Q4 2023 Avangrid Inc Earnings Call

Okay.

Operator: Welcome to Avangrid's fourth quarter and full year 2023 earnings conference call. I would now like to turn the call over to Charlotte Antle, Vice President of Investor Relations. Please go ahead.

Speaker Change: Welcome to Avon grids fourth quarter, and full year 2023 earnings conference call.

Speaker Change: I'd now like to turn the call over to Charlotte ample Vice President of Investor Relations. Please go ahead.

Charlotte Antle: Thank you, Eric, and good morning to everyone. Thank you for joining us today to discuss Avangrid's fourth quarter and full year 2023 earnings results. Presenting on the call today are Pedro Azagra, our Chief Executive Officer, and Justin Legassi, our Chief Financial Officer and Controller. Also joining us today for the question and answer part of the call will be Catherine Stempien, President and CEO of Avangrid Networks, and Jose Antonio Miranda, President and CEO of Avangrid Renewables. Other members of the executive team are also joining us today and may be called upon to assist with the Q&A part of the call. If you do not have a copy of our press release or presentation for today's call, they're available on our website at avangrid.com.

Charlotte Ample: Thank you Eric and good morning to everyone. Thank you for joining us today to discuss other grid fourth quarter and full year 2023 earnings result.

Charlotte Ample: Presenting on the call today are Pedro and to address our Chief Executive Officer, and Justin <unk>, Our Chief Financial Officer and controller.

Speaker Change: Also joining us today for the question and answer part of the call will be Catherine stump, yet President and Chief Executive Officer of outbound grid networks, and Jose Antonio Miranda, President and Chief Executive Officer of oven grid renewable.

Speaker Change: Other members of the executive team are also joining us today and may be called upon to assist with the Q&A part of the call.

Speaker Change: If you do not have a copy of our press release or presentation for today's call. They are available on our website at <unk> Dot com.

Charlotte Antle: During today's call, we will make various forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 based on current expectations and assumptions, which are subject to risk and uncertainty. Actual results could differ materially from our forward-looking statements if any of our key assumptions is incorrect or because of other factors discussed in Avangrid's earnings news report and the comments made during this conference call in the risk factor section of the accompanying presentation or in our latest reports and filings with the SEC, each of which can be found on our website. We do not undertake any duty to update any forward-looking statements.

Speaker Change: During today's call, we will make various forward looking statements within the meaning of the safe Harbor provisions of the U S. Private Securities Litigation Reform Act of 1995 based on current expectations and assumptions, which are subject to risks and uncertainties actual results could differ materially.

Speaker Change: From our forward looking statements.

Speaker Change: Many of our key assumptions are incorrect or because of other factors discussed in urban grid 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 SEC each of which can be found on our web.

Speaker Change: Right, we do not undertake any duty to update any forward looking statements.

Charlotte Antle: 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 definitional information and reconciliations of non-GAAP financial measures to the closest GAAP financial measure. I will now turn the call over to Pedro. Thank you, Charlotte. And good morning, everyone.

Speaker Change: 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 definitional information and reconciliations of non-GAAP financial measures to the closest GAAP financial measures I will.

Speaker Change: Now turn the call over to Pedro.

Pedro: Thank you Charles and good morning, everyone I am pleased to share with you our company's fourth quarter and full year 2023 results, which demonstrates our strong commitment to delivering sustainable value for our shareholders customers and communities.

Pedro Azagra: I'm pleased to share with you our company's fourth quarter and full year 2023 results, which demonstrate our strong commitment to delivering sustainable value for our shareholders, customers, and communities. Throughout 2023, Avangrid has continued reaching important milestones on its projects at the forefront of the clean energy transition in the US. Our commitment to operational excellence and long-term value creation remains unwavering. Let's begin with slide number 4.

Pedro: Throughout 2023 urban greenhouse continue reaching important milestones on its projects at the forefront of the clean energy transition in the U S. Our commitment to operational excellence and long term value creation remains unwavering.

Pedro: Beginning on slide number four.

Abe Azar: In 2023, we delivered our financial and operational objectives despite the challenges faced. We achieved an earnings per share of $2.03, and an adjusted earnings per share of $2.09, above our outlook range. Year-over-year, we deliver an 18% adjusted earnings growth, excluding $181 million from the 2022 offshore wind gain and $37 million from the Inflation Reduction Act upfront tax benefits in 2022. We also delivered on our dividend commitment by paying $1.76 per share in 2022. Turning to slide number five, 2023 has been a transformational year that will set up the company for the future. We have executed on our core businesses and removed legacy uncertainty. First, despite the highest inflation environment in recent history, we received approvals for $9 billion in investments, including multi-year rate case plans in New York and Maine, enabling more than $7 billion of regulated investments and an additional $2.3 billion in incremental investments for the Climate Leadership and Community Protection Act, or CLCPA Phase II, authorized by the New York Public Commission. In New York, our NYSEC and our GME three-year rate case plans were unanimously approved by the Public Service Commission on October 12th.

Pedro: In 2023, we delivered our financial and operational objectives. Despite the challenges faced.

Pedro: We achieved an earnings per share of $2 on <unk> on adjusted earnings per share of $2, one nine cents above above our outlook range.

Pedro: Year over year, we deliver 18% adjusted earnings growth, excluding $181 million from the 22 offshore wind game on $37 million from inflation reduction Act upfront tax benefits in 2022.

Pedro: We also delivered on our dividend commitment by paying $1 76 per share in 2023.

Pedro: Turning to slide number five 2023 has been a transformational year, which will set up the company for the future.

Pedro: We executed on our cost to be core businesses on removed legacy on uncertainties.

Pedro: First despite the highest inflation environment in recent history. So let me see.

Pedro: <unk> approvals for $9 billion investment, including multi year rate case plans in New York, and Maine, enabling more than $7 billion of regulated investments and an additional $2 3 billion in incremental investments for climate leadership on community Protection Act or <unk> phase II authorized by the New York Public Commission.

Pedro: In New York, our <unk> and <unk> year rate case plans, where we're not as mostly approved by the public Service Commission on October 12.

Abe Azar: The new rate plans have a positive after-tax impact of $136 million, or $0.35 per share, which was recognized in the fourth quarter of 2022. This includes $66 million of positive make whole impact, which put the company in the same position as if the joint proposal settlement was effective May 1st, and $70 million for the mitigation of uncollected. We also received approval for the first multi-year rate case for a utility in Maine in 15 years. The Maine Public Utilities Commission approved over $380 million of investments to improve safety, reliability, and resilience. In May, there was also a positive outcome in the referendum on government control power, a reflection of the improved dynamics in the state. Voters rejected the proposed state ownership of main select utilities with 70% of the vote.

Pedro: The new rate plans have a positive after tax impact of $136 million or <unk> 35 per share, which was recognized in the fourth quarter in 2023.

Pedro: This includes $66 million of positive make hold impact, which put the company in the same position.

Pedro: The joint proposal settlement was effective may 1st on.

Pedro: $70 million for the mitigation of uncollectable.

Pedro: We also received the approval for the first multiyear rate case for our utility in Maine in 15 years.

Pedro: The Maine public Utilities Commission approved over $380 million of investments to improve safety reliability and resiliency.

Pedro: In May there was also a positive outcome on the referendum on government control power a reflection of the improved dynamics in this space.

Pedro: Voters rejected the proposal state ownership of mainland electric utilities with a 70% of their bolt.

Abe Azar: Approximately 400,000 people voted in the election, and 98% of the main cities and towns rejected this initiative. Also, in 2023, CMP was recognized as one of Maine's best places to work. These network achievements occurred in tandem with our operational improvements in customer service and reliability metrics. In 2023, we improved the majority of customer service metrics, 25 out of a total of 31. We also delivered our best reliability performance since 2019, exceeding seven out of eight regulatory targets. On renewables, we successfully terminated our power purchase agreements for Commonwealth Wind and Park City Wind, avoiding billions of dollars of potential write-off. This allows us to maintain future profitable opportunities with this leasing. We incurred only $29 million after tax to exit these projects, as opposed to our peers' multibillion-dollar write-offs, which will continue tomorrow.

Pedro: Approximately 400000 people voted in the election and 98% of main CPE, sometimes rejected piece initially.

Pedro: Also in 2023 CMP was recognized as one of man's best places to work.

Pedro: These networks achievements occurred in tandem with our operational improvements in customer service and reliability metrics in.

Pedro: In 2023, we have improved the majority of customer service metrics 25 out of a total of 31.

Pedro: We also delivered our best reliability performance since 2019 exceeding seven out of eight regulatory targets.

Pedro: On renewables, we successfully terminated our power purchase agreement for Comber Wind and park city wind avoiding billions of dollars of potential write offs.

Pedro: This allows us to maintain future profitable opportunities with these leases.

Pedro: We incurred only $29 million after tax to exit these projects as opposed to our Pierce multibillion dollar write offs, which continued demand.

Abe Azar: We're also executing on our discipline plan for selective and profitable growth in onshore renewables, with over 300 MW of installed capacity in 2023 and 728 MW of new FIDs taken this year. We renegotiated three PPA contracts totaling $470 million, increasing prices and avoiding more than $30 million in penalties. In addition, we have another 998 megawatts in new projects under construction or ready to build, all of them with PPA. Notably, approximately 700 megawatts of these projects are to support data centers with clean energy from onshore wind and solar.

Pedro: We're also executing on our disciplined plan for selective and profitable growth in onshore renewables with over 300 megawatt installed capacity in 2023, and 728 megawatts of new <unk>, taking this year.

Pedro: We renegotiated three PPA contracts totaling 470 megawatts, increasing prices on avoiding more than $30 million of penalties.

Pedro: In addition, we have another 998 megawatts in new projects under construction are ready to build all of them with Ppas.

Pedro: Notably approximately 700 megawatts of these projects are to support Datacenters with clean energy from onshore wind and solar.

Abe Azar: This year, we also announced our plan to repower more than 4,600 megawatts of our existing portfolio in the coming years, which will represent a much longer-term outlook update. On Binjar Wind 1, we are making significant progress in the project construction and successfully started the first turbine in 2023. Also, in 2023, we closed the first ever U.S. tax equity financing of $1.2 billion, and the first funding on that landmark deal has been issued. We also made a strategic decision not to proceed with our P&M resources merger due to all final regulatory approvals not being received by December 31st, 2023. Because of that decision, there is no need for the equity issuance previously announced for 2024.

Pedro: This year, we also announced our plans to repower more than 4600 megawatts of our existing portfolio in the coming years, which will represent in our much long term outlook update.

Pedro: On <unk>, one we were making significant progress in the project construction and successfully started the first turbine in 2023.

Pedro: Also in 2023, we closed the first ever U S tax equity financing of $1 2 billion in the first funding on that landmark deals has been issued.

Pedro: We also make a strategic decision not to proceed with our PNM resources merger due to our final regulatory approval has not been received by December 31 2023.

Pedro: Because of the decision there is no need for an equity issuance previously announced for 2024.

Abe Azar: During the time of the merger pending, we have secured more than $9 billion in additional organic investments, above those announced on our 22 Capital Markets Day. This includes mainly the repowering plan, incremental regulatory investments in New York and Maine, and transmission investments like CLCPA. Finally, we are continuing to reach cyber security successes through developing the ABAGREEN team. Regarding cyber security, Avangrid scored 97 out of 100 from Security Scorecard, a cyber ratings organization that evaluates threats, vulnerabilities, and risk mitigations for over 25,000 companies.

Pedro: During the time of the merger pending we have secured more than 9 billion additional organic investments are both dose announced in our 'twenty two capital markets day. This includes mainly the Repowering plan incremental regulated investments in European men and transmission investments like <unk>.

Pedro: Finally, we are continuing to reach cyber security successes on developing thereby green team.

Pedro: Regardless of our security, having greater score 97 out of 100 from security a scorecard of cyber ratings organization that evaluates threats will Bernard will win or all their abilities and risk mitigation to over 25000 companies.

Pedro: This is for surpluses average industry figures in network and application security.

Abe Azar: This score surpasses average industry figures in network and application security. We achieved substantial gains in our diversity, equity, and inclusion goals, including reaching our target of over 35% women in executive positions. We want to continue developing a workforce and senior leadership team that reflects the diverse communities that we serve. Turning to slide 6, our 2023 rate cases and other regulatory proceedings will secure $9 billion in new capex. We received a final decision on the rate case for our New York companies, which includes over $6 billion of investments. Additionally, we also received authorization to invest more than $2 billion in New York's CLCPA Phase 2. These are critical transmission upgrades necessary for New York State to meet its climate action goals.

Pedro: We achieved substantial gains in our diversity equity and inclusion goals, including reaching our target of over over 35% women in executive positions.

Pedro: We want to continue developing our force and senior leadership team that reflects the diverse communities that we serve.

Pedro: Turning to slide six our 2023 rate cases, and other regulatory proceedings secure 9 billion in new Capex will.

Pedro: We received final decision on the rate case for our New York companies, which includes over $6 billion of investments. Additionally, we also received authorization to invest more than 2 billion in new Europe CL CPA phase III. These are critical transmission upgrades necessary for New York State to meet its climate climate action goals.

Abe Azar: Separately, the Maine Public Utilities Commission approved approximately $400 million of investments to improve safety, reliability, and resilience. These multi-year rate plans provide predictable organic long-term growth. Moving to slide number seven, we're executing on our strategic plan for growth opportunities and selective investment in our onshore renewable business. Over the past year, we have commissioned 311 MW, increasing our operating capacity from 8.3 GW last year to 8.6 GW today. In addition, a total of 990 MW is currently under construction.

Pedro: Separately, the Maine public Utilities Commission approved over approximately $400 million of investments to improve safety reliability and resiliency.

Pedro: These multiyear rate plans provide predictable organic long term growth.

Pedro: Moving to slide number seven.

Pedro: We are executing on our strategic plan on growth opportunities and selective investment in our onshore renewable business.

Pedro: Over the past year, we have commissioned 311 megawatts, increasing our operating capacity from eight three gigawatts last year to a procedure called US today. In addition, a total of 998 megawatts or a person under construction.

Abe Azar: This includes 472 mail-outs of renegotiated PPAs and 523 mail-outs of new PPAs signed in 2023. Additionally, as part of the growing partnership between Avangrid Renewables and technology companies, this includes nearly 700 MW to support data centers. Turning now to slides 7 and 8, Avangrid continues to be recognized as a leader in sustainability and corporate governance. Most recently, it was ranked number one in the utility industry category out of just 100 and number 12 overall.

Pedro: This includes 472 megawatts of renegotiated Ppas on 522 megawatts of new Ppas signed in 2023.

Pedro: As part of the growing partnership between our grief renewables and technology companies. This includes nearly 700 megawatts to support data centers.

Pedro: Turning now to slide number seven and number eight carbon grid continues to be recognized as a leader in sustainability and corporate governance most.

Pedro: Most recently <unk> was ranked number one in the utility industry category in just 100 and number 12 overall.

Abe Azar: The Just 100 evaluates companies based on the issues that matter most in defining just business behavior today, including paying a fair wage, creating jobs, and supporting workforce retention and training. It is a huge honor to make this prestigious list for the fourth consecutive year, and this milestone reflects our values and also our vision. Additionally, Avangrid ranked among the country's top two utilities in the National Public Utilities Council's 2023 decarbon

Pedro: <unk> hundred evaluates companies based on the issues that matter most in defining just recency behavior today, and clean, including paying a fair wage, creating jobs and supporting workforce retention and training.

Pedro: It is a huge honor to make these procedures leased for the fourth consecutive year and this milestone reflects our values and also our vision.

Pedro: Additionally, our grief ranked among the country's top tier two utilities in the National Public utility Council 2023 de Carbonization report.

Abe Azar: This report analyzes the decarbonization efforts of the United States' largest investor-owned utility. Avangrid improved from its prior 22 ranking with the highest possible score in fuel mix, total carbon emissions, emissions per customer, and low carbon investments. Lastly, Central Maine Power was recognized as one of Maine's best places to work by the Best Companies Group.

Pedro: This report analyzes the decarbonization efforts of the United States, the largest investor owned utilities.

Pedro: Have a great improved from its prior 22 ranking with the highest possible score and fewer mixed total carbon emissions emissions per customer on low carbon investments lastly, central Maine power was recognized as one of <unk> Best places to work by best companies group with.

Justin Legassi: With more than 1100 employees in Maine, the CMP team works tirelessly to ensure our customers have safe, reliable, and clean energy every day, as we do in every state where we serve. All these awards and accomplishments are a testament to the dedication of our team. Everything we do, from serving our customers to building renewable energy and assets, reflects our vision to lead the clean energy transition with a strong commitment to sustainability, community governance, and our employees. Now, I will pass this to Justin to review the results and discuss the output. Justin, all yours, and congratulations on becoming our CFO. Thank you, Pedro, and good morning, everyone.

Pedro: With more than 1100 projects in Maine. The CMP team worked tirelessly to ensure our customers have safe reliable and cleaner energy everyday as we do in every state where we serve.

Pedro: All of these are works on accomplishments are a testament to dedication of our team everything we do from serving our customers to build into renewable energy in assets reflects our vision to lead the clean energy transition with a strong commitment to sustainability community governance on our employees now I will pass it to <unk>.

Speaker Change: <unk> to review the results on because of the alpha testing for years and congratulations to become our CFO.

Speaker Change: Thank you Pedro and good morning, everyone.

Justin Legassi: Turning to our earnings performance on slide 9, for the fourth quarter of 2023, our earnings per share was $1.03 compared to $0.38 in the fourth quarter of 2022, and our adjusted earnings per share was $0.97 compared to $0.39 in the fourth quarter of 2022. Network's results were 94 cents.

Speaker Change: Turning to our earnings performance on slide nine.

Speaker Change: For the fourth quarter of 2023, our earnings per share was $1 three <unk>.

Speaker Change: Compares to 38 cents in the fourth quarter of 2022.

Speaker Change: And our adjusted earnings per share was <unk> 97.

Speaker Change: Compared to <unk> 39 in the fourth quarter of 2022.

Speaker Change: Networks results were <unk> 94.

Justin Legassi: This is higher by 53 cents quarter over quarter compared to the fourth quarter of 2020. The key drivers include $0.22 from rate changes, mainly due to the implementation of our new rate plans in New York. This includes a make-hole adjustment back to May 1, 2023. Additionally, in New York, uncollectibles explained 19 cents from successfully receiving new regulatory treatment for the deferral of uncollectibles to match the amounts set aside in our uncollectible accounts. With the restart of construction of our NECC project in August 2023, we had an additional four cents of AFUDC earnings quarter over quarter. Additionally, we add higher costs quarter over quarter to implement our investment plans and to operate our business, including O&M and InterestCard, but they are in line with our estimates for the quarter. Finally, taxes were lower by nine cents quarter over quarter, primarily due to the optimizing of tax deductions, which is in line again with our previously shared estimates for the quarter. Our renewable segment was minus two cents for the fourth quarter of 2023, lower by 23 cents quarter over quarter.

Speaker Change: This is higher by 53 quarter over quarter compared to the fourth quarter of 2022.

Speaker Change: The key drivers include 22 from rate changes, mainly due to the implementation of our new rate plans in New York. This includes a make whole adjustment back to May one 2023.

Speaker Change: Additionally, in New York Uncollectible explained 19 from successfully receiving new regulatory treatment for the deferral of uncollectible to match the amount set aside in our uncollectible reserve.

Speaker Change: With the restart of construction of our <unk> project in August 2023, we had an additional four cents of <unk> earnings quarter over quarter. Additionally.

Speaker Change: Additionally, we had higher cost quarter over quarter to implement our investment plans and to operate our businesses, including O&M and interest costs, but they are in line with our estimates for the quarter.

Speaker Change: Finally taxes are lower by nine quarter over quarter, primarily due to the optimizing of tax deductions, which is in line again with our previously shared estimates for the quarter.

Speaker Change: Our renewables segment was minus two for the fourth quarter of 2023, lower by 23 quarter over quarter.

Justin Legassi: We had higher earnings from our thermal operations and asset management of $0.07, which reflects wider spark spreads quarter over quarter as a result of the demand and supply factors of cold weather and scarcity in the Pacific Northwest. Wind and solar operating performance, which includes the impacts of pricing, production, and tax benefits, explained minus 7 cents, which was really due to lower wind generation output and a decrease in merchant prices, and again, partially mitigated by tax credits and new projects in service. Our wind resource was low for the quarter, producing a lower net capacity factor.

Speaker Change: We had higher earnings from our thermal operations and asset management.

Speaker Change: <unk>.

Speaker Change: Which reflects a wider spark spreads quarter over quarter as a result of the demand and supply factors of cold weather and scarcity in the Pacific Northwest.

Speaker Change: Wind and solar operating performance, which includes the impacts of pricing production and tax benefits explained minus seven.

Speaker Change: Which was really due to lower wind generation output and a decrease in merchant prices and again, partially mitigated by tax credits in new projects and services.

Justin Legassi: However, it's important to keep in mind that thermal and asset management operations are able to capture this value when power prices are high and gas prices are low. When the wind resource is low in times of high demand due to events like weather, our thermal and asset management operations capture this opportunity. O&M costs are positive one cent due to the optimization of our O&M and cost savings and efficiency, offset by depreciation from new assets. Taxes primarily reflect a reduction compared against 2022 for the quarter from higher state tax rate adjustments, which again is compensated by state unitary tax adjustments in corporate.

Speaker Change: Our wind resource was low for the quarter producing a lower net capacity factor. However, it's important to keep in mind that thermal and asset management operations are able to capture this value when power prices are high and gas prices are low when the wind resources low in times of high demand due to events like weather or thermal and asset management capture this.

Speaker Change: Opportunity.

Speaker Change: O&M costs are positive one.

Speaker Change: Due to the optimization of our O&M and cost savings and efficiencies offset by depreciation from new assets in place.

Justin Legassi: Moving on to slide 10, updates to our financing, liquidity, dividends, and credit rate. During 2023, we have diversified our financing to fund investments in the growth of our business. For renewable energy, we signed a tax equity transaction for Vineyard Wind for $1.2 billion to monetize project ITCs and accelerate depreciation. In addition, we executed a tax credit transfer agreement to monetize up to $100 million of tax credits from existing wind assets, not in tax equity financing structures.

Speaker Change: Taxes, primarily reflects a reduction compared against 2022 for the quarter from higher state tax rate adjustments, which again is compensated by state unitary tax adjustments and corporate.

Speaker Change: Okay.

Speaker Change: Moving on to slide 10 to update to our financing and liquidity dividends and credit ratings.

Speaker Change: During 2023, we have diversified our financing to fund investments and growth of our businesses.

Justin Legassi: The tax transferability transaction was very successful for us, and we will look to continue executing similar transactions in 2024 and beyond. For our utilities, we issued $1.3 billion of green bonds and $115 million of notes at our utility subsidiary. And we also issued a $800 million 10-year green term loan with Ibadrola. Our green financing emphasizes our strategy commitment to long-term stability and resilience. Cash and liquidity are key priorities, supported by our ongoing cash from operations and successful rates. At the end of 2023, we have $3 billion in liquidity covering 15, Maintaining our solid credit ratings is a key objective. At the Avangrid levels, all of our ratings are on a stable outlook, and we continue to project stable credit metrics without the need for equity issuance in 2024 based on the successful outcomes of our major rate cases in 2023 and our continued discipline Finally, our dividend policy remains unchanged.

Speaker Change: For renewables, we signed as tax equity transactions for vineyard wind for $1 2 billion.

Speaker Change: To monetize project Itc's and accelerated depreciation.

Speaker Change: In addition, we executed a tax credit transfer agreement to monetize up to $100 million of tax credits from existing wind assets not in tax equity financing structures.

Speaker Change: The tax transferability transaction was very successful for us and we will look to continue executing similar transactions in 2024 and beyond.

Speaker Change: For our utilities, we issued $1 $3 billion of green bonds and $115 million of notes at our utility subsidiaries.

Speaker Change: And we also issued $800 million 10 year term loan with EBIT drove up our green financing emphasizes our strategy commitment of long term stability and resilience.

Speaker Change: Cash and liquidity are key priorities supported by our ongoing cash from operations and successful rate cases at the end of 2023, we have $3 billion in liquidity covering 15 months.

Justin Legassi: We are targeting a payout of 65% to 75%. As Pedro mentioned, we delivered on our dividend commitment by paying $1.76 per share in 2023. And our board recently declared a quarterly dividend of $0.44 per share payable on April 1st, 2024.

Speaker Change: Maintaining our solid credit ratings is a key objective at the operating group level all of our ratings are on stable outlook and we continue to project stable credit metrics without the need for equity issuance in 2024 based on the successful outcomes of our major rate cases in 2023, and our continued disciplined and selective.

Justin Legassi: Moving now to the next slide, we are introducing our 2024 Outlook ranges for earnings per share and adjusted earnings per share of $2.17 to $2.32 per share. On an adjusted earnings per share basis, the midpoint of our outlook for 2024 represents an 8% increase from 2023. Our ongoing focus remains on achieving these targets as we execute our investment plans with discipline and a risk management focus. Our 2024 outlook includes incremental revenues from our rate plans, primarily in Maine and New York. We target equity ratios and ROEs close to our currently authorized level. We will also have additional production from 311 megawatts of wind and solar projects placed in service in 2023, including the related. For the rest of our fleet, we are assuming a normal wind capacity factor, and furthermore, our 2024 outlook also includes earnings using historical averages from our thermal operations and asset management.

Speaker Change: The growth in our renewables business.

Speaker Change: Finally, our dividend policy remains unchanged we.

Speaker Change: We are targeting a payout of 65% to 75% as Pedro mentioned, we delivered on our dividend commitment by paying a $1 76 per share in 2023, and our board recently declared a quarterly dividend of <unk> 44 per share payable on April one 2024.

Speaker Change: Okay.

Speaker Change: Moving now to the next slide we are introducing our 2024 outlook ranges for earnings per share and adjusted earnings per share of $2 17.

Speaker Change: To $2 32 per share.

Speaker Change: On an adjusted earnings per share basis, the midpoint of our outlook for 2024 represents an 8% increase from 2023.

Speaker Change: Our ongoing focus remains on achieving these targets as we execute our investment plan with discipline and a risk management focus.

Speaker Change: Our 2024 outlook includes incremental revenues from our rate plans, primarily in Maine, and New York, we target equity ratios and ROE close to our currently authorized levels.

Justin Legassi: Bear in mind, as I previously shared, thermal operations and asset management capture the value when wind production is low, effectively acting as a natural hedge to complement dark. We remind you that, in 2023, we received favorable regulatory treatment to remove earnings exposure from uncollectibles by allowing us to defer our reserve balance. The PTS A2 showroom in Brunswick is free to use with no charge.

Speaker Change: We will also have additional production from 311 megawatts of wind and solar projects placed in service in 2023, including the related Ptc's.

Speaker Change: For the rest of our fleet, we are assuming normal wind capacity factor.

Speaker Change: Further our 2024 outlook also includes earnings using historical averages from our thermal operations and asset management.

Justin Legassi: Portfolio Japan shown at Dartmouth 2019 The PTS A2 showroom in Brunswick is free to use. Our NECDC transmission project is also expected to generate additional earnings while under construction for AFUDC. And we are expecting additional CapEx spending of over $600 million in 2024 to consider. We are also anticipating O&M optimization and higher depreciation and interest costs. Finally, there is no assumed equity issuance in 2024 and no extraordinary gains from renewable partnerships or divestitures in 2024, as we've previously committed. Our 2024 outlook assumes that we maintain our current annual dividend of $1.76 per share, subject to our board's approval.

Speaker Change: Bear in mind as I previously shared thermal operations and asset management capture the value of the wind production as low effectively acting as a natural hedge to complement our fleet.

Speaker Change: We remind you that in 2023, we received favorable regulatory treatment to remove earnings exposure from uncollectable by allowing us to defer our reserve balances.

Speaker Change: Specifically in New York, and therefore have this assumption included in our forecast.

Speaker Change: Our CEC transmission project is also expected to generate additional earnings while under construction for UTC and.

Speaker Change: And we are expecting additional capex spending of over $600 million in 2024 to consider this.

Speaker Change: We are also anticipating O&M optimization and higher depreciation and interest costs.

Speaker Change: Finally, there is no assumed equity issuance in 2024 and no extraordinary gains for renewable partnerships for divestitures in 2024 as we have previously committed.

Justin Legassi: Typical with our opportunities and risks impacting our 2024 results, we have our renewables production and pricing. We have our rate cases and other regulatory actions. Storms and Weather-Related Events, Thermal and Asset Management Results, Interest, and Business Costs.

Speaker Change: Our 2024 outlook assumes that we maintain our current annual dividend of $1 76 per share subject to our board approval.

Justin Legassi: As we have mentioned, we are very focused on delivering our results in 2024, considering many uncertainties were removed in 2023. Thank you for joining us today for our financial update. I will now hand the call back to Pedro. Thank you, Justin.

Speaker Change: Typical with our opportunities and risks impacting our 2024 results, we have a renewables production and pricing we have our rate cases, and other regulatory actions storms and weather related events thermal and asset management results interest in business cost as we have mentioned we are very focused on delivering our results.

Abe Azar: If we move to page 12, I think it's important now to think a little bit about page 24. Okay. And where are we focused? In terms of priorities for the year, first, we're going to be focused on continuing to deliver results by demonstrating a strong financial performance on core earnings and core business. Second, we will execute our commitments in the multi-year rate plans that drove our success in twenty-three, including achieving our ROEs, but just to mention. Next, we will continue Selective and Profitable Onshore Growth. Turning to major projects, we will continue the steady process. Progress in Constructing Binger Wing 1 and NECC.

Speaker Change: <unk> in 2024, considering many uncertainties were removed in 2023.

Speaker Change: Thank you for joining us today for our financial update I will now hand, the call back to Pedro.

Pedro: Thank you Justin.

Pedro: If we move to page 12, I think it's important now to think a little bit about 24, okay, and where we focus.

Pedro: In terms of priorities for the year first of all going to be focused on continuing to deliver results through demonstrating our strong financial performance on the core earnings on a core basis second we will execute our commitments in the multiyear rate plans that drove our success in 'twenty three including achievement.

Abe Azar: We will remain focused on our balance sheet to ensure the financial health and long-term stability of the company and aim to close out the ongoing matters in Conorio. On the last slide, slide number 13, I would like to thank, you know, our board and Chairman Gallan, you know, and the rest of the Avangrid team, but also all the Iberdrola group, because without them, we would not be here, and they have successfully helped us with many, many of the things that we have been able to achieve this year. We look forward to continuing to execute on our commitments, focusing on our balance sheet, and delivering results in 2020. We are excited to announce that Avangrid will be holding a long-term Outlook update via webcast on Thursday, March 21st.

Pedro: Our roe's adjusting mentioned.

Pedro: Next we will continue selective and profitable onshore growth.

Pedro: Turning to major projects, we will continue this steady process.

Pedro: Progress in constructing bingo with one on <unk>.

Pedro: We will remain focused on our balance sheet to ensure the financial health and London is stability of the company and aim to close out the ongoing matters in Connecticut.

Pedro: And the lastly, slide slide number 13, I would like to thank our board and Chairman Golan.

Pedro: And the rest of our of our Greek team, but also all the Eva dollar growth that without them, we would not be here and they have successfully helped us in many many of the themes that we have been able to achieve this year.

Abe Azar: This will include an update on our multi-year strategic plan and financial outlooks provided by members of the executive team. I will now hand the call back to our operator for further questions. We'll now begin the question and answer session. In order to ask a question, press star, then the number one on your telephone keypad.

Pedro: We look forward to continuing to execute on our commitments focusing our balance sheet and delivering results in 2024.

David Arcaro: The first question comes from the line David Arcaro with Morgan Stanley. Go ahead. Oh, hey, good morning.

Pedro: We're excited to announce that have <unk> will be holding our long term outlook update via webcast on Thursday March 21.

Abe Azar: Thanks so much for taking my call. Um, let's see, you know, I was wondering if we could get an update just on how you're thinking about asset sales, you know, that's a financing approach that you've talked about before, but that The Financing Outlook has obviously changed quite a bit now, heading into 2024, so how strategic would you be or opportunistic in asking? I think the approach is that it has not changed. I mean, we were always keeping an eye on potential divestitures and potential partnerships. I mean, since 2001, we've been doing that at the petroleum group level, non-stop. You can see in the last two years, you know, how many, you know, partnerships and divestitures have been done as well. And in our case, if we have further opportunities to grow beyond, you know, what we'll be announcing in March, in our long-term presentation, we will continue to look for partnerships in order to dilute our financial exposure and be able to do even more. So that's not out of the table, but we want to focus on a budget for 2024 and the guidance we have provided without any gain or any divestiture being contemplated.

Pedro: This will include an update on our multiyear strategic plan and financial outlooks provided by members of the executive team.

Pedro: I will now turn the call back to our operator for <unk>.

Pedro: Further questions.

Pedro: We will now begin the question and answer session in order to ask a question Press Star then the number one on your telephone keypad.

Operator: Your first question comes from the line of David Arcaro with Morgan Stanley.

David Arcaro: Please go ahead.

David Arcaro: Hey, good morning, Thanks, so much for taking my questions.

Operator: Yes.

David Arcaro: Let's see I was wondering can we get an update just on how you're thinking about asset sales financing approach that you've talked about before but I think the financing outlook has obviously changed quite a bit now heading into 2024, so how strategic.

David Arcaro: Would you would you be you're opportunistic on asset sales.

Operator: I think the approach is has not changed I mean, we're always keeping an eye on potential divestitures potential partnerships I mean since 2001, we've been doing better David on a group level non installed you can see the last two years, how many partnerships on divestitures have been done as well and in our case if we.

Abe Azar: That's why I think we go back to how we always have announced guidance, which is focusing on the core business without gains. But we will continue analyzing partnerships. We will continue analyzing opportunities for divestitures at the right price and at the right time. If it's strategic, we think, you know, that's something we should do, but that doesn't stop that approach as well. Okay, I got it. That makes sense. That's helpful. And maybe a similar question just with PNM in the rear view.

Operator: Have further opportunities to grow beyond what we will be announcing in March.

Operator: In the March issue long term presentation, we will continue to look for partnerships in order to dilute our financial exposure and be able to do even more so it does not off the table, but we want to focus on on our own a budget four for $4 24, and the guidance. We have provided we felt any gain or <unk> being contemplated that's widening we go back.

Abe Azar: Now, you have been acquisitive in the past. How are you thinking about M&A as you look forward? Any interest in continuing to consider M&A opportunities going forward? I think, as we have done at Iberdrola for many years, there are moments in the cycles that when you have such a huge amount of organic growth, I think that's enough.

Justin Legassi: Well, we always have announced guidance, which is focusing on the core business. We saw gains, but we will continue on our licensing partnerships. We will continue analyzing opportunities of divestitures at the right price and at the right timing strategically we think that something we should do so that is an install pinot that approach as well.

Speaker Change: Okay got it that makes sense that's helpful and maybe similar question just with PNM in the rear view now you have been acquisitive in the past how are you thinking about M&A.

Abe Azar: I mean, I think the $9 billion investment above what we already told you a year and a half ago is a lot, okay? You know, that's twice the size of, you know, a couple of $4 billion equity market cap, you know, company acquisitions. So from that point of view, you already have, you know, the $7 billion investment. Now you have $9 billion more.

Abe Azar: And as you as you look forward any interest in <unk>.

Abe Azar: Continuing to consider M&A.

Abe Azar: M&A opportunities going forward.

Abe Azar: I think as we have done a rapid rollout for many years there are moments in the cycles that when you have such a huge amount of organic growth.

Abe Azar: Seems to me that, you know, let's focus on that organic growth. I don't see that much growth, you know, in many parts of the world, and in many parts of the U.S. from a regulated point of view. I don't see, you know, I see a huge opportunity for them, you know, up to 2032 on the repowering side. So we have, you know, a nice eight years ahead of us to benefit from that. Seems to me when you have the next three to five to six years with multi-billion investments that we didn't have, you know, even a year and a half ago on the table, I think we should focus on that, okay? So let's get that done, and then, you know, we can go for further opportunities. When some of you ask about, you know, the consumption growth, et cetera, in some of the states, you all know that, you know, the states where we do business, there is an absolute need for infrastructure upgrade. So consumption is second.

Abe Azar: I think that's enough I mean 19, the $9 billion investment are both well we already told you a year and a half ago. I mean, that's that's that's okay. That's twice the size of a couple of $4 billion.

Abe Azar: With market Casino company applications, so from that point of view when you already have.

Abe Azar: 7 billion investment and now you have 9 billion more seems to me that in a let's focus on that organic growth I don't see that much growth in.

Abe Azar: In many parts of the world in many parts of the U S from a regulator point of view I don't see I see a huge opportunity for up to 2032 on the on the on the Repowering side. So we have been a nice eight years ahead of us in order to benefit from that seems to me. When you have the next three to five to six years with multi.

Abe Azar: You know, consumption may be an issue 10 years from now, 15 years from now, but now you need to upgrade those networks, and that's why the infrastructure need that we have in New York, the infrastructure need that we have in Maine, you know, that seems to me, together with the repowering, just, I think is unbelievable, you know, huge, you know, for the years to come. Okay, great. Thanks so much for the color.

Abe Azar: <unk> investments that we didnt have even a year and a half ago on the table I think this focus moment, okay. So let's get that done and then we'll go for further opportunities. When some of you asked about the consumption growth is centered around some of the states you will know that the states, where we do business. There is an absolute need of infrastructure upgrade so conceptually second.

Abe Azar: Conceptual maybe an issue 10 years from now 15 years from now, but now you need to upgrade those networks and that's why the infrastructure needs that we have here in New York the infrastructural need that we have in Maine that seems to meet together with the Repowering, Jeff. So just that I think is unbelievable.

Abe Azar: I appreciate it. Your next question comes from the line of Julien Dumoulin Smith with Bank of America. Hey, good morning, team.

Speaker Change: For the years to come.

Julien Dumoulin: Thank you guys very much for this time. I appreciate it. I just wanted to follow up on a couple items here in the release and your comments here, if you can. First, on your term here, just how are you thinking about some of the items in 24, specifically the Vineyard Wind COD and specifically the ITCs, or presumably some amount of ITCs reflected in 24, as well as, can you comment on the fact that year-end 23 rate base came in $600 million above original guidance? It seems like it's split out between New York and Maine.

Speaker Change: Okay, great. Thanks, so much for the color I appreciate it.

Speaker Change: The next question comes from the line of Julien Dumoulin Smith with Bank of America.

Speaker Change: Please go ahead.

Speaker Change: Hey, good morning, Jean Thank you guys very much I appreciate it.

Julien Dumoulin: To follow up on a couple of items here in the release in your comments here. If you can just first off.

Julien Dumoulin: Near term here just how are you thinking about some of the items 24, specifically.

Abe Azar: Can you comment a little bit about those factors as they pertain to 24? And then lastly, just how much of an M are you thinking about here when it comes to a positive driver in 24 as well? Thanks. Okay, thank you, Julian. We couldn't hear that well, but I'm going to try to answer the questions. I think in terms of being a win-win, you know, I think there has been a big, Okay, can you hear me well? So what? Yeah. Okay, perfect, because I don't know if I was hearing myself or hearing somebody else again.

Julien Dumoulin: The vineyard wind's beauty and specifically the Itc's right.

Abe Azar: Presumably some amount of ITC as reflected in 'twenty four.

Speaker Change: Well as just can you comment a year end 'twenty three rate base came in.

Abe Azar: $600 million above original guidance. It seems like it's split out between New York and Maine can you comment a little bit about those factors as they pertain to 'twenty four and then lastly, just how much O&M or are you thinking about here when it comes to a positive driver in 2004 as well. Thank you guys.

Speaker Change: Okay. Thank you Julian we couldnt hear that well, but I'm going to try to answer the question I think in interim in terms of vineyard wind one.

Abe Azar: So, when you think about BINJAR WIN1, what we have learned in the last 12 months is, you know, a focus sometimes on specific deadlines which are not so relevant. You know, when you're doing these big projects, NECC is another example. If you're going to have COD in November of a year or February the following year, it's totally relevant. The important thing is to finish the project. I think in BINJAR WIN1, you know, right now, we have, you know, 10 turbines installed, you know, as of today, which is beautiful, out of 62. Five of them are in full operation right now, 62 megawatts.

Speaker Change: I was wondering.

Abe Azar: Okay.

Abe Azar: Okay.

Speaker Change: Can you hear me well.

Abe Azar: Yes.

Abe Azar: Okay, perfect time, because southern notes I was giving myself or somebody again, so when do you think our bingo and one where we have learned in the last 12 months is a focus sometimes on a specific deadlines, we turn those more relevant what youre doing these big projects <unk>. Another example, if youre going to have <unk> in November of <unk>.

Abe Azar: <unk> of February the following year is totally irrelevant. The important thing is to finish the project I think convenient with one right. Now we know we have turned turbines installed as of today, which is beautiful out of 62 five fold them in full operation right now 62 megawatts. So thats you know a beautiful also outcome sadly.

Abe Azar: So, that's, you know, a beautiful outcome, too, exactly today. I mean, you will see a project you have already seen, a press release by the governor in Massachusetts, very proud of, you know, the status right now we have in the project. I think we have, you know, 48, you know, 47 monopiles installed.

Abe Azar: Sadly today and you will see.

Abe Azar: You have already seen in our press released by the Governor in Massachusetts is very proud of all of the status right now we have in the <unk> I think we <unk> 40 <unk>.

Abe Azar: <unk> 47, mono piles installed I think we are on track right now for further transition thesis installment I think we have the right contracts and not to terminate everything we need from vessels foundations mono pause transition Pcs blades and turbines. So from that point of view, what we need to finish the project and for me it doesn't matter if we finish in November.

Abe Azar: I think we are, you know, on track right now for further transition pieces installment. I think we have the right contracts, you know, to terminate everything we need, you know, from vessels, foundations, you know, monopiles, transition pieces, blades, you know, turbines. So, from that point of view, what we need to do is finish the project. And for me, it doesn't matter if we finish in November this year or in February next year.

Abe Azar: The important thing is to finish. ITCs, as you correctly said, are important. That's what we are working on right now, you know, to find out exactly the final amount of ITCs that we think we will be able to achieve. And then, you know, as soon as we finish that work, we'll come back to you. In terms of the rate cases, I think specifically, and you were, you know, concerned, you know, a year and a half ago, rightly so, and a year ago about the inflation potential impact of the rate cases and how very few people, nobody thought, you know, we were going to have more than a very low single-digit rate increase. I think I'm very pleased about the leadership in Maine, both in the administration and in the public commission, and the staff. Both the leadership, you know, the commissioners, but also the staff in the public commission.

Abe Azar: Year already in February next year. The important thing is to finish Itc's Mazzucco retrofit is important that's why we are working on right now in order to find out exactly the final amount of Itc's, though we think that we will really be to achieve and as soon as we finish out the work we'll come back to you.

Abe Azar: In terms of the rate cases.

Abe Azar: Think of specifically an undue concern.

Abe Azar: Concerns all year and a half ago.

Abe Azar: So on a year ago about the inflation potentially impacting the rate cases on how very few people nobody thought we were going to have more than a very low single digit rate increases.

Abe Azar: I'm very pleased about the leadership in Maine, both in the administration and the public Commission and the staff at both the leadership the commissioners, but also the stuff in the public Commission I'm very pleased about the leadership in new European does ministration and the public commission of their senior staff and staff and commissioners level because as you can see right now that they have a vision that infrastructure is needed.

Abe Azar: I'm very pleased about the leadership in New York, in the administration, in the public commission, at the senior staff, staff, and commissioner level, because, as you can see right now, they have a vision that infrastructure is needed, but also you need to pay for the infrastructure. You know, this is something that comes together. And, you know, sometimes, you know, when, you know, the policy becomes, okay, you don't want to pay right now, and you will pay, you don't know when, but you still want investments, it doesn't work.

Abe Azar: But also you need to pay for the infrastructure. This is something that comes together and sometimes.

Abe Azar: The policy becomes okay.

Abe Azar: Want to pay right now and you will pay out on the yield on the win by USD, one investments industrial work. Okay. So youll have right right now the right leadership in the states because that infrastructure is needed you own datacenters do need infrastructure, you want additional capacity unique investment in.

Abe Azar: Okay, so you have the right leadership in the states right now because that infrastructure is needed; you want data centers, you need infrastructure, you know, you want additional capacity, you need, you know, investments in infrastructure. So I think the roadmap, you know, especially in New York, of course, as well as in Maine, is clear for the years to come. It's in the right direction to get those networks upgraded to the right level. And that's why, you know, we are very comfortable with the organic growth and the investments needed in those states to continue. I think the last one you said about the several things going on in 24. We'll be more specific in our March presentation. But I think the key highlights, as I think we have been mentioned right now, are that we need to be either at or very close to the authorized ROEs. That is something that will be a legacy for many, many years. I think sometimes, you know, you are over-earning; sometimes you have an explanation.

Abe Azar: In the infrastructure, so I think the roadmap, especially in New York of course, as well in Maine, It's clear for the years to come.

Abe Azar: Is in the right direction to get those networks are Brexit to the right level and Thats why we are very comfortable on the organic growth.

Abe Azar: And the investments needed in doses pace to continue I think the last one just said about the favorable things going on in 24 will be more specific in our March presentation, but I think the key highlights ourselves I think we have been mentioned right now we need to be either at or very close to the <unk> to the authorized ROE that is something that that is a legacy for many many years.

Abe Azar: Sometimes you know you are over earning sometimes you have an explanation, but I think right now with our work in the rate cases.

Abe Azar: But I think right now, with the work in the right cases, you know, especially when you are in New York, you are the main, you are our first regulated assets, you are, you know, more than 80% of our rate base. And with investments we're currently, you know, going to be doing in the years to come, you know, in New York, for example, that's going to be, you know, that group of assets more than 90%. So Connecticut is going to become a very small part of our business. So I think when you focus on those ones, I think the ROEs achievement is a must.

Abe Azar: Especially when you are in New York at the main <unk>.

Abe Azar: Our first liquidated assets you argue to more than 80% of our rate base and with investments. We are currently going to be doing in the years to come in New York. For example, that's one of those those will fall off just more than 90%. So politicals will not become a very small part of our business. So I think when you focus on those ones I think.

Abe Azar: The alloy achieve many is a much I think we are absolutely on track <unk> multimode too. The two projects that you mentioned that you mentioned on <unk>, but I would like to add ADC is a must to us to make those poised profitable I think we're working on <unk> on the change of low cost close to as you know we have been underwriting the BPA and <unk> with <unk>.

Abe Azar: I think we are absolutely on track. If I move, you know, to the two projects that you mentioned, you mentioned Binger, but I would like to add NECC. It's a must for us to make those projects profitable. I think we're working on NECC, on the change of low cost, you know, at close range, but you know, we have the right in the BPA. And I think in Binger, as we just mentioned right now, ITCs, and you know, finishing the work is our priority for the rest of the year. And I think in renewables, let's just stay focused. You know, for two years now, we have been able to deliver the budget, you know, in renewables and in networks. That's a must.

Abe Azar: Just mentioned right now itc's, finishing the work is our priority for the rest of the year and I think in renewables, let's just stay focused for two years right now we have been able to deliver the budget, England Globalstar networks, that's how much I think predictability on delivery in the underlying earnings with no gains so anything like that.

Abe Azar: I think predictability and delivery of underlying earnings with no gains or anything like that is going to be our priority now, you know, for two years in a row. And I think we are delivering double digits in both years, you know, in underlying growth. So that's a priority, you know, to continue, you know, delivering on our internal budget. So I think that the focus is that one.

Abe Azar: <unk> is going to be our priority now for two years in a row and I think we are delivering double digit in both years underlying growth. So that's a priority in order to continue delivering on our internal budget. So I think that the purpose is to focus on I won't die total to remind remember the other item. We also have mentioned you know, we're very proud of being a very.

Abe Azar: And I would also like to remind you, you know, and remember the other item we also mentioned. We're very proud of being a very green company. We're very proud of our ESG commitment. Even in times when that seems not to be on top of the list, you know, we believe that it won't come back.

Abe Azar: Green Company, we're very proud of our ESG commitments, even in times that that seems not to be on top of the leased in all we believe there is no come back that's why very proud about our diversity inclusion priority objectives being achieved and to continue with that to make sure that our team reflects a society, where we work and by the way we're focused on shareholder.

Abe Azar: That's why I'm very proud about our diversity, inclusion, and parity objectives being achieved, and to continue with that to make sure that our team reflects the society where we work. And by the way, you know, we're focused on shareholders. I think, you know, the risk aversion that you know we have; we do not dare to take difficult decisions.

Abe Azar: I think the risk aversion that you know we have we do not there to take difficult decisions.

Abe Azar: And in the same way that we presented three cases where very few thought we were going to be successful, we also took the decision not to initiate some projects that, otherwise, would be here with a huge mess. And to avoid capital increases because of a mess. In our case, there was a capital increase because of a transaction. Well, we have avoided that. But I think we have avoided being now here in front of you with a huge one-time loss that otherwise would have happened.

Abe Azar: The same with a representative rate cases that very few thoughts you know we were going to be successful. We also took the decision to not go not to initiate some projects that otherwise we would be here with a huge mix and to avoid capital increases because of a miss in our case. It was a capital increase because of a transaction we have avoided that but I think we have avoided to be now here in <unk>.

Abe Azar: Our view with a huge one time loss that otherwise would have happened. So I think the team has taken difficult decision, but the right ones not only for us put us for the shareholders for the banks for the lender for the bondholders for the society for the leadership in the states and we're going to continue doing so.

Abe Azar: So I think the team is taking difficult decisions, but the right ones, not only for us, but for the shareholders, for the banks, for the lenders, for the bondholders, for society, you know, for the leadership in the States, and we're going to continue doing so. Excellent. Thank you, Pedro. Is there a specific range that you're thinking about for those ITCs, just to go back to the vineyard question?

Speaker Change: Excellent. Thank you Pedro.

Speaker Change: Specific range that youre thinking about those itc's.

Abe Azar: And then separately, when you think about the long-term that you're going to be providing next month, how many years forward are you thinking about rolling forward? And is there a potential to raise that dividend at last as part of this bigger long-term outlook, or at least address the dividend? I think on the first one, I think we are comfortable.

Speaker Change: Go back to your.

Speaker Change: Your question and then separately when you think about the long term that you're going to be providing next month, how many years forward or you think about rolling forward and is there potential to raise that dividend at lash as part of this figure long term outlook or at least address the dividend.

Abe Azar: I think on the first one I think we are comfortable we have secured 30% of the ITC I think we're working right now on the opportunities we have on the IRI.

Abe Azar: We have secured 30% of the ITCs. I think we're working right now on the opportunities we have on the IRA to seek some additional ITCs. That's why we need to finish the work. And, in terms of dividends, I would like to say that the dividend we have maintained is very strong. And when you see the underlying growth of our earnings, the complementation, to have such a nice dividend, to be complemented by such a nice growth in our earnings, I think that's the right story. And especially if you have interest rates right now on the way down as opposed to the way up, I think that should deliver in terms of value creation. So I think we would like to stay there, but again, that's subject to the board making the decision. Alright team, thank you very much, all the best, we'll see you next month.

Abe Azar: Total seeking some additional itc's, that's why we need to finish the work on in terms of dividends I would like to say that the dividend. We have seen on maintaining is very strong and when you see the underlying growth of our earnings the complementation Nicola.

Abe Azar: To have such a nice dividend income to be complemented with such a nice growth in our earnings I think that's the right story, Okay, and especially if you have interest rates right now on the way down as opposed to the way up I think that should deliver in terms of value creation. So I think wed like to stay there, but again thats subject to the board to take the risk ratios.

Abe Azar: Alright. Thank you very much all of that said Youll see next month.

Julien Dumoulin: Thank you. Your next question comes from the line of Anthony Crowdell, with Mizzou Host Securities. Please go ahead. Hey, good morning team.

Speaker Change: Thank you.

Anthony Marone: Your next question comes from the line of Anthony crowd Dell.

Anthony Marone: Minzu whole securities.

Anthony Marone: Please go ahead.

Anthony Marone: Just, hopefully, a couple of cleanup questions. I'm just wondering if you're able to disclose what AFUDC rate you're assuming in 2024 for the NEC EC line. Yes, we can disclose that. So that's an 8.5% share, which again is a publicly filed document as well as part of the NECC stipulation agreement. So that's a public document, but that is the rate that we're using for anything. Great. And then I appreciate slide six; you give a nice break between the jurisdictions. And I know Connecticut's only 19%, so it's a smaller jurisdiction for you. But I think there are two very small rate cases going on in Connecticut right now.

Anthony Marone: Hey, good morning team just hopefully.

Anthony Marone: A couple of cleanup questions I'm, just wondering if youre able to disclose what ASU DC rate youre, assuming in 2024 for the CEC.

Anthony Marone: <unk>.

Anthony Marone: Okay.

Anthony Marone: Yes, we can disclose that so that's it.

Anthony Marone: Eight 5%, which again is a publicly filed document as well as part of the stipulation agreement.

Anthony Marone: Thats a public document, but that is the rate that we're using grant PVC.

Anthony Marone: Great and then.

Anthony Marone: I appreciate the slide six should give a nice breakout of the jurisdictions and I know, Connecticut is only 19%. So it's a smaller jurisdiction for you.

Anthony Marone: But I think there's two very small rate cases going on in Connecticut, right. Now staff had recently recommended maybe a rate decrease just curious if you could comment on it.

Abe Azar: Staff had recently recommended a rate decrease. Just curious if you could comment on just interactions with the Connecticut regulatory environment and also the ability to, maybe, deploy capital from Connecticut into the other jurisdiction. I think, you know, we have made it clear, you know, Connecticut, it was very disappointing, the Wray case, you know, we are in litigation right now, in appeal, you know, on different fronts. I think, you know, we're very happy with, you know, the leadership in the state, the governor, you know, instructing everybody to work together. I think even some of the legislature right now are actually requesting everybody to work together.

Abe Azar: Interactions with the Connecticut regulatory environment and also ability to maybe dip.

Abe Azar: Floy capital from Connecticut into the other jurisdictions.

Abe Azar: I think with a very clear, Connecticut, and he was very disappointing. The rate case, you know we are in litigation right now in appeal in different fronts.

Abe Azar: I think we're very happy with the leadership in the states the governor.

Abe Azar: Instructing everybody to work together I think EBIT some of the legislature right now are actually requesting also to everybody to work together, we have been saying so for a long time and again, even if it's a small part of our business and the weaker about that that's the way. We know we are defending our employees that we are defending our unions, while defending our investment.

Abe Azar: We've been saying so for a long time. And again, even if it's a small part of our business, you know, we care about that. That's why, you know, we are defending our employees, we are defending our unions, we are defending our investment. And I think the only thing we can do here is, you know, continue being on top of it. I think those Wray cases that you mentioned, the gas, we believe, you know, we have presented a very strong case. And I think we're going to argue that until the very end.

Abe Azar: And I think the only thing we can do here is to continue being on top of it I think those that does rate case that you mentioned the gas. We believe you know we have presented a very strong case and I think we're going to argue that until the very end. So from that point of view I think we just need to continue as always to be very professional very transparent. This is no personnel, we never make any comments about any <unk>.

Abe Azar: So from that point of view, I think we just need to continue, as always, to be very professional, very transparent. This is not personal, you know; we never make any comments about any person in particular, but we defend, you know, the results of the company, the investments, because otherwise, what is in danger is, you know, the reliability in the medium term of the company. So we've seen this many, many times in our experience in many other places where a similar approach was taken.

Abe Azar: One in particular, but we defend the results of the company the investment because otherwise what is in danger as railroad reliability in the medium term of the company. So we've seen this many many times we are experiencing many other <unk>.

Abe Azar: Places, where similar programs taken so from that point of view. The only thing we can continue to put our case, there illegally and to request that people.

Abe Azar: You know, so from that point of view, the only thing we can continue is to put our case, you know, very legally and to request that, you know, you know, people comply with the law and that, you know, that's a fundamental, you know, key criteria when you do investments and, you know, when investors and banks and bondholders invest, which is compliance with the law. And if the law is going to be changed, which may be okay, that's why you have a stranded cost, and you have, you know, many ways, you know, to do that. But, you know, what is not acceptable is, you know, changing in the middle of Wray cases or suddenly changing what has already been the case and the way things have been done for many years in accordance with the law.

Abe Azar: People comply with law and that that's a fundamental key criteria when due to investments and when investors and banks and bondholders and best which is compliance with law and if LOE is going to be changed which may be okay. That's why you have the stranded cost and you have you know many ways to do that but in what is not acceptable to us in order to change.

Abe Azar: In the middle of rate cases, or or suddenly you know.

Abe Azar: What has been already the case and the way things have been done for many years in accordance with growth. That's why we will continue to to to litigate as needed, but we think the leader within the <unk>.

Abe Azar: That's why we will continue to, you know, litigate as needed. But, you know, we think the leader, the words recently by the governor requesting, you know, to work together and to have conversations even with the legislature as soon as two days ago, that seems to me, you know, the right direction because, you know, there is nothing to hide here. Okay. And you see how supply and, you know, rate increases are out of control. I think you see how, you know, decisions by legislatures affect the rate, too. And in our case, the UI rates were not increased for seven years.

<unk> recently by the Governor requesting to work together and to have conversations that even with the legislature as soon as you know two days ago that seems to meet the right direction. Because there is nothing to hide here, okay and youll see how supply.

Abe Azar: And our rate increases are out of control I think youll see how decision with the legislature affect also the rates.

Abe Azar: Our case, the UO rates were not increase for seven years. So I think we have a very strong case that we can defend and we're doing so and we are a very important employer in the state. We are doing a lot of economic development and the most important thing here is in order to comply with Lora to deliver what we have to do.

Abe Azar: So I think we have a very strong case that we can defend, and we're doing so. And we are a very important employer in the state. We do a lot of economic development. And the most important thing here is, you know, to comply with the law and to deliver, you know, what we have to do. Great. And just if I could squeeze one last one in.

Anthony Marone: I think Julian touched on it, but I may have missed the response. Just when you provide a longer-term guidance range or an EPS growth rate on the call in March, are you able to disclose now how far out you're going to go? Was it 26, 20, 27?

Great and just if I could squeeze one last one I think Julien touched on it I may have missed the response just when you provide.

Our longer term guidance range or an EPS growth rate on the call on in March.

Abe Azar: Or are you not willing to state that right now? No, I think, you know, at least when we go to 25, what we're considering right now is whether we will also mention 26. Okay, so that's great. Thank you for taking my question. Thank you. Your next question comes from the line of Michael Sullivan with Wolf. Please go ahead. Hey, good morning.

Just goes out how far out youre going to go to it was at 26 2027 or youre not willing to state that right now.

No I think at least we will go to 25 hour. We're considering right now is whether we will also mentioned 26. Okay. So thank you for taking my questions.

Thank you.

Your next question comes from the line of Michael Sullivan with Wolfe.

Please go ahead.

Michael P. Sullivan: Just following up on how to think about the timeline of the financial outlook at investor days, is it fair to think that this 24 guide is a clean base to guide long-term growth? Yes, I think that, you know, we started July last year. You know, I think, you know, we heard so many times why to give guidance with, you know, including games, etc., that back in July, we already decided that we were going with and without the game. So that was the first time we communicated in October also. And now, as you can see, we continue that trend. So we want to be very simple, year to year. And in this case, this year, we're not, you know, for that, you know, proposal of range, we're not considering any games, you know, so there was to be no games, because there was to be any transactions, you know, so be it. But I think the guidance is without any game.

Hey, good morning.

Just following up on how to think about the timeline of the financial outlook at the Investor Day is it fair to think of.

This 24 guidance as a clean base, Duke guide long term growth off of.

Yes, I think we.

Starting July last year, I think we heard so many times that you don't like to give guidance, we've seen including gains et cetera that back in July we are ready to sited.

We were going with and without the game. So that was the first time, we communicated also in October and now as you can see we continued that trend. So we want to be very simple year to year and in this case these year ordered for.

For that propel.

Proposal of offerings, we're not considering any gains.

There was to be any gains because there was to be any transactions in <unk>, but I think the guidance is without any game. So I think the answer is yes, I think the guidance. We're proposing right now we started back in July is that way.

Abe Azar: So I think the answer is yes, I think the guidance we're proposing right now, which we started back in July, is that way. Great. I think, can you just comment on where Epipho the debt will finish for 2023 and what you target on that. FFO to debt. Yeah, so FFO to debt, you know, obviously, this is a key priority for us, from a financing point of view. Keep in mind, as we said, 2023 was quite a transition year for us with the closing of the rate cases, you know, in particular, New York finalized, you know, in October, and ultimately, we saw the results from there. So from and in addition to that, we also have, you know, the So from an FFO to debt, you know, from 2023, you know, if you perform those adjustments, you're looking somewhere around 14%.

Okay great.

Can you just comment on.

We're <unk> to debt finish for 2023, and what your target on that.

Sorry.

Sorry can you clarify are you asking where the deposition ended.

<unk> to debt.

Yes, yes. So <unk>. Obviously this is a key priority for us from a financing point of view keep in mind. As we said 2023 was quite a transition year for us with the closing of the rate cases in particular, New York finalized in October and ultimately we saw the results from there.

In addition to that we also have the <unk> project and the vineyard wind one project with high Capex that we have that don't do not have cash flows yet so from an <unk> to debt from 2023, if you pro forma those adjustments youre looking somewhere around 14%.

Justin Legassi: However, you know, keeping in mind these caveats that we have, so I think from there, we want to build from that point forward. I think we have had very successful rate cases that have been focused on cash, which will improve our FFO. And so, really looking towards the next couple of years of improving those and getting the metrics back to the levels that we would expect and showing the growth that we are anticipating here. Okay, very helpful. And then one last quick one, I think someone asked, but I'm not sure I caught the answer to the O&M optimization in 24. Can you quantify what that is?

However, keeping in mind. These caveat that we have so I think from there we want to build from that point.

I think we have had very successful rate cases that have been focused on cash which will improve our <unk>.

And so really looking towards the next couple of years of improving those and getting our metrics back to the levels that we would expect and are showing the growth that we're anticipating here.

Okay very helpful. And then one last quick one I think someone asked but I'm not sure I caught the answer the O&M optimization in 24 can you quantify what that is and whether you see potential to do even more beyond beyond that.

Michael P. Sullivan: And whether you see potential to do even more beyond that? Yeah, so for O&M, you know, I have two comments to make there. One, you know, as Pedro mentioned for our, you know, reaching our authorized ROEs that embeds in it, you know, achieving certain, you know, efficiencies that we have, for example, we have AMI New York that we're looking at, as well as other technological advancements that we have, whether it be in our IT space or otherwise. So again, I think the key priority for us when we consider O&M is trying to be at So that's what we target for O&M efficiencies, and just looking at all the avenues that we're able to do that. On the renewable side, it's more based on process and prioritization of tasks, you know, for example. So looking at, you know, really doing O&M that provides, you know, a production uplift or an earnings uplift from that point of view. So keeping that priority.

Yes, so for O&M I think two comments to make there one as Pedro mentioned four are reaching our authorized ROE that embeds in it achieving certain.

Efficiencies that we have for example, we have Ami in New York that we're looking at as well as other technology advancements that we have whether it be in our it space or otherwise. So again I think the key priority for us when we consider O&M is trying to be at a rate lower than inflation. So that's what we target for O&M efficiencies.

Just looking at all avenues that we're able to do that on the renewable side its more based off of process and prioritization of tasks. For example, so looking at really doing O&M that provide production uplift or an earnings uplift from that point of view, so keeping that priority. So I think that's really what we look at I think we will.

Justin Legassi: So I think that's, that's really what we look at. I think we'll come back to you with, you know, more detail at our 2020, our investor day a month from now, with more specificity around that and what we target. But these are some of the general themes that we're looking at, particularly in 2024 and beyond. Okay, very helpful.

Come back to you with more detail at the 2020 for our Investor day in a month from now with more specificity around that of what we target. But these are some of the general themes that we're looking at particularly in 'twenty four and beyond.

Michael P. Sullivan: Thanks to all the callers. Your next question comes from the line of Angie Storozynski, with Seaport Research Partners. Please go ahead.

Okay very helpful. Thanks for all the color.

Okay.

The next question comes from the line of and the store since Keith.

With Seaport Research partners.

Please go ahead.

Angie Storozynski: Thank you. First, on the wind repowering, I understand that you're going to talk about it at length during analyst day, but I'm just wondering, you know, so you mentioned obviously attractive returns, but we're also hearing that, you know, older wind assets are starting to see some, you know, diminished profitability. I'm wondering if this plan, the repowering, is driven by basically an attempt to retain the current earnings power of these assets, or if there's A True Cash Benefit associated with it. The answer is yes to both. I think when you see the accounting path of assets, of renewable assets in the U.S., because of makers, accelerated depreciation, ITC, there are many, many explanations. I think in the last part of the years, you know, those earnings are negative. It's not that you lose value. You know, it's just, you know, the way it is.

Thank you.

First on the wind Repowering I understand that you're going to talk about it.

At length during the analyst day, but I'm just wondering.

So you mentioned, obviously attractive returns.

Also hearing that.

Older at wind assets are.

Starting to see some diminished.

Diminished profitability.

So that from a cash perspective, because of higher Opex and Capex and I was just wondering if with.

With this plan that the Repowering.

That's terrific.

He basically an attempt to retain the current earnings power of these assets.

True cash benefit associated with that.

The answer is yes to both.

And when you see the accounting.

Both assets over in Louisville assets in the U S because of makers accelerating depreciation on ITC. There are many many explanations athene in the last part of the year.

Those earnings are negative is not that youll lose value. It's just the way. It is so from an earnings point of view on cash flow point of view. The answer is 100%. Yes. That's one of the main reasons why Repowering is very very important and we're lucky that we have now an old fleet, but allow us to do such a material amount of repower.

Abe Azar: So from an earnings point of view and cash flow point of view, the answer is 100% yes. That's one of the main reasons why, you know, repowering is very, very important. And we are lucky that we now have, you know, an old fleet that allows us to do such a material amount of repowering. Okay, but there's also this earnings benefit, right, associated with the sale of the tax credits, and how that basically trickles into earnings.

Okay, but there's also this earnings benefit ranked associated with the sale of tax credits.

And how that's basically trickles into earnings and I'm just wondering.

Abe Azar: And I'm just wondering if, again, that's the main driver of those repowerings, or is it that, again, there's a... I think you have a financial reason and an operational, an industrial reason. I mean, the industrial reason is we continue to have customers that they want to have, you know, extended PPAs. As you can see, they are renegotiating PPAs.

Again, that's the main driver of those Repowering or is that again goes down like it.

True cash value accretion benefit associated with hospitality.

I think you have a financial reason and an operation on industrial recently.

<unk>, we continue to have customers that they.

They want to have extended Ppas are you can see they are renegotiating ppas.

Abe Azar: And, you know, the feedback we have for most of the assets we're going to consider repowering is that they would love to extend, you know, and have new PPAs, etc. So from that point of view, there is a need from the customer side, and there is an opportunity for us to have new assets. From a financial point of view, it's clear that, you know, when you have these types of assets after 15, 18 years, you have an issue with the P&L. And therefore, cash flow is different because you have already got the cash flow back, you know, for other reasons.

The paper, we have for most of the assets, we're going to consider Repowering is that they will look to expand into new ppas et cetera. So from that point of view there is a need from the customer site and there is an opportunity for us to help new assets from a financial point of view, it's clear that when you have these type of assets. After 15 18 years. We know you have an issue in the <unk>.

And therefore customers different because you have already got the cash flow vacuum or because of other reasons, but I think when you also have the opportunity to create a new asset and that asset you can invest from a capex point of view much listener a nuance it youre going to have an increase in production that probably is going to be 30% increase at least versus the old asset and you're going to have an enhancement in O&M.

Abe Azar: But I think when you have the opportunity to create a new asset, and that asset you're going to invest from a capex point of view, much less than a new asset, you're going to have an increase in production that probably is going to be a 30% increase, at least versus the old asset. And you're going to have, you know, an enhancement in O&M. And PTC is for 100% of the production, not just from the incremental production. Seems to me that that's a no-brainer.

On Ptc's for 100% of the production of jet from incremental production seems to me that that's a no brainer. Okay. So thats why you know the combination of Holdco things is why we need to go ahead with our Repowering again, it's a very long period of time, and we're going to be very opportunistic or think about when is the right moment from a cash flow point of view from a P&L point.

Abe Azar: Okay, so that's why, you know, the combination of all those things is why we need to go ahead with the repowering. Again, it's a very long period of time, and we're going to be very opportunistic, you know, think about when is the right moment from a cash flow point of view, from a P&L point of view, from an investment point of view, from a debt point Okay, and then just moving on to offshore wind, so the Kitty Hawk and that. We had these two updates from Eversource and Dominion about their offshore wind transactions. So we have some, you know, price points, I guess, for these assets. I mean, do you think that that impacts the probability of the sale of your stake in Kitty Hawk? And how, again, if there's an, like, viewpoint based on these data points that you have on offshore wind.

From an investment point of view that point of view, but the plan is there.

Okay, and then just moving on to offshore wind for Kitty Hawk and.

So we had these two updates some emphasis on dominion about that option with offshore wind transactions. So we have some.

Price points I guess for these assets I mean, do you think about that impact.

The probability of the sale of your stake.

And headaches Hawk, Kitty Hawk, I'm, sorry, and how again.

And like a viewpoint based on these data points that you have on offshore wind in the lab.

Angie Storozynski: I think the good thing about those data points is that, if you remember, many of you ask quite often, well, there is nobody interested in offshore, and we tell them very often, I'm sure there isn't the long list you had two years ago, three years ago, but the interest continues to be there. I think it's good to have people interested in offshore. We do not know the details of all those other transactions. I think Dominion transaction, that's a regulated asset, so that's a different animal.

I think the good thing about those data points is that if you remember many many of you as <unk> wealth and there is nobody interested in offshore.

We very.

Very often I am sure there is not the long lease you had two years ago three years ago, but the interest continues to be there I think is good to have people interested in offshore.

We do not know the details of autos those infrastructures I think dominion transaction, that's a regulated asset.

Abe Azar: I think in the case of Eversource, based on public information, I think the acquirer is being guaranteed some type of return. That's not what our case is about. We're speaking about a lease. The lease market, as you know, they were an auction in California, very successful, even in the middle of all the Ukraine mess, et cetera, et cetera, so that's why it's not really compatible. In the other cases, it's really assets that are being built right now, and it's a multi-billion type of approach. I think the case is a lease. I think we will continue to seek opportunities to sell the lease, or to enter into a partnership in the lease, as we do with many other assets. Last year, we sold several assets in the onshore renewal business, some projects we didn't want to do, and we felt it was better to sell them, so we never stopped, but I don't think selling a lease is compatible with those deals, and again, this is not an asset that we have a It's a different animal compared to those.

A different animal and I think in the case of the of our stores based on public information I think.

The acquirer as being guaranteed some type of return okay. That's what our case I mean, what I'm speaking about the lease and the lease market as you know, they're working on Oxonian, California, I'm very successful even in the middle of all the Ukraine.

Mass etcetera, etcetera, so thats why Europe.

It's not really comparable in that in the other cases is really assets that are being built right now developed on these multibillion type of approach I think the basis at least I think we will continue to seek opportunities to sell the lease to a partnership in the leaves us as we do with many other assets last year, we sold several assets in the onshore renewable business in Australia.

We didn't want to do and we put we felt it was better to sell them. So we never stop but I don't think to sell at least comparable to those deals on again. This is not an asset that we have a capex deviation or we have a write off but we have to do something that is a different animal compared to those.

Abe Azar: Okay, and then lastly, on NECC, so if you could provide an update on the construction process and also, you know, how comfortable you feel spending the money, given that NextEra continues to challenge the circuit breaker upgrade at CBRC. I will let Catherine answer the construction progress. I think our focus there is very simple: first, on the change of law. That's a priority for us this year to make sure that we get that finalized. And second on NextEra, well, it seems to me that NextEra has had a change of leadership. I think the way they behaved in Maine, in my opinion, is the right one. And I think you've seen some news there on other matters, things that are happening in Maine.

Okay, and then lastly on any SEC.

So if you could provide an update on the construction cost side, but also.

How comfortable you feel spending your money given that Nextera continues to challenge the asset the sockets that have great.

Okay.

I will.

Catherine to answer on the construction progress I think our focus there is very simple.

First on the change of law, that's opportunity for us this year to make sure that we get that finalized and unshaken with Nextera seems to me that.

Nextera there is a change of leadership and I think the way they behaved in Maine.

In my opinion again at the end is the right one.

I think <unk> seen some news there on other matters and all things in your company.

Abe Azar: So the Seabrook, I think we're working with them. I think we're very close to having a schedule on the breaker, the issue that they have to solve. And I'm sure they will get that done.

So the Seabrook I think we're working with them I think we're very close to two having a schedule on <unk>.

The breakout there Dave.

So that you have although they have to solve and I'm sure they will.

Catherine Stempien: Okay, so, but Catherine, you wanna comment on the construction? Yeah, sure. Thanks, Pedro. So we're doing really well with the construction of NACEC. We have 25% of our foundations set, and 20% of our poles.

Get that done okay, so, but I think Anthony you want to comment on the on the yeah sure. Thanks Peter.

So we're doing really well on construction on ECB of 25% of our foundations have been set in 20% of our calls we've already started stream conductor actually on on the corridor. We've also been doing substantial construction.

Catherine Stempien: We've already started a stringing conductor actually in the corridor. We've also been doing substantial construction, laying the foundations for our HVDC converter station and for the STATCOM. And we've really been able to benefit from the power of eVidrola in the supply chain by being able to negotiate really good contracts for most of our vendors, including Hitachi for the STATCOM and the HVDC converter, as well as a lot of our civil engineering works and other work that needs to be done on the site.

The foundation for our HDD converter station and for the stock comp and we've really been able to benefit from the power of EBIT rollout is supply chain by being able to negotiate really good comp.

Contracts for most of our vendors, including with Hitachi for the stack common each BDC can progress as well as a lot of our civil engineering works and other work that needs to be done on a site. So we're really pleased with the progress right now and we continue.

Catherine Stempien: So we're really pleased with the progress right now, and we will continue full speed ahead. Thank you. I will now turn the call back over to Pedro Zagra. Please go ahead.

<unk>.

Great. Thank you.

I will now turn the call back over to Petro Petro <unk>. Please go ahead.

Abe Azar: Okay, so thank you to everybody. It was a pleasure, you know, to have spoken with all of you. I think we're going to follow up on one-on-ones now with each of you. And, you know, looking forward to seeing you in the upcoming days and weeks. Thank you very much. Ladies and gentlemen, that concludes today's call. Thank you all for joining, and you may now disconnect your lines.

Okay. So thank you to everybody for pressure.

Two to harvest spoken with all of you I think we're going to follow up on one on ones now with each of you.

And looking forward to seeing you in the upcoming based on weeks. Thank you very much.

Okay.

Ladies and gentlemen that concludes today's call. Thank you all for joining and you may now disconnect your lines.

Okay.

Yeah.

Okay.

Yeah.