Q4 2023 Algonquin Power & Utilities Corp Earnings Call
Operator: Subs By www.zeoranger.co.uk Hello and welcome to the Algonqin Power and Utilities Corp. fourth quarter and full year 2023 earnings conference call. All lines have been placed on mute to prevent any background noise.
Hello, and welcome to the Algonquin power and utilities Corp, fourth quarter and full year 2023 earnings conference call.
All lines have been placed on mute to prevent any background noise.
Operator: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star 1 on your telephone keypad. I will now turn the conference over to Mr. Brian Chin, Vice President of Investor Relations.
After the Speakers' remarks, there will be a question and answer session if.
If you would like to ask a question during that time simply press star one on your telephone keypad.
I will now turn the conference over to Mr. Brian Chin, Vice President of Investor Relations. Please go ahead.
Brian Chin: Thanks, Operator. Good morning, everyone. And thank you for joining us for our fourth quarter and full year 2023 earnings conference. Speaking on the call today will be Chris Huskilson, Interim Chief Executive Officer, and Darren Myers, Chief Financial Officer. Also joining us this morning for the question and answer portion of the call is Jeff Norman, Chief Development Officer, and Johnny Johnston, Chief Operating Officer. To accompany today's earnings call, we have a supplemental webcast presentation available on our website, algonqnpwr.com. Our financial statements and management discussion and analysis are also available on the website, as well as on CDER Plus and EDGAR. We'd like to remind you that our discussion during the call will include certain forward-looking and non-GAAP measures. Please note and review the related disclaimers located on slide 2 of our earnings call presentation in the Investor Relations section of our website at algonqnpwr.com.
Thanks, operator, good morning, everyone and thank you for joining us for our fourth quarter and full year 2023 earnings call Conference call.
Brian Chin: Speaking on the call today will be Chris <unk> interim Chief Executive Officer, and Darren Myers, Chief Financial Officer.
Speaker Change: Also joining us this morning for the question and answer portion of the call is Jeff Norman Chief Development Officer, and Johnny Johnston, Chief operating Officer.
Speaker Change: To accompany today's earnings call, we have a supplemental webcast presentation available on our website Algonquin power Dot com our financial statements.
Speaker Change: <unk> and management discussion and analysis are also available on the website as well as on SEDAR and Edgar.
Speaker Change: We'd like to remind you that our discussion during the call will include certain forward looking and non-GAAP measures. Please note and review the related disclaimers located on slide two of our earnings call presentation at the Investor Relations section of our website at Algonquin power Dot com.
Brian Chin: Please also refer to our most recent MD&A filed on Theta Plus and EDGAR and available on our website for additional important information on these items. On the call this morning, Chris will provide a business update, including key highlights pertaining to our regulated and renewables business groups, as well as brief comments on our strategic plan process and CEO. Then, Darren will review our fourth quarter and full year financial results. We will then open the lines for the question and answer period. We ask that you kindly restrict your questions to two and then refrain if you have any additional questions to allow others the opportunity to part. With that, I'll turn it over.
Speaker Change: Please also refer to our most recent MD&A filed on SEDAR and Edgar and available on our website for additional important information on these items.
Speaker Change: On the call. This morning, Chris will provide a business update including key highlights pertaining to our regulated and renewables business groups as well as brief comments on our strategic plan process and CEO search then Darin, who will review our fourth quarter and full year financial results. We will then open the lines for the question and answer period, we ask that you kindly.
Speaker Change: Strict your questions to two and then re queue. If you have any additional questions to allow others the opportunity to participate.
Speaker Change: With that I'll turn it over to Chris.
Christopher G. H. Huskilson: Thank you, Brian, and good morning, everyone. 2023 was a decisive year for Algonqn. We made several strategic decisions focused on becoming a pure play regulated utility. Simplifying the Company and Achieving Greater Operational Efficiency. We're excited about the opportunities ahead. And we'll shape our regulated business into a leading utility platform. When I started at Algonqn, I focused on four things: people.
Chris: Thank you, Brian and good morning, everyone.
123 was a decisive year for Algonquin.
Chris: We made several strategic decisions.
We're focused on becoming a pure play regulated utility.
Chris: Simplifying the company and achieving greater operational efficiency.
Chris: We're excited about the opportunities ahead.
Chris: And we will shape, our regulated business into a leading utility platform.
Speaker Change: When I started in August.
Speaker Change: I focused on four things.
Speaker Change: Our people.
Christopher G. H. Huskilson: The Renewable Sale. Optimizing the value of AY and getting the regulated business set up. Although there's still lots of work to be done, we're making progress. We've retained our people, and they are engaged in the... We have been simplifying the business and making it more transparent to investors. The renewable sale is proceeding as planned, and we continue to expect to close a transaction this year. We're actively working with AWOC, http://TheBusinessProfessor.com, and we've begun making changes to the way the regulated business is organized and the way it runs while making use of our new SAP.
Speaker Change: The renewable sale.
Speaker Change: Optimizing the value of a y.
Speaker Change: And getting the regulated business set up as a standalone.
Speaker Change: Although there is still lots of work to be done we're making progress.
Speaker Change: We've retained our people and they are engaged in the change.
Speaker Change: We have been simplifying the business and making it more transparent to investors.
Speaker Change: The renewable sale is proceeding as planned and we continue to expect to close a transaction this year.
Speaker Change: We're actively working with a y to support them.
Speaker Change: And we have begun making changes to the way the regulated business is organized and the way it runs while making use of our new SAP system.
Christopher G. H. Huskilson: From a business segment performance point of view, both full year 2023 and fourth quarter saw double-digit divisional operating profit growth for our regulated services, primarily due to a number of new great The Bulletproof Executive 2013, https://youtu.beo.co.uk, A renewable business placed in service 453 megawatts of new wind and solar. Our Generation for 2023. Despite a weather-challenged year, our renewables business ended the period with fourth-quarter divisional operating profits. I'll stop by.
Speaker Change: For our business segment performance standpoint.
Speaker Change: Both full year 2023, and fourth quarter saw a double digit divisional operating profit growth for our regulated services group due.
Speaker Change: Due primarily to a number of new rate and implementations.
Speaker Change: Across our utility portfolio.
Speaker Change: Our renewable business placed in service 453 megawatts of new wind and solar.
Speaker Change: Generation for 2023.
<unk> a weather challenged year, our renewables business ended the period with fourth quarter divisional operating profit.
Christopher G. H. Huskilson: Thank you. Thank you. These results demonstrate that despite 2023 headwinds and the strategic transition currently underway, these two solid businesses. Our solid business is with significant long-term growth potential. Darren will provide more color on the 2023 financial meeting. Our regulated services group grew at a healthy pace in 2023. Regulated divisional operating profit grew 10% year-over-year, primarily driven by interest income on regulatory asset accounts and new rates implemented at several of our utilities. Most notably, our CalPICO, Empire, and Belco elections.
Speaker Change: Up by 6%.
Speaker Change: These results demonstrate that despite 2023 headwinds and the strategic transition currently underway.
These two solid businesses.
Our solid businesses with significant long term opportunity.
Speaker Change: Darren will provide more color on the 2023 financial metrics later in the call.
Speaker Change: Our regulated services group grew at a healthy pace in 2023.
Speaker Change: Regulated divisional operating profit grew 10% year over year, primarily driven by interest income on regulatory asset accounts.
Speaker Change: And new rates implemented at several of our utilities.
Speaker Change: Most notably our Cal Pico Empire, and Balco electric systems.
Christopher G. H. Huskilson: This growth reflects a tremendous opportunity to invest in our systems for the benefit of our customers. These are not new rates for the sake of new rates, but rather a recovery of and on already invested capital in our system, to provide safe and reliable service to our customers. With that said,
Speaker Change: This growth reflects tremendous opportunity to invest in our systems for the benefit of our customers.
Speaker Change: There are not these are not new rates for the sake of new rates, but rather a recovery of and on already invested capital and our systems to provide safe and reliable service to our customers.
Speaker Change: With that said.
Christopher G. H. Huskilson: We have plenty of work and opportunity ahead of us. Our objective is to earn our allowed cost of capital while serving our customers. Our gap today reflects timing from investments we have made and under-earning at New York Water as a result of our stay-out from the acquisition.
Speaker Change: We have plenty of work and opportunity ahead of us.
Speaker Change: Our objective is to earn our allowed.
Speaker Change: <unk> cost of capital, while serving our customers.
Speaker Change: Our GAAP today reflects timing from investments, we have made and under earning at New York water as a result of our stay out from the acquisition.
Christopher G. H. Huskilson: We're working to improve our returns, and we have a number of active ratepayers. We also see an opportunity to improve our performance and maximize our operational efficiency by improving our processes and leveraging this significant technology foundation that we've put in place. In 2024, we expect to have our Canadian and US regulated utilities transition to the standard software platform, which is a key step to our multi-year journey. We're pleased to report that during the course of 2023, a regulated services group received final rate case orders at eight of our utilities and one additional order subsequent to year end on January 24. With authorized revenue increases totaling $44.1 million, representing over 70% of our rate requests,
Speaker Change: We are working to improve our returns.
Speaker Change: And have a number of active rate cases.
Speaker Change: We also see an opportunity to improve our performance and maximize our operational efficiency and.
Speaker Change: Including through initiatives, such as the rollout of our customer first.
Speaker Change: Program at.
Speaker Change: And improving our processes and leveraging this significant technology foundation that we've put in place.
Speaker Change: In 2024, we expect to have our Canadian and U S regulated utilities transitioned to this standard software platform.
Speaker Change: As a key step to our multiyear journey.
Speaker Change: We're pleased to report that during the course of 2023, our regulated services group received final rate case orders at eight of our utilities.
Speaker Change: And one additional order subsequent to year end and January 24.
Speaker Change: With authorized revenue increases totaling $44 $1 million rep.
Speaker Change: Representing over 70% of our rate request.
Speaker Change: We believe this is reflective of our constructive partnerships.
Christopher G. H. Huskilson: We believe this is reflective of our constructive partnerships with our regulators and the communities we serve. I'm pleased with these continued... As a core growth strategy of the Regulated Services Group is to responsibly invest in our utility systems on behalf of our customers and target a constructive return. In total, the Regulated Services Group had at year-end pending rate reviews totaling $93.4 million across six, https://www.kenhub.com with an additional $12.4 million at two of the water systems filed in January, bringing the total for the year to $105.8 billion. All right.
Speaker Change: And with our regulators and the communities we serve.
Speaker Change: We're pleased with these continued advancements as our core growth strategy of the regulated services group is to responsibly invest in our utility systems on behalf of our customers and target a constructive return on our rate base.
Speaker Change: In total the regulated services group had a had at year end pending rate reviews totaling $93 $4 million across six of its utility systems.
Speaker Change: With an additional $12 $4 million at two of the water systems filed in January.
Bringing the total for the year to $105 8 million currently pending.
Christopher G. H. Huskilson: These rate cases reflect our continued commitment to invest in our utilities for the benefit of our customers. The Bulletproof Executive 2013, However, we see these advances as success. We are not satisfied with some of our regulatory positions.
Speaker Change: These rate cases reflect our continued commitment to invest in our utilities for the benefit of our customers and shareholders alike.
Speaker Change: While we see these advances a success.
Speaker Change: We are not satisfied with some of our regulatory positions.
Christopher G. H. Huskilson: And we are committed to change. Turning now to an update on the projects of our Renewable Energy business, Along with the 453 megawatts delivered in 2023, in the fourth quarter, we completed construction of our Hayhurst, Texas, solar facility. Site preparations continue at the 150-megawatt Kerbis Creek and 144 megawatt Clearview Solar Project.
Speaker Change: And we are committed to changing this and making this better.
Speaker Change: Turning now to an update on the projects of our renewable energy group.
Speaker Change: Along with the 453 megawatts delivered in 2023 in the fourth quarter, we completed construction of our Hayhurst, Texas solar facility.
Speaker Change: Site preparations continue at the 150 megawatt <unk> Creek, and 144 megawatt clear view solar projects.
Christopher G. H. Huskilson: Panel installation has commenced. In total, we now have approximately 300 megawatts of solar projects in various stages of construction. As well, we have added 1660 megawatts to the development pipeline. All in all, the renewables business had lower generation due to unfavorable weather, but it made solid progress growing generational capacity in the development pipeline. As of year end, our net generating capacity is 2.7 gigawatts, which excludes our partner's in our construction joint.
Speaker Change: And panel installation has commenced.
Speaker Change: In total we now have approximately 300 megawatts of solar projects in various stages of construction.
Speaker Change: As well we have added 660 megawatts to the development pipeline in 2023.
Speaker Change: All in all the renewables business had lower generation due to unfavorable weather.
But made solid progress growing generation capacity and the development pipeline.
Speaker Change: As of year end, our net generating capacity is two seven gigawatts, which excludes our partners interests in our construction joint ventures.
Christopher G. H. Huskilson: Subsequent to year end, we've also chosen to take further steps to simplify our renewable energy business. In January, we consolidated our renewables development joint venture and monetized two small renewable development projects. This will have the effect of simplifying and consolidating our development expenses without impacting our investment in development for our projected cast.
Speaker Change: Subsequent to year end, we've also chosen to take further steps to simplify our renewable energy business in.
Speaker Change: In January we consolidated our renewables development joint venture.
Speaker Change: And monetize two small renewable development projects in Spain.
Speaker Change: This will have the effect of simplifying and consolidating our development expenses without impacting our investment and development.
Speaker Change: Our projected cash flows.
Christopher G. H. Huskilson: And finally, before I turn things over to Darren, a few comments on the strategic plan for the company and the CEO search. We launched the sale process with potential buyers in the fourth quarter and are pleased with the level of buyer interest that we've seen in our renewables platform. We continue to target a potential transaction announcement around mid-24, with closing later. We also are making progress in our search for a permanent CEO and have been pleased with the slate of candidates reviewed thus far.
Speaker Change: And finally before I turn things over to Darren a few comments on our strategic plan for the company and the CEO search.
Speaker Change: We launched the sale process with potential buyers in the fourth quarter.
Darren G. Myers: And are pleased with the level of buyer interest that we've seen in our renewables platform.
Darren G. Myers: We continue to target a potential transaction announcements around mid 24 and.
Darren G. Myers: In closing later in the year.
Darren G. Myers: We also are making progress in our search for a permanent CEO and have been pleased with the slate of candidates reviewed thus far I remain.
Christopher G. H. Huskilson: I remain dedicated to this role of interim CEO for as long as required and as the board works to find me, in keeping with my transparency objectives. I'm again focused on four things for 24. First, growing our people and their capabilities. Second, completion of a renewable sale and optimizing the value of AY. Third, meeting our financial objectives as a team, fourth getting the regulated business running as one optimized business. With that, I'll turn things over to Darren. We'll speak about our fourth quarter and full year. Darren
Dedicated to this role of interim CEO for as long as required and as the board works to find the right candidate.
In keeping with my transparency objective.
Darren G. Myers: Im again focused on four things for 24.
Darren G. Myers: First growing our people and their capabilities.
Darren G. Myers: Second completion of renewable sale and optimizing the value of a y.
Darren G. Myers: Third meeting our financial objectives as a team.
Darren G. Myers: And fourth getting the regulated business running as one optimized business <unk>.
Darren G. Myers: Including fully utilizing our SAP platform.
Darren G. Myers: With that I'll turn things over to Darin, who will speak about our fourth quarter and full year financial results. Darren. Thank you, Chris and good morning, everyone as Chris touched on briefly 2023 was a Europe decision, making we believe that the decisions. We've made the right actions to simplify the business and better position the company for long term profitable growth and focus.
Darren G. Myers: Thank you, Chris. And good morning, everyone. As Chris touched on briefly, 2023 was a year of decision making. We believe that the decisions we've made are the right actions to simplify the business and better position the company for long-term profitable growth and focus value creation for shareholders. Overall, we're pleased with our fourth quarter results in the backdrop of a challenging 2023. Q4 consolidated adjusted EBITDA was $334.3M, up 13% from the same period last year, while full-year consolidated adjusted EBITDA was approximately $1.24B, an increase of 4% over 2022. Fourth quarter adjusted net earnings were $115.5 million, compared to $97.6 million reported last year, an 18% increase. Full year adjusted net earnings were $372 million, down 11% from last year.
Darin: Value creation for shareholders.
Darin: Overall, we're pleased with our fourth quarter results and the backdrop of E challenging 2023.
Darin: Q4, consolidated adjusted EBITDA was $334 3 million.
Up 13% from the same period last year, while full year consolidated adjusted EBITDA was approximately $1 two 4 billion an increase of 4% over 2022.
Darin: Fourth quarter adjusted net earnings were $115 5 million compared to $97 6 million reported last year and 18% increase full year adjusted net earnings were $372 million.
Darin: On a 11% from last year.
Darren G. Myers: On a per share basis, our fourth-quarter adjusted net earnings per share was $0.16, a $0.14 improvement year over year, primarily attributable to organic regulated growth and higher tax credit recoveries from our renewables business. This was partially offset by higher interest expense. For the full year, adjusted net earnings per share came in at $0.53, a decline of 13% year-over-year.
Darin: On a per share basis, our fourth quarter adjusted net earnings per share was <unk> 16.
Darin: 14th improvement year over year, primarily attributable to organic regulated growth and higher tax credit recoveries from our regular our renewables business.
Darin: This was partially offset by higher interest expense.
Darin: For the full year adjusted net earnings per share came in at <unk> 53, a decline of 13% year over year.
Darren G. Myers: This is consistent with our third quarter update, where we stated that we expected full-year guidance to come in at or below our 2023 guidance range of 55 to 61 cents. While full-year adjusted net earnings per share were boosted by organic growth in our regulated business and higher than typical tax credit recoveries, these positive items were more than offset by higher interest expense and five cents from unfavorable weather, as well as higher minority interest expense related to our fourth quarter 2022 asset recycling transact. Looking now, it results in on a segmented basis.
Darin: This is consistent with our third quarter update where we stated that we expected full year guidance to come in at or below our 2023 guidance range of 55 to 61.
Darin: While full year adjusted net earnings per share were boosted by organic growth in our regulated business and higher than typical tax credit where credit recoveries. These positive items were more than offset by higher interest expense and <unk> <unk> from unfavorable weather as well as higher minority interest expense related to our fourth quarter 2020 to asset recycling.
Darin: <unk>.
Darin: Looking now at results on a segmented basis the.
Darren G. Myers: The regulated service group delivered $238.3 million in divisional operating profit in the fourth quarter and $954.1 million for the full year, up 11% and 10%, respectively, year over year. The increases were primarily due to new rate implementations on several of the company's electric and water utilities, the previously disclosed one-time CalPICO true-up, and higher interest income on regulatory asset accounts. These were partially offset by unfavorable mid-year weather conditions at the Empire Electric System.
Darin: Our regulated service group delivered $238 3 million and divisional operating profit in the fourth quarter and $954 1 million for the full year up 11% and 10% respectfully respectively year over year.
Darin: The increases were primarily due to new rate implementations at several of the company's electric and water utilities. The previously disclosed one time Cal Pico true up and higher interest income on regulatory asset accounts.
Darin: These were partially offset by unfavorable midyear, whether at the Empire electric system.
Darren G. Myers: The Renewable Energy Group posted a fourth quarter divisional operating profit of $107.6 million, an increase of 6% primarily due to improved equity income from the Texas coastal wind facilities, more favorable capacity revenues for the majority of solar facilities, and slightly higher HLBV income. On a full-year basis, operating profit was $371.8 million, a 9% decrease year-over-year, which was driven primarily due to an expected drop in HLBV income from certain 2012 vintage assets reaching end-of-PTC eligibility and unfavorable weather across Canadian and U.S. wind facilities. These impacts were partially offset by higher equity income from the Texas coastal wind assets and contributions from new facilities and investors. Let me now touch on CAPEX and the balance sheet. We ended 2023 with regulated capital expenditures of approximately $700 million and renewable CapEx of approximately $300 million, rounding up in total to $1.1 billion. As of the year 2023, our long-term debt was $8.5 billion, which included $1.1 billion of equity units and $1.4 billion of subordinated unsecured notes. Subsequent to year-end, we successfully raised $850 million of Liberty Utilities' senior unsecured notes and an additional $306 million of securitized utility tariff bonds at Empire. Proceeds were used to repay short-term and floating-rate debt.
Darin: The renewable energy group posted a fourth quarter divisional operating profit of $107 6 million and.
Darin: An increase of 6% primarily due to improved equity income from the Texas coastal wind facilities more favorable capacity revenues for the majority of solar facilities and slightly higher <unk> income.
Darin: On a full year basis operating profit was $371 8, million% to 9% decrease year over year, which was driven primarily due to an expected drop in <unk> income from certain 2012 vintage assets, reaching end of PTC eligibility and unfavorable weather across Canadian and U S wind facilities. These.
Darin: Impacts were partially offset by higher equity income from the Texas coastal wind assets and contributions from new facilities that investments.
Speaker Change: Let me now touch on Capex and the balance sheet.
Speaker Change: We ended 2023 with regulated capital expenditures of approximately 700 million a renewable capex of approximately 300 milling rounding up in total to $1 1 billion.
Speaker Change: As of the year end 2023, our long term debt was $8 5 billion, which.
Speaker Change: Which includes $1 1 billion of equity units and $1 4 billion of subordinated unsecured notes <unk>.
Speaker Change: Subsequent to year end, we successfully raised $850 million of Liberty utilities senior unsecured notes and an additional $306 million of securitized utility tariff bonds at Empire. The proceeds were used to repay short term floating rate debt.
Darren G. Myers: And lastly, a few comments on our forward outlook for 2024 and beyond. We are focused on simplifying the business. As a result of the pending sale of our renewables business, we will not be providing adjusted earnings per share guidance at this time.
Speaker Change: And lastly, a few comments on our forward outlook for 2024 and beyond.
Speaker Change: We are focused on simplifying the business as a result of the pending sale of our renewables business, we will not be providing adjusted earnings per share guidance. At this time Directionally, we expect our regulated rate base growth to be in the mid single digits and our regulated capital intensity to be at a similar level to 2023.
Operator: Directionally, we expect our regulated rate-based growth to be in the mid-single digits and our regulated capital intensity to be at a similar level in 2023. To conclude, we are focused on executing on the renewable business sale, maintaining our triple B investment grade credit rating, supporting our dividend, and generating long-term shareholder value. With that, I will now turn the call over to the operator to open the lines for questions. Operator?
Speaker Change: To conclude we are focused on executing on the renewable business sale, maintaining our triple B investment grade credit rating supporting our dividend and generating long term shareholder value.
Speaker Change: With that I will now turn the call over to the operator to open the lines for questions operator.
Operator: Thank you. If you have a question, please press star one on your telephone keypad. To withdraw your question, simply press star one again.
Speaker Change: Thank you if you have a question. Please press star one on your telephone keypad to withdraw your question simply press Star One again. Thank you one moment. Please for your first question.
Sean Steuart: Thank you. One moment, please, for your first question. Our first question comes from Sean Steuart from TD Securities. Please go ahead.
Speaker Change: Our first question comes from Sean Stewart from TD Securities. Please go ahead. Your line is open.
Sean Steuart: Your line is open. Thanks. Good morning, everyone.
Sean Steuart: Thanks, Good morning, everyone.
Christopher G. H. Huskilson: Chris, wondering if you can give us any, I suppose, directional guidance on the sales process on the renewable side. Are we at a point where all interested offers are in and you're vetting the offers? You know, as we progress towards a decision in the middle of the year, any additional context you can give on where we are now. It's pretty hard to give any color at this point.
Chris wondering if you can give us any.
Sean Steuart: Suppose directional guidance on the sales process on the renewable side.
Sean Steuart: Are we at a point where.
Sean Steuart: All interested offers are in and your your your vetting the offers.
Sean Steuart: As we progress towards.
Sean Steuart: A decision middle of the year.
Sean Steuart: Any additional context, you can give on where we are in that process.
Speaker Change: Pretty hard to give any color at this point, we are in a confidential process and I think we were pretty clear with folks last time that we wouldn't be able to comment but the one thing. We did say was that no news is good news and Youre not hearing any news.
Darren G. Myers: We are in a confidential process, and I think we were pretty clear with folks last time that we wouldn't be able to comment, but the one thing we did say was that no news is good news, and if you're not hearing any news, I'll take that as a positive. Okay. And appreciating this is all dependent on the renewable sales process, but you churned through some liquidity this quarter. Can you comment on the investment plan for the regulated platform and overall comfort with liquidity absent the sale on the renewables platform at this? Yeah, I mean, we Sean. It's Darren here. I mean, we've got a number of steps in place. We're quite pleased with what we did in Q1 with both the bond and the securitization. They were, you know, four times oversubscribed.
Speaker Change: I'll take that.
Speaker Change: <unk> is positive okay.
And I appreciate.
Speaker Change: <unk>. This is all dependent on the renewable sales process, but you churn through some liquidity. This quarter can you comment on the investment plan for the regulated platform and <unk>.
Speaker Change: Overall comfort with liquidity absence.
Speaker Change: Sale and the renewables platform at this point.
Speaker Change: Yes.
Speaker Change: Sean It's Darin here I mean, we've got a number of steps in place. We are quite pleased with what we did in Q1 with the both the bond and the securitization there were four times oversubscribed. So lots of interest there. So from a liquidity point of view we are in good shape.
Nelson Ng: So lots of interest there. So from a liquidity point of view, we're in good shape. And you know, we're just executing our plan with the sale of the renewables business. Okay, that's all I have. Thanks very much. Our next question comes from Nelson Ng from RBC Capital Markets. Please go ahead, your line is open.
Speaker Change: We're just executing our plan.
Speaker Change: With the sale of the renewables business.
Speaker Change: And the capital on the capital for the Reg business.
Speaker Change: We've said that about the same this year as last year, and Thats, where we see it.
Speaker Change: Okay.
Speaker Change: Okay. That's all I had thanks very much.
Speaker Change: Our next our next question comes from Nelson Eng from RBC Capital markets. Please go ahead. Your line is open.
Christopher G. H. Huskilson: Great, thanks, and good morning everyone. Maybe I'll try to have another go at the renewal sales process question. So, Chris, you mentioned that you'll be making a sales announcement, or you expect to make a sales announcement, in mid-2024. So just to clarify, are you essentially saying that the renewables..., sales pros like you expect to announce the sale of the renewables division in mid-2024, or are you saying that an announcement will be made in mid-2024 regardless? whether there is a sale. Well, what you just described is our target, www.globalonenessproject.org. That's our goal. And things are tracking well at Subway. I don't know, but this is good.
Nelson Ng: Great. Thanks, and good morning, everyone, maybe I'll try to have another go at the wholesales process question.
Nelson Ng: So Chris you mentioned that youll be making a.
Sales announcement.
Nelson Ng: Do you expect to make our sales announcement in mid 2024.
Nelson Ng: Just to clarify are you essentially saying that their renewables.
Nelson Ng: Sales price I E. Do you expect to announce the sale of the renewables division in mid 2024.
Or are you, saying that in an announcement will be made in mid 2024 are regardless of.
Nelson Ng: Whether there is a sale or whatnot.
Nelson Ng: You. Just described is our target is to announce the sale of mid 24, that's our target okay.
Nelson Ng: And things are tracking well it sounds like.
Nelson Ng: No news is good news.
Speaker Change: Okay. Thanks.
Christopher G. H. Huskilson: And then just on, just to clarify. The question that Sean asked, you mentioned that the utilities' capex is the same this year compared to last year. What about on the renewable side? Can you comment on the expected capex? Yeah, I know.
Speaker Change: And then just on just to clarify.
Speaker Change: The question that Sean asked so.
Speaker Change: So you mentioned that the.
Speaker Change: Utilities Capex is the same this year compared to last year.
Speaker Change: How about on the renewable side can you comment on the expected capex there.
Darren G. Myers: So no, I mean, we're just not going to make comments on renewable energy, obviously, you know, with everything going on, which I don't think it's the appropriate time to provide guidance on the renewable energy business. Okay, um, and then just, uh, I guess one, like, since you're not providing guidance for 2024, can you just, directionally? Talk about the two divisions plus the tax rate.
Speaker Change: Hi, Nelson.
Speaker Change: We're just not going to make comments on the renewables is obviously.
Speaker Change: Everything going on we still think it's the appropriate time to provide guidance on the renewables business.
Speaker Change: Okay.
Speaker Change: And then just.
Speaker Change: One since year Youre, not providing guidance for two months before can you just directionally.
Speaker Change: Talk about the Utah.
Speaker Change: Utilities.
Speaker Change: The two divisions plus the tax rate in terms of obviously the utilities, you're running through a number of rate cases, so that I presume it's positive directionally.
Darren G. Myers: In terms of, obviously, the utilities, you're running through a number of great cases, so, $$TRANSMIT $$TRANSMIT, And then on the renewable side, I had below average generation, so..., and also had some additional assets that were brought online. Directionally, everything looks positive.
Speaker Change: Can you talk about the tax rate, where obviously you benefited from.
Speaker Change: A number of tax credits.
Speaker Change: And then on the renewable side I think 2023.
Speaker Change: <unk> had below average generation so.
Speaker Change: And also had some additional assets that were brought online so I presume directionally everything looks positive maybe.
Speaker Change: Maybe the tax rate will move up rather than.
Speaker Change: Wow.
Speaker Change: I'll just let you.
Darren G. Myers: There was a lot. There was a lot of that, Nelson. I mean, again, we're not providing guidance but just direction. We want to be as helpful as we can be and be as transparent as we can be. Certainly, what I would say is tax credits were higher than they normally are on the renewable side, but that's, you know, it's a lumpy business, and the tax credits can be quite lumpy. The underlying tax rate has been having those, you know, the increases that we would have expected if you take away the tax credit.
Speaker Change: David.
David: There was a lot in that.
Yes, I mean again, we're not providing guidance, but just directionally, we want to be as helpful. As we can be and be as transparent as we can be certainly what I would say is tax credits were higher than they normally are on the renewable side, but it's a lumpy business and the tax credits can be quite lumpy the underlying tax rate has.
David: Been having those.
David: Increases that we would have expected if you take away the tax credits and as we've previously talked about.
Christopher G. H. Huskilson: And as we've previously talked about, you know, even when I started, we do expect the underlying to go up over a number of years as a result of some of the changing tax landscape. So, no color, I would say, again, on 2024 on the tax credits and the renewables business, because we're just not providing the guidance at this time, given the dynamics. Yeah, I think the only other thing to say is that, as part of the tax improvement you saw last year, we actually sold a couple of tax credits into the market. And so, you know, we see that as very positive for the business because the market continues to develop. Okay, thanks. Our next question comes from Rob Hope from Scotiabank. Please go ahead; your line is open. Good morning, everyone.
David: Which is when I started we do expect the underlying to go up over a number of years as a result of some of the changing tax landscape. So no color I would say.
David: Again on 2024 on the tax credits in the renewables business, because we're just not providing the guidance at this time given the dynamics.
David: The only other thing to say is that part of the.
David: The tax improvement you saw last year is we actually sold a couple of tax credits into the market and so we see that as very positive for the business because the market continues to develop.
David: Okay.
Speaker Change: Okay. Thanks, I'll leave it there.
Speaker Change: Thanks Nelson.
Speaker Change: Our next question comes from Rob Hope from Scotiabank. Please go ahead. Your line is open.
Hi, Good morning, everyone. I was hoping you could explore the concept of simplicity a little bit more.
Christopher G. H. Huskilson: I was hoping you could explore the concept of simplicity a little bit more. You know, you did, we'll call, simplify the business a little bit here with some of those roll-ups in Q4. But when you take a look into later this year and into 2025, like how do you imagine simplifying the business and kind of what, you know, key factors should we be looking for? Well, I think it goes into a couple of different things.
Robert Hope: You did.
Robert Hope: We will call simplify the business a little bit here with some of those rollouts in Q4, but when you take a look into later this year and into 2025 like how do you envision simplifying the business and kind of what.
Robert Hope: Key factors should we be looking for.
Robert Hope: I think it goes into a couple of different things. So first of all one of the things that will be true is that the business will become more transparent because the utilities will be more surfaced in the business and you'll be able to see more directly what the utilities are actually doing.
Christopher G. H. Huskilson: So first of all, one of the things that will be true is that the business will become more transparent because the utilities will be more integrated into the business, and you'll be able to see more directly what the utilities are actually doing. And then when it comes to the platform that we've put in place, and we're putting the last stage of that platform in place in the spring with Empire. And so, you know, by the time we get solidly into Q2, we'll have our SAP platform. The link is in the video description. Alright, that's helpful. And then maybe just sticking with the utilities as well.
Robert Hope: And then when it comes to the platform that we've put in place and we're putting the last stage of that platform in place in the spring.
Robert Hope: With at Empire, and so by the time, we get into solidly into Q2, we will have our SAP platform.
Robert Hope: Solidly across the entire business that will allow us to simplify our processes, which will allow us to simplify our reporting.
Robert Hope: To speed up things like reporting and we've already started to see that kind of improvement and continue to be more transparent and simple simplified as we report to you and <unk> customers.
Robert Hope: Customers in Alberta, so at the end of the day. It really is about optimizing this business using our platform.
Christopher G. H. Huskilson: You know, you did see some headwinds in 2023, as expected. Where do you think the achieved ROE came in at? And as we look out into 2024, you know, is it really just normalized weather, as well as getting a New York decision, you know, going to be the key factors driving you closer to the allowed level? Well, yeah, and, in fact, from a simplification perspective, we did take a hit on weather in both regulated business as well as our unregulated business. And, you know, fundamentally, we should not be doing that. That should not be the case.
Robert Hope: Using the ability to bring the utilities more to the surface of the business.
Speaker Change: Alright, that's helpful. And then maybe just sticking with the utilities as well.
Speaker Change: Did see some headwinds in 2023 as expected where do you think the achieved Roe.
Speaker Change: Came in at and as we look out into 2024.
Speaker Change: Is it really just normalized weather as well as getting in New York.
Speaker Change: <unk> going to be the key factors driving it closer to the allowance.
Speaker Change: And in fact.
Again from a from a simplification perspective.
Speaker Change: Did take a hit on weather in our in our regulated business as well as our unregulated business this year.
Speaker Change: Fundamentally we should not be doing that should not be the case, we should be able to manage our way through whether.
Christopher G. H. Huskilson: We should be able to manage our way through events of that kind of scale. And so those are some of the things that we're working on with the business so that we don't have. There's a lot of reporting on things like variation. So there's an awful lot of that kind of work that's going on as well. I think the weather was total above 5 cents in our total for this year.
Speaker Change: <unk> of that kind of scale and so those are the some of the things that we're working on with the business. So that we don't have as much reporting on things like variations from weather. So there is an awful lot of that kind of work that's going on as well I think if weather was totally about five.
Speaker Change: For this year. So it was a material amount and we have to minimize that I think we cannot have that kind of fluctuation relative to whether in the future.
Paul Zimbardo: So it was a material amount, and we have to minimize it, and I have that kind of fluctuation. Thank you. Our next question comes from Paul Zimbardo from Bank of America. Please go ahead, your line is open.
Thank you.
Speaker Change: Thanks, Rob.
Speaker Change: Our next question comes from Paul Zimbardo from Bank of America. Please go ahead. Your line is open.
Speaker Change: Yeah.
Paul Zimbardo: Hi, good morning team. Thank you. Good morning.
Paul Zimbardo: Hi, good morning team. Thank you.
Good morning.
Christopher G. H. Huskilson: So I want to follow up a little bit. You've mentioned the SAP rollout a few times as a driver for 2024. Could you talk about the experience in New Hampshire, where it looks like it was a little rocky with that, the $500 million plus overstatement area identified? Just if you could give some background on what happened in New Hampshire and kind of the remedy plans you have for the rest of the business, that would be helpful.
Paul Zimbardo: So I wanted to follow up a little bit you mentioned that SAP rollout a few times as a driver for 2024.
Paul Zimbardo: Could you talk about the experience in New Hampshire, where it looks like it was a little rocky with that.
Paul Zimbardo: The 500 million plus overstatement area identified just if you'd give some background on what happened in new Hampshire, and kind of the remedy plans you have for rest of the business that'd be helpful. Thanks.
Christopher G. H. Huskilson: Yeah, so fundamentally, what happened in New Hampshire was it was an early stage, an early stage release that we were looking at, and it was primarily focused on 2022 data, and only about three months of that data was actually in SAP.
Speaker Change: Yes, so so fundamentally what happened in New Hampshire is it was it was an early stage.
Speaker Change: Early stage release that we were looking at.
And it's primarily focused on 2022 data.
Speaker Change: And about only about three months of that data was actually in our SAP. So so thats kind of the circumstances very very new systems, both to the to the intervenors and also to the to the company and so in large part growing pains with respect to implementation of a new system.
Christopher G. H. Huskilson: So that's kind of the circumstance, very, very new systems, both to the interveners and also to the company. So, you know, in large part growing pains with respect to, you know, the fact that we have been able to analyze what happened there and understand it much better, the fact that we've asked for a pause and have third parties looking at the numbers so that we can prove to the regulatory authorities that the numbers are good, even though we had to make some corrections. We're learning that across the entire system.
Speaker Change: The fact that we have been able to analyze what happened there and understand it much better.
Speaker Change: That we've asked for a pause and have third parties looking at the at the numbers. So that we can prove to the regulatory authorities that the numbers are good even though we had to make some corrections.
We're learning that across the entire system and so that's.
Darren G. Myers: So, you know, that's going into everything we do as it relates to it. And fundamentally, what we're talking about here is the translation between our GAAP accounting and our FERC accounting, www.kenhub.com, Okay. Great, thank you. And then the last for me, just so you know you don't have 2024 EPS guidance, but could you give at least a directional view on where FFOTA debt goes into 2024? It looks like it's around 8.5% in 2023, so just hoping you could help there. Let me start with, we wouldn't see eight and a half, so we'd probably spend some time with you offline just seeing how you're calculating that. I mean, the rating agencies will publish what they see as the FFO, but I'd say it's more in the mid-11s would be kind of the range.
Speaker Change: Thats going into everything we do as it relates to and fundamentally what we're talking about here is the translation between our GAAP accounting and our FERC accounting and.
Speaker Change: And that translation needed some tweaking and it's now it's now in much better shape.
Speaker Change: Okay.
Speaker Change: Thank you and then the last for me just I know you don't have 2024, EPS guidance, but could you give at least directional view on where <unk> goes into 2024. It looks like is around eight 5% in 2023, which is.
Speaker Change: Was hoping you could help there thanks.
Speaker Change: Let me start with we wouldn't see eight and a half so we'd probably spend some time with you offline on just seeing how you.
Speaker Change: How youre calculating that the rating agencies will publish.
Speaker Change: Where they see the <unk>, but I'd say, it's more in the mid elevens would.
Speaker Change: It would be kind of the range and really it's the the plan is to again to make sure. We are triple B investment grade and so the sale of our renewables business and the proceeds of that will be used to.
Darren G. Myers: And really, the plan is to, you know, again, make sure we're triple B investment grade. And so the sale of our renewables business and the proceeds of that will be used to pay down debt, de-lever, and any excess would be used for, you know, buyback. That's the plan, and that's what we've been talking about for some time now. Okay, great. Thanks a lot. There's probably some items you're using in there that aren't that get equity credit, most likely, but we can go through that.
Pay down debt delever and any excess would be used for buybacks.
Speaker Change: The plan and that's what we've been talking about for some time now.
Speaker Change: Okay, great. Thanks, a lot.
Speaker Change: Yes, there's probably some items you are using in there that are that get equity credit most likely but we can go through that we did to also include a little more color in our investor deck on just get on these debt component because I know it can be confusing for people. So that should hopefully try to get everybody on the same page.
Darren G. Myers: We did also include a little more color in our investor deck on just those deck components, because I know it can be confusing for people. So that should hopefully try to get everybody on the same page. Okay, yeah, we can follow up. I was just taking your FFO divided by debt, so we can follow up. Thanks a lot.
Okay. Yes, we can follow up I was just taken <unk> divided by debt. So we can see and thanks a lot.
Mark Jarvi: Yep, great. Our next question comes from Mark Jarvi from CIBC. Please go ahead, your line is open. Yeah, good morning, everyone.
Speaker Change: Great. Thanks, Paul.
Speaker Change: Our next question comes from Mark Jarvi from CIBC. Please go ahead. Your line is open.
Mark Jarvi: Yes, good morning, everyone, maybe Christopher and back to your comments about maximizing the value of P. Y. Thank you said in your prepared remarks here actually working with them.
Christopher G. H. Huskilson: Maybe Chris, coming back to your comments about maximizing the value of AAY. And like you said, in your remarks, you're actively working with them to support them. Can you elaborate on that? What does that mean? What could it mean in terms of your relationship going forward?
Mark Jarvi: Port them elaborate.
Mark Jarvi: Right on that what that means what that could mean in terms of the relationship going forward.
Christopher G. H. Huskilson: And a middle pause for that my answer. I mean, I think just fundamentally, we're supporting the activities that they're going through right now. You know, the transaction that I noted in my comments. We sold some of our assets in Spain to them, giving them some development opportunities, and we're looking at how we can be helpful in that kind of regard. But in terms of how you think about maximizing your value unit, is there anything there aside from making sure that they're unencumbered and can optimize their own business? Or is there something else that we should read into your comments?
Speaker Change: I will pause for that my answer.
Speaker Change: Yes, I mean, I think just fundamentally we're supporting the activities that they are going through right now.
Speaker Change: Yeah.
Speaker Change: The transaction that I noted in my comments.
Speaker Change: We sold some of our assets in Spain to them.
Speaker Change: Giving them some development opportunities.
We're looking at how we can be helpful in that respect.
Speaker Change: But in terms of how you think about maximizing your value and it is there anything beyond that is aside from making sure that they are unencumbered taken and optimize their own business or is there something else that we should read into your comments.
Christopher G. H. Huskilson: No, I think that that's appropriate the way you said it. Okay. And then coming back to Rob's question, you commented on the 2023 headwinds on earned ROEs. As you look through 2024, it's safe to assume given the fact you've got a lot of rate requests pending, you won't get there in 2024. Is there sort of a cadence or timeline when you think of improvements in overall achieved ROE through 2024 and 2025? Is it 25 basis points each year of improvement? Is there some way to sort of gauge the talent market in terms of how you think the earning profile earned ROEs will track over the next two years?
Speaker Change: No I think that's appropriate the way you've described it.
Speaker Change: Okay, and then coming back to Rob's question.
Speaker Change: Can you comment on the 2023 headwinds on earned ROE.
Speaker Change: Through 'twenty four safe to assume given the fact that a lot of rate request pending.
Speaker Change: To get there in 2024 is there sort of a cadence or timing on when you think of like improvements in overall achieved ROE through 'twenty four 'twenty five as it is a 25 basis points each year of improvement is there some way to sort of gauge the talent market in terms of how you think the earnings profile earned ROE track over the next two years.
Christopher G. H. Huskilson: I think, first of all, the results of our application in New York will be very important to that, because New York is a substantial part of the. The other thing that you're going to see from us is, especially, as I said earlier, as we get the SAP system up and running and working efficiently, we're going to be able to improve our cost of operations. And that will also help us on from a return. And so making sure that we can actually deliver the cost structures that the utilities have been approved to deliver. So, in a regulatory contract construct, we're given a certain amount of operating costs and a certain amount of capital that we would put into the business. We need to hit those. If we're not hitting those numbers, then we're not achieving our returns.
Speaker Change: I think first of all the.
The results of our application in New York will be very important to that.
Speaker Change: New York is a substantial part of that.
Speaker Change: The lack of return at this moment.
Speaker Change: The other thing that youre going to see from US is especially as I said earlier as we get the SAP system up and running and working efficiently, we're going to be able to improve our cost of operations.
Speaker Change: And that will also help us from a return perspective.
Speaker Change: And so making sure that we can actually deliver the cost structures that utilities have been approved to deliver so.
Speaker Change: Our regulatory contact construct where given a certain amount of operating costs and a certain amount of capital that we would put into the business we need to hit those numbers and if we're not hitting those numbers then we're not achieving our returns and so the SAP system is going to be very helpful to making sure we hit those numbers and so I would see improved substantial improvement in 'twenty four.
Christopher G. H. Huskilson: And so the SAP system is going to be very helpful to make sure we hit those numbers. And so I would see substantial improvement at 24 and then continued improvement at 25, http://www.kenhub.com. So if we exclude New York Water and come back to the SAP comments. Is the goal to be there by year-end in terms of managing regulatory lag and making sure that you earn on your deployed capital? Is that something that you think is the target for the N24 to accomplish? The biggest funded capital that we have out there right now is the SAP system itself, and so it's really just a matter of the timing of recovery of that relatively large investment that is the biggest single factor we have. There's not very much regulatory lag on anything else, but it was, as you can imagine, pretty hard to get that system into rates until we had it working properly in each one of them. So that has caused quite a bit of lag in and of itself.
Speaker Change: Sure and then continued improvement in 'twenty five but the biggest single step will be New York water.
Speaker Change: So if we exclude in Uruguay in Kentucky S&P comments.
Speaker Change: Is the goal to be there by year end in terms of managing down regulatory lag and making sure that you earn under deployed capital.
Speaker Change: Do you think is the target for the end of 2014, we accomplished this as the biggest funded capital that we have out there right now is the SAP system itself and so it's really just a matter of the timing of recovery of that relatively large investment.
Speaker Change: That is the biggest single factor, we have theres not very much regulatory lag on anything else, but it was as you can imagine it was pretty hard to get that system into into rates until we had a working properly in each one of the system.
Speaker Change: So that has caused quite a bit of lag in and of itself.
Mark Jarvi: And Mark, just to add to it, to your other part of your question there, I mean, obviously, as people know, putting in systems like this, I think we've done a lot of good things getting it to where it is today, but then utilizing the systems, the efficiency, you know, taking out waste, that's a journey. It's a good thing. It's a multi-year journey with multi-year opportunities for us, so we're excited by that. But you know, those things aren't done overnight. Understandable. So just to clarify, you don't think operating costs and interest expense are a drag on earned ROEs at the subsidiary levels, at least in 2024, by and large?
Speaker Change: Just to add to it.
Speaker Change: The other part of your question there I mean, obviously as people know putting in systems like this I think we've done a lot of good things getting it to where it is today, but then utilizing the systems the efficiency.
Speaker Change: Taking out waste.
Speaker Change: Jerry.
Good thing, it's a multiyear journey with multi year opportunity for us. So we're excited by that but those things are done overnight.
Speaker Change: Understood just to clarify you don't think operating cost and interest expense are drag on earned ROE.
Speaker Change: The subsidiary levels at least in 'twenty 'twenty four by and large.
Christopher G. H. Huskilson: No, I didn't say that. What I said was there is an opportunity for us to get closer to the cost structure that we've been granted under the rate, and so the system will help us do that in a very big way. But obviously, implementing that system was a drag on those.
Speaker Change: No I didn't say that.
Speaker Change: Yeah.
Speaker Change: What I said was there is opportunity for us to get closer to the to the the cost cost structure that we have been granted under our rates and so the system will help us do that in a very big way, but obviously implementing that system was a drag on those costs.
Christopher G. H. Huskilson: So now that we have it implemented, we'll be able to take advantage of it and therefore get our costs exactly where they should be so that we can make our. And as I said, it's a big cost unto itself. We spend almost half a billion dollars on that system. And so getting that into rate recovery by itself will help on a regular basis.
Speaker Change: And so now okay.
Speaker Change: Avid implemented we will be able to take advantage of it and therefore get our cost exactly where they should be so that we can make our returns and as I said, it's a it's a big cost unto itself.
Speaker Change: We spent almost <unk> 5 billion on that system, and so getting that into rate recovery bye.
Mark Jarvi: Okay, understood. Thanks, Chris, and Darren. Thank you. Again, if you would like to ask a question, press star then the number one on your telephone keypad. Our next question comes from Ben Pham from BMO Capital Markets. Please go ahead, your line is open.
Speaker Change: By itself will will help on regulatory lag.
Speaker Change: Okay understood. Thanks, Chris Thanks, Sarah.
Speaker Change: Thank you.
Speaker Change: Again, if you would like to ask a question Press Star then the number one on your telephone keypad.
Speaker Change: Our next question comes from Ben Pham from BMO Capital markets. Please go ahead. Your line is open.
Benjamin Pham: Hi, Good morning, a couple of questions on the renewables.
Benjamin Pham: A couple of questions on renewable energy, www.globalonenessproject.org. Can you comment on whether..., www.kenhub.com. Yes, a couple of questions on the renewable power business. Thank you guys. Do your credit rating agency conversations drive the pace of the renewable sale process at all? him: No, no.
Benjamin Pham: <unk>.
Benjamin Pham: Can you comment on weather.
Benjamin Pham: The credit rating agencies.
Speaker Change: And I'm sorry, you broke up there on the front end could you try that again.
Yes.
Speaker Change: A couple of questions on the renewable.
Speaker Change: Our power business.
Speaker Change: Does.
Speaker Change: Your credit rating agency conversations drive.
Seth: Hey, Seth.
Seth: <unk> sale process at all.
Seth: No no I mean, it's our plan and Thats what we.
Darren G. Myers: I mean, it's our plan, it's what we, you know, it's our plan, and getting to simplification and maximizing value is our plan. We have kept the credit rating agencies in lockstep with us since we started, you know, since November of 2021. So, it's Yeah, I mean, it's our plan. It's what we're doing. Yeah, it's kind of the other way around.
Seth: It's our plan and getting to simplification and maximizing the value of our plan, we have kept the credit rating agencies.
Seth: Lockstep with us.
Seth: Since we started.
Since November of 2021.
Seth: So it's yes, I mean, that's our plan that's what we're doing yes. It is kind of the other way around that fundamentally we laid out a plan.
Christopher G. H. Huskilson: Fundamentally, we laid out a plan in front of the agencies, and they endorsed that plan and said that they could support it. So, I think that's really the direction. And then from a timing perspective, it's really just the practical result of how long it takes. www.kenhub.com In fact, that's why we see it as a very valuable business; it's a large and growing business. Can you...
Seth: In front of the agencies and they endorse that plan and said that they could support it so that I think thats really the direction and then from a timing perspective, it's really just the practical.
Seth: The result of how long it takes to sell an asset base in the business as large as the renewables businesses.
Seth: Large business and.
In fact.
Seth: That's why we see it as very valuable business. It is a large and growing business.
Seth: And can you.
Christopher G. H. Huskilson: Can you also, you mentioned in your report about over 400 mags being added. Are you pausing development right now? On renewables, or just continuing the same course, and can you also update on the size of your backlog right now? Well, in my remarks, I stated that we had two fairly large solar projects on the way and that we also added 1,660 megawatts of new developments to our pipeline.
Speaker Change: Can you comment also.
Speaker Change: You mentioned in your.
Speaker Change: In your report.
Speaker Change: Over 400, Max being added are you re pausing.
Speaker Change: <unk> right now on renewables or you're just continuing.
On the same course and can you also update on the size of your backlog right now.
Speaker Change: In my remarks.
<unk> stated that we had two fairly large solar projects on the way and that we also added 660 megawatts of new developments to our pipeline.
Speaker Change: 'twenty three so so 24 will be building those 300 megawatts in 2003, we added 660 megawatt. So so no we're not slowing down at all.
Christopher G. H. Huskilson: So so, in 24, we'll be building those 300 megawatts, and in 23, we added those 1660 megawatts. So, no, we're not slowing down at all.
Darren G. Myers: In fact, again, we think the momentum of that pipeline and the momentum of that business is part of what's attractive. And Ben, I just add to that. I mean, as you might recall, when we did the strategic review, the realization was that we couldn't invest as much as the opportunity is in that business. So, you know, the pursuit of selling it is so that we can spend more on the regulated business, and a buyer can spend more on the renewables business because it has such a strong platform and a lot of opportunity.
Speaker Change: Fact, again, we think the momentum of that of that pipeline and the momentum of that business is part of what's attractive about that business.
Speaker Change: I would just add to that.
Speaker Change: You may recall, when we did the strategic review.
Speaker Change: The the realization is we can't invest as much as the opportunity is in that business. So.
Speaker Change: The pursuit of selling it is so that we can spend more on the regulated business and a buyer and spend more on the renewables business because it has such a strong platform and a lot of opportunities.
Benjamin Pham: Okay, sorry about that. I got in a little bit later in the column. But is your backlog still in that? 3.5 GigaWatts, or is it... Different?
Speaker Change: Okay, I'm, sorry, but I got on a bit later on the column, but is your backlog is so not.
Speaker Change: Three five gigawatts or is it.
Speaker Change: Different now can you share that.
Benjamin Pham: Can you share that? Sorry, Ben, you're breaking up again. We only got about three words. Yeah, sorry about that. It must be my old phone.
Speaker Change: Sorry, Ben Youre, breaking up again, we only got about three words.
Speaker Change: Sorry, guys.
Speaker Change: Phone.
Benjamin Pham: Are you able to share the size of your backlog? Oh, sorry, the pipeline? Yeah, so obviously we built some assets.
Speaker Change: Are you able to share your the size of their <unk>.
Speaker Change: Their backlog is that Oh, sorry, the pipeline.
Speaker Change: So we so obviously, we built some some assets so theres about 700 megawatts that we've built.
Christopher G. H. Huskilson: So there are about 700 megawatts that we built. So that would come off the 8, and then we added 1.6 gigawatts. So it's kind of net up slightly from the 8. And then, maybe lastly, just a detailed one on the debt there, if you may, on the total debt. Can you decompose it?
Speaker Change: So that would come off the eight and then the and then we added one six gigawatts. So it's kind of net up slightly from the eight yes.
Speaker Change: Gotcha.
Speaker Change: And then maybe lastly, just a detailed one on the.
Speaker Change: That that Darren if you may.
Speaker Change: On a total debt can you decompose that for us in terms of like what what amounts power right.
Benjamin Pham: That for us in terms of like what, what amounts of power, what amounts to utility, and what is the hold call level, which we can probably just look in the financials. We're probably just going to take that offline. Just that. Let's see that one offline if that's okay.
Speaker Change: Quite amounts utility and what is at the Holdco level, which we can probably just took a look on the financials.
Speaker Change: We probably just easiest is to take that offline.
Speaker Change: Okay.
Speaker Change: Let's see that one offline if that's okay. Okay.
Darren G. Myers: Okay. All right. Thank you. Yeah, thanks.
Speaker Change: Okay.
Alright, thank you.
Speaker Change: Yes, Thanks, Matt.
Christopher G. H. Huskilson: There are no further questions at this time. I will turn the call back over to Ms. Chris Huskilson for closing remarks. Okay, well, thank you.
Speaker Change: There are no further questions at this time I will turn the call back over to Mr. Chris touched Wilson for closing remarks.
Chris Wilson: Okay well. Thank you. Thank you everyone for attending the call today and for your interest in Algonquin and.
Operator: Thank you, everyone, for attending the call today and for your interest in Algonquin. And thank you for listening to this call. Have a great day. This concludes today's conference call. You may now disconnect. Thanks for watching!
Speaker Change: Thank you for listening to this call have a great day.
Speaker Change: This concludes today's conference call you may now disconnect.
Speaker Change: Okay.
Speaker Change: [music].
Okay.
Speaker Change: Yeah.