions. Do ask a question you may press start, then one on a touch-tone phone. Do it draw your question please, press star, then two. Start, then two.

Energy Partners L. P third quarter 2023 earnings conference call.

All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing Star then zero. After today's presentation, there will be an opportunity to ask questions to ask a question. You May Press Star then one on a touchtone phone to withdraw your question. Please press star.

And then too.

Speaker 1: transcript

Speaker 1: Please note this event as being recorded. I would now like to sound the conference over to Christian Rose, director of Industrial Relations. Please go ahead.

Please note this event is being recorded.

I would now like to turn the conference over to Christian who is director of Investor Relations. Please go ahead.

Kristin Rose: Thank you, Vaish. Good morning, everyone, and thank you for joining our Q3 2023 combined financial results 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; Rebecca Kujawa, 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 & 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.

Kristin Rose: Thank you, [Vaish]. Good morning, everyone, and thank you for joining our Q3 2023 combined financial results 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; Rebecca Kujawa, 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 & 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.

Speaker 2: transcript

Speaker 2: Thank you, Vice. Good morning, everyone, and thank you for joining our third quarter 2023 combined financial results conference call for next-era energy and next-era energy partners.

Thank you rice and good morning, everyone and thank you for joining our third quarter 2023, combined financial results 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, Curt Cruise Executive Vice President and Chief Financial Officer of Nextera.

Speaker 2: transcript

Speaker 2: With me this morning, our John Tetchum, Chairman, President and Chief Executive Officer of Nextara Energy.

Speaker 2: transcript

Speaker 2: Kirk Cruz, Executive Vice President and Chief Financial Officer of Next Air Energy. Rebecca Stava, President and Chief Executive Officer of Next Air Energy Resources. And Mark Hicks, Executive Vice President of Next Air Energy. All of whom are also officers of Next Air Energy.

Energy, Rebecca Java, 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.

Speaker 2: transcript

Speaker 2: As well as Armando Pimentel, President and Chief Executive Officer of Florida Power and Light Compass.

Speaker 2: transcript

Speaker 2: Kirk will provide an overview of our results, and our executive team will then be available to answer your questions.

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 other factors discussed in today's earnings news release.

Speaker 2: transcript

Speaker 2: We will be making forward-looking statements during this call based on current expectations and assumptions which are subject to risks and uncertain.

Kristin Rose: Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect or because of other factors discussed in today's earnings news release and the comments made during this conference call, in 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 our website www.nexteraenergy.com and www.nexteraenergypartners.com. Do not undertake any duty to update any forward-looking statements. Today's presentation also includes references to non-GAAP financial measures. You should refer to the information contained in the slides accompanying today's presentation for the definitional information and reconciliations of historical non-GAAP measures to the closest GAAP financial measure. With that, I will turn the call over to Kirk.

Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect or because of other factors discussed in today's earnings news release and the comments made during this conference call, in 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 our website www.nexteraenergy.com and www.nexteraenergypartners.com. Do not undertake any duty to update any forward-looking statements. Today's presentation also includes references to non-GAAP financial measures. You should refer to the information contained in the slides accompanying today's presentation for the definitional information and reconciliations of historical non-GAAP measures to the closest GAAP financial measure. With that, I will turn the call over to Kirk.

Speaker 2: transcript

Speaker 2: Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect or because of other factors in today's earnings news release and the comments made during this conference call and the risk factor 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 our website, www.nextaeraenergys.com and www.nextaerangipartners.com.

And the comments made during this 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 our website Www Dot next era energy Dot com and www Dot Nextera energy Partners' dotcom do not undertake any duty to update any.

Speaker 2: transcript

Speaker 2: Do not undertake any duty to update any forward-looking steam.

Forward looking statements. Today's presentation also includes references to non-GAAP financial measures you should refer to the information contained in the slides accompanying today's presentation for the definitional information and reconciliations of historical non-GAAP measures to the closest GAAP financial measure with that I will turn the call over to Kirk.

Speaker 2: transcript

Speaker 2: Today's presentation also includes references to non- GAAP financial measures. You should refer to the information contained in the slides accompanying today's presentation for the definitional information and reconciliation of historical non- GAAP measures to the closest GAAP financial measure. With that, I will turn the call over to Kirk. Thanks.

Kirk Crews: Thanks, Kristin, and good morning. NextEra Energy delivered strong Q3 results. Growing adjusted earnings per share approximately 10.6% year over year in Q3, FPL continued to deliver outstanding value to its customers in what we believe has been one of the most constructive regulatory jurisdictions in the nation. FPL's bills are well below the national average, and we are relentlessly focused on reliability and running the business efficiently. NextEra Energy Resources extended its leadership position in renewable energy during Q3 with strong adjusted earnings growth and its best renewables and storage origination quarter in its history. NextEra Energy has clear growth visibility through FPL's capital plan and NextEra Energy Resources' over 21GW renewables and storage backlog with the strongest balance sheets in the sector and worldwide banking relationships.

Thanks, Christian and good morning, Mitch.

Speaker 3: transcript

Speaker 3: Next year, Energy delivered strong third quarter results, growing adjusted earnings per share approximately 10.6%. You're over here.

Nextera energy delivered strong third quarter results growing adjusted earnings per share approximately 10, 6% year over year.

Speaker 3: transcript

Speaker 3: In the quarter, FPL continued to deliver outstanding value to its customers, and what we believe has been one of the most constructive regulatory jurisdictions in the nation.

In the quarter FPL continue to deliver outstanding value to customers and what we believe has been one of the most constructive regulatory jurisdictions in the nation.

Speaker 3: transcript

Speaker 3: FPL's bills are well below the national average and we are relentlessly focused on reliability and running the business to fish.

That feels bills are well below the national average and we are relentlessly focused on reliability and running the business efficiently.

Speaker 3: transcript

Speaker 3: Energy resources extended its leadership position and renewable energy during the third quarter with strong adjusted earnings growth and its best renewables and storage origination quarter and its history.

Energy resources extended its leadership position in renewable energy during the third quarter with strong adjusted earnings growth and its best renewables and storage origination quarter in its history.

Speaker 3: transcript

Speaker 3: Next, there energy has clear road visibility through FPL's capital plan and energy resources over 21 gigawatt renewables and storage bags.

Nextera energy has clear growth visibility through Fpl's capital plan and energy resources over 'twenty, one gigawatt renewables and storage backup.

Speaker 3: transcript

Speaker 3: The strongest ballot sheets in the sector and worldwide banking relationships. We believe next-air energy has both significant access to capital and cost of capital advantages and is well positioned to continue to deliver long-term value for shareholders. Now let's turn to FPS.

The strongest balance sheets in the sector and worldwide banking relationships. We believe Nextera energy has both significant access to capital and cost of capital advantages and is well positioned to continue to deliver long term value for shareholders.

Kirk Crews: We believe NextEra Energy has both significant access to capital and cost of capital advantages and is well positioned to continue to deliver long-term value for shareholders. Now let's turn to FPL's detailed results for Q3 2023. FPL's earnings per share increased $0.04 year over year. The principal driver of this performance was FPL's regulatory capital employed growth, approximately 13.6% year over year. We continue to expect FPL to realize roughly 9% average annual growth in regulatory capital employed over our current rate agreements four-year term, which runs through 2025. FPL's capital expenditures were approximately $2.6 billion for the quarter, and we expect FPL's full year 2023 capital investments to be between $9 and $9.5 billion.

We believe NextEra Energy has both significant access to capital and cost of capital advantages and is well positioned to continue to deliver long-term value for shareholders. Now let's turn to FPL's detailed results for Q3 2023. FPL's earnings per share increased $0.04 year over year. The principal driver of this performance was FPL's regulatory capital employed growth, approximately 13.6% year over year. We continue to expect FPL to realize roughly 9% average annual growth in regulatory capital employed over our current rate agreements four-year term, which runs through 2025. FPL's capital expenditures were approximately $2.6 billion for the quarter, and we expect FPL's full year 2023 capital investments to be between $9 and $9.5 billion.

Now, let's turn to Fpl's detailed results.

Speaker 3: transcript

Speaker 3: For the third quarter of 2023, FPL's earnings per share increase for cents year over year.

For the third quarter of 2023 Fpl's earnings per share increased four cents year over year.

Speaker 3: transcript

Speaker 3: The principal driver of this performance was FPL's regulatory capital employed growth for approximately 13.6% year over year.

The principal driver of this performance was Fpl's regulatory capital employed growth of approximately 13, 6% year over year.

Speaker 3: transcript

Speaker 3: We continue to expect FPL to realize roughly 9% average annual growth in regulatory capital employed over our current rate agreements for your term, which comes through 2025.

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

Speaker 3: transcript

Speaker 3: FPL's capital expenditures were approximately $2.6 billion for the quarter, and we expect FPL's full-year 2020 capital investments to be between $9.5 billion.

Fpl's capital expenditures were approximately $2 $6 billion for the quarter and we expect Fpl's full year 2020 capital investments to be between nine and $9 $5 billion.

Kirk Crews: For the 12 months ending September 2023, FPL's reported ROE for regulatory purposes or will be approximately 11.8%. During Q3, we reversed roughly $245 million of reserve amortization, leaving FPL with a balance of over $1.2 billion.

For the 12 months ending September 2023, FPL's reported ROE for regulatory purposes or will be approximately 11.8%. During Q3, we reversed roughly $245 million of reserve amortization, leaving FPL with a balance of over $1.2 billion.

Speaker 3: transcript

Speaker 3: For the 12 months ending September 2023, FEL's reported ROE for regular 12 purposes will be approximately 11.8%.

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

Operator: and NextEra Energy Partners, LP Third, Quarter 2023, Units Conference Call. All participants will be in a listen-on mode. Should you need assistance, please, but no a conference specialist by pressing star, then zero.

Speaker 3: transcript

Speaker 3: During the third quarter, we reversed roughly $245 million of reserve amortization, leaving FPL with a balance of over $1.2 billion.

During the third quarter, we reversed roughly $245 million of reserve amortization, leaving FPL with a balance of over $1.2 billion.

Kirk Crews: Over the current four-year settlement agreement. We continue to expect FPL to make capital investments of between $32 to 34 billion. Our capital investment plan is well established and focused on enhancing what we believe is one of the best customer value propositions in the industry.

Over the current four-year settlement agreement. We continue to expect FPL to make capital investments of between $32 to 34 billion. Our capital investment plan is well established and focused on enhancing what we believe is one of the best customer value propositions in the industry.

Speaker 3: transcript

Speaker 3: Over the current four-year settlement agreement, we continue to expect FPL to the capital investment of between $32 to $34 billion.

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

Operator: After today's presentation, there will be an opportunity to ask questions. Do ask a question you may press star, then one on a touch-tone phone. To withdraw your question, please, press star, then two. Please note this event is being recorded.

Speaker 3: transcript

Speaker 3: Our capital investment plan is well-established and focused on enhancing what we believe is one of the best customer value propositions in the industry.

Our capital investment plan is well established and focused on enhancing what we believe is one of the best customer value propositions in the industry.

Kristin Rose: I would now like to sound the conference over to Kristin Rose, Director of Investor Relations. Please go ahead. Thank you, Vice.

Kirk Crews: Key indicators show that the Florida economy remains healthy, and Florida continues to be one of the fastest growing states in the country. FPL's Q3 retail sales increased 3% from the prior year comparable period due to warmer weather, which had a positive year over year impact on usage per customer of approximately 2%. As a result, FPL observed solid underlying growth in Q3 retail sales of roughly 1% on a weather normalized basis.

Key indicators show that the Florida economy remains healthy, and Florida continues to be one of the fastest growing states in the country. FPL's Q3 retail sales increased 3% from the prior year comparable period due to warmer weather, which had a positive year over year impact on usage per customer of approximately 2%. As a result, FPL observed solid underlying growth in Q3 retail sales of roughly 1% on a weather normalized basis.

Speaker 3: transcript

Speaker 3: Key indicators show that the Florida economy remains healthy, and Florida continues to be one of the fastest growing states in the country.

Key indicators show that the Florida economy remains healthy and Florida continues to be one of the fastest growing states in the country.

Kirk: Good morning, everyone, and thank you for joining our Third Quarter 2023, Combined Financial Results Conference Call for NextEra Energy and NextEra Energy Partners. 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 other factors in today's earnings news release and the comments made during this conference call and the risk factor 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 our website, www.nextEraenergy.com and www.nextEraenergyPartners.com.

Speaker 3: transcript

Speaker 3: FPL's third quarter retail sales increased 3% from the prior year comparable period due to warmer weather, which had a positive year-over-year impact on usage for customer of approximately 2%.

Fpl's third quarter retail sales increased 3% from the prior year comparable period due to warmer weather, which had a positive year over year impact on usage per customer of approximately 2%.

Speaker 3: transcript

Speaker 3: As a result, FPL observed solid underlying growth in third quarter retail sales of roughly 1% on a weather normalized space.

As a result, FPL observed solid underlying growth in third quarter retail sales of roughly 1% on a weather normalized basis.

Kirk Crews: Now let's turn to Energy Resources which reported Adjusted earnings growth of approximately 21% year over year.

Now let's turn to Energy Resources which reported Adjusted earnings growth of approximately 21% year over year.

Speaker 3: transcript

Speaker 3: Now let's turn to Energy Resources, which reported adjusted earnings growth of approximately 21% year-over-year.

Now, let's turn to energy resources, which reported adjusted earnings growth of approximately 21% year over year.

Kirk Crews: Contributions from new investments increased $0.11 per share year over year, while our existing clean energy portfolio declined $0.02 per share, which includes the impact of weaker year-over-year wind resource. The comparative contribution from our customer supply and trading and gas infrastructure businesses increased by $0.04 per share and $0.01 per share, respectively. All other impacts reduced earnings by $0.08 per share. This decline reflects higher interest costs by $0.06 per share, half of which is driven by new borrowing costs to support new investments.

Contributions from new investments increased $0.11 per share year over year, while our existing clean energy portfolio declined $0.02 per share, which includes the impact of weaker year-over-year wind resource. The comparative contribution from our customer supply and trading and gas infrastructure businesses increased by $0.04 per share and $0.01 per share, respectively. All other impacts reduced earnings by $0.08 per share. This decline reflects higher interest costs by $0.06 per share, half of which is driven by new borrowing costs to support new investments.

Speaker 3: transcript

Speaker 3: Contributions from new investments increased $0.11 per share year-over-year, while our existing clean energy portfolio declined $0.02 per share, which includes the impact of weaker year-over-year wind resources.

Contributions from new investments increased 11 cents per share year over year, while our existing clean energy portfolio declined <unk> <unk> per share.

Kirk: Do not undertake any duty to update any forward-looking statements. Today's presentation also includes references to non-gap financial measures. You should refer to the information contained in the slides accompanying today's presentation for the definitional information and reconciliations of historical non-gap measures to the closest gap financial measure.

Which includes the impact of weaker year over year wind resource.

Speaker 3: transcript

Speaker 3: The comparative contribution from our customer supply and trading and gas infrastructure business.

The comparative contribution from our customer supply and trading and gas infrastructure businesses increased by four cents per share and one cent per share respectively.

Speaker 3: transcript

Speaker 3: increased by 4 cents per share and 1 cent per share, respectively.

Speaker 3: transcript

Speaker 3: All other impacts reduced earnings by $0.08 per share.

All other impacts reduced earnings by eight cents per share.

Speaker 3: transcript

Speaker 3: This decline reflects higher interest costs by $0.06 per share, half of which is driven by new borrowing costs to support new investors.

This decline reflects higher interest costs by <unk> <unk> per share half of which is driven by new borrowing costs to support new investments.

Kirk Crews: Energy Resources had a record quarter of new renewables and storage origination, adding approximately 3,245MW to the backlog, which is the first time we have exceeded 3GW in a single quarter. Although we will remind you that signings can be lumpy quarter to quarter, we do believe this is a terrific sign of strong underlying demand for new renewable generation. With these additions, our backlog now totals over 21GW after taking into account roughly 1,025MW of new projects placed into service since our second quarter call. We also removed roughly 1,180MW from our backlog, including roughly 800MW of projects in New York following an adverse decision by NYSERDA two weeks ago. We are optimistic that these projects will ultimately move forward but are removing them from backlog for now. The remaining megawatts were removed due to permitting challenges.

Energy Resources had a record quarter of new renewables and storage origination, adding approximately 3,245MW to the backlog, which is the first time we have exceeded 3GW in a single quarter. Although we will remind you that signings can be lumpy quarter to quarter, we do believe this is a terrific sign of strong underlying demand for new renewable generation. With these additions, our backlog now totals over 21GW after taking into account roughly 1,025MW of new projects placed into service since our second quarter call. We also removed roughly 1,180MW from our backlog, including roughly 800MW of projects in New York following an adverse decision by NYSERDA two weeks ago. We are optimistic that these projects will ultimately move forward but are removing them from backlog for now. The remaining megawatts were removed due to permitting challenges.

Speaker 3: transcript

Speaker 3: Energy resources had a record quarter of new renewables and storage origination.

Energy resources had a record quarter of new renewables and storage origination and approximately 3245 megawatts to the backlog, which is the first time, we've exceeded three gigawatt in a single quarter.

Speaker 3: transcript

Speaker 3: adding approximately 3,245 megawatts to the backlog, which is the first time we have exceeded 3 gigawatts in a single quarter.

Kirk: With that, I will turn the call over to Kirk. Thanks, Kristen and good morning. NextEra Energy delivered strong third-quarter results, growing adjusted earnings per share approximately 10.6 percent every year. In the quarter, FPL continued to deliver outstanding value to its customers and what we believe has been one of the most constructive regulatory jurisdictions in the nation. FPL's bills are well below the national average and we are relentlessly focused on reliability and running the business efficiently.

Speaker 3: transcript

Speaker 3: Although we will remind you that signings can be lumpy quarter to quarter, we do believe this is a terrific sign of strong underlying demand for new renewable generation.

Although we will remind you that signings can be lumpy quarter to quarter. We do believe this is a terrific sign of strong underlying demand for new renewable generation.

Speaker 3: transcript

Speaker 3: With these additions, our backlog now totals over 21 gigawatts after taking into account roughly 1,025 megawatts of new projects placed into service since our second quarter call.

With these additions our backlog now totals over 21 Gigawatts after taking into account roughly 1025 megawatts of new projects placed into service since our second quarter call.

Speaker 3: transcript

Speaker 3: We also removed roughly 1,180 megawatts from our backlog, including roughly 800 megawatts of projects in New York following an adverse decision by NYSERDA two weeks ago.

We also removed roughly 1180 megawatts from our backlog, including roughly 800 megawatts of projects in New York falling in adverse decision by nice Serta two weeks ago.

Kirk: Energy resources extended its leadership position and renewable energy during the third quarter with strong adjusted earnings growth and its best renewables and storage origination quarter in its history. NextEra Energy has clear growth visibility through FPL's capital plan and energy resources over 21 gigawatt renewables and storage backlinks. The strongest balance sheets in the sector and worldwide banking relationships. We believe NextEra Energy has both significant access to capital and cost of capital advantages and is well positioned to continue to deliver long-term value for shareholders.

Speaker 3: transcript

Speaker 3: We are optimistic that these projects will ultimately move forward, but are removing them from backlog for now.

We are optimistic that these projects will ultimately move forward, but our removing them from backlog for now.

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Speaker 3: transcript

Speaker 3: The remaining megawatts were removed due to permitting challenges.

The remaining megawatts were removed due to permitting challenges.

Kirk Crews: Overall, we remain on track to achieve our renewable development expectations of roughly 33 to 42GW through 2026.

Overall, we remain on track to achieve our renewable development expectations of roughly 33 to 42GW through 2026.

Speaker 3: transcript

Speaker 3: Overall, we remain on track to achieve our renewable development expectations of roughly 33 to 42 gigawatts through 2026.

Overall, we remain on track to achieve our renewable development expectations of roughly 33% to 42 Gigawatts through 2026.

Kirk Crews: This quarter's backlog additions include roughly 455MW to repower existing wind facilities, which includes Energy Resources' share of approximately 740MW of repowers within the NextEra Energy Partners portfolio, which I'm going to discuss in a few minutes. As a reminder, in a repower we invest roughly 50% to 80% of the cost of a new build, are able to refresh and enhance the performance of the turbine equipment, and start a new 10 years of production tax credits, collectively resulting in attractive returns. Energy Resources has previously repowered roughly 6GW of its approximately 23GW operating wind portfolio, and we believe we will be able to repower much of our existing wind portfolio in the coming years.

This quarter's backlog additions include roughly 455MW to repower existing wind facilities, which includes Energy Resources' share of approximately 740MW of repowers within the NextEra Energy Partners portfolio, which I'm going to discuss in a few minutes. As a reminder, in a repower we invest roughly 50% to 80% of the cost of a new build, are able to refresh and enhance the performance of the turbine equipment, and start a new 10 years of production tax credits, collectively resulting in attractive returns. Energy Resources has previously repowered roughly 6GW of its approximately 23GW operating wind portfolio, and we believe we will be able to repower much of our existing wind portfolio in the coming years.

Speaker 3: transcript

Speaker 3: This quarter's backlog additions include roughly 455 megawatts to repower existing wind facilities, which includes Energy Resources' share of approximately 740 megawatts of repowers within the NextEra Energy Partners portfolio, which I'm going to discuss in a few minutes.

This quarter's backlog additions include roughly 455 megawatts to repower existing wind facilities, which includes energy resources' share of approximately 740 megawatts of repowering within the Nextera energy partners' portfolio, which I'm going to discuss in a few minutes.

Kirk: Now, let's turn to FPL's detailed results. For the third quarter of 2023, FPL's earnings per share increased 4 cents year-over-year. The principal driver of this performance was FPL's regulatory capital employed growth, approximately 13.6% year-over-year. We continue to expect FPL to realize roughly 9% average annual growth and regulatory capital employed over our current rate agreements for-year term, which runs through 2025. FPL's capital expenditures were approximately 2.6 billion dollars for the quarter, and we expect FPL's full-year 2020 capital investments to be between 9.5 billion dollars.

Speaker 3: transcript

Speaker 3: As a reminder, in a repower, we invest roughly 50% to 80% of the cost of a new build, are able to refresh and enhance the performance of the turbine equipment, and a new 10 years of production tax credits, collectively resulting in $1.5 billion.

As a reminder, and a repower, we invest roughly 50% to 80% of the cost of a newbuild or able to refresh and enhance the performance of the turbine equipment.

And for a new 10 years of production tax credits collectively resulting in attractive returns.

Speaker 3: transcript

Speaker 3: Energy Resources has previously repowered roughly 6 gigawatts of its approximately 23 gigawatt operating wind port.

Energy resources has previously Repower roughly six gigawatts of its approximately 23 gigawatt operating wind portfolio and we believe we will be able to repower much of our existing wind portfolio in the coming years.

Speaker 3: transcript

Speaker 3: We believe we will be able to repower much of our existing wind portfolio in the coming years.

Kirk Crews: Also included in the backlog additions are roughly 250 MW of standalone battery storage projects co-located with existing wind and solar facilities. The combination of the stand-alone storage tax credit and the ability to utilize existing interconnection capacity from our operating renewables and storage footprint positions us well to serve our customers' growing needs for capacity.

Also included in the backlog additions are roughly 250 MW of standalone battery storage projects co-located with existing wind and solar facilities. The combination of the stand-alone storage tax credit and the ability to utilize existing interconnection capacity from our operating renewables and storage footprint positions us well to serve our customers' growing needs for capacity.

Speaker 3: transcript

Speaker 3: Also included in the backlog additions are roughly 250 megawatts of standalone battery storage projects co-located with existing wind and solar facilities.

Also included in the backlog editions are roughly 250 megawatts of Standalone battery storage projects co located with existing wind and solar facilities.

Kirk: For the 12-month ending September 2023, FPL's reported ROE for regulatory purposes will be approximately 11.8%. During the third quarter, we reversed roughly 245 million dollars of reserve amortization, leaving FPL with a balance of over 1.2 billion dollars. Over the current four-year settlement agreement, we continue to expect FPL to make capital investments of between 32 to 34 billion dollars. Our capital investment plan is well-established and focused on enhancing what we believe is one of the best customer value propositions in the industry.

Speaker 3: transcript

Speaker 3: The combination of the standalone storage tax credit and the ability to utilize existing interconnection capacity from our operating renewables and storage footprint positions us well to serve our customers' growing needs for capacity.

The combination of the Standalone storage tax credit and the ability to utilize existing interconnection capacity from our operating renewables and storage footprint positions us well to serve our customers' growing needs for capacity.

Kirk Crews: Turning now to our Q3 2023 consolidated results, adjusted earnings from corporate and other decreased by $0.01 per share year over year.

Turning now to our Q3 2023 consolidated results, adjusted earnings from corporate and other decreased by $0.01 per share year over year.

Speaker 3: transcript

Speaker 3: Turning now to our third quarter 2023 consolidated results.

Turning now to our third quarter 2023 consolidated results.

Speaker 3: transcript

Speaker 3: Adjusted earnings from corporate and other decreased by one cent per share year over year.

Adjusted earnings from corporate and other decreased by one cent per share year over year.

Kirk Crews: Our long-term financial expectations remain unchanged. We will be disappointed if we are not able to deliver financial results at or near the top end of our adjusted EPS expectation ranges in each year from 2023 through 2026. From 2021 to 2026, we continue to expect that our average annual growth and 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 for at least 2024 off a 2022 base. As always, our expectations are subject to our caveats.

Our long-term financial expectations remain unchanged. We will be disappointed if we are not able to deliver financial results at or near the top end of our adjusted EPS expectation ranges in each year from 2023 through 2026. From 2021 to 2026, we continue to expect that our average annual growth and 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 for at least 2024 off a 2022 base. As always, our expectations are subject to our caveats.

Speaker 3: transcript

Speaker 3: Our long-term financial expectations remain unchanged.

Our long term financial expectations remain unchanged, 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 through 2026.

Speaker 3: transcript

Speaker 3: We will be disappointed if we are not able to deliver financial results at or near the top end of our adjusted EPS expectation ranges in each year from 2023 through 2026.

Kirk: Key indicators show that the Florida economy remains healthy, and Florida continues to be one of the fastest growing states in the country. FPL's third quarter retail sales increased 3% from the prior year comparable period due to warmer weather, which had a positive year-over-year impact on usage for customer of approximately 2%. As a result, FPL observed solid underlying growth in third quarter retail sales of roughly 1% on a weather-normalized basis.

Speaker 3: transcript

Speaker 3: 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.

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.

Speaker 3: transcript

Speaker 3: And we continue to expect to grow our dividends per share at roughly 10% per year for at least 2024 off a 2022 base.

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

Speaker 3: transcript

Speaker 3: As always, our expectations are subject to our caveat.

As always our expectations are subject to a caveat.

Kirk Crews: Going forward, we plan to fund the business in a manner similar to how we have historically done so at both FPL and Energy Resources. This includes utilizing cash flow from operations for roughly half of our funding needs. In addition to tax equity, project finance, and corporate debt, sale of tax credits is serving as a new source of capital funding for NextEra Energy. We expect to transfer roughly $400 million in tax credits in 2023 and expect this amount to grow over the next couple of years to approximately $1.6 to $1.8 billion in 2026. This dynamic has reduced NextEra Energy's capital recycling needs, including those previously met via sales to NextEra Energy Partners, which has historically averaged roughly $1 billion of annual cash proceeds.

Going forward, we plan to fund the business in a manner similar to how we have historically done so at both FPL and Energy Resources. This includes utilizing cash flow from operations for roughly half of our funding needs. In addition to tax equity, project finance, and corporate debt, sale of tax credits is serving as a new source of capital funding for NextEra Energy. We expect to transfer roughly $400 million in tax credits in 2023 and expect this amount to grow over the next couple of years to approximately $1.6 to $1.8 billion in 2026. This dynamic has reduced NextEra Energy's capital recycling needs, including those previously met via sales to NextEra Energy Partners, which has historically averaged roughly $1 billion of annual cash proceeds.

Speaker 3: transcript

Speaker 3: Going forward, we plan to fund the business in a manner similar to how we have historically done so at both FPL and Energy Resources.

Kirk: Now, let's turn to energy resources, which reported adjusted earnings growth of approximately 21% year-over-year. Contributions from new investments increased 11 cents per year year-over-year, while our existing clean energy portfolio declined 2 cents per year, which includes the impact of weaker year-over-year wind resource. The comparative contribution from our customer supply and trading and guest infrastructure businesses increased by 4 cents per share and 1 cent per share respectively. All other impacts reduced earnings by 8 cents per share.

Going forward, we plan to fund the business in a manner similar to how we have historically done so at both FPL and energy resources.

Speaker 3: transcript

Speaker 3: This includes utilizing cash flow from operations for roughly half of our funding needs.

This includes utilizing cash flow from operations for roughly half of our funding needs. In addition to tax equity project finance and corporate debt.

Speaker 3: transcript

Speaker 3: in addition to tax equity, project finance, and corporate debt.

Speaker 3: transcript

Speaker 3: The sale of tax credits is serving as a new source of capital funding for NextEra Energy.

Sale of tax credits is serving as a new source of capital funding for Nextera energy.

Speaker 3: transcript

Speaker 3: We expect to transfer roughly $400 million in tax credits in 2023 and expect this amount to grow over the next couple of years to approximately $1.6 to $1.8 billion in 2026.

We expect to transfer roughly $400 million in tax credits in 2023 and I expect.

This amount to grow over the next couple of years to approximately one six to $1 $8 billion in 2026.

Kirk: This decline reflects higher interest costs by 6 cents per share, half of which is driven by new borrowing costs to support new investments. Energy resources had a record quarter of new renewables and storage origination and approximately 3,245 megawatts to the back lock, which is the first time we have exceeded 3 gigawatts in a single quarter.

Speaker 3: transcript

Speaker 3: This dynamic has reduced NextEra Energy's capital recycling needs, including those previously met via sales to NextEra Energy partners.

This dynamic has reduced nextera energy's capital recycling needs, including those previously met via sales to Nextera energy partners, which has historically averaged roughly $1 billion of annual cash proceeds.

Speaker 3: transcript

Speaker 3: which has historically averaged roughly $1 billion of annual cash proceeds. Let me address.

Kirk Crews: Let me address future equity issuances specifically. Our balance sheet and financial discipline remain core to our strategy as we find attractive investments for our customers and shareholders. We expect to fund those investments in a way that maintains the strength of our balance sheet. As a reminder, over the last five years we have issued roughly $1.5 billion annually on average of equity in the form of equity units. We do not expect to issue any equity for the balance of 2023 and expect our year-end credit metrics to exceed those specified by the agencies to support our credit ratings. Our current ratings.

Let me address future equity issuances specifically. Our balance sheet and financial discipline remain core to our strategy as we find attractive investments for our customers and shareholders. We expect to fund those investments in a way that maintains the strength of our balance sheet. As a reminder, over the last five years we have issued roughly $1.5 billion annually on average of equity in the form of equity units. We do not expect to issue any equity for the balance of 2023 and expect our year-end credit metrics to exceed those specified by the agencies to support our credit ratings. Our current ratings.

Let me address future equity issuances specifically.

Speaker 3: transcript

Speaker 3: Our balance sheet and financial discipline remain core to our strategy.

Our balance sheet and financial discipline remain core to our strategy.

Kirk: Director. Although we will remind you that signings can be lumpy quarter to quarter, we do believe this is a terrific sign of strong underlying demand for new renewable generation. With these additions, our backlog now totals for 21 gigawatts after taking into account roughly 1025 megawatts of new projects placed into service since our second quarter call. We also remove roughly 1,180 megawatts from our backlog, including roughly 800 megawatts of projects in New York, falling in adverse decision by Nessurda two weeks ago.

Speaker 3: transcript

Speaker 3: as we find attractive investments for our customers and shareholders.

As we find attractive investments for our customers and shareholders. We expect to fund those investments in a way the domains the strength of our balance sheet.

Speaker 3: transcript

Speaker 3: We expect to fund those investments in a way that maintains the strength of our balance sheet.

Speaker 3: transcript

Speaker 3: As a reminder, over the last five years, we have issued roughly $1.5 billion annually on average of equity in the form of equity.

As a reminder, over the last five years, we have issued roughly $1 $5 billion annually on average of equity in the form of equity units.

Speaker 3: transcript

Speaker 3: We do not expect to issue any equity for the balance of 2023 and expect our year-end credit metrics to exceed those specified by the agencies to support our credit rating, our current rating.

We do not expect to issue any equity for the balance of 2023 and expect our year end credit metrics to exceed those specified by the agencies to support our credit rating our current ratings.

Kirk Crews: From 2024 through 2026, we would expect our total equity needs to be no more than $3 billion in total. With continued reliance on equity units to satisfy our equity needs, which have no dilution for the first three years.

From 2024 through 2026, we would expect our total equity needs to be no more than $3 billion in total. With continued reliance on equity units to satisfy our equity needs, which have no dilution for the first three years.

Speaker 3: transcript

Speaker 3: From 2024 through 2026, we would expect our total equity needs to be no more than $3 billion in total, with continued reliance on equity units to satisfy our equity needs, which have no dilution.

From 2024 through 2026, we would expect our total equity needs to be no more than $3 billion in total with continued reliance on equity units to satisfy our equity needs.

Kirk: We are optimistic that these projects will ultimately move forward, but are removing them from backlog for now. The remaining megawatts were removed due to permitting challenges. Overall, we remain on track to achieve our renewable development expectations of roughly 33 to 42 gigawatts through 2026. This orders backlog additions include roughly 455 megawatts to repower existing wind facilities, which includes energy resources share of approximately 740 megawatts of repowers within the NextEra Energy Partners portfolio, which I'm going to discuss in a few minutes.

Which have no dilution.

For the first few years.

Kirk Crews: We believe FPL and Energy Resources are well positioned to manage interest rate volatility in the current environment. At FPL, we primarily rely on the surplus mechanism to offset higher interest rates for the benefit of customers. In addition, FPL's rate agreement already provided for an ROE adjustment to 11.8%, enabling it to earn a higher ROE in the current higher rate environment. We expect that FPL will be able to absorb much and potentially all of the cumulative effects of the current interest rate environment through the use of the surplus mechanism over the remaining settlement period. Consistent with the expiration of the current rate agreement, FPL expects to file a rate case in early 2025 for new rates effective 2026.

We believe FPL and Energy Resources are well positioned to manage interest rate volatility in the current environment. At FPL, we primarily rely on the surplus mechanism to offset higher interest rates for the benefit of customers. In addition, FPL's rate agreement already provided for an ROE adjustment to 11.8%, enabling it to earn a higher ROE in the current higher rate environment. We expect that FPL will be able to absorb much and potentially all of the cumulative effects of the current interest rate environment through the use of the surplus mechanism over the remaining settlement period. Consistent with the expiration of the current rate agreement, FPL expects to file a rate case in early 2025 for new rates effective 2026.

Speaker 3: transcript

Speaker 3: We believe FPL and energy resources are well positioned to manage interest rate volatility in the current environment.

We believe FPL and energy resources are well positioned to manage interest rate volatility in the current environment.

Speaker 3: transcript

Speaker 3: At FPL, we primarily rely on the surplus mechanism to offset higher interest rates for the benefit of customers.

At FPL, we primarily rely on the surplus mechanism to offset higher interest rates for the benefit of customers.

Speaker 3: transcript

Speaker 3: In addition, FPL's rate agreement already provided for an ROE adjustment to 11.8% enabling it to earn a higher ROE in the current higher rate environment.

In addition, npls rate agreement already provided for in our O adjust to 11, 8%, enabling it to earn a higher ROE and the current higher rate environment.

Kirk: As a reminder, in a repower, we invest roughly 50% to 80% of the cost of a new build, are able to refresh and enhance the performance of the turbine equipment, and for a new 10 years of production tax credits, collectively resulting in attractive returns. Energy resources has previously repowered roughly 6 gigawatts of its approximately 23 gigawatts operating wind portfolio. We believe we will be able to repower much of our existing wind portfolio in the coming years.

Speaker 3: transcript

Speaker 3: We expect that FPL will be able to absorb much and potentially all of the cumulative effects of the current interest rate environment through the use of the surplus mechanism over the remaining settlement.

We expect that FPL will be able to absorb much and potentially all of the cumulative effects of the current interest rate environment through the use of the surplus surplus mechanism over the room settlement period.

Speaker 3: transcript

Speaker 3: Consistent with the expiration of the current rate agreement, FPL expects to file a rate case in early 2025 for new rates effective 2026.

Consistent with the expiration of the current rate agreement FPL expects to file a rate case in early 2025 for new rates effective 2026.

Kirk Crews: For Energy Resources and Corporate and Other, we now have $20.5 billion of interest rate hedges in place.

For Energy Resources and Corporate and Other, we now have $20.5 billion of interest rate hedges in place.

Speaker 3: transcript

Speaker 3: For energy resources and corporate and other, we now have $20.5 billion of interest rate hedges in place. While the amount fair.

For energy resources, and corporate and other we now have $25 billion of interest rate hedges in place.

Kirk: Also included in the backlog additions are roughly 250 megawatts of standalone battery storage projects, co-ocated with existing wind and solar facilities. The combination of the standalone storage tax credit and the ability to utilize existing interconnection capacity from our operating renewables and storage footprint positions us well to serve our customers growing needs for capacity.

Kirk Crews: While the amounts vary as we add and settle hedges, the tenor of the swaps are between 5 and 10 years and have a weighted average rate of roughly 3.75%. Swaps allow us to mitigate the impact of interest rate changes on Energy Resources, backlog return, and capital holdings, $12.8 billion of debt maturities from 2024 through 2026. Specifically, these swaps allow us to hedge the project-level debt funding we expect to issue on our renewables backlog as well as a portion of the $12.8 billion of near-term maturities.

While the amounts vary as we add and settle hedges, the tenor of the swaps are between 5 and 10 years and have a weighted average rate of roughly 3.75%. Swaps allow us to mitigate the impact of interest rate changes on Energy Resources, backlog return, and capital holdings, $12.8 billion of debt maturities from 2024 through 2026. Specifically, these swaps allow us to hedge the project-level debt funding we expect to issue on our renewables backlog as well as a portion of the $12.8 billion of near-term maturities.

While the amounts vary as we add and settled hedges the tenor of the swaps are between five and 10 years and have a weighted average rate of roughly 375%.

Speaker 3: transcript

Speaker 3: The tenor of the swaps are between 5 and 10 years and have a weighted average rate of roughly 3.75 percent.

Speaker 3: transcript

Speaker 3: Swaps allow us to mitigate the impact of interest rate changes on energy resources backlog returns and capital holdings $12.8 billion of maturities from 2024 through 2026.

Swaps allow us to mitigate the impact of interest rate changes on energy Resources' backlog returns and capital Holdings 12, $8 billion of maturities from 2024 through 2026.

Kirk: Turning now to our third quarter of 2023 consolidated results, adjusted earnings from corporate and other decreased by one cent per share year over year. Our long-term financial expectations remain unchanged.

Speaker 3: transcript

Speaker 3: Specifically, these swaps allow us to hedge the project-level debt funding we expect to issue on our renewables backlog, as well as a portion of the $12.8 billion of interim maturities.

Specifically these swaps allow us to hedge the project level debt funding, we expect to issue on our renewables backlog as well as a portion of the $12 8 billion of near term maturities.

Kirk: We will be disappointed if we are not able to deliver financial results at or near the top end of our adjusted EPS expectation ranges in each year from 2023 through 2026. From 2021 to 2026, we continue to expect that our average annual growth and operating castle 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 percent per year for at least 2024 off a 2022 base.

Kirk Crews: To put this all in perspective, NextEra Energy sensitivity for an immediate 50 basis points upward shift in the yield curve has essentially no expected adjusted EPS impact on 2023 and 2024 and has on average $0.03 to $0.05 of expected adjusted EPS impact in 2025 and 2026, which is equivalent to approximately 1% of our adjusted EPS expectations. This sensitivity of course assumes we do not implement other offsetting initiatives, including among others, our normal process of cost reductions and capital efficiency opportunities.

To put this all in perspective, NextEra Energy sensitivity for an immediate 50 basis points upward shift in the yield curve has essentially no expected adjusted EPS impact on 2023 and 2024 and has on average $0.03 to $0.05 of expected adjusted EPS impact in 2025 and 2026, which is equivalent to approximately 1% of our adjusted EPS expectations. This sensitivity of course assumes we do not implement other offsetting initiatives, including among others, our normal process of cost reductions and capital efficiency opportunities.

To put this all in perspective, Nextera energy sensitivity for an immediate 50 basis point upward shift in the yield curve has essentially no expected adjusted EPS impact on 2023, and 2024 and has on average three to five of <unk>.

Speaker 3: transcript

Speaker 3: NXERA energy sensitivity for an immediate 50-basis point upward shift in the yield curve has essentially no expected adjusted EPS impact on 2023 and 2024 and has, on average, $0.03 to $0.05 of expected adjusted EPS impact in 2025 and 2026.

<unk> adjusted EPS impact in 2025, and 2026, which is equivalent to approximately 1% of our adjusted EPS expectations.

Speaker 3: transcript

Speaker 3: which is equivalent to approximately 1% of our adjusted EPS expectation.

Speaker 3: transcript

Speaker 3: This sensitivity, of course, assumes we do not implement other offsetting initiatives, including, among others, our normal process of cost reductions and capital efficiency opportunities.

This sensitivity of course assumes we do not implement other offsetting initiatives, including among others, our normal process of cost reductions and capital efficiency opportunities.

Kirk: As always, our expectations are subject to our caveats. Going forward, we plan to fund the business in a manner similar to how we have historically done so at both FPL and energy resources. This includes utilizing cash flow from operations for roughly half of our funding needs, in addition to tax equity, project finance, and corporate debt. Cell of tax credits is serving as a new source of capital funding for NextEra Energy. We expect to transfer roughly $400 million in tax credits in 2023 and expect this amount to grow over the next couple of years to approximately $1.6 to $1.8 billion in 2026. This dynamic has reduced NextEra Energy and capital recycling needs, including those previously met via cells to NextEra Energy partners, which has historically averaged roughly $1 billion of annual cash proceeds.

Kirk Crews: Our backlog is in good shape and is benefiting from our interest rate swaps, global supply chain management capabilities, and the ability to procure equipment, materials, and balance of plant services at scale across our portfolio. The expected returns on equity for our backlog are mid teens for solar and over 20 for wind and storage. As we have done historically, we price our power purchase agreements commensurate with current market conditions, including our current cost of capital, in order to maintain appropriate returns. In addition, at the time of our final investment decision, before we commit significant capital to our backlog projects, we are utilizing interest rate swaps on contracts that we entered into when rates were lower to maintain our return expectations.

Our backlog is in good shape and is benefiting from our interest rate swaps, global supply chain management capabilities, and the ability to procure equipment, materials, and balance of plant services at scale across our portfolio. The expected returns on equity for our backlog are mid teens for solar and over 20 for wind and storage. As we have done historically, we price our power purchase agreements commensurate with current market conditions, including our current cost of capital, in order to maintain appropriate returns. In addition, at the time of our final investment decision, before we commit significant capital to our backlog projects, we are utilizing interest rate swaps on contracts that we entered into when rates were lower to maintain our return expectations.

Speaker 3: transcript

Speaker 3: Our backlog is in good shape and is benefiting from our interest rate swaps, global supply chain management capabilities, and the ability to procure equipment, materials, and balance of plant services at scale across our portfolio.

Our backlog is in good shape and is benefiting from our interest rate swaps global supply chain management capabilities and the ability to procure equipment.

Materials and balance of plant services at scale across our portfolio.

Speaker 3: transcript

Speaker 3: The expected returns on equity for our backlog are mid-teens for solar and over 20 for wind and storage.

The expected return on equity for our backlog, our mid teens for solar and over 20 for wind and storage.

Speaker 3: transcript

Speaker 3: As we have done historically, we price our power purchase agreements commensurate with current market conditions, including our current cost of capital, in order to maintain appropriate returns.

As we have done historically, we price our power purchase agreements commensurate with current market conditions, including our current cost of capital in order to maintain appropriate returns.

Speaker 3: transcript

Speaker 3: In addition, at the time of our final investment decision, before we commit significant capital to our back log projects, we are utilizing interest rate swaps on contracts that we were entered into when rates for lower to maintain our return expectations.

In addition at the time of our final investment decision before we commit significant capital to our back log projects. We are utilizing interest rate swaps on contracts that were entered into when rates were lower to maintain our return expectations.

Kirk: Let me address future equity issuances specifically. Our balance sheet and financial discipline remain core to our strategy. As we find attractive investments for our customers and shareholders, we expect to fund those investments in a way that means the strength of our balance sheet. As a reminder, over the last five years, we have issued roughly $1.5 billion annually on average of equity in the form of equity units. We do not expect to issue any equity for the balance of 2023 and expect our year-end credit metrics to exceed those specified by the agencies to support our credit rating, our current ratings.

Kirk Crews: We remain financially disciplined and pass on projects that don't meet our return expectations going forward. We are encouraged by the trends we are seeing in lower equipment pricing for solar panels and batteries given increased competition globally and declining prices for materials, which we believe will help offset the impacts of higher interest rates on power purchase agreement prices. We are optimistic that demand will remain resilient due to the factors you all know well, including the continued cost competitiveness of renewable energy relative to alternative forms of generation. Importantly, to date demand has remained strong as evidenced by our substantial new additions to backlog this quarter.

We remain financially disciplined and pass on projects that don't meet our return expectations going forward. We are encouraged by the trends we are seeing in lower equipment pricing for solar panels and batteries given increased competition globally and declining prices for materials, which we believe will help offset the impacts of higher interest rates on power purchase agreement prices. We are optimistic that demand will remain resilient due to the factors you all know well, including the continued cost competitiveness of renewable energy relative to alternative forms of generation. Importantly, to date demand has remained strong as evidenced by our substantial new additions to backlog this quarter.

We remain financially disciplined.

Speaker 3: transcript

Speaker 3: and pass on projects that don't meet our return expectations.

On projects that don't meet our return expectations.

Speaker 3: transcript

Speaker 3: Going forward, we are encouraged by the trends we are seeing in lower equipment pricing for solar panels and batteries, given increased competition globally, and declining prices for materials, which we believe will help offset the impacts of higher interest rates on power purchase agreement prices.

Going forward, we are encouraged by the trends, we are seeing and lower equipment pricing for solar panels in batteries, given increased competition globally and declining prices for materials, which we believe will help offset the impacts of higher interest rates on power purchase agreement prices.

Speaker 3: transcript

Speaker 3: We are optimistic that demand will remain resilient due to the factors you all know well, including the continued cost competitiveness of renewable energy relative to alternative forms of generation.

We are optimistic that demand will remain resilient due to the factors you all know well enough.

Including the continued cost competitiveness of renewable energy relative to alternative forms of generation.

Speaker 3: transcript

Speaker 3: Importantly to date, demand has remained strong as evidenced by our substantial new additions to backlog this quarter.

Kirk: From 2024 through 2026, we would expect our total equity needs to be no more than $3 billion in total with continued reliance on equity units to satisfy our equity needs, which have no dilution for the first years. We believe FPL and energy resources are well-positioned to manage interest rate volatility in the current environment. At FPL, we primarily rely on the surplus mechanism to offset higher interest rates for the benefit of customers.

Importantly to date demand has remained strong as evidenced by our substantial new additions to backlog this quarter.

Kirk Crews: Now let's turn to NextEra Energy Partners. As a reminder, the Partnership is a financing vehicle that grows its distribution by acquiring assets with long-term contracted, high-quality cash flows and financing those acquisitions at low cost. Over the years, NextEra Energy Partners has been able to rely on low-cost financing to help drive its distribution growth. To meet its financing needs in recent years, the Partnership has relied primarily on convertible equity portfolio financings that have a low cash coupon during their term and convert into equity over time. A significant amount of the equity required to be issued to buy out these financings began coming due this year and over the next several years, which we believe contributed to the Partnership's trading yield almost doubling at the same time interest rates were rising.

Now let's turn to NextEra Energy Partners. As a reminder, the Partnership is a financing vehicle that grows its distribution by acquiring assets with long-term contracted, high-quality cash flows and financing those acquisitions at low cost. Over the years, NextEra Energy Partners has been able to rely on low-cost financing to help drive its distribution growth. To meet its financing needs in recent years, the Partnership has relied primarily on convertible equity portfolio financings that have a low cash coupon during their term and convert into equity over time. A significant amount of the equity required to be issued to buy out these financings began coming due this year and over the next several years, which we believe contributed to the Partnership's trading yield almost doubling at the same time interest rates were rising.

Now, let's turn to Nextera energy partners.

Speaker 3: transcript

Speaker 3: As a reminder, the partnership is a financing vehicle that grows its distribution by acquiring assets with long-term contracted high-quality cash flows and financing those acquisitions at low cost.

As a reminder, the partnership as a financing vehicle that grows its distribution.

By acquiring assets with long term contracted high quality cash flows and financing those acquisitions at low cost.

Kirk: In addition, FPL's rate agreement already provided for an ROE adjust to 11.8 percent, enabling it to earn a higher ROE in the current higher rate environment. We expect that FPL will be able to absorb much and potentially all of the cumulative effects of the current interest rate environment through the use of the surplus mechanism over the remainderment period.

Speaker 3: transcript

Speaker 3: Over the years, Nathara Energy Partners has been able to rely on low cost financing to help drive this distribution.

Over the years Nextera energy partners has been able to rely on low cost financing to help drive this distribution growth.

Speaker 3: transcript

Speaker 3: To meet its financing needs in recent years, the partnership has relied primarily on convertible equity portfolio financings that have a low cash coupon during their term and convert into equity over time.

To meet its financing needs in recent years. The partnership has relied primarily on convertible equity portfolio financings that have a low cash coupon during their term and convert into equity over time.

Speaker 3: transcript

Speaker 3: With significant amount of the equity required to be issued to buy out these financing, began coming due this year and over the next several years, which we believe contributed to the partnerships trading yield almost doubling at the same time interest rates were rising.

Significant amount of the equity required to be issued to buy out. These financings began coming due this year and over the next several years, which we believe contributed to the partnership's trading yield almost doubling at the same time interest rates were rising.

Kirk Crews: Consequently, the Partnership's cost of capital increased, which made it difficult to support a 12% growth rate in a way that is sustainable and in the best interest of unitholders over the long term. By reducing the growth rate to 6%, NextEra Energy Partners LP distribution rate is now comparable to its peers and the Partnership does not expect to require growth equity until 2027. In order to meet these objectives, the Partnership is focused on first executing against this transition plan. As a reminder, the transition plans include successfully entering into agreements to sell the Texas natural gas pipeline portfolio and Meade natural gas pipeline assets this year and in 2025 respectively.

Consequently, the Partnership's cost of capital increased, which made it difficult to support a 12% growth rate in a way that is sustainable and in the best interest of unitholders over the long term. By reducing the growth rate to 6%, NextEra Energy Partners LP distribution rate is now comparable to its peers and the Partnership does not expect to require growth equity until 2027. In order to meet these objectives, the Partnership is focused on first executing against this transition plan. As a reminder, the transition plans include successfully entering into agreements to sell the Texas natural gas pipeline portfolio and Meade natural gas pipeline assets this year and in 2025 respectively.

Speaker 3: transcript

Speaker 3: Consequently, the partnership's cost of capital increased, which made it difficult to support a 12 percent growth rate in a way that is sustainable and in the best interest of unit holders over the long term.

Consequently, the partnerships cost of capital increase which made it difficult to support a 12% growth rate in a way that is sustainable and in the best interest of unit holders over the long term.

Kirk: Consistent with the expiration of the current rate agreement, FPL expects to file a rate case in early 2025 for new rates effective 2026. For energy resources and corporate another, we now have $20.5 billion of interest rate case. While the amounts vary as we add and settle hedges, the tenor of the swaps are between five and ten years and have a weighted average rate of roughly 3.75%. Swaps allow us to mitigate the impact of interest rate changes on energy resources, backlog returns, and capital holdings, $12.8 billion of securities from 2024 through 2026.

Speaker 3: transcript

Speaker 3: By reducing the growth rate to 6%, Nexera Energy Partners' LP distribution rate is now comparable to its peak.

By reducing the growth rate to 6% next.

Nextera Energy partners LP distribution rate is now comparable to its peers and the partnership does not expect to require growth equity until 2027.

Speaker 3: transcript

Speaker 3: and the partnership does not expect to require growth equity until 2027.

Speaker 3: transcript

Speaker 3: In order to meet the objectives, the partnership is focused on first executing against this transition.

In order to meet these objectives. The partnership is focused on first executing against this transition plan.

Speaker 3: transcript

Speaker 3: As a reminder, the transition plans include successfully entering into agreement to sell the Texas Natural Guest Pipeline portfolio and me natural guest pipeline assets this year and in 2025, respect.

As a reminder, the transition plans includes successfully entering into agreements to sell the Texas natural gas pipeline portfolio.

<unk> natural gas pipeline assets this year and in 2025, respectively.

Kirk Crews: Doing so will enable the Partnership to address the equity buyouts associated with the STX Midstream, the 2019 NEP Pipelines, and NEP Renewables, two convertible equity portfolio financings due through 2025 through the period of our current financial expectations. That would leave a small equity buyout of roughly $147 million on the Genesis Holdings convertible equity portfolio financing in 2026. The partnership is continuing its process to sell the Texas Pipeline Portfolio and expects to have an update on or before our Q4 call in January. NextEra Energy Partners is focused on executing against its growth plan for unitholders. That plan involves organic growth, specifically repowerings of approximately 1.3GW of wind projects, as well as acquiring assets from Energy Resources or third parties at favorable yields.

Doing so will enable the Partnership to address the equity buyouts associated with the STX Midstream, the 2019 NEP Pipelines, and NEP Renewables, two convertible equity portfolio financings due through 2025 through the period of our current financial expectations. That would leave a small equity buyout of roughly $147 million on the Genesis Holdings convertible equity portfolio financing in 2026. The partnership is continuing its process to sell the Texas Pipeline Portfolio and expects to have an update on or before our Q4 call in January. NextEra Energy Partners is focused on executing against its growth plan for unitholders. That plan involves organic growth, specifically repowerings of approximately 1.3GW of wind projects, as well as acquiring assets from Energy Resources or third parties at favorable yields.

Speaker 3: transcript

Speaker 3: Doing so will enable the partnership to address the equity buyouts associated with the STX midstreams the 2019 NEP. Pipelines and NEP renewables to convertible equity portfolio financing through 2025.

Doing so will enable the partnership to address the equity buyouts associated with the <unk> midstream the 2019 net pipelines and net renewables to convertible equity portfolio financing through 2025.

Kirk: Specifically, these swaps allow us to hedge the project level debt funding we expect to issue on our renewables backlog as well as a portion of the $12.8 billion of the term securities. To put this all in perspective, NextEra Energy Sensitivity for an immediate 50 basis point upward shift in the yoke curve has essentially no expected adjusted EPS impact on 2023 and 2024 and has on average three to five cents of expected adjusted EPS impact in 2025 and 2026, which is equivalent to 1% of our adjusted EPS expectations.

Speaker 3: transcript

Speaker 3: Through the period of our current financial expectations, that would leave a small equity buyout of roughly $147 million on the Genesis Holding Convertible Equity Portfolio financing in 2026.

During the period of our current financial expectations that would leave a small equity buyout of roughly $147 million on the Genesis holding convertible equity portfolio financing in 2026.

Speaker 3: transcript

Speaker 3: The partnership is continuing its process to sell the Texas pipeline portfolio and expect to have an update on or before our fourth quarter call.

The partnership is continuing its process to sell the Texas pipeline portfolio and expect to have an update on or before our fourth quarter call in January .

Speaker 3: transcript

Speaker 3: Nexera Energy Partners is focused on executing against its growth plan for units.

Nextera energy partners is focused on executing against this growth plan for unit holders.

Speaker 3: transcript

Speaker 3: That can involve organic growth, specifically repowering of approximately 1.3 gigawatts of wind projects, as well as acquiring assets from energy resources or third parties that favorable yield.

Involves organic growth specifically repowering of approximately one three gigawatts of wind projects as well as acquiring assets from energy resources or third parties have favorable yields.

Kirk: This sensitivity, of course, assumes we do not implement other offsetting initiatives, including, among others, our normal process of cost reduction and capital efficiency opportunities. Our backlog is in good shape and is benefiting from our interest rate swaps, global supply chain management capabilities, and the ability to procure equipment, materials, and balance of plant services at scale across our portfolio. The expected returns on equity for our backlog are mid-teens for solar and over 20 for wind and storage.

Kirk Crews: Importantly, NextEra Energy Partners does not expect to need an acquisition in 2024 to meet the 6% growth in distributions per unit target. Today we're announcing plans to repower approximately 740MW of wind facilities through 2026, which require the final approval of the customer's Board of Directors, which is expected to be received in the near term. The repowerings are projected to generate attractive CAFDA yields, and the Partnership expects to fund the repowerings with either tax equity or project-specific debt. Repowerings represent an efficient way to support the Partnership's growth target. Overall, we are pleased with this progress and remain focused on executing additional repowering opportunities in the future.

Importantly, NextEra Energy Partners does not expect to need an acquisition in 2024 to meet the 6% growth in distributions per unit target. Today we're announcing plans to repower approximately 740MW of wind facilities through 2026, which require the final approval of the customer's Board of Directors, which is expected to be received in the near term. The repowerings are projected to generate attractive CAFDA yields, and the Partnership expects to fund the repowerings with either tax equity or project-specific debt. Repowerings represent an efficient way to support the Partnership's growth target. Overall, we are pleased with this progress and remain focused on executing additional repowering opportunities in the future.

Speaker 3: transcript

Speaker 3: Importantly, NASA R&G Partners does not expect to need an acquisition in 2024 to meet the 6% growth in distributions per unit target.

Importantly, next to LNG partners does not expect to need an acquisition in 2024 to meet the 6% growth in distributions per unit target.

Speaker 3: transcript

Speaker 3: Today, we're announcing plans to repower approximately 740 megawatts of wind facilities through 2020.

Today, we're announcing plans to repower approximately 740 megawatts of wind facility through 2026, which require the final approval of the customers' board of directors, which is expected to be received in the near term.

Speaker 3: transcript

Speaker 3: which require the final approval of the customer's board of directors, which is expected to be received in the near term.

Speaker 3: transcript

Speaker 3: The repowerings are projected to generate attractive CAFD yields, and the partnership expects to fund the repowerings with either tax equity or project specific.

The repowering are projected to generate attractive cash yields and the partnership expects to fund the repowering with either tax equity or project specific debt.

Speaker 3: transcript

Speaker 3: Repowerings represent an efficient way to support the partnership's growth.

Kirk: As we have done historically, we price our power purchase agreements commensurate with current market conditions, including our current cost of capital in order to maintain appropriate returns. In addition, at the time of our final investment decision, before we commit significant capital to our backlog projects, we are utilizing interest rates on contracts that we were entered into when rates were lower to maintain our return expectations. We remain financially disciplined and pass on projects that don't meet our return expectations.

Repowering represent an efficient way to support the partnership's growth targets.

Speaker 3: transcript

Speaker 3: Overall, we are pleased with this progress and remain focused on executing additional repowering opportunities in the future across Sarah Energy Partners rough eight gigawatt win.

Overall, we are pleased with this progress and remain focused on executing additional repowering opportunities in the future across era energy partners roughly eight gigawatt wind portfolio.

Kirk Crews: Across NextEra Energy Partners' roughly 8GW wind portfolio to minimize the volatility associated with changes in interest rates and support the growth plan, the Partnership also executed roughly $1.9 billion to hedge refinancing costs for the 2024 and 2025 maturities. The resulting expected refinancing costs of the maturities are factored into our expectations.

Across NextEra Energy Partners' roughly 8GW wind portfolio to minimize the volatility associated with changes in interest rates and support the growth plan, the Partnership also executed roughly $1.9 billion to hedge refinancing costs for the 2024 and 2025 maturities. The resulting expected refinancing costs of the maturities are factored into our expectations.

Speaker 3: transcript

Speaker 3: To minimize the volatility associated with changes in interest rates and support the growth land, the partnership also executed roughly $1.9 billion to hedge refinancing costs for the 2024 and 2025 maturity.

To minimize the volatility associated with changes in interest rates and support the growth plan. The partnership also executed roughly $1 9 billion.

To hedge refinancing costs for the 2024 and 2025 maturities.

Speaker 3: transcript

Speaker 3: The resulting expected refinancing costs of the maturities are factored into our expectation.

Resulting expected refinancing cost of the maturities are factored into our expectations.

Kirk Crews: Turning to the detailed results, NextEra Energy Partners third quarter Adjusted EBITDA was $488 million and Cash Available for Distribution was $247 million. New projects, which primarily reflect contributions from approximately 1,100 net MW of new long term contracted renewable projects acquired in 2022 and the approximately 690 net MW of new projects that closed in the second quarter of this year, contributed approximately $66 million of Adjusted EBITDA and $32 million of Cash Available for Distribution. The third quarter Adjusted EBITDA contribution from existing projects increased by approximately $5 million year over year. Third quarter results for Adjusted EBITDA and Cash Available for Distributions were positively impacted by the Incentive Distribution Rights fee suspension and provided approximately $39 million of benefit this quarter, more than offsetting the Cash Available for Distribution.

Turning to the detailed results, NextEra Energy Partners third quarter Adjusted EBITDA was $488 million and Cash Available for Distribution was $247 million. New projects, which primarily reflect contributions from approximately 1,100 net MW of new long term contracted renewable projects acquired in 2022 and the approximately 690 net MW of new projects that closed in the second quarter of this year, contributed approximately $66 million of Adjusted EBITDA and $32 million of Cash Available for Distribution. The third quarter Adjusted EBITDA contribution from existing projects increased by approximately $5 million year over year. Third quarter results for Adjusted EBITDA and Cash Available for Distributions were positively impacted by the Incentive Distribution Rights fee suspension and provided approximately $39 million of benefit this quarter, more than offsetting the Cash Available for Distribution.

Speaker 3: transcript

Speaker 3: Turning to the detailed results, Nexera Energy Partners III-QA was $488 million and Casheville redistribute was $240.

Turning to the detailed results Nextera energy partners third quarter, adjusted EBITDA was $488 million and cash available for distribution was $247 million.

Kirk: Going forward, we are encouraged by the trends we are seeing in lower equipment pricing for solar panels and batteries, given increased competition globally, and declining prices for materials, which we believe will help offset the impacts of higher interest rates on power purchase agreement prices. We are optimistic that demand will remain resilient, due to the factors you all know well, including the continued cost competitiveness of renewable energy relative to alternative forms of generation.

Speaker 3: transcript

Speaker 3: new projects, which primarily reflect contributions from approximately 1,100 net megawatts of new long-term contracted renewable projects acquired in 2022, and the approximately 690 net megawatts of new projects that closed in the second quarter of this year contributed approximately $66 million of adjusted EBITDA and $32 million of cash available for D.

New projects, which primarily reflect contributions from approximately 1100 net megawatts of new long term contracted renewable projects acquired in 2022 and the approximately 690 net megawatts of new projects that closed in the second quarter of this year contributed approximately $66 million of adjusted EBITDA.

<unk> and $32 million of cash available for distribution.

Kirk: Importantly to date, demand has remained strong as evidence by our substantial new additions to backlog this quarter.

Speaker 3: transcript

Speaker 3: The third quarter adjusted EBITDA contribution from existing statistics increased by approximately $5 million year over year.

Third quarter adjusted EBITDA contribution from existing projects increased by approximately $5 million year over year.

Speaker 3: transcript

Speaker 3: Third quarter results for adjusted EBDA and CACVL for distributions were positively impacted by the incentive distribution rights thesis.

Kirk: Now, let's turn to Nexera Energy Parts. Partners. As a reminder, the partnership is a financing vehicle that grows its distribution by acquiring assets with long-term contracted high-quality cash flows and financing those acquisitions at low cost. Over the years, NextEra Energy Partners has been able to rely on low-cost financing to help drive its distribution growth. To meet its financing needs in recent years, the partnership has relied primarily on convertible equity portfolio financing that have a low-cash coupon, stream their term, and convert into equity over time.

Third quarter results for adjusted EBITDA and cash available for distributions were positively impacted by the incentive distribution rights fee suspension and provided approximately $39 million.

Kirk: A significant amount of the equity required to be issued to buy out these financing began coming due this year and over the next several years, which we believe contributed to the partnership's trading yield almost doubling at the same time interest rates were rising.

Speaker 3: transcript

Speaker 3: and provided approximately $39 million of benefit this quarter, more than offsetting the cash of a for distribution impacts of lower pay-go payments driven by lower wind resource that exists.

A benefit this quarter more than offsetting the cash available for distribution impacts of lower paygo payments driven by lower wind resource at existing projects.

Kirk Crews: Impacts of Lower PAYGO Payments Driven by Lower Wind Resource at Existing Projects. Yesterday, NextEra Energy Partners board declared a quarterly distribution of $0.8675 per common unit or $3.47 per common unit on an annualized basis, which reflects an annualized increase of 76% from its second quarter 2023 distribution per common unit. From a base of our second quarter 2023 distribution per common unit at an annualized rate of $3.42, we continue to see 5 to 8% growth per year in LP distributions per unit, with a current target of 6% growth per year being a reasonable range of expectations through at least 2026. For 2023, we expect annualized rate for the fourth quarter 2023 distribution that is payable in February of 2024 to $3.52 per common unit.

Impacts of Lower PAYGO Payments Driven by Lower Wind Resource at Existing Projects. Yesterday, NextEra Energy Partners board declared a quarterly distribution of $0.8675 per common unit or $3.47 per common unit on an annualized basis, which reflects an annualized increase of 76% from its second quarter 2023 distribution per common unit. From a base of our second quarter 2023 distribution per common unit at an annualized rate of $3.42, we continue to see 5 to 8% growth per year in LP distributions per unit, with a current target of 6% growth per year being a reasonable range of expectations through at least 2026. For 2023, we expect annualized rate for the fourth quarter 2023 distribution that is payable in February of 2024 to $3.52 per common unit.

Speaker 3: transcript

Speaker 3: Yesterday, NXERA Energy Partners Board declared a quarterly distribution of 86.75 cents per common unit, or $3.47 per common unit, on an annualized basis.

Yesterday, the Nextera energy Partners' Board declared a quarterly distribution of <unk> $86 75 per common unit or $3 47 per common unit on an annualized basis, which reflects an annualized increase of 6% from its second quarter 2023 distribution per common unit.

Speaker 3: transcript

Speaker 3: which reflects an annualized increase of 6% from its second quarter 2023 distribution for common use.

Speaker 3: transcript

Speaker 3: From a base of our second quarter, 2023 distribution for common unit at an annualized rate of $3.42.

From a base of our second quarter 2023 distribution per common unit at an annualized rate of $3 42.

Speaker 3: transcript

Speaker 3: We continue to see 5% to 8% growth per unit per year in LP distributions per unit, with a current target of 6% growth per year, being a reasonable range of expectations through at least 2022.

We continue to see 5% to 8% both per unit per year in LP distributions per unit with a current target of 6% growth per year as being a reasonable range of expectations through at least 2026.

Kirk: Consequently, the partnership's cost of capital increased, which made it difficult to support a 12 percent growth rate in a way that is sustainable and in the best interest of unit orders over the long-term. By reducing the growth rate to 6 percent, NextEra Energy Partners' LP distribution rate is now comparable to its peers and the partnership does not expect to require growth equity until 2027. In order to meet these objectives, the partnership is focused on first executing against its transition plans.

Speaker 3: transcript

Speaker 3: For 2023, we expect analyzed rate for the fourth quarter of 2023 distribution that is payable in February of 2024 to $3.52 per comment.

For 2023, we expect annualized rate for the fourth quarter of 2023 distribution that is payable in February of 2024 to $3 52 per common unit.

Kirk Crews: NextEra Energy Partners expects run rate contributions for Adjusted EBITDA and cash available for distributions from its forecasted portfolio at 31 December 2023 to be in the ranges of $1.9 to 2.1 billion and $730 to 820 million, respectively. As a reminder, year-end 2023 run rate projections reflect calendar year 2024. Contributions from the forecasted portfolio at year-end 2023. The Adjusted EBITDA and related cash available for distributions associated with the Texas Pipeline Portfolio have been excluded from these run rate financial expectations.

NextEra Energy Partners expects run rate contributions for Adjusted EBITDA and cash available for distributions from its forecasted portfolio at 31 December 2023 to be in the ranges of $1.9 to 2.1 billion and $730 to 820 million, respectively. As a reminder, year-end 2023 run rate projections reflect calendar year 2024. Contributions from the forecasted portfolio at year-end 2023. The Adjusted EBITDA and related cash available for distributions associated with the Texas Pipeline Portfolio have been excluded from these run rate financial expectations.

Speaker 3: transcript

Speaker 3: NECTERA Energy Partners expects run rate contributions for adjusted EBITDA and cash flow for distributions from its forecasted portfolio at December 31, 2023, to be in the ranges of $1.9 to $2.1 billion and $730 to $820 million, respectively. As a reminder, year-end 2023 run rate projections reflect calendar year 2024 contributions from the forecasted portfolio at year-end.

<unk> energy partners expect run rate contributions for adjusted EBITDA and cash available for distributions from its forecasted portfolio at December 31, 2023 to be in the range of $1 90 to $2 1 billion.

Kirk: As a reminder, the transition plans include successfully entering into agreement to sell the Texas Natural Gas Pipeline portfolio and meet natural gas pipeline assets this year and in 2025, respectively. Doing so will enable the partnership to address the equity buyouts associated with the STX midstream the 2019 NEP pipelines and NEP renewables to convertible equity portfolio financing through 2025. Through the period of our current financial expectations, that would leave a small equity buyout of roughly $147 million on the genesis holding convertible equity portfolio financing in 2026.

$700 million to $820 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.

Speaker 3: transcript

Speaker 3: The adjusted EBITDA and related cash flow for distributions associated with the Texas Pipeline and Prophellial have been excluded from these run rate financial aid.

The adjusted EBITDA and related cash fell for distributions associated with the Texas pipeline portfolio have been excluded from these run rate financial expectations.

Kirk Crews: As always, our expectations are subject to our caveat. While NextEra Energy Partners navigates through this current environment, it's important not to lose sight of the value of the underlying portfolio.

As always, our expectations are subject to our caveat. While NextEra Energy Partners navigates through this current environment, it's important not to lose sight of the value of the underlying portfolio.

Speaker 3: transcript

Speaker 3: As always, our expectations are subject to our cap.

As always our expectations are subject to our caveat.

Speaker 3: transcript

Speaker 3: While next-year energy partners navigate through this current environment, it's important not to lose sight of the value of the underlying port.

While Nextera energy partners navigate through this current environment, it's important not to lose sight of the value of the underlying portfolio.

Kirk Crews: NextEra Energy Partners is the seventh largest producer of electricity from the wind and the sun in the world, with over 10GW of renewables in operation. The partnership owns renewable projects that deliver high quality cash flows in 30 states serving 94 customers with an average counterparty credit rating of BBB via contracts with an average remaining contract life of 14 years. We remain optimistic the partnership can be an attractive vehicle to own existing renewable assets over the long term. We want the partnership to be successful and separately to address a question we've been receiving from some investors, NextEra Energy has no plans to buy back NextEra Energy Partners. With that, I'll turn the call over to John.

NextEra Energy Partners is the seventh largest producer of electricity from the wind and the sun in the world, with over 10GW of renewables in operation. The partnership owns renewable projects that deliver high quality cash flows in 30 states serving 94 customers with an average counterparty credit rating of BBB via contracts with an average remaining contract life of 14 years. We remain optimistic the partnership can be an attractive vehicle to own existing renewable assets over the long term. We want the partnership to be successful and separately to address a question we've been receiving from some investors, NextEra Energy has no plans to buy back NextEra Energy Partners. With that, I'll turn the call over to John.

Speaker 3: transcript

Speaker 3: Next, Sarah Energy Partners is a set of largest produce rubby electricity from the wind and the sun in the world with over 10 gigawatts of renewables in operation.

<unk> Nextera energy partners is a second largest producer of electricity from the wind and the Sun in the world with over 10 Gigawatts of renewables in operation.

Kirk: The partnership is continuing its process to sell the Texas Pipeline portfolio and expect to have an update on or before our fourth quarter call in January. NextEra Energy Partners is focused on executing against its growth plan for unit orders. That plan involves organic growth, specifically repowering of approximately 1.3 gigawatts of wind projects, as well as acquiring assets from energy resources or third parties at favorable yields. Importantly, NextEra Energy Partners does not expect to need an acquisition in 2024 to meet the 6% growth and distributions per unit target.

Speaker 3: transcript

Speaker 3: The partnership owns renewable projects that deliver high-quality cash flows in 30 states, serving 94 customers with an average counterparty credit rating of BBB+, via contracts.

The partnership owns renewable projects that deliver high quality cash flows in 30 states, serving 94 customers with an average counterparty credit rating of Triple B plus via contracts.

With.

Speaker 3: transcript

Speaker 3: an average with an average room, any contract life of 14 years.

And average.

With an average remaining contract life of 14 years.

Speaker 3: transcript

Speaker 3: We remain optimistic. The partnership can be an attractive vehicle to own existing noble assets over the long term. We want the part.

We remain optimistic the partnership can be an attractive vehicle to own existing renewable assets over the long term.

We want the partnership to be successful and separately to address the question. We've been receiving from some investors Nextera energy has no plans to buyback Nextera energy partners.

Speaker 3: transcript

Speaker 3: and separately to address a question we've been receiving from Salman bus.

Kirk: Today we're announcing plans to repower approximately 740 megawatts of wind facilities through 2026, which require the final approval of the customer's board of directors, which is expected to be received in the near term. The repowerings are projected to generate extractive captive yield and the partnership expects to fund the repowerings with either tax equity or project-specific debt. Repowerings represent an efficient way to support the partnership's growth target. Overall, we are pleased with this progress and remain focused on executing additional repowering opportunities in the future across Sarah Energy Partners Portfolio.

Speaker 3: transcript

Speaker 3: If Sarah Energy has no plans to buy back McSara Energy Partners. For that,

That I will turn the call over to John .

John Ketchum: Thanks, Kirk. Let me briefly address NextEra Energy Partners. It's been a difficult year, and we have a lot of work to do. As Kirk shared, we are focused on executing against our transition plans and look forward to providing an update on the Texas Pipeline Portfolio sales process on or before the Q4 earnings call. We are also focused on delivering LP distribution growth of 6% through at least 2026, and the repowerings we announced today are a good start towards achieving that objective.

Speaker 4: transcript

Speaker 4: Thanks, Kirk. Let me briefly address next-era energy part.

Thanks, Kirk, let me briefly address Nextera energy partners.

Speaker 4: transcript

Speaker 4: It's been a difficult year and we have a lot of work to do. As Kirk shared, we are focused on executing against our transition plans and look forward to providing an update in the Texas pipeline portfolio sales process on or before the fourth quarter earnings call.

It's been a difficult year and we have a lot of work to do.

As Kirk shared we are focused on executing against our transition plans and look forward to providing an update on the Texas pipeline portfolio sales process on or before the fourth quarter earnings call.

Speaker 4: transcript

Speaker 4: We are also focused on delivering LP distribution growth of 6% through at least in 2026. And the repowerings we announced today are a good start towards achieving that but object Ed.

We are also focused on delivering LP distribution growth of 6% through at least 2026 and the Repowering, We announced today are a good start towards achieving that objective.

Kirk: To minimize the volatility associated with changes in interest rates and support the growth plan, the partnership also executed roughly $1.9 billion to hedge refinancing costs for the 2024 and 2025 maturities. The resulting expected refinancing costs of the maturities are factored into our expectations.

John Ketchum: At NextEra Energy, our foundations are rooted in FPL, the nation's largest electric utility, and NextEra Energy Resources, the world's leader in renewables. Both businesses have performed very well, complement each other, and push one another to be even better. This is validated by the solid financial and operating results both continue to deliver, and the excellent progress we are making against our development expectations. Over recent weeks, we met with many of our investors and have welcomed your feedback. In response, we addressed many of the questions we heard from you in our remarks today and in the presentation materials you now have. Along those lines, I want to reiterate the solid fundamentals on which NextEra Energy is built and our outstanding prospects for future growth.

At NextEra Energy, our foundations are rooted in FPL, the nation's largest electric utility, and NextEra Energy Resources, the world's leader in renewables. Both businesses have performed very well, complement each other, and push one another to be even better. This is validated by the solid financial and operating results both continue to deliver, and the excellent progress we are making against our development expectations. Over recent weeks, we met with many of our investors and have welcomed your feedback. In response, we addressed many of the questions we heard from you in our remarks today and in the presentation materials you now have. Along those lines, I want to reiterate the solid fundamentals on which NextEra Energy is built and our outstanding prospects for future growth.

Speaker 4: transcript

Speaker 4: At next year's energy, our foundations are rooted in FPL. The nation's largest electric utility and next-year energy resources, the world's leader internobles. Both businesses as performed very well, compliment each other and push one another to be even better. This is validated by the solid financial and operating results both continue to deliver and the excellent progress we're making against our development expectations.

At Nextera energy, our foundations are rooted in FPL, the nation's largest electric utility and Nextera energy resources, the world's leader in renewables, both businesses performed very well complement each other and push one another to be even better.

Kirk: Turning to the detailed results, NextEra Energy Partners III quarter adjusted EBITDA was $488 million and cash available for distribution was $247 million. New projects, which primarily reflect contributions from approximately 1,100 net megawatts of new long-term contracted renewable projects acquired in 2022 and the approximately 690 net megawatts of new projects that closed in the second quarter of this year, contributed approximately $66 million of adjusted EBITDA and $32 million of cash available for distribution.

This is validated by the solid financial and operating results both continue to deliver and the excellent progress we are making against our development expectations.

Speaker 4: transcript

Speaker 4: Over recent weeks, we met with many of our investors and have welcomed your feedback. In response, we have addressed many of the questions we heard from you in our remarks today and then the presentation materials you now have. Along those lines, I want to reiterate the solid fundamentals on which next area energy is built and our outstanding prospects for future growth, having just completed our annual strategy review process with our Board of Directors.

Over recent weeks, we met with many of our investors that are welcomed your feedback and response, we addressed many of the questions. We heard from you in our remarks today and then the presentation materials you now have.

Along those lines I want to reiterate the solid fundamentals on which Nextera energy has built and our outstanding prospects for future growth, having just completed our annual strategy review process with our board of directors.

Kirk: The third quarter adjusted EBITDA contribution from existing projects increased by approximately $5 million year over year. Third quarter results for adjusted EBITDA and cash available for distributions were positively impacted by the incentive distribution rights fee suspension and provided approximately $39 million of benefit, this quarter, more than offsetting the cash available for distribution impacts of lower pay go payments driven by lower wind resource at existing projects.

John Ketchum: Having just completed our annual strategy review process with our Board of Directors, FPL remains among the best utilities in the United States, achieving top operational performance across key metrics while maintaining the industry's lowest cost structure, one of the cleanest emissions profiles, and a customer bill that is roughly 30% lower than the national average. It is located in one of the fastest growing states with what we believe is one of the country's most constructive regulatory environments. FPL has by far the lowest non-fuel O&M of any large utility in the nation. Over the last 20 years, our relentless focus on costs, efficiency, and low bills have saved customers nearly $15 billion in fuel cost alone year after year. FPL receives top accolades for reliability despite operating on a peninsula and historically facing a high probability for hurricanes.

Having just completed our annual strategy review process with our Board of Directors, FPL remains among the best utilities in the United States, achieving top operational performance across key metrics while maintaining the industry's lowest cost structure, one of the cleanest emissions profiles, and a customer bill that is roughly 30% lower than the national average. It is located in one of the fastest growing states with what we believe is one of the country's most constructive regulatory environments. FPL has by far the lowest non-fuel O&M of any large utility in the nation. Over the last 20 years, our relentless focus on costs, efficiency, and low bills have saved customers nearly $15 billion in fuel cost alone year after year. FPL receives top accolades for reliability despite operating on a peninsula and historically facing a high probability for hurricanes.

Speaker 4: transcript

Speaker 4: FPEU remains among the best utilities in the United States, achieving top operational performance across key metrics while maintaining the industry's lowest cost structure, one of the cleanest emissions profiles, and a customer bill that is roughly 30% lower than the national average.

FPL remains among the best utilities in the United States, achieving top operational performance across key metrics, while maintaining the industry's lowest cost structure one of the cleanest emissions profiles and our customer bill that is roughly 30% lower than the national average.

Speaker 4: transcript

Speaker 4: It is located in one of the fastest-growing states with what we believe is one of the country's most constructive regulatory environment.

Kirk: NextEra Energy Partners III declared a quarterly distribution of $86.75 per common unit or $3.47 per common unit on an annualized basis which reflects an annualized increase of 6% from its second quarter 2023 distribution per common unit. From a base of our second quarter 2023 distribution per common unit at an annualized rate of $3.42 we continue to see 5% to 8% both per unit per year in LP distributions per unit with a current target of 6% growth per year being a reasonable range of expectations through at least 2026.

It is located in one of the fastest growing states with what we believe is one of the country's most constructive regulatory environments.

Speaker 4: transcript

Speaker 4: FEL has by far the lowest non fuel O&M of any large utility in the nation.

L. L has by far the lowest non fuel O&M of any large utility in the nation.

Speaker 4: transcript

Speaker 4: Over the last 20 years, our relentless focus on costs, efficiency, and low bills to save customer nearly $15 billion in fuel cost alone.

Over the last 20 years, our relentless focus on cost efficiency at low bills of save customers nearly $15 billion in fuel cost alone.

Speaker 4: transcript

Speaker 4: Year after year, FPO receives top accolades for reliability, despite operating on a peninsula and historically facing a high probability for her.

Year after year Fpl's received top alkaloids for reliability.

Despite.

Operating on a peninsula and historically facing a high probability for Hurricanes. It has plans to add approximately 20 gigawatts of solar over the next 10 years for the benefit of those customers while underground in its distribution system to lower operating cost and withstand the impacts of hurricanes to help keep the Florida economy.

John Ketchum: It has plans to add approximately 20GW of solar over the next 10 years for the benefit of its customers while undergrounding its distribution system to lower operating costs and withstand the impacts of hurricanes. To help keep the Florida economy, which is now the 16th largest in the world, running on all cylinders. We believe FPL is the highest quality regulated utility in the country.

It has plans to add approximately 20GW of solar over the next 10 years for the benefit of its customers while undergrounding its distribution system to lower operating costs and withstand the impacts of hurricanes. To help keep the Florida economy, which is now the 16th largest in the world, running on all cylinders. We believe FPL is the highest quality regulated utility in the country.

Speaker 4: transcript

Speaker 4: It has plans to add approximately 20 gigawatts of solar over the next 10 years for the benefits customers while undergrounding the distribution system to lower operating costs and withstand the impacts of hurricanes to help keep the floor economy, which is now the 16th largest in the world running on all cylinders.

Kirk: For 2023 we expect annualized rate for the fourth quarter 2023 distribution that is payable in February of 2024 to $3.52 per common unit. NextEra Energy Partners expects run rate contributions for adjusted EBITDA and cash available for distributions from its forecasted portfolio at December 31st, 2023 to be in the ranges of $1.9 to $2.1 billion and $700 to $820 million for respectfully. As a reminder year end 2023 run rate projections reflect calendar year 2024 contributions for forecasted portfolio at year end 2023. The adjusted EBITDA and related cash available for distributions associated with the Texas Pipeline portfolio have been excluded from these run rate financial expectations.

Which is now the 16th largest in the world running on all cylinders.

Speaker 4: transcript

Speaker 4: We believe FPL is the highest quality, regular utility in the country.

We believe FPL has the highest quality regulated utility in the country.

John Ketchum: At NextEra Energy Resources, we are just getting started. Renewable penetration as part of the US generating mix currently stands at roughly 16% and is expected to double, reaching over 30% by 2030. As the world's leader in renewable energy with an approximately 20% market share in US renewables origination, NextEra Energy Resources stands to benefit significantly from the unstoppable shift towards electrification.

At NextEra Energy Resources, we are just getting started. Renewable penetration as part of the US generating mix currently stands at roughly 16% and is expected to double, reaching over 30% by 2030. As the world's leader in renewable energy with an approximately 20% market share in US renewables origination, NextEra Energy Resources stands to benefit significantly from the unstoppable shift towards electrification.

Speaker 4: transcript

Speaker 4: At energy resources, we are just getting started. Renewable penetration is part of the US Generating Mix currently stands at roughly 16% and is expected to double reaching over 30% by 2030.

At energy resources, we are just getting started renewable penetration as part of the U S. Generating mix currently stands at roughly 16% and is expected to double reaching over 30% by 2030.

Speaker 4: transcript

Speaker 4: as the world leader in renewable energy within approximately 20% market share in U.S. renewables origination.

As the world's leader in renewable energy within our approximately 20% market share in U S. Renewables origination energy resources' stands to benefit significantly from the unstoppable shift towards electrification.

Speaker 4: transcript

Speaker 4: Energy resources stands to benefit significantly from the unstoppable shift toward electrification.

Kirk: As always our expectations are subject to our caveat. While NextEra Energy Partners navigates through this current environment it's important not to lose sight of the value of the underlying portfolio.

John Ketchum: Experience and scale matter. With over 20 years of renewables experience, a 31-gigawatt operating portfolio, a development pipeline of roughly 300 gigawatts of renewables and storage projects, and roughly 150 gigawatts of interconnection queue positions, we are well positioned for future growth. In addition to our scale and competitive advantages that you all know well, our ability to finance cheaper with one of the strongest balance sheets in our sector provides us with an access to and cost of capital advantage. We believe all of this enables us to differentiate ourselves in a complex macro environment to build even more renewables at attractive returns. In short, we believe Energy Resources has built the most competitive and complete renewable energy business in the world and is better positioned than ever to lead the decarbonization of the US economy.

Experience and scale matter. With over 20 years of renewables experience, a 31-gigawatt operating portfolio, a development pipeline of roughly 300 gigawatts of renewables and storage projects, and roughly 150 gigawatts of interconnection queue positions, we are well positioned for future growth. In addition to our scale and competitive advantages that you all know well, our ability to finance cheaper with one of the strongest balance sheets in our sector provides us with an access to and cost of capital advantage. We believe all of this enables us to differentiate ourselves in a complex macro environment to build even more renewables at attractive returns. In short, we believe Energy Resources has built the most competitive and complete renewable energy business in the world and is better positioned than ever to lead the decarbonization of the US economy.

Speaker 4: transcript

Speaker 4: Experience and scale matter and with over 20 years of renewables experience, a 31-igawatt operating portfolio, a development pipeline of roughly 300 gigawatts of renewables and storage projects, and roughly 150 gigawatts of interconnection queue positions, we are well positioned.

Experience and scale matter and with over 20 years of renewables experience of 31 gigawatt operating portfolio a development pipeline of roughly 300, gigawatts of renewables and storage projects and roughly 150 gigawatts of interconnection queue positions, we are well positioned for future growth.

Kirk: NextEra Energy Partners is a set largest producer of electricity from the wind and the sun in the world with over 10 gigawatts of renewables in operation.

Kirk: Foundation. The partnership owns renewable projects to deliver high quality cash flows in 30 states, serving 94 customers with an average counterparty credit rating of triple B plus via contracts with an average with an average remaining contract life of 14 years.

Speaker 4: transcript

Speaker 4: In addition to our scale and competitive advantages that you all know well, our ability to finance cheaper with one of the strongest balance sheets in our sector provides us with an access to and cost of capital advantage.

Both.

In addition to our scale and competitive advantages that you all know well.

<unk> the financed cheaper with one of the strongest balance sheets in our sector provides us with an access to and cost of capital advantage. We believe all of this enables us to differentiate ourselves in a complex macro environment to build even more renewables at attractive returns.

Speaker 4: transcript

Speaker 4: We believe all of us are able to differentiate ourselves in a complex macro environment to build even more renewables at a track to return.

Speaker 4: transcript

Speaker 4: In short, we believe Energy Resources has built the most competitive and complete renewable energy business in the world and is in a better position than ever to lead the decarbonization of the U.S. economy.

In short we believe energy resources has built the most competitive and complete renewable energy business in the world.

Kirk: And separately, to address a question we've been receiving from some investors, NextEra Energy has no plans to buy back NextEra Energy Partners.

Better positioned than ever to lead the de carbonization of the U S economy.

John Ketchum: We have spent the last two decades building a world class clean energy platform powered by our greatest strength, our people and a culture of continuous improvement that drives innovation and smart clean energy solutions. I want to extend my appreciation to our team today as we remain committed to serving our customers and providing long term value for our shareholders. Thank you and now we welcome your questions.

We have spent the last two decades building a world class clean energy platform powered by our greatest strength, our people and a culture of continuous improvement that drives innovation and smart clean energy solutions. I want to extend my appreciation to our team today as we remain committed to serving our customers and providing long term value for our shareholders. Thank you and now we welcome your questions.

Speaker 4: transcript

Speaker 4: We have spent the last two decades building a world-class, clean energy platform, powered by our greatest strength, our people, and a culture of continuous improvement that drives innovation and smart, clean energy solutions.

We have spent the last two decades building a world class clean energy platform powered by our greatest strength, our people and our culture of continuous improvement that drives innovation and smart clean energy solutions.

John: That, I'll turn the call over to John. Thanks, Kirk.

John: Let me briefly address NextEra Energy Partners. It's been a difficult year and we have a lot of work to do. As Kirk shared, we are focused on executing against our transition plans and look forward to providing an update in the Texas Pipeline portfolio sales process on or before the fourth quarter earnings call. We are also focused on delivering LP distribution growth of 6% through at least 2026 and the repowerings we announced today are a good start towards achieving that objective.

Speaker 4: transcript

Speaker 4: I want to extend my appreciation to our team today as we remain committed to serving our customers and providing long-term value for our shareholders. Thank you.

I want to extend my appreciation to our team today as we remain committed to serving our customers and providing long term value for our shareholders.

Thank you and now we welcome your questions.

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star, then one on your touchtone phone. If you are using a speakerphone, please pick up your headset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then 2. At this time, we will pause momentarily to assemble our roster.

Speaker 1: transcript

Speaker 1: Thank you. We will begin the question and answer session to ask a question in your first star, then one on your touch tone phone. If you're using a speaker phone, please, it helps it before pressing the key.

Thank you.

The question and answer session.

Ask a question.

Then one on your Touchtone phone.

Okay.

Go ahead.

Before passing the key.

John: At NextEra Energy, our foundations are rooted in FPL, the nation's largest electric utility and NextEra Energy Resources, the world's leader internobles. Both businesses have performed very well, complement each other and push one another to be even better. This is validated by the solid financial and operating results both contingent deliver and the excellent progress we are making against our development expectations. Over recent weeks, we met with many of our investors and have welcomed your feedback.

Speaker 1: transcript

Speaker 1: If at any time, question has been addressed and you would like to withdraw your question, please restore them too. At this time, we will pause momentarily.

My question has been answered so I would like to withdraw your question. Please.

Thank you.

Finally, the military the restaurant <unk>.

Operator: Our first question comes from Steve Fleischman with Wolfe Research. Please go ahead.

Our first question comes from Steve Fleishman with Wolfe Research. Please go ahead.

Speaker 1: transcript

Speaker 1: Our first question comes from Steve Fleischmann with World Research. Please go ahead.

Our first question.

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<unk> with Wolfe Research. Please go ahead.

Steve Fleischman: Yeah, hi. Thank you. Just a couple questions. First on the slide on the tax transferability and the $1 billion dollars effectively creating $6.5 billion of equity content. Could you just talk to that more, and just I think if I do the backward math, that's about a 15% FFO to debt kind of calculation. Is that kind of what you're using to get to that or is there more nuance to it?

Steve Fleishman: Yeah, hi. Thank you. Just a couple questions. First on the slide on the tax transferability and the $1 billion dollars effectively creating $6.5 billion of equity content. Could you just talk to that more, and just I think if I do the backward math, that's about a 15% FFO to debt kind of calculation. Is that kind of what you're using to get to that or is there more nuance to it?

Speaker 4: transcript

Speaker 4: Yeah, hi. Thank you. So just a couple questions. First on the slide on the tax transferability and the billion dollars, effectively creating six and a half billion of equity content. Could you just talk to that more? And just I think if I do the backward math, that's about a 15%

Yes, hi.

Thank you.

So just.

A couple of questions first on the slide.

On the tax transferability.

The $1 billion effectively creating <unk>.

$6 5 billion of equity content.

John: In response, we have addressed many of the questions we heard from you in our remarks today and in the presentation materials you now have. Along those lines, I want to reiterate the solid fundamentals on which NextEra Energy is built and are outstanding prospects for future growth having just completed our annual strategy review process with our Board of Directors. FPL remains among the best utilities in the United States achieving top operational performance across key metrics while obtaining the industry's lowest cost structure, one of the cleanest emissions profiles and a customer bill that is roughly 30% lower than the national average.

Could you just talk to that more in just I think if I do the backward math, that's about a 15%.

Speaker 5: transcript

Speaker 5: FFO to debt kind of calculation is that?

<unk> to debt kind of.

Calculation is that.

Speaker 5: transcript

Speaker 5: kind of what you're using to get to that, or is there more nuance to it?

Kind of what youre using to get to that or is there more nuance to it.

John Ketchum: Yes, Steve, on that slide, I'll take that. This is John, you know. The example is $1 billion. You take $1 billion, you divide by the 18% FFO to debt that you about $5.5 billion, you add the $1 billion of cash that you receive, and that gets you the $6.5 billion of equity content on a $1 billion transfer.

Speaker 4: transcript

Speaker 4: Yes, Steve, on that slide, I'll take that, this is John , you know, we are, the example is a billion dollars. You take a billion dollars, you divide by the 18% FFO to debt, that gets you about five and a half billion. You add the billion dollars of cash that you receive, and that gets you the six and a half billion dollars of equity content on a billion dollar transfer. Got it.

Yes, Steve on that slide I'll take that this is John .

We are.

The example is $1 billion you take $1 billion you divide by the 18% <unk> to debt you about $5 5 billion, yes, the $1 billion of cash that you receive and that gets you to the $6 5 billion.

Of exiting content on a $1 billion transfer.

Steve Fleischman: Got it. Okay. And when you lay out your, that would seem to be a key part since you talked about the transferability numbers going from $400 million to $1.7 billion.

Steve Fleishman: Got it. Okay. And when you lay out your, that would seem to be a key part since you talked about the transferability numbers going from $400 million to $1.7 billion.

Okay.

Speaker 5: transcript

Speaker 5: And when you lay out, that would seem to be at key parts as you talked about the transferability. Numbers going from 400 million to a billion seven. That's a key part and that would show up.

And when you lay out your that would seem to be.

John: It is located in one of the fastest growing states with what we believe is one of the country's most constructive regulatory environments. FPL has, by far, the lowest non-fuel O&M of any large utility in the nation. Over the last 20 years, our relentless focus on costs, efficiency and low bills have saved customers nearly $15 billion in fuel cost alone. Year after year, FPL receives top accolades for reliability despite operating on a peninsula and historically facing a high probability for her.

A key part since you talked about the transferability.

Numbers going from $400 million to $1 seven.

Steve Fleischman: That's a key part. That would show up in your funding plan in the corporate debt issuances.

That's a key part. That would show up in your funding plan in the corporate debt issuances.

That's a key part.

And that would show up.

Speaker 5: transcript

Speaker 5: in your funding plan in the corporate debt issuances.

And your funding plan and the <unk>.

Corporate debt issuances.

Steve Fleischman: Now, since it's not tax equity anymore, that might be kind of matched against that or would it be in the tax equity and project? How do we think about where it shows up?

Now, since it's not tax equity anymore, that might be kind of matched against that or would it be in the tax equity and project? How do we think about where it shows up?

Speaker 5: transcript

Speaker 5: Now since it's not tax equity anymore, that might be kind of matched against that or would it be in the tax equity project, how do we think about?

Now since it's not tax equity anymore.

That might be kind of matched against that or would it be in the tax equity and project how do we think about.

Speaker 4: transcript

Speaker 4: Yeah, the way I think about it is it's going to show up in your cash flow from operations. That's the cap that you actually receive. And then there's also some equity content that benefits the rest of the sources, including corporate debt experiences.

John Ketchum: The way I think about it is it's going to show up in your.

Yes.

T shows out of the way I think about it is it's got to show up in your <unk>.

John Ketchum: Cash flow from operations. That's the cash that you actually receive. There's also some equity content that benefits the rest of the sources, including corporate debt issuances.

Your your cash flow from operations. That's the cash that you actually received and then there is also some equity content that benefits.

John: Cains. It has plans to add approximately 20 gigawatts of solar over the next 10 years for the benefits customers while undergrounding its distribution system to lower operating costs and withstand the impacts of hurricanes to help keep the floor economy, which is now the 16th largest in the world, running on all cylinders. We believe FPL is the highest quality, regularity utility in the country.

The rest of the sources, including corporate debt issuances.

Steve Fleischman: Got it. Okay, helpful. And then one other question on the.

Steve Fleishman: Got it. Okay, helpful. And then one other question on the.

Got it okay.

Speaker 5: transcript

Speaker 5: helpful and then uh... one other question on the uh...

Helpful. And then one other question on the.

Steve Fleischman: So the tenor of the interest rate swap seems pretty long, which is helpful. Just when we think of how you're using the swaps to kind of basically limit interest rate risk of the projects, how much project, if there's $1 billion of a project, how much is project debt going forward, percent of that? Let's say that you might be using a swap against.

So the tenor of the interest rate swap seems pretty long, which is helpful. Just when we think of how you're using the swaps to kind of basically limit interest rate risk of the projects, how much project, if there's $1 billion of a project, how much is project debt going forward, percent of that? Let's say that you might be using a swap against.

Speaker 5: transcript

Speaker 5: So the tenor of the interest rate swap seems pretty long, which is helpful.

On the so the tenor of the interest rate swaps seems presume pretty long.

That's helpful.

Just when we think of.

John: At Energy Resources, we are just getting started. Renewable penetration is part of the U.S, generating mix currently stands at roughly 16% and is expected to double reaching over 30% by 2030. As the world leader in renewable energy within approximately 20% market share and U.S, renewables origination, Energy Resources stands to benefit significantly from the unstoppable shift towards electrification. Experience and scale matter and with over 20 years of renewable experience, a 31 gigawatt operating portfolio, a development pipeline of roughly 300 gigawatts of renewables and storage projects, and roughly 150 gigawatts of inter-connection cube positions, we are well positioned for future growth.

Speaker 5: transcript

Speaker 5: how you're using the swaps to kind of uh... basically uh... interest rate risk of the projects how how much

How youre using the swaps to kind of.

Basically.

<unk> limit interest.

Interest rate risk of the projects.

How much.

Speaker 5: transcript

Speaker 5: project if there's a billion dollars of a project how much

Project, if theres, a $1 billion of a project how much.

Speaker 5: transcript

Speaker 5: is project debt going forward, percent of that, let's say, that you might be using a swap against.

Is project debt going forward percentage of that lets say that you might be using a swap against.

John Ketchum: Yeah, the way to think about it, Steve, it's 70%. So when you think about our backlog, just some rough math. If you take the $20.5 billion, I would think about roughly $15.5 billion of that or so going against the backlog, and then the balance going against near-term maturities that we have through 2026. But the interest rate sensitivity that we have given you includes our exposure on everything. Right. So on the project debt, you know, on the corporate debt issuance, and it includes it all.

Speaker 4: transcript

Speaker 4: yeah the way they think about it steve is seventy percent so uh... when you think about our backlog you're just some rough math if you take the twenty and a half billion i would think about

Yeah, the way to think about it Steve as 70% so.

When you think about our backlog.

Just some rough math, if you take the 25 billion I would think about.

Speaker 4: transcript

Speaker 4: Roughly 15.5 billion of that or so going against the backlog.

Roughly $15 5 billion of that or so going against the backlog and then the balance going against.

Speaker 4: transcript

Speaker 4: and then the balance going against near-term maturities that we have through 2026, but the interest rate sensitivity that we have given you includes our exposure on everything, right? So on the project.

Near term maturities that we have through 2026, but the interest rate sensitivity that we have given you includes.

John: In addition to our scale and competitive advantages that you all know well, our ability to finance cheaper with one of the strongest balance sheets in our sector provides us with an access to and cost of capital advantage. We believe all of this enables us to differentiate ourselves in a complex macro environment to build even more renewables at attractive returns. In short, we believe Energy Resources is built the most competitive and complete renewable energy business in the world and the better position than ever to lead the decarbonization of the U.S, economy. We have spent the last two decades building a world-class clean energy platform powered by our greatest strength, our people, and a culture of continuous improvement that drives innovation and smart clean energy solutions.

Our exposure on everything right so on the project.

Speaker 4: transcript

Speaker 4: that on the corporate debt issuance to this and it includes it all.

On the corporate debt issuance does includes at all.

Steve Fleischman: Okay, that's helpful. And then just one overall question on the renewables environment. Maybe you could just talk to just a little more color on what you're seeing because there's been a general view that the higher cost of capital environment's really slowing, you know, renewables growth. Maybe just more color on what, you know, what you're seeing. And is there going to be a slowdown that comes, you know, next quarter because of the move up, or just more color on the overall environment would be helpful. Thank you.

Okay, that's helpful. And then just one overall question on the renewables environment. Maybe you could just talk to just a little more color on what you're seeing because there's been a general view that the higher cost of capital environment's really slowing, you know, renewables growth. Maybe just more color on what, you know, what you're seeing. And is there going to be a slowdown that comes, you know, next quarter because of the move up, or just more color on the overall environment would be helpful. Thank you.

Speaker 4: transcript

Speaker 4: Okay, that's helpful. And then just one overall question on the renewables environment. Maybe you could just talk to just a little more color on what you're seeing, because there's been a general view that the higher cost of capital environment is really slowing. You know, renewables growth. And I just...

Okay. That's helpful. And then just one overall question on the renewables environment, maybe you could just talk to.

Just a little more color on what Youre seeing because there has been a general view that the higher cost of capital environment is really slowing.

Renewables growth.

And I, just maybe just more color on what.

Speaker 4: transcript

Speaker 4: you know, what you're seeing and is there going to be a slowdown that comes, you know, next quarter because of the move up or just more color on the overall environment would be helpful. Thank you. Yes, Steve, I'm going to turn it over to Rebecca, but one thing I would say is

What you're seeing and is there going to be a slowdown that comes.

Next quarter because of the move purchase just more color on the overall environment would be helpful. Thank you.

John Ketchum: Yes, Steve, I'm going to turn over to Rebecca, but one thing I would say is the renewable business is increasingly moving more and more towards the scale players, and you can see reasons why. One of them is the ability to have a balance sheet to actually enter into the kind of interest rate hedges that we can enter into. If you can't do that, that really puts you at a significant disadvantage. And then all the other competitive advantages that you're all aware of, where we buy at scale, we build at scale, we operate at scale.

Steve I'm going to turn it over to Rebecca, but one thing I would say is.

John: I want to extend my appreciation to our team today as we remain committed to serving our customers and providing long-term value for our shareholders.

Speaker 4: transcript

Speaker 4: The renewable business is increasingly moving more and more towards the scale players, and you can see reasons why. One of them is the ability to have a balance sheet to actually enter into the kind of interest rate hedges that we can enter into.

The renewable business is increasingly increasingly moving more and more towards the scale players and you can see reasons why one of them is the ability to have a balance sheet to actually enter into this kind of interest rate hedges that we can enter into if you can't do that that really puts you at a significant disadvantage.

Operator: Thank you, and now we welcome your questions. Thank you.

Operator: We will begin the question and answer session to ask a question in your press star, then one on your touch-tone phone. If you're using a speaker phone, please see a headset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two.

Speaker 4: transcript

Speaker 4: If you can't do that, that really puts you at a significant disadvantage. And then all of the other competitive advantages that you're all aware of, where we buy at scale, we build at scale, we operate at scale. And the last point I want to make is the cost of capital advantage. And today's market environment, having a strong balance sheet with an ultimate parent with a minus rate.

And then all the other competitive advantages that you are all aware of where we buy at scale. We build at scale, we operated scale and the last point I want to make is the cost of capital advantage in today's market environment, having a strong balance sheet with.

John Ketchum: The last point I want to make is the cost of capital advantage in today's market environment. Having a strong balance sheet with an ultimate parent with an A- rating is really, really important and a super big competitive advantage that we have over the smaller developers that we compete against. And it's a big part of our success. Let me turn it over to Rebecca to talk more about what she's seeing in the market.

The last point I want to make is the cost of capital advantage in today's market environment. Having a strong balance sheet with an ultimate parent with an A- rating is really, really important and a super big competitive advantage that we have over the smaller developers that we compete against. And it's a big part of our success. Let me turn it over to Rebecca to talk more about what she's seeing in the market.

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

Steve Flaishman: Our first question comes from Steve Flaishman with World Research. Please go ahead. Yeah, hi. Thank you. So just a couple questions. First on the slide on the tax transfer ability and the million dollars effectively creating six and a half billion of equity content. Could you just talk to that more? I think if I do the backward math, that's about a 15% FFO to debt kind of calculation. Kind of what you're using to get to that or is there more who wants to it?

And ultimate pair it with an a minus rating.

Speaker 4: transcript

Speaker 4: is really, really important, and a super big competitive advantage that we have over the smaller developers that we compete against, and that's a big part of our success. But let me turn it over to Rebecca to talk more about what she's seeing in the market.

Is really really important super big competitive advantage that we have other over the smaller developers that we compete against and that's a big part of our success, but let me turnover Rebecca talk more about what you're seeing in the market.

Rebecca J. Kujawa: Good morning, Steve. We are thrilled with the signings that we posted for this quarter. Obviously, Kirk highlighted that 3.2GW is a record for us. It's specifically the first time we've been over 3GW. It represents all the things that I think you would want to see, which is strong returns across the portfolio, a great mix of technologies, a good mix of customer type that we signed and entered into these agreements, and also a mix of signings in terms of the dates and across those technologies. You know, there were our first additions to the backlog in 2027.

Rebecca Kujawa: Good morning, Steve. We are thrilled with the signings that we posted for this quarter. Obviously, Kirk highlighted that 3.2GW is a record for us. It's specifically the first time we've been over 3GW. It represents all the things that I think you would want to see, which is strong returns across the portfolio, a great mix of technologies, a good mix of customer type that we signed and entered into these agreements, and also a mix of signings in terms of the dates and across those technologies. You know, there were our first additions to the backlog in 2027.

Speaker 6: transcript

Speaker 6: Good morning, Steve. So we are thrilled with the signings that we posted for this quarter. Obviously, Kirk highlighted that 3.2 gigawatts is a record for us. It's specifically the first time we've been over three gigawatts.

And so we are thrilled with the the signings that we posted for this quarter, obviously Kirk highlighted that three two gigawatts is a record for us.

Typically the first time, we have been over three gigawatts.

Speaker 6: transcript

Speaker 6: and it represents all of the things that I think you would want to see, which is strong returns across the portfolio, a great mix of technologies, a good mix of customer type, that we signed and entered into these agreements, and also a mix of signings in terms of the date and across the technology.

And it represents all of that said I think you would want to see which is strong returns across the portfolio a great mix of technologies, a good mix of customer type that we signed and entered into these agreements and also a mix of signings in terms of the date.

John: Yes, Steve, on that slide, I'll take that, this is John. You know, we are, the example is a billion dollars, you take a billion dollars, you divide by the 18% FFO to debt that you have about five and a half billion. You have the billion dollars of cash that you receive and that gets you at the six and a half billion dollars of every content on a billion dollar transfer. Got it.

And across those technologies.

Speaker 6: transcript

Speaker 6: You know, there were our first additions to the backlog in 2027. I actually think this is slightly disproportionate to what we're seeing in terms of our overall backlog and a strong pipeline of projects that we see going into the fourth quarter, which are far more weighted to a little bit in 24 and a lot more in 25 and 26.

Yeah.

Our first editions that backlog in 2027, and I actually think is a slightly disproportionate to what we're seeing in terms of our overall backlog and a strong pipeline of projects that we see going into the fourth quarter, which are far more weighted to a little bit in 'twenty, four and a lot more than 25 and 26.

Rebecca J. Kujawa: I actually think it is slightly disproportionate to what we're seeing in terms of our overall backlog and a strong pipeline of projects that we see going into Q4, which are far more weighted to a little bit in 2024, and a lot more in 2025 and 2026. But we're really excited about it. So, really strong and exciting development pipeline. And I'll echo John's comments. And it's really what we're seeing on the ground, that after some weariness over the last couple of years, our customers are really drawn to us for our ability to execute. They understand the pipeline that we're building and the resources that we bring to bear to get projects successfully built. And I think that increasingly matters and we're going to continue to address accordingly. But all signs are very positive for what I've seen today.

I actually think it is slightly disproportionate to what we're seeing in terms of our overall backlog and a strong pipeline of projects that we see going into Q4, which are far more weighted to a little bit in 2024, and a lot more in 2025 and 2026. But we're really excited about it. So, really strong and exciting development pipeline. And I'll echo John's comments. And it's really what we're seeing on the ground, that after some weariness over the last couple of years, our customers are really drawn to us for our ability to execute. They understand the pipeline that we're building and the resources that we bring to bear to get projects successfully built. And I think that increasingly matters and we're going to continue to address accordingly. But all signs are very positive for what I've seen today.

John: Okay, and when you lay out your, that would seem to be a key part since you talked about the transferability numbers going from 400 million to a billion seven. That's, that's a key part and that would show up in your funding plan in the corporate debt and the other issue is, now since it's not tax equity anymore, that that might be kind of matched against that or would it be in the tax equity and project, how do we think about where the way I think about it, is it's going to show up in your, your cash flow from operations, that's the cap that you actually receive, and then there's also some equity content that benefits the rest of the sources including corporate debt differences. Got it.

Speaker 6: transcript

Speaker 6: but we're really excited about it. So really strong and exciting development pipeline. And the OLECO Johns comments, and it's really what we're seeing on the ground. That after some weariness over the last couple of years, our customers are really drawn to us for the execute. They understand the pipeline that we're building and the resources that we bring to bear to get projects successfully built. And I think that increasingly matters.

Really excited about it so really strong.

And exciting development.

Pipeline and I'll Echo John's comments, and it's really what we're seeing on the ground.

That after some weariness over the last couple of years, our customers are really drawn to us will be there.

To execute they understand the pipeline that we're building.

And the resources that we bring to bear to two projects successfully built and I think that increasingly matters.

Speaker 6: transcript

Speaker 6: And we're going to continue to address the quarterly, but, you know, all signs are very positive for what I think today.

And we're going to continue to address the quarterly but all signs are very positive for one thing today.

Steve Fleischman: Okay, great. Thank you.

Steve Fleishman: Okay, great. Thank you.

Okay, great. Thank you.

Rebecca J. Kujawa: Thanks, Steve.

Rebecca Kujawa: Thanks, Steve.

Thanks, Steve.

Operator: Our next question comes from Shar Pourreza with Guggenheim Partners. Please go ahead.

Speaker 1: transcript

Speaker 1: An expression comes from Shar Parido with Guggenheim partners. Please go ahead.

Our next question comes from Shar <unk>.

John: Okay, helpful. And then one other question on the, on the, so the tenor of the interest rates flop seems, seems pretty long, which is helpful. Just, when we think of how you're using the swaps, the kind of basically limit interest rate risk of the project, how much project, if there's a billion dollars of a project, how much is project debt going forward? Percent of that, let's say, that you might be using a swap against.

Google home.

Shar Pourreza: Hey, good morning, guys.

Uh huh.

Hey, good morning, guys.

John Ketchum: Morning, Shar.

Sure sure.

Shar Pourreza: Morning. Just maybe quickly touching on the embedded expectations for NEP, I guess in terms of the Texas pipeline sale, John, are there any more comprehensive updates on the process? And I guess are you anticipating any delays or challenges in light of the market conditions? And kind of the reason why I ask is there's obviously a theory out there or thesis that you're having a little bit of an issue offloading these assets. So I'd love to maybe if you can give a little bit more color in anticipation of your full disclosures.

Speaker 7: transcript

Speaker 7: Morning, morning. Just maybe quickly touching on the embedded expectations for NAP, I guess in terms of the Texas pipeline sale, John , are there any more comprehensive updates on the process?

Just maybe quickly touching on the embedded expectations for net I guess in terms of the Texas pipelines. So John are there any more comprehensive updates on the process.

Speaker 7: transcript

Speaker 7: I guess, are you anticipating any delays or challenges in light of the market conditions? And kind of the reason why I ask is there's obviously a theory out there or a thesis that you're having a little bit of an issue offloading these assets. So I'd love to maybe if you can give a little bit more color and anticipation of your full discourse.

I guess are you anticipating any delays or challenges in light of the market conditions.

The reason why I ask is there's obviously a theory out there or thesis that.

You are having a little bit of an issue off floating these assets. So I'd love to maybe if you can give a little bit more color in anticipation of your whole disclosures.

John: Yeah, the way they think about it, Steve, it's 70%. So, when you think about our backlog, just some rough math, if you take the 20 and a half billion, I would think about roughly 15 and a half billion of that or so going against the backlog. And then the balance going against near term maturities that we have through 2026, but the interest rate sensitivity that we have given you includes our exposure on everything, right? So on the project debt, you know, on the corporate debt issuances, it includes it all. Okay, that's helpful.

John Ketchum: Yeah, sure. Thank you. Let me start by saying, you know, obviously, as we said in our prepared remarks, our focus is on selling these pipes growing at 6% and putting NEP in a position to succeed going forward. So along those lines, we continue to work very diligently on the sales process. We're working with counterparties to get it done. At the same time, you know, look, this is a little bit more of a challenging macroeconomic environment. These are very valuable pipes, and we are looking for a transaction that maximizes value for unitholders. We're going to continue to be disciplined, but in terms of the progress that we're making, things are continuing to advance and move forward, and we look forward to having a further update either on the Q4 call or sometime before that. In terms of where we are.

Speaker 4: transcript

Speaker 4: Yeah, sure. Thank you. Let me start by saying, you know, obviously, as we said in our prepared remarks, our focus is on selling these pipes.

Yes sure. Thank you.

Let me start by saying you know obviously as we as we said in our prepared remarks, our focuses on selling these pipes growing at 6% and putting any P and are in a position to succeed going forward. So along those lines. We continue to work very diligently on the sales process, we're working with.

Speaker 4: transcript

Speaker 4: growing at 6% and putting NEP in a position to succeed going forward. So along those lines we continue to work very diligently on the sales process. We're working with counter parties to get it done. And at the same time, you know, look, this is a little bit more of a challenging macroeconomic environment. These are very valuable.

<unk> to.

To get it done and at the same time, you know look this is a little bit more of a.

A challenging macroeconomic environment. These are very valuable pipes.

Speaker 4: transcript

Speaker 4: And we are looking for a transaction that maximizes value for unaholters and we're going to continue to be dissape...

And we are looking for a transaction that maximizes value for.

Steve Flaishman: And then just one overall question on the renewables environment. Maybe you could just talk to just a little more color on what you're seeing because there's been a general view that the higher cost of capital environment's really slowing, you know, renewables growth. And I just maybe just more color on what, you know, what you're seeing and is there going to be a slowdown that comes, you know, next quarter, because of the move up or just just more color on the overall environment would be helpful.

Unit holders and we're going to continue to be disciplined.

Speaker 4: transcript

Speaker 4: But in terms of, you know, the progress that we're making, things are continuing to advance and move forward. And we look forward to having a further update either on the fourth quarter call or sometime before that in terms of where we are.

But in terms of the progress that we're making things are continuing to advance.

And move forward and we look forward to having a further update.

Either on the fourth quarter call or sometime before that in terms of where we are.

Rebecca J. Kujawa: Do.

Shar Pourreza: Do you anticipate the repowering to sort of fully offset the Meade Pipeline sale in 2025?

Speaker 7: transcript

Speaker 7: Then just, can you anticipate the repowering to sort of fully offset the Mead Pipeline Cell in 25?

Shar Pourreza: You anticipate the repowering to sort of fully offset the Meade Pipeline sale in 2025?

Got it and then just.

And do you anticipate.

The repowering to sort of fully offset the meade pipeline sale in 'twenty five.

John: Thank you. Yes, Steve, I'm going to turn over to Rebecca, but one thing I would say is. The Renewable Business is increasingly moving more and more towards the scale players, and you can see reasons why. One of them is the ability to have a balance sheet to actually enter into the kind of interest rate hedges that we can enter into. If you can't do that, that really puts you at a significant disadvantage.

Rebecca J. Kujawa: Hey, charts, Rebecca. I'll take that one. So we're super excited about repowers as part of the longer term growth plan within NEP. And with such an extensive pipeline of renewable projects to pursue these repowers, it'll be a nice complement to continuing to acquire assets. So it doesn't meet the entire growth plan, but certainly is a nice part of it. As we talked about in May, we have a total of 1.3GW that we see in the near term. And obviously this is the first step forward.

Rebecca Kujawa: Hey, charts, Rebecca. I'll take that one. So we're super excited about repowers as part of the longer term growth plan within NEP. And with such an extensive pipeline of renewable projects to pursue these repowers, it'll be a nice complement to continuing to acquire assets. So it doesn't meet the entire growth plan, but certainly is a nice part of it. As we talked about in May, we have a total of 1.3GW that we see in the near term. And obviously this is the first step forward.

Speaker 6: transcript

Speaker 6: Hey, Shards Rebecca, I'll take that one. So we're super excited about repowers as part of the longer term growth plan within NEP and with such an extensive pipeline of renewable projects to pursue these repowers. You know, it'll be a nice complement to continuing to acquire assets.

Hey, Shar tobacco I'll take that one so we're super excited about re powers as part as the longer term growth plan within any P and with such an extensive pipeline of renewable projects to pursue the industry powers.

It will be a nice complement to your continuing to acquire assets. So it doesn't meet the entire growth plan, but certainly is a nice part of it as we talked about in May we have a total of one three gigawatt.

Speaker 6: transcript

Speaker 6: So it doesn't meet the entire growth plan, but certainly is a nice part of it. As we talked about in May, we have a total of 1.3 gigawatts that we see in the near term. And obviously, this is the first step forward in order to make progress on that. So attractive CAFD yields, as we noted, there's still some steps to finish. But we're also not done with the opportunities to repower other assets in the portfolio.

John: And then all the other competitive advantages that you're all aware of, where we buy at scale, we build at scale. We operate at scale. And the last point I want to make is the cost of capital advantage. In today's market environment, having a strong balance sheet with, you know, an ultimate parent with a minus rate is really, really important and super big competitive advantage that we have other over the smaller developers that we compete against. And, you know, it's a big part of our success.

Gigawatts that we see in the near term and obviously this is a first step forward.

Rebecca J. Kujawa: In order to make progress on that so attractive CAFDA yields. As we noted, there's still some steps to finish, but we're also not done with the opportunities to repower other assets in the portfolio.

In order to make progress on that so attractive CAFDA yields. As we noted, there's still some steps to finish, but we're also not done with the opportunities to repower other assets in the portfolio.

Q and in order to make progress on that till attractive cap yields as we noted there's still some steps to finish time, but we're also not done with the opportunities to repower other assets in our portfolio.

Steve Fleischman: Got it.

Shar Pourreza: Got it.

Shar Pourreza: Perfect. And then just lastly for me, just on the sources and uses of cash, I think we all really appreciate the enhanced disclosures there. I guess obviously, given the capital intensive nature of the business, do you anticipate any incremental levers to potentially offset $3 billion of equity and $3 billion of asset sales? If the capital market conditions become a bit more challenged, I guess any reason to rethink around flexing the payout or the balance sheet metrics? Thanks guys.

Perfect. And then just lastly for me, just on the sources and uses of cash, I think we all really appreciate the enhanced disclosures there. I guess obviously, given the capital intensive nature of the business, do you anticipate any incremental levers to potentially offset $3 billion of equity and $3 billion of asset sales? If the capital market conditions become a bit more challenged, I guess any reason to rethink around flexing the payout or the balance sheet metrics? Thanks guys.

Speaker 7: transcript

Speaker 7: Got it. Perfect. And then just lastly for me, just on the sources and uses of cash, I think we all really appreciate the enhanced disclosures there. I just, I guess, obviously, given the capital intensive nature of the business, do you anticipate any incremental levers to potentially offset the $3 billion of equity and $3 billion of asset sales if, you know, the capital market conditions become a bit more challenged? I guess, any reason to rethink around flexing the payout or the balance sheet metrics? Thanks.

Got it perfect and then just lastly for me just on the sources and uses of cash I think we all really appreciate the.

Rebecca: But let me turn over Rebecca to talk more about. What you see in the market.

The enhanced disclosures there just I guess, obviously given the capital intensive nature of the business do you anticipate any incremental levers to potentially offset a $3 billion of equity and 3 billion of asset sales to.

Rebecca: Good morning Steve. So we are thrilled with the signings that we posted for this quarter. Obviously Kirk highlighted that 3.2 gigawatts is a record for us. It's specifically the first time we've been over three gigawatts. And it represents, you know, all of the things that I think you would want to see, which is strong returns across the portfolio, a great mix of technologies, a good mix of customer type. That we signed and entered into these agreements and also a mix of signings in terms of the date and across those technologies.

The capital market conditions become a bit more challenged I guess any reason a rethink around flexing the payout or the balance sheet metrics. Thanks, guys.

John Ketchum: Yeah, listen, thank you. Thank you, Shar. And obviously we are very, very focused as always on costs. We're very, very focused on capital productivity inefficiency as well. So those are two levers we always have. And I think our shareholder base is very familiar with the success that we've had in our annual cost reduction processes that we run across the company. But those are certainly point focused for us. And look, you know, when I think about the $3 billion of equity and the $3 billion of asset recycling and look historically what we've been able to do, I'd be pretty disappointed if we can only do $3 billion of asset recycling. I mean not only through NEP, but third parties. And as a reminder, over the last three or four years we've been very successful in selling renewable projects not only to NEP, but to third parties.

Speaker 4: transcript

Speaker 4: Yeah, listen, thank you, thank you, Shar, and obviously, we are very, very focused, as always on cost.

Yeah, well listen thank you.

Thank you Shar.

And obviously, we are very very focused as always on costs.

Speaker 4: transcript

Speaker 4: We're very, very focused on capital productivity and efficiency as well. So those are two levers we always have.

We're very very focused on.

Capital productivity and efficiency.

Rebecca: You know, there were our first additions that backlog in 2027 actually think is a slightly disproportionate to what we're seeing in terms of our overall backlog and a strong pipeline of projects that we see going into the fourth quarter, which are far more weighted to a little bit in 24 and a lot more in 25 and 26. But we're really excited about it. So really strong and exciting development, you know, pipeline in the Aleco Johns comments.

As well so those are two levers, we always have and I think our shareholders basis is very familiar with the success that we've had in our annual cost reduction processes that we run across the company, but those are certainly point of focus for us and look when I think about.

Speaker 4: transcript

Speaker 4: Our shareholder base is very familiar with the success that we've had in our

Speaker 4: transcript

Speaker 4: annual cost reduction processes that we run across.

Speaker 4: transcript

Speaker 4: company but those are certainly point focus for us and

Speaker 4: transcript

Speaker 4: Look, you know, when I think about the $3 billion of equity and the $3 billion of asset recycling, if you look historically at what we've been able to do, I'd be pretty disappointed if we could only do $3 billion of asset recycling. I mean, not only through NEP, but third parties, and as a reminder, you know, over the last three or four years, we've been very successful.

The $3 billion of equity in the $3 billion of asset recycling and look historically at what we've been able to do I'd be pretty disappointed if we can only do $3 billion of asset recycling I mean, not only through an EP, but third parties and as a reminder.

Rebecca: And it's really what we're seeing on the ground. That after some weariness over the last couple of years, our customers are really, you know, drawn to us for us to be the execute. They understand the pipeline that we're building and the resources that we bring to bear to, you know, get projects successfully built. And I think that increasingly matters. And we're going to continue to address accordingly, but you know, all funds are very positive for what I think today. Okay. Great. Thank you. Thanks, Steve.

Over the last three or four years, we've been very successful in <unk>.

Speaker 4: transcript

Speaker 4: and selling renewable projects not only to NEP but to third parties. You think about the OTPP transaction, the Apollo transaction, the KKR transaction. So we feel very good about our sources plan that we've laid out and look forward to executing against it.

Selling renewable projects not only to NTP, but to third parties. When you think about the otp transaction the Apollo transaction the KKR transaction. So.

John Ketchum: Think about the OTPP transaction, the Apollo transaction, the KKR transaction. So we feel very good about our sourcing plan that we've laid out and.

Think about the OTPP transaction, the Apollo transaction, the KKR transaction. So we feel very good about our sourcing plan that we've laid out and.

We feel very good about our sources plan that we've laid out and.

John Ketchum: Look forward to executing against it.

Look forward to executing against it.

Shar Pourreza: Perfect. Thank you guys, much appreciate it. Congrats.

Shar Parido: Our next question comes from Shar Parido with Guggenheim partners. Please go ahead. Hey, good morning, guys. Morning, Shar. Good morning. Good morning, morning. Just maybe quickly touching on the embedded expectations for Nat.

Perfect. Thank you guys much appreciate it congrats.

Kirk Crews: Thank you.

John Ketchum: Thank you.

Operator: Our next question comes from David Arcaro with Morgan Stanley. Please go ahead.

Yes.

Speaker 1: transcript

Speaker 1: Our next question comes from David Arcaro with Morgan Stanley . Please go ahead.

Our next question comes from David Arcaro with Morgan Stanley . Please go ahead.

Steve Fleischman: Hi, good morning.

David Arcaro: Hi, good morning.

Shar Pourreza: Thanks so much for taking my questions.

Thanks so much for taking my questions.

Hi, good morning, Thanks, so much for taking my questions.

Carly Davenport: Morning Dave.

Rebecca Kujawa: Morning Dave.

John: I guess in terms of the Texas pipeline sale, John, are there any more comprehensive updates on the process? And I guess are you anticipating any delays or challenges in light of the market conditions? And kind of the reason why I ask because there's obviously a theory out there or a thesis that that you're having a little bit of an issue offloading these assets. So I'd love to maybe if you can give a little bit more color and anticipation of your cold disclosures.

Good morning, David.

Steve Fleischman: I'm wondering if you know you mentioned.

David Arcaro: I'm wondering if you know you mentioned.

I'm wondering if you.

Shar Pourreza: Returns over 20% returns for storage and wind. I think that's higher than you've indicated in the past. Assuming that's driven by higher PPA pricing, was wondering if you're seeing, just given higher PPA prices, any impacts to demand in the renewables market here and how you think about that level of return in terms of whether it's sustainable given the competitive dynamics in those end markets.

Returns over 20% returns for storage and wind. I think that's higher than you've indicated in the past. Assuming that's driven by higher PPA pricing, was wondering if you're seeing, just given higher PPA prices, any impacts to demand in the renewables market here and how you think about that level of return in terms of whether it's sustainable given the competitive dynamics in those end markets. Thanks.

Speaker 7: transcript

Speaker 7: You mentioned returns, over 20% returns for storage and wind. I think that's higher than you've indicated in the past.

You mentioned returns over 20% returns for storage and when do you think that's higher than you've indicated in the past and assuming that's driven by higher PPA pricing.

Speaker 7: transcript

Speaker 7: And assuming that's driven by higher PPA pricing, I was wondering if you're seeing just given higher PPA prices any impacts to demand in the renewables market here, and how you think about that level of return in terms of whether it's sustainable given the competitive dynamics in those end markets.

I was wondering if youre seeing it.

Given higher PPA prices any impacts to demand in the renewables market here.

And how you think about that level of return in terms of whether it's sustainable given the competitive dynamics.

John: Yeah, sure. Thank you. Let me start by saying, you know, obviously as we as we said in our prepared remarks are focuses on selling these pipes. Perhaps growing at 6% and putting NEP in a position to succeed going forward. So along those lines, we continue to work very diligently on the sales process. We're working with counter parties to get it done. And at the same time, you know, look, this is a little bit more of a challenging macro economic environment.

And those end markets.

Rebecca J. Kujawa: Thanks, Dave. I'll take that. As you know, we've always characterized the backdrop for renewables as a competitive environment. So I'm very proud of how this team, our team, has executed across an ever changing environment. And I certainly think it's a strength of our team. And most importantly, the competitive advantages that John has highlighted, investment over a long period of time, the ability to work with our supply chain, the ability to work with the folks that we partner with to build the projects, and ultimately operate these projects well over time. So I think that really contributes to our ability to maintain appropriate returns. And I also think it reflects what you expect us to do, which is adjust to all of the current costs of both building, financing, and operating projects over time. And we believe that we are successfully able to achieve that.

Rebecca Kujawa: Dave, I'll take that. As you know, we've always characterized the backdrop for renewables as a competitive environment. So I'm very proud of how this team, our team, has executed across an ever changing environment. And I certainly think it's a strength of our team. And most importantly, the competitive advantages that John has highlighted, investment over a long period of time, the ability to work with our supply chain, the ability to work with the folks that we partner with to build the projects, and ultimately operate these projects well over time. So I think that really contributes to our ability to maintain appropriate returns. And I also think it reflects what you expect us to do, which is adjust to all of the current costs of both building, financing, and operating projects over time. And we believe that we are successfully able to achieve that.

Speaker 6: transcript

Speaker 6: that. As you know, we've always characterized the backdrop for renewables as a competitive environment. So I'm very proud of how this team, our team, is executed across an ever-changing environment. And I certainly think it's a strength of our team. And most importantly, the competitive advantages that John has highlighted, investment over a long period of time, the ability to work with our supply chain, the ability to work with the folks that we partner with to build the projects and ultimately operate these projects well over time. So I think that really contributes to our ability to maintain appropriate returns. And I also think it reflects what you expect us to do, which is adjust to all of the current costs of both building, financing, and operating projects over time. And we believe that we are successfully able to achieve that. In terms of demand, obviously we can't fully predict the future, but I can tell you that the two data points that I think are really...

Dave I'll take that.

We've always characterized the backdrop for renewables is a competitive environment.

Very proud of how this team our team has executed on across an ever changing environment.

I think at the strength of our team and most importantly, the you know the competitive advantages that John has highlighted investment over a long period of time the ability to work with our supply chain the ability to work with the folks that we partner with that though with the projects and ultimately <unk>.

John: These are very valuable pipes. And we are, you know, looking for a transaction that maximizes value for unit holders. And we're going to continue to be disciplined. But in terms of, you know, the progress that we're making, things are continue to advance and move forward.

Operate these projects well over time, so I think that really contributes to our ability to maintain appropriate returns and I also think it reflects what you would expect us to do which is adjust to all of the current costs at those building financing and operating projects over time, and we believe that we are.

John: And we look forward to having a further update, either on the fourth quarter call or sometime before that in terms of where we are.

Successful AAV eight once you achieve that.

Rebecca J. Kujawa: In terms of demand, obviously we can't fully predict the future, but I can tell you that the two data points that I think are really top of mind and illustrated from our report is 3.2GW is a fantastic sign, I think, of demand and as I highlighted a minute ago to Steve's question, a good underlying foundation of technology, dates, locations, et cetera. So I'm really pleased. And also in looking at the pipeline for Q4, you know, obviously this is a development business, things can change. But I believe that we're in good position to continue realizing strong demand, particularly in that 2024 to 2026 time frame. So based on what we see today, very exciting.

In terms of demand, obviously we can't fully predict the future, but I can tell you that the two data points that I think are really top of mind and illustrated from our report is 3.2GW is a fantastic sign, I think, of demand and as I highlighted a minute ago to Steve's question, a good underlying foundation of technology, dates, locations, et cetera. So I'm really pleased. And also in looking at the pipeline for Q4, you know, obviously this is a development business, things can change. But I believe that we're in good position to continue realizing strong demand, particularly in that 2024 to 2026 time frame. So based on what we see today, very exciting.

Terms of the demand, obviously, we cant fully predict the future, but I can tell you that the two data points that I think are really top of mind and and illustrated from our report is three two gigawatts is a fantastic sign I think of demand.

Rebecca: Then just can you anticipate the repowering to sort of fully offset the need pipeline sale in 25? Hey, Charles Rebecca, I'll take that one. So we're super excited about repowers as part of the longer term growth plan within NEP. And with such an extensive pipeline of renewable projects to pursue these repowers, you know, it'll be a nice complement to continuing to acquire assets. So it doesn't meet the entire growth plan, but certainly is a nice part of it.

Speaker 6: transcript

Speaker 6: really top of mind and, you know, illustrated from our report today is 3.2 gigawatts is a fantastic sign, I think, of demand.

Speaker 6: transcript

Speaker 6: And as I highlighted a minute ago to Steve's question, a good underlying foundation of technology dates back to the early 2000s.

And then as I highlighted a minute ago to Steve's question. It could underlying foundation of technology dates.

Speaker 6: transcript

Speaker 6: locations, etc. So I'm really pleased. And also in looking at the pipeline for the fourth quarter, you know, obviously, this is a development business, things can change. But I believe that we're in a good position to continue realizing strong demand, particularly in that 24 to 26 timeframe.

<unk> et cetera, and so on.

I'm really pleased and also in looking at the pipeline for the fourth quarter. Obviously this is a development business things can change and but I believe that we're in.

Good position to continue realizing strong and particularly in that 24 to 26 timeframe based on what we see today very exciting and I think it's founded on the things that you all know well.

Rebecca: As we talked about in May, we have a total of 1.3 gigawatts that we see in the near term. And obviously, this is the first step forward in order to make progress on that. So attractive, captive yields, as we noted, there's still some steps to finish, but we're also not done with the opportunities to repower other assets in the portfolio. Got it. Perfect.

Speaker 6: transcript

Speaker 6: So based on what we see today, very exciting, and I think it's founded on the things that you all know well, which is a backdrop of increasing electrification, increasing demand for generation and capacity that you across our sector, and renewables continuing to be the least cost form of generation. So I would hope you would expect what I would argue is the best position company to execute well against an environment like that.

Rebecca J. Kujawa: I think it's founded on the things that you all know well, which is a backdrop of increasing electrification, so increasing demand for generation and capacity value across our sector and renewables continuing to be the least cost form of generation. I would hope you would expect what I would argue is the best positioned company to execute well against an environment like that.

I think it's founded on the things that you all know well, which is a backdrop of increasing electrification, so increasing demand for generation and capacity value across our sector and renewables continuing to be the least cost form of generation. I would hope you would expect what I would argue is the best positioned company to execute well against an environment like that.

As a backdrop of increasing electrification increasing demand.

For for generation and capacity value across our sector and renewables continuing to be the least cost form of generation. So I would hope you would expect that what I would argue is the best positioned company to execute well against an environment like that.

John: And then just lastly for me, just some of the sources and uses of cash, I think we all really appreciate the enhanced disclosures there. I just, I guess, obviously given the capital intensive nature of the business, do you anticipate any incremental levers to potentially offset three billion of equity and three billion of asset sales if, you know, the capital market conditions become a bit more challenged. I guess any reason to rethink around flexing the payout or the balance of metrics.

Shar Pourreza: Great, thanks, that's really helpful. And was also curious on the tax credit transfers market, could you touch on what you're seeing in terms of demand and interest from counterparties? You know, how deep is that market and what level of pricing that you're realizing when you're transferring these credits as it becomes a more important source of cash flow over the next few years?

David Arcaro: Great, thanks, that's really helpful. And was also curious on the tax credit transfers market, could you touch on what you're seeing in terms of demand and interest from counterparties? You know, how deep is that market and what level of pricing that you're realizing when you're transferring these credits as it becomes a more important source of cash flow over the next few years?

Okay.

Speaker 7: transcript

Speaker 7: Great, thanks. That's really helpful. And I was also curious on the tax credit transfers market. Could you touch on what you're seeing in terms of demand and interest from counterparties? How deep is that market? And what level of pricing that you're realizing when you're transferring these credits as it becomes a more important source of cash flow over the next few years?

Okay. Great. Thanks, that's really helpful and was also curious on the tax credit transfers market.

Could you touch on what Youre seeing in terms of demand and interest from Counterparties.

Deep is that market.

And what level of pricing that you're realizing when you're transferring these credits as it becomes a more important.

John: Thanks, guys. Yeah, listen, thank you. Thank you, Sharon. And obviously, you know, we are very, very focused as always on costs. We're very, very focused on capital productivity and efficiency as well. So those are two levers we always have. And I think our shareholder base is very familiar with the success that we've had in our annual cost reduction processes that we run. Across the company, but those are certainly point focus for us.

Source of cash flow over the next few years.

John Ketchum: Yeah, Dave, I'll take that question. You know, first of all, you know, I would argue we have one; we have an outstanding tax department, and our tax department together with our treasury group started early, and you know, we've already reached out to 50 of the top US taxpayers and are building relationships and have had terrific execution against our 2023 plan. The demand is extremely robust for tax credit transfers. We're already working on 2024, you know, as we speak, and having 2023, you know, pretty much behind us. One of the things that really helps NextEra in the tax transfer market is the fact that we have a strong balance sheet. We have an A rating from the parent, and we're able to underwrite the credit.

Speaker 4: transcript

Speaker 4: Yeah, Dave, I'll take that question. You know, first of all, you know, I would argue we have an outstanding tax department.

Yes.

Take that question first of all.

I would argue we have what we had an outstanding tax department and <unk>.

Speaker 4: transcript

Speaker 4: Our tax department, yeah, together with our treasury group started early and you know we've already reached out to

Our tax department together with our Treasury group started early and we've already reached out to.

Speaker 4: transcript

Speaker 4: 50 of the top U.S. taxpayers and are building relationships and have had terrific execution against our 23 plan. The demand is extremely robust for tax credit transfers, and we're already working on 24, you know, as we speak, having 23, you know, pretty much behind us. And one of the things that really helps

50 top U S taxpayers and are building relationships and have had terrific execution against our 23 plan and the demand is extremely robust for tax credit transfers and we are already.

John: And look, you know, when I think about the three billion of equity and the three billion of asset recycling and look historically what we've been able to do. I'd be pretty disappointed if we can only do $3 billion of asset recycling. I mean, not only through any P, but third parties and as a reminder, you know, over the last three or four years, we've been very successful. And selling renewable projects, not only in any P, but two third parties. You think about the OTPP transaction, the Apollo transaction, the KKR transaction. So we feel very good about our sources plan that we've laid out and look forward to executing.

Working on 24 as we speak.

Having 23, you know pretty much.

Behind us and one of the things that really helps nextera and the tax transfer market is the fact that we have a strong balance sheet, we have an a minus rating from.

Speaker 4: transcript

Speaker 4: Next era in the tax transfer market is the fact that we have a strong balance sheet. We have an a-minus where he from

Speaker 4: transcript

Speaker 4: uh... the parent and we're able to underwrite the credit

The parent and we're able to underwrite the credit and being able to underwrite. The credit is really really important because we compete against a lot of really small developers that can't that if you go to the top 50 taxpayers they've never heard of these companies. They don't know who they are they don't really know what they do they know.

John Ketchum: And being able to underwrite the credit is really, really important because we compete against a lot of really small developers that can't if you go to the top 50 taxpayers, they've never heard of these companies, they don't know who they are, they don't really know what they do. They know NextEra and we can provide an indemnity behind the tax credits that we transfer. It sleeves off our vest, so to speak, to do that. And we get preferred pricing because of it. And so I feel great about where things stand in terms of our tax credit transfer program.

And being able to underwrite the credit is really, really important because we compete against a lot of really small developers that can't if you go to the top 50 taxpayers, they've never heard of these companies, they don't know who they are, they don't really know what they do. They know NextEra and we can provide an indemnity behind the tax credits that we transfer. It sleeves off our vest, so to speak, to do that. And we get preferred pricing because of it. And so I feel great about where things stand in terms of our tax credit transfer program.

Speaker 4: transcript

Speaker 4: And being able to underwrite the credit is really, really important, because we compete against a lot of really small developers that can't, that if you go to the top 50 taxpayers, they've never heard of these companies, they don't know who they are, they don't really know what they do, they know NextEra. And we can provide an indemnity behind the tax credits that we transfer.

Nextera and we can provide an indemnity behind the tax credits that we transfer.

Operator: I think that's it. Perfect, thank you guys, much appreciated, congrats. Thank you.

Speaker 4: transcript

Speaker 4: It sleeves off our vests, so to speak, to be able to do that, and we get preferred pricing because of it. And so I feel great about where things stand in terms of our tax credit transfer.

With sleeves off our best so to speak to do that.

David Arcaro: Thanks for the question comes from David Arcaro with Morgan Stanley, please go ahead. Hi, good morning. Thanks so much for taking my questions. Morning, Dave. You know, you mentioned returns over 20% returns for storage and wind. I think that's higher than you've indicated in the past. And assuming that's driven by a higher PPA pricing, I was wondering if you're seeing just given higher PPA prices, any impacts to demand in the renewables market here. And how you think about that level of return in terms of whether it's sustainable, given the competitive dynamics in those end markets. Thanks.

And we get preferred pricing because of it and.

So I feel I feel great about where things stand in terms of our tax credit transfer program.

Rebecca J. Kujawa: I'd love to add one point on that. I think it's a great complement to our broader business, and particularly the CNI customers that we're working with actually buy some of the renewable energy. Some of the customers that are most active in the market in procuring renewable energy are also the ones that are most interested in buying tax credits from us. And I think they really like the value proposition certainly of the economics, as John highlighted, but really like the value proposition supporting and enabling investment in renewable projects. So we see a really deep market, a lot of interest, and really a lot of cross selling opportunities across the portfolio.

Rebecca Kujawa: I'd love to add one point on that. I think it's a great complement to our broader business, and particularly the CNI customers that we're working with actually buy some of the renewable energy. Some of the customers that are most active in the market in procuring renewable energy are also the ones that are most interested in buying tax credits from us. And I think they really like the value proposition certainly of the economics, as John highlighted, but really like the value proposition supporting and enabling investment in renewable projects. So we see a really deep market, a lot of interest, and really a lot of cross selling opportunities across the portfolio.

Speaker 6: transcript

Speaker 6: I'd love to add one point on that. I think it's a great compliment to our broader business and particularly the CNI customers that we're working with to actually buy some of the renewable energy. Some of the customers that are most active in the market in procuring renewable energy are also the ones that are most interested in buying tax credits from us. I think they really like the value proposition, certainly of the economics, as John highlighted.

And I would love to add one point on that and I think it's a.

A great complement to our broader business and particularly the C&I customers.

Working with actually by some of the renewable energy.

Some of the customers that are most active in the market and to carrying renewable energy are also the funds that are most interested in.

In buying tax credits from us and I think they really like the value proposition certainly of the economics as John highlighted but really like the value proposition.

Speaker 6: transcript

Speaker 6: but really like the value proposition supporting and enabling investment in renewable projects. So we see a really deep market, a lot of interest, and really a lot of cross-selling opportunities across the portfolio.

John: Dave, I'll take that as you know, we've always characterized the backdrop for renewables as a competitive environment. So I'm very proud of how this team, our team has executed across an ever changing environment. And I certainly think it's a strength of our team and most importantly, the competitive advantages that John has highlighted. Investment over a long period of time, the ability to work with our supply chain, the ability to work with the folks that we partner with to build the projects and ultimately operate these projects well over time.

Supporting and enabling investment in renewable projects. So we see a really deep market a lot of interest and and really a lot of cross selling opportunities across the portfolio.

Shar Pourreza: Okay, great. Appreciate all the color. Thanks so much.

David Arcaro: Okay, great. Appreciate all the color. Thanks so much.

Okay.

Okay, Great I appreciate all the color. Thanks, so much.

Operator: Our next question comes from Julian Dumoulin-Smith with Bank of America. Please go ahead.

Operator: Our next question comes from Julien Dumoulin-Smith with Bank of America. Please go ahead.

Speaker 1: transcript

Speaker 1: Our next question comes from Julian Dumoulin-Smith with Bank of America. Please go ahead.

Our next question comes from Julien Good morning.

Please go ahead.

Julian Dumoulin-Smith: Hey team, good morning. Thanks for the time.

Julien Dumoulin-Smith: Hey team, good morning. Thanks for the time.

Okay.

Hey, Tim Good morning, Thanks for the time.

Rebecca J. Kujawa: Morning, Julian.

Rebecca Kujawa: Morning, Julian.

John Ketchum: Morning.

Julian Dumoulin-Smith: Hey, good morning. Hey, just going back to the last question a bit. How do you think about the composition of the $25 to 35 billion of Project 5 tax equity and tax credit transferability? How do you think about your existing tax equity commitments, and how do you think about some of the impacts from a regulatory perspective on the tax equity market? Obviously you're talking about a robust start to the tax credit transferability. How much does it matter? How much does it play into that? $25 to 35 and ultimately how much TE is contemplated anyway in that range, if you will?

Julien Dumoulin-Smith: Hey, good morning. Hey, just going back to the last question a bit. How do you think about the composition of the $25 to 35 billion of Project 5 tax equity and tax credit transferability? How do you think about your existing tax equity commitments, and how do you think about some of the impacts from a regulatory perspective on the tax equity market? Obviously you're talking about a robust start to the tax credit transferability. How much does it matter? How much does it play into that? $25 to 35 and ultimately how much TE is contemplated anyway in that range, if you will?

Good morning, Julien good morning.

Speaker 8: transcript

Speaker 8: Hey, good morning. Hey, just going back to the last question a bit, how do you think about the composition of the $25 to $35 billion of Project 5 tax equity and tax credit transferability? How do you think about your existing tax equity commitments? And how do you think about some of the impacts from a regulatory perspective on the tax equity market? Obviously, you're talking about a robust start to the tax credit transferability. How much does it matter? How much does it play into that $25 to $35? And ultimately, how much TE is contemplated anyway in that range, if you will?

John: So I think that really contributes our ability to maintain appropriate returns. And I also think it reflects what you expect us to do, which is adjust to all of the current costs of both building, financing and operating projects over time. And we believe that we are successfully able to achieve that. In terms of demand, obviously we can't fully purchase the future, but I can tell you that the two data points that I think are really top of mind and illustrated from our report today is 3.2 gigawatts is a fantastic sign I think of demand.

Good morning, Hey, just going back to the last question a bit how do you think about the composition of the 25% to $35 billion.

<unk> five tax equity and tax credit Transferability, how do you think about your existing tax equity commitments and how do you think about some of the impacts from a regulatory perspective on the tax equity market, obviously youre talking about a robust start to the tax rate of transferability, how much does it matter how much does it play into that 25% to 35 and ultimately how much <unk> is contemplated anyway.

In that range, if you will.

John Ketchum: Yeah, I'll go ahead and take that, Julian. You know, first of all, you know, when you look at our tax equity, you know, project finance split, things can move around. Let's just hypothetically think about it as kind of, you know, 50, you know, I think that might be a decent, you know, starting place to think about. You know, we feel very good about our ability to be able to access, you know, tax equity. You know, we, you know, the regulatory issues, I think that you pointed out, I think are going to get resolved. I think there were some unintended consequences around Basel III, and we have had significant discussions with folks involved on those issues. The administration certainly thinks this was an unintended consequence, as do I think, folks at the Fed.

Speaker 4: transcript

Speaker 4: Yeah, I'll go ahead and take that, Julian. You know, first of all, you know, when you look at our tax equity, you know, project finance split, things can move around.

Yeah, I'll go ahead and take that Julien.

First of all when you look at our tax equity project Finance split things can move around but let's just hypothetically think about it as kind of 50 50.

John: And as I highlighted a minute ago to Steve's question, a good underlying foundation of technology dates, locations, et cetera. So I'm really pleased. And also in looking at the pipeline for the fourth quarter, obviously this is development business, things can change. But I believe that we're in good position to continue realizing strong stand, particularly in that 24 to 26 timeframe. So based on what we see today, very exciting. And I think it's founded on the things that you all know well, which is a backdrop of increasing electrification, increasing demand for generation and capacity value across our sector and renewables continuing to be the least cost form of generation. So I would hope you would expect that what I would argue is the best position company to execute well against an environment like that.

Speaker 4: transcript

Speaker 4: Let's just hypothetically think about it as kind of 50-50. I think that might be a decent starting place to think about. And we feel very good about our ability to be able to access tax equity. The regulatory issues that you pointed out, I think, are going to get resolved. I think there were some unintended consequences around.

I think that might be a decent starting place.

John: Great, thanks. That's really helpful.

To think about it and we.

We feel very good about our ability to be able to access.

Tax equity.

<unk>.

You know the regulatory issues I think that you pointed out I think are going to get resolved I think there were some unintended consequences around.

Speaker 4: transcript

Speaker 4: Basel III, and we have had significant discussions with the folks involved on those issues. The administration certainly thinks.

Basel III and we have.

<unk> had significant discussions with folks involved.

On those issues. The administration certainly thinks this was an unintended consequence as as do I think folks at the fed.

Speaker 4: transcript

Speaker 4: This was an unintended consequence, as do, I think, folks at the Fed and the administration, I think, is very focused on trying to get a good resolution around it. But, you know, I don't worry about it too much at the end of the day for us. I think the Basel III thing gets fixed.

John Ketchum: The administration, I think, is very focused on trying to get a good resolution around it. But, you know, I don't worry about it too much at the end of the day for us. I think the Basel III thing gets fixed and, you know, worst case scenario, the banks will find other pockets to be able to issue tax equity. We'll be issued, you know. We'll receive our allocation off the top of the deck like we always do. And, you know, these relationships that I just spoke about with corporate.

The administration, I think, is very focused on trying to get a good resolution around it. But, you know, I don't worry about it too much at the end of the day for us. I think the Basel III thing gets fixed and, you know, worst case scenario, the banks will find other pockets to be able to issue tax equity. We'll be issued, you know. We'll receive our allocation off the top of the deck like we always do. And, you know, these relationships that I just spoke about with corporate.

The administration I think is very focused on trying to get a a.

Good resolution.

Around it but I don't worry about it too much at the end of the day for US I think I think the Basel III thing gets fixed and worst case scenario. The banks will find other pockets to be able to issue tax equity will be issue will receive our allocation of off the top of the deck like we always do.

John: And was also curious on the tax credit transfers market. Could you touch on what you're seeing in terms of demand and interest from counter parties, you know, how deep is that market and what level of pricing that you're realizing when you're transferring these credits as it becomes a more important sort of cash flow over the next few years. Yes, I'll take that question.

Speaker 4: transcript

Speaker 4: And, you know, worst case scenario, the banks will find other pockets to be able to issue tax equity. We'll be issued, you know, we'll receive our allocation off the top of the deck like we always do. And you know, these relationships that I just spoke about with corporate...

And.

These relationships that I just spoke about with corporate.

Speaker 4: transcript

Speaker 4: parties, these 50 folks or so that we've been dealing with, there's no reason they can't step in and provide tax equity financing, and we'll be talking to them about those.

John Ketchum: Parties, these 50 folks or so that we've been dealing with, there's no reason they can't step in and provide tax equity financing. And we'll be talking to them about those structures as well. And then transferability, which we've already spent some time talking about this morning, can fill any gaps. So, long story short, we feel terrific about our ability to source tax equity financing going forward.

Parties, these 50 folks or so that we've been dealing with, there's no reason they can't step in and provide tax equity financing. And we'll be talking to them about those structures as well. And then transferability, which we've already spent some time talking about this morning, can fill any gaps. So, long story short, we feel terrific about our ability to source tax equity financing going forward.

Parties. These 50 folks or so that we've been dealing with there is no reason they can't step in and provide tax equity financing and will be talked to them about those structures as well and then transferability, which you've already spent some time talking about this morning, Ken can fill in the gap so.

John: First of all, I would argue we had an outstanding tax department. Our tax department, together with our Treasury Group, started early. We've already reached out to 50 of the top US taxpayers and are building relationships and have had terrific execution against our 23 plan. The demand is extremely robust for tax credit transfers and we are already working on 24, you know, as we speak, having 23, you know, pretty much behind us.

Speaker 4: transcript

Speaker 4: structures as well, and then transferability, which we've already spent some time talking about this morning, can fill any gaps. So long story short, we feel terrific about our ability to source tax equity financing going forward.

Long story short, we feel terrific about our ability to source tax equity financing going forward.

Shar Pourreza: Got it.

Julien Dumoulin-Smith: Got it.

Julian Dumoulin-Smith: The transferability is not technically part of the 25 to 35, but obviously it's a fluid conversation.

The transferability is not technically part of the 25 to 35, but obviously it's a fluid conversation.

Speaker 8: transcript

Speaker 8: so it's in the trouble is not technically part of the 25 to 35 but obviously it's a slow conversation right if I understand that piece

Got it so is it just really is not technically Brian I'm wondering out of the 35, but I'll.

Shar Pourreza: Right.

Right.

Julian Dumoulin-Smith: If I understand that piece.

If I understand that piece.

It's a fluid conversation right if I understand that piece.

John Ketchum: Can you say that again, Julian?

Speaker 4: transcript

Speaker 4: Can you say that again, Julian? The transferability, the credit transferability, technically not included in that $25 to $35 as it stands, but it's a fluid question of how you finance going forward. The tax transferability is not in that number. Again, it shows up in cash flow from operations, and then the equity content that's created really shows up in that corporate debt issuance.

Can you say that again Julien.

Julian Dumoulin-Smith: Transferability, the credit transfer, really technically not included in that 25 to 35 as it stands. But it's a fluid question of how you finance going forward.

Julien Dumoulin-Smith: Transferability, the credit transfer, really technically not included in that 25 to 35 as it stands. But it's a fluid question of how you finance going forward.

The transferability of the credit she has really technically not included in that 25% to 35 as it stands but it's a question of oxide.

John: And one of the things that really helps NextEra and the tax transfer market is the fact that we have a strong balance sheet. We have an A-way from the parent and we're able to underwrite the credit. Being able to underwrite the credit is really, really important because we compete against a lot of really small developers that can't, that if you go to the top 50 taxpayers, they've never heard of these companies, they don't know who they are, they don't really know what they do, they know NextEra.

John Ketchum: Yeah, yeah. The tax transferability is not in that number. Again, it shows up in cash flow from operations, and then the equity content that's created really, you know, shows up in that core debt issuance line. But look at the corporate, the cash flow from operations in terms of the dollars that we're receiving for tax credit transfers.

Yeah, Yeah. The tax transferability is not in that number again it shows up in cash flow from operations and then the equity content. That's created really shows up in that core debt.

Issuance line, but looked like the corporate cash flow from operations in terms of the dollars that we're receiving for tax credit transfers.

Speaker 4: But look, look, look for the cash flow from operations in terms of the dollars that we're receiving for tax credit.

Julian Dumoulin-Smith: Yeah. And then just quickly, if I can, on the interest rate question here, thank you again for the additional sensitivities and disclosures here. How do you think about sort of a baseline and the open impact as you roll to kind of 2026? I think it's notable. For instance, you guys reaffirmed through that period with your usual commentary. How do you think about sort of the puts and takes as you roll into that longer dated 2026 period? Considering the roll off of the hedges here in that, I think, period, more specifically, if you will.

Julien Dumoulin-Smith: Yeah. And then just quickly, if I can, on the interest rate question here, thank you again for the additional sensitivities and disclosures here. How do you think about sort of a baseline and the open impact as you roll to kind of 2026? I think it's notable. For instance, you guys reaffirmed through that period with your usual commentary. How do you think about sort of the puts and takes as you roll into that longer dated 2026 period? Considering the roll off of the hedges here in that, I think, period, more specifically, if you will.

Speaker 8: transcript

Speaker 8: Yeah. And then just quickly, if I can, on the interest rate question here, thank you again for the additional sensitivities and disclosures here. How do you think about sort of a baseline and the open impact as you roll to kind of 2026? I think it's notable, for instance, you guys reaffirmed through that period with your usual commentary, how do you think about sort of the puts and takes as you roll into that longer dated 26 period considering the roll off of the hedges here in that period more specifically, if you will?

Yeah, and then just quickly if I can on the interest rate question here. Thank you again for the additional sensitivities and disclosures here. How do you think about sort of a baseline in the open impact as you as he rolls that are kind of 2026 I think it's notable for instance, you guys reaffirmed through that period with your usual commentary how do you think about sort of the puts and takes as you roll.

John: And we can provide an indemnity behind the tax credit that we transfer. It sleeves off our vests, so to speak, to do that and we get preferred pricing because of it. And so I feel great about where things stand in terms of our tax credit transfer program.

All into that longer dated 2006 period, considering the roll off of the hedges here.

John: And I'd love to add one point on that. I think it's a great compliment to our broader business and particularly the C&I customers that we're working with actually buy some of the renewable energy, some of the customers that are most active in the market and procuring renewable energy are also the ones that are most interested in buying tax credits from us. And I think they really like the value proposition. Certainly the economics is John highlighted, but really like the value proposition supporting and enabling the investment in renewable projects. So we see a really deep market, a lot of interest and really a lacrosse selling opportunities across the portfolio. Okay, great. Appreciate all the color. Thanks so much.

I think period more specifically if you will.

John Ketchum: Yeah.

Julian Dumoulin-Smith: Is there a way to kind of quantify the interest rate kind of headwind?

Julien Dumoulin-Smith: Is there a way to kind of quantify the interest rate kind of headwind?

Speaker 8: Yeah, so is there a way to kind of quantify the interest rate kind of headwind?

Yes, so is there a way to kind of quantify the interest rate headwind.

John Ketchum: Yeah, yeah. So a couple of points I'll make. One is that you've seen the sensitivity, so zero impact in 2023 or 2024, $0.03 to $0.05 in 2025, in 2026 with the 5 to 10-year tenors, you know, with the average coupon 3.375 basis points. You know, we feel very good about the protection, you know, that we have there. You know, we've talked about where FPL sits. And then you know, you think about the project financings, you know, that we, that we entered into. We use those hedges, those, those project financings are basically 20-year amortizing debt that have 20-year hedges that then get rolled into them that have the benefit of those swaps.

Speaker 4: transcript

Speaker 4: Yeah, yeah. So a couple of points I'll make. One is you've seen the sensitivity, so...

Yes, so a couple of points I'll make one is seeing the sensitivities though.

Speaker 4: transcript

Speaker 4: zero impact in 23 or 24, 3 to 5 cents in 25, and 26. With the 5 to 10 year, tenors, you know, with the average coupon, 375 basis points, you know, we feel very good about the protection, you know, that we have there. You know, we've talked about where FPL sits.

Zero impact in 'twenty, three 'twenty four three to five and 'twenty five.

And 26 with a five to 10 year.

Tenors.

You know with the.

The average coupon of three 375 basis points, we feel very good about.

The protection.

That we have there you know we've talked about where FPL sits and then you think about the project financings that we that we entered into we use those hedges. Those project financings are basically 20 year amortizing debt that have 20 year hedges that then get rolled into them that have the benefit of that.

Speaker 4: transcript

Speaker 4: And then, you know, you think about the project financings, you know, that we entered into, we use those hedges, those project financings are basically 20-year amortizing debt that have 20-year hedges that then get rolled into them that have the benefit of those swaps. And so when you think about our existing...

Julian Dumoulin: Our next question comes from Julian Dumoulin with Bank of America. Please go ahead. Hey, Steve, good morning. Thanks for the time. Morning, Julian. Morning. Hey, good morning. Hey, just going back to the last question a bit.

John Ketchum: So when you think about our existing project finance portfolio that we have, there's another $4 billion of interest rate swaps that aren't even in the $20.5 billion that we mentioned to you today that protect and safeguard those as they roll and become. So long story short, between the $20.5 billion that we have against the backlog, the fact that our existing portfolio is already locked in and hedged, we feel very good about our interest rate exposure.

So when you think about our existing project finance portfolio that we have, there's another $4 billion of interest rate swaps that aren't even in the $20.5 billion that we mentioned to you today that protect and safeguard those as they roll and become. So long story short, between the $20.5 billion that we have against the backlog, the fact that our existing portfolio is already locked in and hedged, we feel very good about our interest rate exposure.

Swaps and so when you think about our existing.

Speaker 4: transcript

Speaker 4: Project finance portfolio that we have there's another four billion of interest rate swaps that aren't even in the twenty and a half billion That we mentioned to you today that protect and safeguard those as they Roll and be do so long story short between the twenty and a half billion that we have against the backlog The fact that our existing portfolio is Already locked in and hedged We feel very good about our interest rate exposure

Project Finance portfolio that we have there is another $4 billion of interest rate swaps that arent even in the 25 billion that we mentioned to you today that protect and safeguard those as they.

John: How do you think about the composition of the 25 to 35 billion of projects, five tax equity and tax credit transfer ability? How do you think about your existing tax equity commitments? And how do you think about some of the impacts from a regulatory perspective on the tax equity market? Obviously, you're talking about a robust start to the tax credit transfer ability. How much does it matter? How much does it play into that 25 to 35?

Roll and do so long story short between the $20 5 billion that we have against the backlog. The fact that our existing portfolio is already locked in or hedged.

John: And ultimately, how much Julian, you know, first of all, you know, when you look at our tax equity, you know, project, finance, split, things can move around. Let's just hypothetically think about it as kind of, you know, 50, 50, you know, I think that might be a decent, you know, starting place to think about. And you know, we feel very good about our ability to be able to access, you know, tax equity.

We feel very good about our interest rate exposure.

Julian Dumoulin-Smith: Got it. Excellent. All right, guys, thank you very much. I'll pass it there. Have a nice one.

Julien Dumoulin-Smith: Got it. Excellent. All right, guys, thank you very much. I'll pass it there. Have a nice one.

Speaker 8: transcript

Speaker 8: Got it. Excellent. All right, guys. Thank you very much. I'll pass it there. Have a nice one. Yeah. Hey, thank you, Julian.

Got it excellent alright, guys. Thank you very much I'll pass it there have a nice one yes.

John Ketchum: Yeah. Hey, thank you, Julian.

Hey, Thank you Julien.

Okay.

Operator: Our next question comes from Carly Davenport with Goldman Sachs. Please go ahead.

Speaker 1: transcript

Speaker 1: Our next question comes from Carly Davenport with Goldman Sachs. Please go ahead.

Our next question comes from Kearney Gatlinburg with Goldman Sachs. Please go ahead.

Carly Davenport: Hey, good morning. Thanks for taking the questions. Appreciate the incremental disclosure on the funding plan and the asset sales. And just a follow-up, there. Are renewables the only element kind of embedded in that $3 billion in proceeds or are there any other non-core assets and energy resources that you'd consider monetizing?

Speaker 6: transcript

Speaker 6: Hey, good morning. Thanks for taking the questions. Appreciate the incremental disclosure on the funding plan and the asset sales, and just to follow up there, are renewables the only element kind of embedded in that $3 billion in proceeds, or are there any other non-core assets and energy resources that you'd consider monetizing?

Hey, good morning, Thanks for taking the questions.

I appreciate the incremental disclosure on the funding plan and the asset sales and just a follow up there are renewables the only element kind of embedded in that $3 billion. In proceeds are there any other noncore assets and energy resources that you would consider monetizing.

John: You know, we, you know, the regulatory issues, I think that you pointed out, I think are going to get resolved. I think there were some unintended consequences around Basel 3. And we have had significant discussions with folks involved on those issues. The administration certainly thinks this was an unintended consequence. As do I think folks at the Fed and the administration, I think, is very focused on trying to get a good resolution around it.

John Ketchum: Yeah. So when I think about it, Carly, renewables come top of mind. We've had a history over the last several years of being able to recycle capital through renewables. But remember too, we're a large company. There are other assets that could potentially be available for capital recycling that are non-core. The FCG transaction that we just recently announced is a good example of that. And we'll always look for opportunities. If there are situations where third parties value assets more than we do, then sure, we'll look to be opportunistic, but it's not a core part of the plan.

Speaker 4: transcript

Speaker 4: Yeah, you know, so when I think about it, Carly, you know, renewables, you know, come top of mind, you know, we've had a history over the last several years of being able to recycle, you know, capital through renewables. But remember, too, I mean, we're, you know, we're a large company. There are other assets that could potentially, you know, be available for capital recycling that are non-core, the FCG transaction that we just

Yeah, So when I think about it coralie.

Mobile.

Come top of mind.

We've had a history over the last several years of being able to recycle capital through renewables, but remember too I mean, we're you know we're a large company. We there are there are other assets that could potentially be available for capital recycling that are non core the FCB transaction that we just recently.

Speaker 4: transcript

Speaker 4: you know, recently announced is a good example of that. And, you know, we'll always look for opportunities. If there are situations where third parties value assets more than we do, then sure, we'll look to be opportunistic, but it's not a core part of the plan.

Our recently announced is a good example of that and we'll always look for opportunities. If there are situations, where third parties valued assets more than we do then sure we will look to be opportunistic, but it's it's not a core part of the plan.

John: But, you know, I don't worry about it too much at the end of the day for us. I think the Basel 3 thing gets fixed. And, you know, worst case scenario, the banks will find other pockets to be able to issue tax equity. We'll be issue, you know, we'll receive our allocation off the top of the deck like we always do. And, you know, these relationships that I just spoke about with corporate parties, these 50 folks or so that we've been dealing with, there's no reason they can't step in and provide tax equity financing.

Rebecca J. Kujawa: Got it.

Carly Davenport: Got it.

Carly Davenport: Okay, great, that's helpful. And then just as you think about the timing cadence of the backlog additions and also the dispersion across the different technologies. I think Rebecca, you alluded to the fact that the Q4 pipeline is shaping up to be kind of more weighted to the 2024 to 2026 timeframe versus this quarter being a little bit longer dated. But can you also just talk about the split across wind, solar, and storage? It seems like there's been a step up in solar relative to wind. So just any thoughts on how you see that piece evolving going forward would be helpful.

Speaker 6: transcript

Speaker 6: Okay. Great. That's helpful. And then, just as you think about the timing cadence of the backlog additions and also the dispersion across the different technologies, I think, Rebecca, you alluded to the fact that the 4Q pipeline is shaping up to be kind of more weighted to the 24 to 26 timeframe versus this quarter being a little bit longer dated. But can you also just talk about the split across wind, solar, and storage? It seems like there's been a step up in solar relative to wind. So, just any thoughts on how you see that piece evolving going forward would be helpful.

Got it okay. Great. That's helpful. And then just as you think about the timing cadence of the backlog additions and also the dispersion across the different technologies I think Rebecca you alluded to the fact that the <unk> pipeline is shaping up to be kind of more weighted to the 24 to 26 timeframe versus this quarter being a little bit longer dated but can.

John: And we'll be talking to them about those structures as well. And then transferability, which we've already spent some time talking about this morning, can fill any gaps. So, long story short, we feel terrific about our ability to source tax equity financing going, and so forth.

You also just talk about the split across wind solar and storage. It seems like there's been a step up in solar relative to wind. So just any thoughts on how you see that piece of all of that going forward would be helpful.

Rebecca J. Kujawa: Thanks, Carly. It's a great question. Yes, I definitely support that first part of your comment, and it's consistent with what I had said before that I think this quarter was a little bit anomalous in terms of the weighting to 2027, and the pipeline is very much more weighted for what I see today for 2024, 2025, and 2026 with much of it in the 2025 and 2026 time frame. Just given the fact that we're entering into 2024 in terms of the technology, we had very strong signings for storage.

Rebecca Kujawa: Thanks, Carly. It's a great question. Yes, I definitely support that first part of your comment, and it's consistent with what I had said before that I think this quarter was a little bit anomalous in terms of the weighting to 2027, and the pipeline is very much more weighted for what I see today for 2024, 2025, and 2026 with much of it in the 2025 and 2026 time frame. Just given the fact that we're entering into 2024 in terms of the technology, we had very strong signings for storage.

Speaker 6: transcript

Speaker 6: Thanks, Carly. I think it's a great question. Yes, I definitely support that first part of your of your comment. It's consistent with what I had said before that I think, you know, this quarter was a little bit anomalous in terms of the waiting to 2027. And the pipeline is very much more weighted for what I see today for 24, 25 and 26.

Thanks, Carley I'd say, it's a great question, yes, I definitely support that first part of your other comment and it's consistent with what I had said before that.

John: So it's, it shows Billy's not technically part of the 25 to 35, but obviously it's a fluid conversation, right? If I understand that piece. Can you say that again, Julie? The, the, the transferability, the credit transferability, technically not included in that 25 to 35 as it stands, but it's a fluid question. Yeah. The, the tax transferability is not in that number. Again, it shows up in cash flow from operations, and then the equity content that's created really, you know, shows up in that corporate debt issuance line. But look, look, look, the corporate, the cash flow from operations in terms of the dollars that we're receiving for tax credit transfers. Yeah.

This quarter was a little bit anomalous in terms of the waiting to 2027.

And our pipeline is very much more weighted for what I see today for 'twenty four 'twenty five 'twenty six with much of it in the $25 26 timeframe just given the fact that we're adding into 'twenty four.

Speaker 6: transcript

Speaker 6: with much of it in the 25, 26 timeframe, just given the fact that we're ending into 24. In terms of the technology, I see we had a very strong signings for storage and it's Kirk highlighted in the prepared remarks.

In terms of the technology.

Very strong signings for storage and as Kirk highlighted in the prepared remarks.

Rebecca J. Kujawa: As Kirk highlighted in the prepared remarks, in terms of the, maybe not surprise is probably not the right word, but really pleased to see how we're starting to see adoption across a broader set of markets, not just California, but into the Midwest, where our utility customers and obviously some of the CNI are really valuing the ability to incorporate storage for capacity, value, and firming, and shaping the renewables products. So that's really positive in my mind. On the wind side, I think we're still seeing a little bit of dynamics that shaped up as a result of the tax credits that we originally in the industry thought were going to phase down after 2020. So we saw a significant amount of a pull forward of demand, and you know, I think that's still affecting the industry a little bit.

Rebecca Kujawa: As Kirk highlighted in the prepared remarks, in terms of the, maybe not surprise is probably not the right word, but really pleased to see how we're starting to see adoption across a broader set of markets, not just California, but into the Midwest, where our utility customers and obviously some of the CNI are really valuing the ability to incorporate storage for capacity, value, and firming, and shaping the renewables products. So that's really positive in my mind. On the wind side, I think we're still seeing a little bit of dynamics that shaped up as a result of the tax credits that we originally in the industry thought were going to phase down after 2020. So we saw a significant amount of a pull forward of demand, and you know, I think that's still affecting the industry a little bit.

Speaker 6: transcript

Speaker 6: in terms of the, maybe not surprise, it's probably not the right word, but really, please to see how we're starting to see adoption across a broader set of markets, not just California, but into the Midwest.

In terms of the problem, maybe not surprise, it's probably not the right word but really.

Pleased to see how we are starting to see adoption.

Broader set of markets, not just California, but into the Midwest.

Speaker 6: transcript

Speaker 6: uh... where are utility customers uh... and i think some of the cnr really valuing uh... the ability to to incorporate storage for capacity value and informing in shaping the renewables product for that really hot in my mind

Our utility customers and see some of the C&I are really valuing the ability to incorporate storage truck capacity value and firming in shaping the renewables products. So that's really in my mind on the wind side I think we're still seeing a little bit of that demand dynamics. It shaped up as a result of the tax credit.

John: And then just quickly if I can on the interest rate question here, thank you again for the additional sensitivity and disclosures here. How do you think about sort of a baseline and the open impact that you, as you roll to kind of 2026? I think it's notable, for instance, you guys reaffirmed through that period with your usual commentary. How do you think about sort of the puts and takes as you roll into that longer dated 26 period, considering the roll off of the, the, the hedges here in that I think period more specifically, if you will.

Speaker 6: transcript

Speaker 6: On the wind side, I think we're still seeing a little bit of dynamics that shaped up as a result of the tax credits that we originally, we and the industry, thought were going to phase down after 2020. So we saw a significant amount of pull forward of demand.

That we originally we and the industry thought were going to phase down. After 2020. So we saw a significant amount of a pull forward of demand.

Speaker 6: transcript

Speaker 6: And I think that's still affecting the industry a little bit. And then obviously the PTC being extended for solar significantly improved the economics from a relative standpoint, which has been super positive for demand. We still see a lot of geographies where wind is incredibly attractive.

And and I think that's still affecting the industry a little bit and then obviously the PTC being extended for solar significantly improves the economics from a relative standpoint, which has been super positive for demand, we still see a lot of geographies, where wind is incredibly attractive.

John: Yeah. So they're way to kind of quantify the interest rate kind of head one. Yeah. So a couple of points I'll make. One is you've seen the sensitivity. So zero impact in 23 or 24, 3 to 5 cents and 25 and 26 with the five to 10 year tenors, you know, with the average coupon three, three and 75 basis points, you know, we feel very good about the protection, you know, that we have there.

Rebecca J. Kujawa: And then obviously the PTC being extended for solar significantly improves the economics from a relative standpoint, which has been super positive for demand. We still see a lot of geographies where wind is incredibly attractive, and so I feel good about long-term demand for wind, and I also feel really good about long-term demand for repowering projects. Obviously we had a great start to the repowering initiative following the IRA extension with over 700MW. We talked about today; obviously it's scheduled for next year, it's a little bit less than that, but when we look across the entire tens of GW now of renewable projects, there's lots of opportunities to repower as well overall across the board. Really excited about the opportunities that we have in front of us.

Rebecca Kujawa: And then obviously the PTC being extended for solar significantly improves the economics from a relative standpoint, which has been super positive for demand. We still see a lot of geographies where wind is incredibly attractive, and so I feel good about long-term demand for wind, and I also feel really good about long-term demand for repowering projects. Obviously we had a great start to the repowering initiative following the IRA extension with over 700MW. We talked about today; obviously it's scheduled for next year, it's a little bit less than that, but when we look across the entire tens of GW now of renewable projects, there's lots of opportunities to repower as well overall across the board. Really excited about the opportunities that we have in front of us.

Speaker 6: transcript

Speaker 6: And so I feel good about long-term demand for wind, and I also feel really good about long-term demand for repowering projects. Obviously, we had a great start to the repowering initiative following the IRA extension with the over 700 megawatt we talked about today.

And so I feel good about long term demand for wind and I also feel really good about long term demand for Repowering projects. Obviously, we had great start to the Repowering initiative. Following the IRI extension with over 700 megawatts, we talked about today, obviously it share offering here, it's a little bit less than that but.

John: You know, we've talked about where FPL sits. And then, you know, you think about the project financing, you know, that we that we enter into. We use those hedges, those project financing are basically 20 year advertising debt that have 20 year hedges that then get rolled into them that have the benefit of those swaps. And so when you think about our existing project finance portfolio that we have, there's another four billion of interest rate swaps that aren't even in the 20 and a half billion that we mentioned to you today, that protect and safeguard those as they roll and do.

Speaker 6: transcript

Speaker 6: Obviously, at share for a year, it's a little bit less than that, but when you look across the entire, you know, tens of gigawatts now of renewable projects, there's lots of opportunities to repower as well. Overall, across the board, really excited about the opportunities that we have in front of us.

We look across the entire <unk>.

Tens of Gigawatts now renewable projects, there's lots of opportunities to repower as well so overall across the board really excited about the opportunities that we have in front of us.

Carly Davenport: That's great. I appreciate the color.

That's great appreciate the color.

Okay.

Operator: Our next question comes from Andrew Weisel with. Please go ahead.

Speaker 1: transcript

Speaker 1: Next question comes from Andrew Weisel with GoShiaBank. Please go ahead.

Our next question comes from Andrew Weisel with Scotia Bank. Please go ahead.

Shar Pourreza: Hey, good morning everyone. First question. Hi. Can you talk a bit about supply chains? I'd be curious your latest thoughts on the availability and status of supply chains both for solar equipment as well as for grid level equipment like transformers or switch gears.

Andrew Weisel: Hey, good morning everyone. First question. Hi. Can you talk a bit about supply chains? I'd be curious your latest thoughts on the availability and status of supply chains both for solar equipment as well as for grid level equipment like transformers or switch gears.

Hey, good morning, everyone.

First good morning, Andrew.

Speaker 9: transcript

Speaker 9: Hi. Can you talk a bit about supply chains? I'd be curious your latest thoughts on the availability and status of supply chains both for solar equipment as well as for grid-level equipment like transformers or solar panels.

Hi, can you talk a bit about supply chains, just curious your latest thoughts on the availability and status.

John: So long story short, between the 20 and a half billion that we have against the backlog, the fact that our existing portfolio is already locked in and hedged, we feel very good about our interest rate exposure. Got it. Excellent.

I'd say, it's both for solar equipment as well as for grid level equipment like transformers or switch gears.

John Ketchum: Sure, yeah. Let me take that, Andrew. So, you know, first of all, with supply chain, things are really improved a lot. As you know, Rebecca just mentioned, you know, we had the two issues right. Circumvention, which has been asked and answered, provided a lot of clarity around what can be done, what can't, and with the Presidential Proclamation so in very good shape there. Second was forced labor and making sure that our suppliers are working constructively with Customs and Border Protection to get their panels cleared for importation into the country. And so for the most part, all of our solar suppliers have been able to do that. And so we are in very good shape there. I think on grid power, actually the grid level issues that you just mentioned, we're in very good shape on. We had gone long on grid level.

Speaker 4: transcript

Speaker 4: Uh, sure. Yeah. Let me take that, Andrew. So, you know, first of all, with supply chain.

Sure Yeah, let me take that Andrew So first of all with supply chain.

Speaker 4: transcript

Speaker 4: things are really improved a lot as you know, Rebecca, Rebecca just mentioned, you know, we have we have the two issues right circumvention, which has been

Operator: All right guys. Thank you very much. I'll pass it there. Have a nice one. Yeah. Hey, thank you, Julie.

Things have really improved a lot as you know Rebecca Rebecca just mentioned we have we have the two issues right circumvention, which has been asked and answered provided a lot of clarity.

Speaker 4: transcript

Speaker 4: As the answer provided a lot of clarity around what can be done what can't and with the presidential proclamation So in very good shape there second was forced labor and making sure that

Carly Davenport: Our next question comes from Carly Devin Borg with Goldman Sachs. Please go ahead. Hey, good morning. Thanks for taking the questions. Appreciate the incremental disclosure on the funding plan and the asset sales. And just to follow up there, are renewables the only element kind of embedded in that $3 billion in proceeds? Are there any other non-core assets and energy resources that you consider monetizing? Yeah. So when I think about it, Carly, you know, renewables, you know, come top of mind.

Around what can be done what can and with the presidential proclamation. So in very good shape. There second was forced labor and making sure that.

Speaker 4: transcript

Speaker 4: Our suppliers are working constructively with customs and border patrols to get their panels clear for importation in the country. And so for the most part, all of our solar suppliers have been able to do that. And so we are in...

Our suppliers are working constructively with customs and border patrol to get their.

Panels.

Clear.

Importation into the country and so for the most part all of R. R.

Solar suppliers have been able to do that and so we are in.

Speaker 4: transcript

Speaker 4: a very good shape there. I think on grid power, I actually, you know, the grid level, you know, issues that you just mentioned,

A very good shape, there I think on grid power I actually the grid level issues that you just mentioned.

Carly Davenport: You know, we've had a history over the last several years of being able to recycle, you know, capital through renewables. But remember too, we're, you know, we're a large company. There are other assets that could potentially, you know, be available for capital recycling that are non-core. The SCG transaction that we just, you know, recently announced is a good example of that. And, you know, we'll always look for opportunities if there are situations where third parties value assets more than we do. Then sure, we'll look to be opportunistic, but it's not a core part of them. William. Okay, great. That's helpful.

Speaker 4: transcript

Speaker 4: We're in very good shape on, you know, we had gone long on grid-level equipment, including transformers, and so we have a significant supply in our inventory, and we've also looked forward in a plan for this in terms of trying to make sure that we have equipment available where if our

We're in very good shape on we had gone long horn grid level.

John Ketchum: Equipment, including transformers. We have a significant supply in our inventory. We've also looked forward in a plan for this in terms of trying to make sure that we have equipment available where.

Equipment, including Transformers, and so we have significant supply and our inventory and we've also looked forward in our plan for this in terms of trying to make sure that we have equipment available where if our if our customers or the <unk>.

John Ketchum: If our customers or the transmission owner in the places that we're building renewables are short on equipment, are short on grid level equipment, in particular, that we have it in our inventory and are able to offer that up as a solution. And I think one of the big benefits that we have, given our scale and given our leverage and the ability to buy this equipment in very large quantities and really lock up a lot of the manufacturing lines for this equipment. It's a true competitive advantage, you know, for a renewable business, the way I think about it.

Speaker 4: transcript

Speaker 4: if our customers or the transmission owner in the places that we're building renewables are short on equipment.

<unk> transmission owner in the place of places that we're building renewables are short on equipment are short on grid level equipment in particular that we have it in our inventory are unable and are able to offer that up as a solution and I think one of the big benefits that we have given our scale.

Rebecca: And then just as you think about the timing cadence of the backlog additions and also the dispersion across the different technologies, I think Rebecca, you alluded to the fact that the 4Q pipeline is shaping up to be kind of more weighted to the 24 to 26 timeframe versus this quarter being a little bit longer dated. But can you also just talk about the split across wind solar and storage? It seems like there's been a step up in solar relative to wind.

Speaker 4: transcript

Speaker 4: are short on grid-level equipment in particular, that we have it in our inventory and are able to offer that up as a solution. And I think one of the big benefits that we have, given our scale and given our leverage and the ability to buy this equipment in very large quantities and really lock up a lot of the

Given our leverage and the ability to buy this equipment in very large quantities and really lock up a lot of the.

Speaker 4: transcript

Speaker 4: manufacturing lines for these, for this equipment. It's a, it's a true competitive.

Rebecca: So just any thoughts on how you see that piece evolving going forward would be helpful. Thanks, Carly. It's a great question. Yes, I definitely support that first part of your comment and it's consistent with what I had said before that. I think this quarter was a little bit anomalous in terms of the weighting to 2027. And the pipeline is very much more weighted for what I see today for 24, 25 and 26 with much of it in the 25 and 26 timeframe just given the fact that we're ending into 24.

The manufacturing lines for these wells.

Equipment, so it's a true competitive advantage.

Speaker 4: transcript

Speaker 4: you know, for a renewable business the way I think about it.

For our renewable business the way I think about it.

Julian Dumoulin-Smith: Great.

Julien Dumoulin-Smith: Great.

Shar Pourreza: Just to clarify, NEER is buying this equipment or FPL, like do you keep those separate inventories?

Speaker 9: transcript

Speaker 9: Just to clarify, NEAR is buying this equipment, or FDL, like, do you keep those separate inventories?

Okay, just to clarify Nir is buying this equipment or do you keep those separate inventories.

Kirk Crews: Both are.

John Ketchum: Both are. Because both need it.

Both are.

Because both need it.

Shar Pourreza: Okay, great. And one quick follow up, if I may. I'm almost apologizing to bring this up, but the Florida Supreme Court asked the PSC for some details on their approval of the rate case settlement. Can you just share your expectations around timing of the process and maybe potential outcomes?

Speaker 9: transcript

Speaker 9: Okay, great. And one quick follow-up, if I may, I'm almost apologizing to bring this up, but the Florida State Supreme Court asked the PSU for some details on their approval of the rake case settlement. Can you just share your expectations around timing of the process and maybe potential outcomes?

Okay, Great and one quick follow up if I may I'm almost apologizing to bring this up with the Florida State Supreme Court asked the PSC for some details on their approval of the rate case settlement can you just share your expectations around timing of the process and maybe potential outcomes.

Rebecca: In terms of the technology, you have very strong signings for storage and as Kirk highlighted in the prepared remarks, in terms of the problem, maybe not surprise is probably not the right word, but really pleased to see how we're starting to see adoption across the broader set of markets, not just California, but into the Midwest, where are utility customers. And obviously some of the CNI are really valuing the ability to incorporate storage for capacity value and farming and shaping the renewables products.

John Ketchum: Hey Andrew, it's Armando. You're right that the Supreme Court remanded the settlement agreement back to the Public Service Commission.

Armando Pimentel: Hey Andrew, it's Armando. You're right that the Supreme Court remanded the settlement agreement back to the Public Service Commission.

Speaker 10: transcript

Speaker 10: and you're a term on the uh... you're right that the uh... the supreme court demanded the settlement agreement back to uh... back to public service commission uh...

Hey, Andrew it's Armando.

Youre right that the <unk>.

Cream court remanded.

The settlement agreement back to back to the public Service Commission.

John Ketchum: Our view is that the Public Service Commission is going to take that up soon, and will likely be in a position early next year, I would say first quarter of next year, to be able to send that back up to the Supreme Court with the additional details that the Supreme Court is looking forward to receiving. That process would be very similar to the process, both the timeline and the materials, that the Public Service Commission went through with the Duke case that was remanded by the Supreme Court back to the Public Service Commission last year, where the Public Service Commission did not reopen the record. We don't expect our record to be reopened and made sure that they put together a conclusion that would be satisfactory in their view with the Supreme Court and sent it back to the Supreme Court.

Our view is that the Public Service Commission is going to take that up soon, and will likely be in a position early next year, I would say first quarter of next year, to be able to send that back up to the Supreme Court with the additional details that the Supreme Court is looking forward to receiving. That process would be very similar to the process, both the timeline and the materials, that the Public Service Commission went through with the Duke case that was remanded by the Supreme Court back to the Public Service Commission last year, where the Public Service Commission did not reopen the record. We don't expect our record to be reopened and made sure that they put together a conclusion that would be satisfactory in their view with the Supreme Court and sent it back to the Supreme Court.

Speaker 10: transcript

Speaker 10: Our view is that the Public Service Commission is going to take that up soon.

Our view is that the public service commission is going to take that up.

Speaker 10: transcript

Speaker 10: and will likely be in a position early next year, I would say the first quarter of next year.

Soon and will likely be in a position early next year I would say first quarter of next year to be able to send that back up to the Supreme Court with the additional details that the Supreme Court is is looking forward to receiving that process would be very soon.

Speaker 10: transcript

Speaker 10: to be able to send that back up to the Supreme Court with the additional details.

Rebecca: So that's really positive in my mind. On the wind side, I think we're still seeing a little bit of dynamics that shaped up as a result of the tax credits that we originally we in the industry thought were going to phase down after 2020. So we saw a significant amount of pull forward of demand. And I think that's still affecting the industry a little bit. And then obviously the PTC being extended for solar, significantly improved the economics from a relative standpoint, which has been super positive for demand.

Speaker 10: transcript

Speaker 10: that the Supreme Court is looking forward to receiving. That process would be very similar to the process, both the timeline and the materials.

Similar to the process, both the timeline and the materials that the public service Commission went through with the Duke K.

Speaker 10: transcript

Speaker 10: that the Public Service Commission went through with the do.

Speaker 10: transcript

Speaker 10: Case that was remanded by the by the Supreme Court back to the Public Service Commission last year With a public service commission did not reopen the record. We don't expect our record to be reopened and made sure that they put together a Conclusion that would be satisfactory in their view to with the Supreme Court and send it back to the Supreme Court so we think we're on the same process as that Duke case was and and we look forward to

Case that was remanded by the by the Supreme Court back to the public Service Commission last year with the public Service Commission did not reopen the record we don't expect our record to be reopened.

Rebecca: We still see a lot of geographies where wind is incredibly attractive. And so I feel good about long term demand for wind and I also feel really good about long term demand for repowering projects. Obviously we had a great start to the repowering initiative following the IRA extension with over 700 megawatts we talked about today. Obviously it share from year to a little bit less than that. But we look across the entire tens of gigawatts now of renewable projects. There's lots of opportunities to repower as well. The overall cross board really excited about the opportunities that we have in front of us. That's great.

And made sure that they put together a.

Rebecca: Appreciate the color.

Our conclusion that would be satisfactory in their view.

With the Supreme Court and send it back to the Supreme Court. So we think we're on the same process.

John Ketchum: So we think we're on the same process that Duke case was, and we look forward to having the Public Service Commission resubmit that again Q1 next year.

So we think we're on the same process that Duke case was, and we look forward to having the Public Service Commission resubmit that again Q1 next year.

Duke case was in and we look forward to.

Speaker 10: transcript

Speaker 10: to having the Public Service Commission resubmit that again first quarter of next year.

To having the public service Commission resubmit that again first quarter next year.

Shar Pourreza: Sounds good. Thank you.

Armando Pimentel: Sounds good. Thank you.

Sounds good thank you.

Okay.

Operator: This concludes our question and answer session, and the conference has also now concluded. Thank you for attending today's presentation. You may all now disconnect.

Speaker 1: transcript

Speaker 1: This concludes our question and answer session, and the conference has also now concluded. Thank you for attending today's presentation. You may all.

This concludes our question and answer question.

Oh computer thank you for attending today's presentation.

Thanks.

Andrew Wyzel: Next question comes from Andrew Wyzel with Scotia Bank. Please go ahead. Hey, good morning everyone. First question. Hi. Can you talk a bit about supply chains? Are you curious your latest thoughts on the availability and status of supply chains, both for solar equipment as well as for grid level equipment like transformers or switch gears? Sure. Yeah.

Okay.

John: Let me take that Andrew. So, you know, first of all, supply chain. I mean, things are really improved a lot as you know, Rebecca just mentioned, you know, we have we have the two issues right circumvention, which has been asked and answered provided a lot of clarity around what can be done what can't and with the presidential proclamation. So in very good shape there. Second was forced labor and making sure that our suppliers are working constructively with customs and border patrol to get their panels, you know, clear for importation in the country.

John: And so for the most part, you know, all of our solar suppliers have been able to do that. And so we are in. Very good shape there. I think on grid power, I actually, you know, the grid level, you know, issues that you just mentioned, we're in very good shape on. You know, we had gone long on grid level equipment, including transformers. And so we have a significant supply in our inventory.

John: And we've also looked forward in a plan for this in terms of trying to make sure that we have a equipment available where if our customers or the transition transmission owner in the places that we're building renewables are short on equipment, are short on grid level equipment in particular that we have it in our inventory are enabled in our able to offer that up as a solution. And I think one of the big benefits that we have given our scale and given our leverage and the ability to buy the equipment in very large quantities and really lock up a lot of the manufacturing lines for these equipment.

John: It's a true competitive advantage, you know, for a renewable business the way I think about it. Great, just to clarify, near is buying this equipment or FL like do you keep those separate inventories? Both are. Both are because both need it. Okay, great.

Armando Pimentel: Then one quick follow up of I'm almost apologetic to bring this up, but the Florida State Supreme Court asked the PSU for some details on the approval of the rate case settlement. Can you just share your expectations around timing of the process and maybe potential outcomes? Andrew Armando, you're right that the Supreme Court remanded the settlement agreement back to back the public service commission. Our view is that the public service commission is going to take that up soon and will likely be in a position early next year, I would say, first quarter of next year to be able to send that back up to the Supreme Court with the additional details that the Supreme Court is looking forward to receiving that process would be very similar to the process, both the timeline and the materials that the public service commission went through with the Duke case that was remanded by the Supreme Court back to the Public Service Commission last year.

Armando Pimentel: But the public service commission did not reopen the record. We don't expect our record to be reopened and made sure that they put together a conclusion that would be satisfactory in their view to with the Supreme Court and send it back to the Supreme Court. So we think we're on the same process as that Duke case was and we look forward to having the Public Service Commission resubmit that, again, first quarter of next year.

Armando Pimentel: Sounds good.

Operator: Thank you.

Operator: This concludes our question and answer session and the conference has also now concluded.

Operator: Thank you for attending today's presentation.

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