Q2 2024 NextEra Energy Partners LP NextEra Energy Inc Earnings Call
Operator: Good day, and welcome to the NextEra Energy and NextEra Energy Partners LP Second Quarter 2024 Earnings Conference Call. All participants will be in a listen-only mode.
Unknown Executive: Good day, and welcome to the NextEra Energy and NextEra Energy Partners LP second quarter 2024 earnings conference call. Our participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key, followed by zero.
Good day, and welcome to the Nextera energy and Nextera Energy Partners L. P. Second quarter 2024 earnings conference call all participants will be in a listen only mode.
Operator: Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press the star key, then 1 on your touchtone phone.
Speaker Change: Did you need assistance. Please signal a conference specialist by pressing the star key followed by zero.
Unknown Executive: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your touch-tone phone. To withdraw your question, please press star, then two.
Speaker Change: After todays presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one I guess touchtone phone too.
Operator: To withdraw your question, please press star then 2. Please note, this event is being recorded. I would now like to turn the conference over to Mark Eidelman, Director of Investor Relations. Please go ahead.
Speaker Change: To withdraw your question. Please press Star then two.
Unknown Executive: Please note this event is being recorded.
Speaker Change: Please note this event is being recorded.
Mark Idleman: I would now like to turn the conference over to Mark Idleman, Director of Investor Relations.
Speaker Change: I'd now like to turn the conference over to Mark Idleman Director of Investor Relations. Please go ahead.
Unknown Executive: Please go ahead. Thank you, Danielle.
Mark Eidelman: Thank you, Danielle. Good morning, everyone. And thank you for joining our second quarter 2024 Combined Financial Results conference call for NextEra Energy and NextEra Energy Partners. With me this morning are John Ketchum, Chairman, President, and Chief Executive Officer of NextEra Energy, Brian Bolster, Executive Vice President and Chief Financial Officer of NextEra Energy, Rebecca Kujawa, President and Chief Executive Officer of NextEra Energy Resources, and Mark Hickson, Executive Vice President of NextEra Energy John will start with opening remarks, and then Brian will provide a review of our results.
Mark Idleman: Thank you Danielle good morning, everyone and thank you for joining our second quarter 'twenty 'twenty four combined financial results conference call for Nextera Energy and Nextera Energy partners with me. This morning are John Ketchum, Chairman, President and Chief Executive Officer of Nextera Energy, Brian bolster executive Vice President and Chief Financial Officer.
Mark Idleman: Good morning, everyone. And thank you for joining our second quarter 2024 combined financial results conference call for NextEra Energy and NextEra Energy Partners. With me this morning are John Ketchum, Chairman, President and Chief Executive Officer of NextEra Energy. Brian Bolster, Executive Vice President and Chief Financial Officer of NextEra Energy; Rebecca Kiyava, President and Chief Executive Officer of NextEra Energy Resources; and Mark Hickson, Executive Vice President of NextEra Energy, all of whom are also officers of NextEra Energy Partners, as well as Armando Pimentel, President and Chief Executive Officer of Florida Power and Light Company.
Speaker Change: Sort of Nextera energy, Rebecca Kujawa, President and Chief Executive Officer of Nextera Energy resources, and Mark Hickson Executive Vice President of Nextera Energy all of whom are also officers of Nextera energy partners as well as Armando Pimentel, President and Chief Executive Officer of Florida Power and light company.
John Ketchum: John will start with opening remarks, and then Brian will provide an overview of our results. Our executive team will then be available to answer your questions.
Mark Eidelman: Our executive team will then be available to answer your questions. We will be making forward-looking statements during this call based on current expectations and assumptions, which are subject to risks and 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 today's earnings news release, in the comments made during this conference call, in the risk factors section of the company presentation, or in our latest reports and filings with the Securities and Exchange Commission, each of which can be found on our websites, www.
Ron will start with opening remarks, and then Brian will provide a review of our results. Our executive team will then be available to answer your questions.
Mark Idleman: We will be making forward-looking statements during this call based on current expectations and assumptions, which are subject to risks and uncertainties. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect, or because of other factors discussed in today's earnings news release. And the comments made during this conference call in the Risk Factor section of the Comforting Presentation or in our latest reports and filings with the Securities and Exchange Commission, each of which can be found on our websites www.nextEraEnergy.com and www.nextEraEnergyPartners.com. We do not undertake any duty to update any forward-looking statements.
Speaker Change: We will be making forward looking statements. During this call based on current expectations and assumptions, which are subject to risks and uncertainties actual results could differ materially from our forward looking statements. If any of our key assumptions are incorrect or because of other factors discussed in today's earnings news release and the comments made during this conference call and the risk factors.
Speaker Change: <unk> section of the accompanying presentation or in our latest reports and filings with the Securities and Exchange Commission each of which can be found on our website www dot Nextera energy Dot com and www Dot Nextera energy Partners' Dot com, we do not undertake any duty to update any forward looking statements.
Mark Eidelman: NextEraEnergy.com and www. NextEraEnergyPartners.com We do not undertake any duty to update any forward-looking... 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 historical non-GAAP measures to the closest GAAP financial measure. With that, I'll turn the call over to John.
Mark Idleman: 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 reconciliation of historical non-GAAP measures to the closest GAAP financial measure.
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 historical non-GAAP measures to the closest GAAP financial measure with that I'll turn the call over to John.
John Ketchum: With that, I'll turn the call over to John. Thanks, Mark, and good morning, everyone. Next, our Energy delivered strong second quarter results with adjusted earnings per share increasing more than 9% year over year. In addition, through the first six months of the year, our adjusted earnings per share has increased 9.4% year over year. The continued strong financial and operational performance at both FPL and Energy Resources position our company well to meet its overall objectives for the year. At FPL, we have continued to deliver for our customers on multiple fronts since the start of our most recent rate settlement in 2022.
John W. Ketchum: Thanks, Mark, and good morning, everyone. NextEra Energy delivered strong second quarter results, with adjusted earnings per share increasing more than 9% year over year. In addition, through the first six months of the year, our adjusted earnings per share increased 9.4% year over year. The continued strong financial and operational performance at both FPL and Energy Resources positions our company well to meet its overall objectives for the year. At FPL, we have continued to deliver for our customers on multiple fronts since the start of our most recent tariff settlement in 2022.
John: Thanks, Mark and good morning, everyone.
John: Nextera energy delivered strong second quarter results with adjusted earnings per share increasing more than 9% year over year.
John: In addition through the first six months of the year, our adjusted earnings per share has increased nine 4% year over year.
John: The continued strong financial and operational performance at both FPL and energy resources position, our company well to meet its overall objectives for the year.
John: Yeah.
John: At FPL, we have continued to deliver for our customers on multiple fronts. Since the start of our most recent rate settlement in 2022.
John Ketchum: We are making smart capital investments in low-cost solar generation and battery storage, which are continuing to reduce our overall fuel cost and combine with generation modernizations have saved customers nearly $16 billion. Since 2001. We are delivering best-in-class non-fuel O&M, where we are 70% better than the national average, saving our customers $3 billion every year compared to the average utility. A big driver of our outperformance has been our team and culture of continuous improvement and productivity. Nowhere is this better demonstrated than through our annual company-wide initiative to reimagine everything that we do, which we call Project Velocity.
John W. Ketchum: We are making smart capital investments in low-cost solar generation and battery storage, which are continuing to reduce our overall fuel cost and, combined with generation modernizations, have saved customers nearly $16 billion since 2001. We are delivering best-in-class non-fuel O&M, where we're 70% better than the national average, saving our customers $3 billion every year compared to the average utility. A big driver of our outperformance has been our team and culture of continuous improvement and productivity. Nowhere is this better demonstrated than through our annual company-wide initiative to reimagine everything that we do, which we call Project Velocity.
John: We are making smart capital investments in low cost solar generation and battery storage, we are continuing to reduce our overall fuel cost and combined with generation modernizations have save customers nearly $16 billion since 2001.
John: We are delivering best in class non fuel O&M, where we're 70% better than the national average saving our customers $3 billion every year compared to the average utility.
John: A big driver of our outperformance has been our team and culture of continuous improvement and productivity.
John: Nowhere is this better demonstrated than through our annual company wide initiative to re imagine everything that we do which we call project velocity. This year, we identified a record $460 million of run rate cost savings opportunities through 2027 part of which.
John Ketchum: This year, we identified a record $460 million of run rate cost savings opportunities through 2027, part of which benefit FPL and its customers. By finding opportunities to take costs out of the business and making smart capital investments to reduce its fuel costs, FPL has kept residential bills nearly 40% below the national average and by far the lowest among all of the Florida investor-owned utilities. FPL's reliability also ranks among the best in the industry, where we are 66% better than the national average and the number of minutes a customer's power is interrupted per year. A most proud of the fact we continue to deliver on our customer value proposition during a period of unprecedented growth in Florida.
John W. Ketchum: This year, we identified a record $460 million of run rate cost savings opportunities through 2027, part of which will benefit FPL and its customers. By finding opportunities to take costs out of the business and making smart capital investments to reduce its fuel costs, FPL has kept residential bills nearly 40% below the national average and by far the lowest among all of the Florida investor-owned utilities. FPL's reliability also ranks among the best in the industry, where we are 66% better than the national average in the number of minutes a customer's power is interrupted per year.
John: At FPL and its customers.
John: By finding opportunities to take cost out of the business and making smart capital investments to reduce fuel costs.
L. A has kept residential bills nearly 40% below the national average and by far the lowest among all of the Florida Investor owned utilities.
John: <unk> reliability also ranks among the best in the industry, where we are 66% better than the national average and the number of minutes customers power is interrupted per year.
John W. Ketchum: I'm most proud of the fact we continue to deliver on our customer value proposition during a period of unprecedented growth in Florida. Florida continues to be one of the fastest-growing states in the U.S., with roughly 1,000 people moving to Florida every day.
John: I'm most proud of the fact, we continue to deliver on our customer value proposition during a period of unprecedented growth in Florida.
John Ketchum: Florida continues to be one of the fastest growing states in the US, with roughly 1,000 people moving to Florida every day, and it's not just the residential sector; we're seeing the commercial and industrial sector growing too. As a result of this accelerated growth, FPL's regulatory capital employed has grown at a 12% compound annual growth rate since the beginning of 2022, compared against an estimated 9% compound annual growth rate that was originally anticipated for the four-year settlement period. We have shoulders of this additional growth through our reserve amortization mechanism, which enables FPL to absorb the costs for these capital investments without increasing customer bills in the interim.
John: Florida continues to be one of the fastest growing states in the U S with roughly 1000 people moving to Florida everyday.
John W. Ketchum: And it's not just the residential sector; we're seeing the commercial and industrial sectors growing too. As a result of this accelerated growth, FPL's regulatory capital employed has grown at a 12% compound annual growth rate since the beginning of 2022, compared against an estimated 9% compound annual growth rate that was originally anticipated for the four-year settlement period. We have shouldering this additional growth through our reserve amortization mechanism, which enables FTL to absorb the cost of these capital investments without increasing customer bills in the interim.
John: And it's not just the residential sector, we're seeing in the commercial and industrial sector growing too.
John: As a result of this accelerated growth Fpl's regulatory capital employed has grown at a 12% compound annual growth rate since the beginning of 2022 compared against an estimated 9% compound annual growth rate that was originally anticipated.
John: The four year settlement period.
John: We have shoulder this additional growth through our reserve amortization mechanism, which enable enables SPL to absorb the cost for these capital investments without increasing customer bills in the interim.
John Ketchum: While these efforts have helped us to meet customer growth and deliver for our Florida customers, our reserve amortization mechanism has been utilized faster than expected. FPL fully expects to seek recovery of these increased expenditures in its rate case filing next year. FPL ended the second quarter with a remaining reserve amortization balance of $586 million, which is expected to be sufficient to support FPL's capital investment plans and its ability to earn an 11.4% regulatory ROE this year and next. An 11.4% regulatory ROE is expected to have a 6 cent EPS impact in each of 2024 and 2025, which has already been taken into account in our financial expectations, and we will be disappointed if we are unable to deliver financial results at or near the top of our adjusted earning per share expectation ranges.
John: While these efforts have helped us to meet customer growth and deliver for our Florida customers. A reserve amortization mechanism has been utilized faster than expected.
John W. Ketchum: While these efforts have helped us to meet customer growth and deliver for our Florida customers, our reserve amortization mechanism has been utilized faster than expected. FPL fully expects to seek recovery of these increased expenditures in its rate case filing next year. FPL ended the second quarter with a remaining reserve amortization balance of $586 million, which is expected to be sufficient to support FPL's capital investment plan and its ability to earn an 11.4% regulatory ROE this year and next.
John: FPL fully expects to seek recovery of these increased expenditures in its rate case filing next year.
John: FPL ended the second quarter with a remaining reserve amortization balance of $586 million, which is expected to be sufficient to support fpl's capital investment plans and its ability to earn an 11, 4% regulatory ROE this year and next and.
John W. Ketchum: An 11.4 percent regulatory ROE is expected to have a six cent EPS impact in each of 2024 and 2025, which has already been taken into account in our financial expectations, and we will be disappointed if we are unable to deliver financial results at or near the top of our adjusted earning per share expectation ranges each year through 2027 at NextEra Energy. We expect to continue to demonstrate the benefits and protections that the reserve amortization mechanism provides customers when we file our rate case next year.
And 11, 4% regulatory ROE is expected to have a <unk> <unk> EPS impact in each of 2024, and 2025, which has already been taken into account in our financial expectations and we will be disappointed if we are unable to deliver financial results at or near the top of our adjusted.
John: Earnings per share expectation ranges each year through 2027 at Nextera energy.
John Ketchum: Each year, 320-27, at next year, it enters... We expect to continue to demonstrate the benefits and protections that the reserve amortization mechanism provides customers when we file our rate case next year. Our vision is for FPL to be the best utility franchise in the country by doubling down on what we do best: delivering low bills and high reliability for our customers by making smart capital investments and being the industry leader on cost. These attributes are important to our customers and regulators, and they are important to us. We look forward to continuing to deliver on what we believe is an outstanding customer value proposition at FPL.
John: We expect to continue to demonstrate the benefits and protections that the reserve amortization mechanism provides customers when we file our rate case next year.
John W. Ketchum: Our vision is for FPL to be the best utility franchise in the country by doubling down on what we do best, delivering low bills and high reliability for our customers by making smart capital investments and being an industry leader on cost. These attributes are important to our customers and regulators, and they are important to us. We look forward to continuing to deliver on what we believe is an outstanding customer value proposition at FPL. Growth is not only occurring inside Florida but outside Florida as well.
John: Our vision is for FPL to be the best utility franchise in the country by doubling down on what we do best delivering low bills and high reliability for our customers by making smart capital investments and being an industry leader on cost. These attributes are important to our customers and <unk>.
John: <unk> and they are important to us we look forward to continuing to deliver on what we believe is an outstanding customer value proposition.
Speaker Change: P L.
John Ketchum: Growth is not only occurring inside Florida but outside Florida as well. At Energy Resources, we are benefiting from two types of demand: replacement cycle and growth cycle demand. With regard to the former, we have long been a beneficiary of a replacement cycle where higher cost, less efficient generation has been retired in favor of low cost renewables and battery storage. We expect this to continue, and while replacement cycle demand has been around for a long time, growth cycle demand is new. With the exception of a few states, just Florida, power demand from new growth has been static in our industry for decades.
Speaker Change: Growth is not only occurring inside Florida, but outside Florida as well at energy resources. We are benefiting from two types of demand replacement cycle and growth cycle demand with regard to the former we have long been a beneficiary of a replacement cycle where higher cost.
John W. Ketchum: At Energy Resources, we are benefiting from two types of demand: replacement cycle and growth cycle demand. With regard to the former, we have long been a beneficiary of a replacement cycle where higher cost, less efficient generation has been retired in favor of low cost renewables and battery storage. We expect this to continue. And while replacement cycle demand has been around for a long time, growth cycle demand is new. With the exception of a few states, such as Florida, power demand from new growth has been static in our industry for decades.
Speaker Change: Less efficient generation has been retired in favor of low cost renewables and battery storage. We expect this to continue and while replacement cycled. The ban has been around for a long time gross cycle demand is new with the exception of a few states just Florida power demand from new <unk>.
Speaker Change: <unk> has been static in our industry for decades, that's changing this power demand is projected to grow four times faster over the next two decades compared to the prior to that growth is being driven by demand across multiple sectors, which is expected to create a long term opportunity for fast to deploy.
John Ketchum: That's changing as power demand is projected to grow four times faster over the next two decades compared to the prior two. That growth is being driven by demand across multiple sectors, which is expected to create a long-term opportunity for faster deploy, low cost generation. As highlighted at our investor conference, we expect the demand for new renewables to triple over the next seven years versus the prior seven to help meet this increased power demand. Energy resources couldn't be better positioned as it has a 300 gigawatt pipeline, half of which is in the interconnection Q process or is already interconnection ready.
John W. Ketchum: That's changing as power demand is projected to grow four times faster over the next two decades compared to the prior two. That growth is being driven by demand across multiple sectors, which is expected to create a long-term opportunity for fast to deploy, low cost generation. As highlighted at our investor conference, we expect the demand for new renewables to triple over the next seven years versus the prior seven to help meet this increased power demand. Energy Resources couldn't be better positioned, as it has a 300 gigawatt pipeline, half of which is in the interconnection queue process or is already interconnection ready.
Speaker Change: Low cost generation.
Speaker Change: As highlighted at our Investor Conference, we expect the demand for new renewables to triple over the next seven years versus the prior seven to help meet this increased power demand.
Energy Resources: Energy Resources' couldnt be better positioned.
Speaker Change: As it has a 300 gigawatt pipeline half of which is in the interconnection queue process or has already interconnection ready our scale experience and technology, coupled with our ability to build new transmission, where required enable us to meet the growing demands of our power and.
John W. Ketchum: Our scale, experience, and technology, coupled with our ability to build new transmission where required, enable us to meet the growing demands of our power and commercial and industrial customer base. Underpinning these competitive advantages are our decades of data, analytical capabilities, and experience with system operators and relationships with utilities that position us well to get the power to where it needs to go. Our continued ability to drive origination results speaks for itself.
John Ketchum: Our scale, experience, and technology, coupled with our ability to build new transmission where required, enable us to meet the growing demands of our power and commercial and industrial customer base. Underpinning these competitive advantages are our decades of data, analytical capabilities, and experience with system operators and relationships with utilities that position us well to get the power to where it needs to be. Our continued ability to drive origination results speaks for itself. Energy resources added over 3,000 megawatts of new renewables and storage projects of the backlog this quarter, 860 megawatts of which come from agreements with Google to meet their data center power demand.
<unk> and industrial customer base.
Speaker Change: Underpinning these competitive advantages are our decades of data analytical capabilities and experience with system operators and relationships with utilities that position us well to get the power to where it needs to go.
Speaker Change: Our continued ability to drive origination results speaks for itself <unk>.
John W. Ketchum: Energy Resources added over 3,000 megawatts of new renewables and storage projects to the backlog this quarter, 860 megawatts of which come from agreements with Google to meet their data center power demands. This marks our second best origination quarter ever. These results support our belief that the bulk of the growth demand will be met by a combination of new renewables and battery storage. The importance of renewable storage to help meet our economy's growing demand for power has never been more evident.
Speaker Change: Energy resources added over 3000 megawatts of new renewables and storage projects in the backlog this quarter 860 megawatts of which come from agreements with Google to meet their data center power demand.
John Ketchum: This marks our second best origination quarter ever. These results support our belief that the bulk of the growth demand will be met by a combination of new renewables and battery storage. The importance of renewables and storage to help meet our economies' growing demand for power has never been more evident. As data center growth accelerates to facilitate our economy shift to artificial intelligence and as we continue to re-domesticate and electrify across multiple sectors.
Speaker Change: This marks our second best origination quarter ever.
Speaker Change: These results support our belief that the bulk of the growth demand will be met by a combination of new renewables and battery storage.
Speaker Change: The importance of renewables and storage to help meet our economies growing demand for power has never been more evident.
John W. Ketchum: As data center growth accelerates to facilitate our economy's shift to artificial intelligence, and as we continue to re-domesticate and electrify across multiple sectors, our nation must embrace an all-of-the-above strategy to meet increasing electric demand. Renewables and storage are energy independent as they rely on American wind and sunshine.
Speaker Change: As data center growth accelerates to facilitate our economy shift to artificial intelligence and as we continue to re domesticate and electrify across multiple sectors.
John Ketchum: Partners. Our nation must embrace an all of the above strategy to meet increasing electric demand. Renewables and storage are energy independent as they rely on American wind and sunshine. They also are extremely fast to deploy compared to alternative forms of generation, making them vital to our country's success going forward. And importantly, the country has stood up a significant domestic industry to support their growth, which is driving investment in factories and is creating good-paying jobs and a tax base that is revitalizing rural communities across America. As customers increasingly demand smart, clean energy solutions, we are the company with experience in every part of the energy value chain and are uniquely positioned to help them make the right decisions for their business.
Speaker Change: Our nation must embrace and all of the above strategy to meet increasing electric demand renewables and storage are energy independent as they rely on American wind and Sunshine.
John W. Ketchum: They also are extremely fast to deploy compared to alternative forms of generation, making them vital to our country's success going forward. And importantly, the country has built a significant domestic industry to support their growth, which is driving investment in factories and is creating good-paying jobs and a tax base that is revitalizing rural communities across America. As customers increasingly demand smart, clean energy solutions, we are the company with experience in every part of the energy value chain and are uniquely positioned to help them make the right decisions for their business, as the owner and operator of a large natural gas-fired fleet in Florida.
Speaker Change: They also are extremely fast to deploy compared to alternative forms of generation, making them vital to our country's success going forward and importantly, the country has stood up a significant domestic industry to support their growth, which is driving investment in factories and is creating good paying jobs.
Speaker Change: <unk> and a tax base that is revitalizing rural communities across America.
Speaker Change: As customers increasingly demand smart clean energy solutions, we are the company with experience in every part of the energy value chain and are uniquely positioned to help them make the right decisions for their business as the owner and operator of a large natural gas fired fleet in Florida.
John Ketchum: As the owner and operator of a large natural gas-fired fleet in Florida, we are also conscious of the importance of natural gas-fired generation as a bridge fuel. Yet we also are well aware of the realities of new bill gas-fired generation. It's more expensive in most states, is subject to fuel price volatility, and takes considerable time to deploy given the need to get gas delivered to the generating unit and the three to four-year waiting period for gas turbines. Low-cost fast-to-deploy renewables help keep power prices down, making our economy more competitive globally. Ultimately, our country needs all forms of energy as we move forward, and the future has never been brighter for the power generation sector as a whole and renewables in particular.
John W. Ketchum: We are also conscious of the importance of natural gas fire generation as a bridge fuel. Yet, we are also well aware of the realities of new gas fire generation. It's more expensive in most states, is subject to fuel price volatility, and takes considerable time to deploy given the need to get gas delivered to the generating unit and the three to four year waiting period for gas turbines.
Speaker Change: We are also conscious of the importance of natural gas fired generation as a bridge fuel.
Speaker Change: Yet we also are well aware of the realities of Newbuild gas fired generation, it's more expensive and most states is subject to fuel price volatility and takes.
Speaker Change: <unk> time to deploy given the need to get gas delivered to the generating unit and the three to four year waiting period for gas turbines.
John W. Ketchum: Low-cost, fast-to-deploy renewables help keep power prices down, making our economy more competitive globally. Ultimately, our country needs all forms of energy as we move forward, and the future has never been brighter for the power generation sector as a whole and renewables in particular. As I've been saying, NextEra Energy was built for this moment, and our future outlook has never been stronger. Our strategic focus is to deliver low-cost, clean energy and storage for our customers, both inside and outside Florida, while building new transmission where required to support new generations. We have the playbook and the platform to win in any environment, and, most importantly, we have the team.
Speaker Change: Low cost fast to deploy renewables help keep power prices down, making our economy more competitive globally.
Speaker Change: Ultimately our country needs all forms of energy as we move forward in the future has never been brighter for the power generation sector as a whole and renewables in particular.
John Ketchum: As I've been saying, next-area energy was built for this moment, and our future outlook has never been stronger. Our strategic focus is to deliver low-cost, clean energy and storage for customers both inside and outside Florida while building new transmission and, where required, to support new generation. We have the playbook and the platform to win in any environment, and most importantly, we have the team. Our competitive advantages continue to grow every day, providing industry differentiation that is over two decades in the making and difficult to replicate. And I firmly believe we will continue to expand that strategic distance, creating value for customers and shareholders.
Unknown Executive: As I've been saying Nextera energy was built for this moment and our future outlook has never been stronger our strategic focus is to deliver low cost clean energy and storage for customers, both inside and outside Florida, while building, new transmission where required to support new Gen.
Speaker Change: <unk>, we have the playbook and the platform to win in any environment and most importantly, we have the team our competitive advantages continue to grow every day, providing industry differentiation that has over two decades in the making and difficult to replicate and I firmly believe we will.
John W. Ketchum: Our competitive advantages continue to grow every day, providing industry differentiation that has been over two decades in the making and difficult to replicate. And I firmly believe we will continue to expand that strategic distance, creating value for customers and shareholders. Nobody is better positioned to meet the demands of the energy customer of tomorrow than NextEra Energy, and I wouldn't trade our opportunity set with anyone. With that, I will turn the call over to Brian to cover the detailed results beginning with FPL. Thank you, John. Good morning, everyone.
Speaker Change: Continue to expand that strategic distance, creating value for customers and shareholders. Nobody is better positioned to meet the demands of the energy customer of Tomorrow, then nextera energy and I wouldn't trade our opportunity set with anyone.
John Ketchum: Nobody is better positioned to meet the demands of the energy customer of tomorrow than Next-Area Energy, and I wouldn't trade our opportunity set with anyone.
Brian Bolster: With that, I will turn the call over to Brian to cover the detailed results, beginning with FPL. Thank you, John. Good morning, everyone. For the second quarter of 2024, FPL increased earnings for share by 3 cents year over year. The principal driver of this performance was FPL's regulatory capital employed growth of approximately 10.7 percent year over year. We continue to expect FPL to realize roughly 10 percent average annual growth in regulatory capital employed over our current rate agreements for your term, which runs through 2025. FPL's capital expenditures were approximately $2.1 billion for the quarter, and we expect FPL's full-year 2024 capital investment to be between $8.8 billion.
Speaker Change: With that I will turn the call over to Brian to cover the detailed results beginning with FPL.
Brian W. Bolster: For the second quarter of 2024, FPL increased earnings per share by three cents year over year. The principal driver of this performance was FPL's regulatory capital employed growth of approximately 10.7 percent year over year. We continue to expect FPL to realize roughly 10 percent average annual growth in regulatory capital employed over our current rate agreements for your term, which runs through 2025. FPL's capital expenditures were approximately $2.1 billion for the quarter, and we expect FPL's full year 2024 capital investment to be between $8 and $8.8 billion.
Speaker Change: John Good morning, everyone for the second quarter of 2020 for FPL increased earnings per share by <unk> <unk> year over year.
Brian: Principal driver of this performance was Fpl's regulatory capital employed growth of approximately 10, 7% year over year, we continue to expect FPL to realize roughly 10% average annual growth in regulatory capital employed over our current rate agreement four year term, which runs through 2025.
Brian: Fpl's capital expenditures were approximately $2 $1 billion for the quarter and.
Brian: And we expect <unk> full year 2020 for capital investments to be between eight and $8 $8 billion over.
Brian Bolster: Partners. Over the current four-year settlement agreement, we expect FPL's capital investments to exceed $34 billion. FPL's second quarter retail sales increased 3.7% from the prior year comparable period due to warmer weather, which had a positive year-over-year impact on usage per customer of approximately 2.6%.
Brian W. Bolster: Over the current four-year settlement agreement, we expect FPL's capital investments to exceed $34 billion. FPL's second quarter retail sales increased 3.7 percent from the prior year comparable period due to warmer weather, which had a positive year-over-year impact on usage per customer of approximately 2.6 percent. As a result, FPL grew retail sales in the second quarter by roughly 1.1 percent on a weather-normalized basis.
Brian: Over the current four year settlement agreement, we expect our field capital investments to exceed $3 4 billion.
Brian: That field second quarter retail sales increased three 7% from the prior year comparable period due to warmer weather, which had a positive year over year impact on usage per customer of approximately two 6% as a result, FPL grew retail sales in the second quarter by roughly one 1% on a weather normalized basis.
Brian Bolster: As a result, FPL grew retail sales in the second quarter by roughly 1.1% on a weather-normalized basis. For the 12 months ending June 2024, FPL's reported ROE for regulatory purposes will be approximately 11.8%.
Brian W. Bolster: For the 12 months ending June 2024, FPL's reported ROE for regulatory purposes will be approximately 11.8%. And the 11.4% regulatory ROE mentioned previously is expected to be realized in the fourth quarter for the 12 months ending December 2024. Now let's turn to Energy Resources, which reported adjusted earnings growth of approximately 10.8% per year at 10.8% year-over-year. At Energy Resources, adjusted earnings per share increased by 3 cents year-over-year.
Brian: For the 12 months ending June 2024 that feels reported ROE for regulatory purposes will be approximately 11, 8%.
Brian Bolster: And the 11.4% regulatory ROE mentioned previously is expected to be realized in the fourth quarter for the 12 months ending December 2024.
Brian: And the 11, 4% regulatory ROE mentioned previously is expected to be realized in the fourth quarter for the 12 months ending December 2024.
Brian Bolster: Now, let's turn to energy resources, which reported adjusted earnings growth of approximately 10.8% per year, at 10.8% year-over-year. And energy resources adjusted earnings per share increased by 3 cents year-over-year. Contributions from new investments increased 12 cents per year, year-over-year, primarily driven by continued growth in our renewable portfolio. Our existing clean energy portfolio increased 6 cents per share, primarily reflecting an increase in wind resources during the quarter. Wind resource for the second quarter of 2024 was approximately 104% of the long-term average, versus 88% in the second quarter of 2023. The comparative contribution from our customer supply business, which you will recall had stronger last year, decreased by 3 cents per share.
Brian: Now, let's turn to energy resources, which reported adjusted earnings growth of approximately 10, 8% per year at 10, 8% year over year at energy resources adjusted earnings per share increased by <unk> <unk> year over year.
Brian W. Bolster: Contributions from new investments increased $0.12 per share year over year, primarily driven by continued growth in our renewables portfolio. Our existing clean energy portfolio increased $0.06 per share, primarily reflecting an increase in wind resources during the quarter. Wind resource for the second quarter of 2024 was approximately 104% of the long-term average, versus 88% in the second quarter of 2023. The comparative contribution from our customer supply business, which you'll recall had strong earnings last year, decreased by three cents per share. Contributions from our gas infrastructure business decreased by seven cents per share due to a combination of higher depletion expense related to lower production.
Brian: Contributions from new investments increased <unk> 12 per share year over year, primarily driven by continued growth in our renewables portfolio.
Brian: Our existing clean energy portfolio increased <unk> per share, primarily reflecting an increase in wind resources during the quarter.
Brian: Wind resource for the second quarter of 2024 was approximately 104% long term average versus 88% in the second quarter of 2023.
Brian: The comparative contribution from our customer supply business, which you will recall had stronger last year decreased by <unk> <unk> per share.
Brian Bolster: Contributions from our gas infrastructure business decreased by 7 cents per share due to a combination of higher depletion expense related to lower production estimates, certain non-recurring items, and the sale of the Texas pipelines by Next-Air Energy Partners. While we may see a few pennies impact again next quarter, we expect gas infrastructure's earnings growth to be effectively flat going forward as we continue to allocate more capital on a relative basis to renewable storage and transmission. Similar to what we saw this quarter, the increased contributions from new investment driven by the strength of our renewable development program are expected to more than offset any slowing in gas infrastructure growth going forward.
Brian: Contributions from our gas infrastructure business decreased by <unk> <unk> per share.
Brian: Due to a combination of higher depletion expense related to lower production estimates.
Brian W. Bolster: Certain non-recurring items and the sale of the Texas pipelines by NextEra Energy Partners. While we may see a few pennies impact again next quarter, we expect gas infrastructure's earnings growth to be effectively flat going forward as we continue to allocate more capital on a relative basis to renewables, storage, and transmission. Similar to what we saw this quarter, the increased contributions from new investment driven by the strength of our Renewable Development Program are expected to more than offset any slowing in gas infrastructure growth going forward; all other impacts reduce earnings by five cents per share. Energy Resources had a strong quarter of new renewables in storage origination, adding 3,000 megawatts to the backlog.
Brian: Certain nonrecurring items.
Brian: And the sale of the Texas pipelines by Nextera Energy partners.
Brian: While we may see a few pennies impact again next quarter.
Brian: We expect gas infrastructures earnings growth to be effectively flat going forward as we continue to allocate more capital on a relative basis to renewables storage and transmission.
Similar to what we saw this quarter the increased contributions from new investment driven by the strength of our renewable development program are expected to more than offset any slowing in gas infrastructure growth going forward.
Brian Bolster: All other impacts reduced earnings by 5 cents per share.
Brian: All other impacts reduced earnings by <unk> <unk> per share.
Brian Bolster: Energy resources had a strong quarter of new renewables in storage origination, adding 3,000 megawatts to the backlog. With these additions, our backlog now totals roughly 22.6 gigawatts after taking into account more than 1,600 megawatts of new projects placed in the service since our last earnings call, providing great visibility into Energy Resources' ability to deliver on our development program expectations, which we recently extended at our investor conference. We expect the backlog additions will go into service over the next few years and into 2028. Energy resources 300 gigawatts pipeline is years in the making and ready to respond to customer demand.
Energy resources had a strong quarter of new renewables and storage origination, adding 3000 megawatts to the backlog with these additions our backlog now totals roughly $22 six gigawatts after taking into account more than 600 megawatts of new projects placed into service since our last earnings call.
Brian W. Bolster: With these additions, our backlog now totals roughly 22.6 gigawatts after taking into account more than 1,600 megawatts of new projects placed in service since our last earnings call, providing great visibility into energy Resources ability to deliver on our development program expectations, which we recently extended at our investor conference. We expect the backlog additions will go into service over the next few years and into 2028. Energy Resources' 300-gigawatt pipeline is years in the making and ready to respond to customer demand. We have competitive advantages in understanding transmission and grid constraints. We have strong relationships with utilities serving the growing power grid, so we can build system solutions across stakeholders and customer needs.
Providing great visibility into energy resources' ability to deliver on our development program expectations, which we recently extended at our Investor Conference.
Brian: We expect the backlog additions will go into service over the next few years and into 2028.
Brian: Energy Resources' 300 gigawatt pipeline is years in the making and ready to respond to customer demand.
Brian Bolster: We have competitive advantages understanding and transmission and grid constraints. We have strong relationships with utilities serving the growing power grid. We can build system solutions across stakeholders and customer needs. And we can leverage our proprietary technology to site and deploy the best projects for our customers.
Brian: We have competitive advantages understanding transmission grid constraints.
Brian: We have strong relationships with utilities, serving the growing power grid.
Brian: We can build system solutions across stakeholders and customer needs and we can leverage our proprietary technology to site and deploy the best projects for our customers.
Brian W. Bolster: And we can leverage our proprietary technology to site and deploy the best projects for our customers. A great example is our collaboration with Entergy, where we are targeting to build 4.5 gigawatts of renewable storage solutions to help them meet both their new increased load demand and their energy transition goals. And we couldn't be more excited to work with a long-term established customer in order to help them execute on these goals. Another example is our collaboration with Google.
Brian Bolster: Partners. A great example is our collaboration with Energy, where we are targeted to build 4.5 gigawatts of renewable storage solutions to help them meet both their new increased load demand and energy transition goals. And we couldn't be more excited to work with a long-term established customer in order to help them execute on these goals.
Brian: A great example is our collaboration with Entergy.
Brian: Where we are targeting to build four five gigawatts of renewable storage solutions to help them meet both their new increased low demand and energy transition goals.
Brian: And we couldnt be more excited to work with a long term established customer in order to help them execute on these goals.
Brian Bolster: Another example is our collaboration with Google. As John said earlier, this quarter's backlog additions include 860 megawatts signed with Google to support their data center needs. That brings our total renewables portfolio with technology and data center customers, including assets in operation and in backlog, to 7 gigawatts. Our competitive position is even further advanced by our existing portfolio. With interconnection timelines for new sites stretching for 3 to 7 years or beyond, we can dramatically improve our speed to market by utilizing the existing interconnection from our operating footprint to deploy co-located solar and storage, as well as execute on wind and potentially solar repowers.
Brian: Another example is our collaboration with Google.
Brian W. Bolster: As John said earlier, this quarter's backlog additions include 860 megawatts signed with Google to support their data center needs. That brings our total renewables portfolio with technology and data center customers, including assets in operation and in backlog, to seven gigawatts. Our competitive position is even further advantaged by our existing portfolio, with interconnection timelines for new sites stretching for three to seven years or beyond. We can dramatically improve our speed to market by utilizing the existing interconnection from our operating footprint to deploy co-located solar and storage, as well as execute on wind and potentially solar repowered.
Brian: As John said earlier this quarter. This quarter's backlog additions include 860 megawatts signed with Google to support their data center needs.
That brings our total renewables portfolio with technology and data center customers.
John: Including assets in operation ending backlog to seven Gigawatts.
John: Our competitive position is even further advantage of our existing portfolio with interconnection timelines for new sites stretching for three years to seven years or beyond.
Speaker Change: Can dramatically improve our speed to market by utilizing the existing interconnection from our operating footprint to deploy co located solar and storage as well as execute on wind and potentially slurry powers.
Brian Bolster: This optionality provides a unique resource to meet our customer needs, while also capitalizing on the embedded option value from the existing portfolio.
Brian W. Bolster: This optionality provides a unique resource to meet our customer needs while also capitalizing on the embedded option value from the existing portfolio. Beyond renewables and storage, we're excited to say that Mountain Valley Pipeline is now in service. Turning now to second quarter 2024 consolidated results, adjusted earnings from corporate and other increased by two cents per share year over year.
Speaker Change: This optionality provides a unique resource to meet our customer needs. While also capitalizing on the embedded option value from the existing portfolio.
Brian Bolster: Beyond renewables and storage, we're excited to say that Mountain Valley Pipeline is now in service.
Speaker Change: Beyond renewables and storage, we're excited to say that mountain Valley pipeline is now in service.
Brian Bolster: Turning now to the second quarter of 2024 consolidated results, adjusted earnings from corporate and other increased by 2 cents per share year-over-year.
Turning now to second quarter 2024 consolidated results adjusted earnings from corporate and other increased by <unk> <unk> per share year over year.
Brian Bolster: During the quarter, Nexdera issued $2 billion of equity units, and recently Energy Resources entered into an agreement with Blackstone to sell a partial interest in the portfolio of wind and solar projects for approximately $900 million. Our long-term financial expectations, which we extended last month at our investor conference, remain unchanged. We will be disappointed if we're not able to deliver financial results at or near the top end of our adjusted EPS expectations range in 2024, 2025, 2026, and 2027. From 2023 to 2027, we continue to expect that our average annual growth and operating cash flow will be at or above our adjusted EPS compound annual growth rate range.
Brian W. Bolster: During the quarter, NextEra issued $2 billion of equity units, and recently Energy Resources entered into an agreement with Blackstone to sell a partial interest in a portfolio of wind and solar projects for approximately $900 million. Our long-term financial expectations, which we extended last month at our investor conference, remain unchanged. We will be disappointed if we're not able to deliver financial results at or near the top end of our adjusted EPS expectations range in 2024, 2025, 2026, and 2027.
Speaker Change: During the quarter Nextera issued $2 billion of equity units.
Speaker Change: And recently energy Resources' entered into an agreement with Blackstone to sell a partial interest in a portfolio of wind and solar projects for approximately 900.
Speaker Change: Million.
Our long term financial expectations, which we extended last month at our Investor Conference remain unchanged.
Speaker Change: We will be disappointed if we're not able to deliver financial results at or near the top end of our adjusted EPS expectations range in 2020 for 2025 2026 and 2027.
Brian W. Bolster: From 2023 to 2027, we continue to expect that our average annual growth and operating cash flow will be at or above our adjusted EPS compound annual growth rate range. And we also continue to expect to grow our dividends per share at roughly 10% per year through at least 2026, assuming off a 2024 base.
Speaker Change: From 2023 to 2027, we continue to expect that our average annual growth in operating cash flow will be at or above our adjusted EPS compound annual growth rate range.
Brian Bolster: And we also continue to expect to grow our dividends per share at roughly 10 percent per year, through at least 2026 off a 2024 base. As always, our expectations assume our caveats.
Speaker Change: And we also continue to expect to grow our dividends per share at roughly 10% per year through at least 226 off.
Speaker Change: After 2024 base.
Brian W. Bolster: As always, our expectations assume our caveat. Turning next to NextEra Energy Partners, yesterday, the NextEra Board declared a quarterly distribution of $0.905 per common unit or $3.62 per common unit on an annualized basis, up approximately 6% from a year earlier.
Speaker Change: As always our expectations assume our caveat.
Brian Bolster: Turning next to Nexdera Energy Partners, yesterday, Nexdera Energy Partners' Board declared a quarterly distribution of 90.5 cents per common unit, or $2.62 per common unit on an annualized basis, up approximately 6 percent from a year earlier. Turning to the balance sheet, since our last earnings call, the partnership completed the next Nexdera Renewables to equity buyout of roughly $190 million in June 2024 and paid down our 2024 convertible maturity with cash on hand. After repayment of a $700 million hold code debt maturity earlier this month, the partnership now has approximately $2.7 billion of liquidity.
Speaker Change: Turning next to Nextera energy partners yesterday, Nextera Energy Partners' Board declared a quarterly distribution of <unk> 95 per common unit or $2 62 per common unit on an annualized basis.
Speaker Change: Up approximately 6% from a year earlier.
Brian W. Bolster: Turning to the balance sheet, since our last earnings call, the partnership completed the next NEP renewables to equity buyout of roughly $190 million in June 2024 and paid down our 2024 convertible maturity with cash on hand. After repayment of a $700 million HoldCode debt maturity earlier this month, the partnership now has approximately $2.7 billion of liquidity. Let me now turn to the detailed results. Second quarter adjusted EBITDA was $560 million, and cash available for distribution was $220 million.
Speaker Change: Turning to the balance sheet since our last earnings call. The partnership completed the next net renewables to equity buyout of roughly $190 million in June 2024, and pay down our 2024 convertible maturity with cash on hand.
Speaker Change: After repayment of a $700 million holdco debt maturity earlier. This month. The partnership now has approximately $2 $7 billion of liquidity.
Brian Bolster: Let me now turn to the detailed results. Second quarter adjusted EBITDA was $560 million, and cash available for distribution was $220 million. Partners, new projects, which primarily reflect contributions from approximately 780 net megawatts of new assets that either close in the second quarter of 2023 or commercial operations in 2023, contributed approximately $39 million of adjusted EBITDA and $9 million of cash available for distribution. Second quarter adjusted EBITDA contribution from existing projects grew by approximately $60 million a year over year, driven primarily by favorable wind resource during the quarter and partially offset by a lower solar generation.
Brian W. Bolster: New projects, which primarily reflect contributions from approximately 780 net megawatts of new assets that either closed in the second quarter of 2023 or achieved commercial operations in 2023, contributed approximately $39 million of adjusted EBITDA and $9 million of cash available for distribution. Second quarter adjusted EBITDA contribution from existing projects grew by approximately $62 million year over year, driven primarily by favorable wind resources during the quarter and partially offset by lower solar generation.
Speaker Change: Let me now turn to the detailed results.
Speaker Change: Second quarter, adjusted EBITDA was $560 million and cash available for distribution was $220 million new.
Speaker Change: New projects, which primarily reflect contributions from approximately 780 net megawatts of new assets that.
Speaker Change: And then either closed in the second quarter of 2023 or commercial operations in 2023 contributed approximately $39 million of adjusted EBITDA and $9 million of cash available for distribution.
Speaker Change: Second quarter adjusted EBITDA contribution from existing projects grew by approximately $62 million year over year.
Speaker Change: Driven primarily by favorable wind resource during the quarter and partially offset by lower solar generation.
Brian Bolster: Wind resource was approximately 103% of the long-term average versus 88% in the second quarter of 2023. Finally, adjusted EBITDA and cash available for distribution declined by approximately $46 million and $43 million, respectively, from the divest district, the Texas Pipeline Portfolio, which is partially offset by the interest benefit of the remaining cash proceeds received from the sale of these assets.
Brian W. Bolster: The wind resource is approximately 103% of the long-term average versus 88% in the second quarter of 2023. Finally, adjusted EBITDA and cash available for distribution declined by approximately $46 million and $43 million, respectively, from the divestiture of the Texas Pipeline portfolio, which is partially offset by the interest benefit of the remaining cash proceeds received from the sale of these assets.
Speaker Change: Wind resource was approximately 103% of the long term average.
Speaker Change: 88% in the second quarter of 2023.
Speaker Change: Finally, adjusted EBITDA and cash available for distribution declined by approximately $46 million and $43 million, respectively from the divestiture of the Texas pipeline portfolio, which is partially offset by the interest benefit of the remaining cash proceeds received from the sale of these assets.
Brian Bolster: From a base of our fourth quarter 2023 distribution per common unit at an annualized rate of $3.52, the partnership continues to see 5% to 8% growth. With the current target of 6% growth per year as being a reasonable range of expectations through at least 2026. Next year, our energy partners expect the partnership payout ratio to be in the mid to high 90s through 2026. We expect the annualized rate of the fourth quarter 2024 distribution that is payable in February 2025 to be $3.73 per common unit. In terms of next steps for NextEra Energy Partners, as we have discussed with you previously, the partnership is continuing to look at all options to secure a competitive cost of capital and to address the remaining convertible equity portfolio financing buyouts.
Brian W. Bolster: From a base of our fourth quarter 2023 distribution per common unit at an annualized rate of $3.52, the partnership continues to see 5% to 8% growth per year in LP distributions per unit with a current target of 6% growth per year, as being a reasonable range of expectations through at least 2026. Partners expects the partners payout ratio to be in the mid to high 90s through 2020. We expect the annualized rate of the fourth quarter 2024 distribution, which is payable in February 2025, to be $3.73 per common unit.
Speaker Change: From a base of our fourth quarter 2023 distribution per common unit at an annualized rate of $3 52.
Speaker Change: The partnership continued to see 5% to 8% growth per year in LP distributions per unit with a current target of 6% growth per year.
Speaker Change: As being a reasonable range of expectations through at least 2026.
Speaker Change: Nextera energy partners expects the partners payout ratio to be in the mid to high <unk> through 2026, we expect the annualized rate of the fourth quarter 2024 distribution that is payable in February 2025 to be $3 73 per common unit.
Brian W. Bolster: In terms of next steps for NextEra Energy partners, as we have discussed with you previously, the partnership is continuing to look at all options to secure a competitive cost of capital and to address the remaining convertible equity portfolio financing buyout. At the same time, the partnership's 6% distribution growth target remains for now. NextEra Energy Partners does not need an acquisition-related financing in 2024 to meet its 6% target and does not need growth equity until 2027.
Speaker Change: In terms of next steps for Nextera energy partners as we've discussed with you previously the partnership.
Speaker Change: <unk> is continuing to look at all options to secure a competitive cost of capital.
Speaker Change: And to address the remaining convertible equity portfolio financing buyouts.
Brian Bolster: At the same time, the partnership's 6% distribution growth target remains for now. Next-Era Energy Partners does not need an acquisition-related financing in 2024 to meet its 6% target and does not need growth equity until 2027. NextEra Energy Partners own a large portfolio of high-quality, long-term contracted clean energy assets, and the partnership has attractive organic growth from the repowering of its existing portfolio.
Speaker Change: At the same time, the partnerships, 6% distribution growth target remains four now.
Speaker Change: Nextera energy partners does not need an acquisition related financing in 2024 to meet our 6% target and does not need equity until 2027.
Brian W. Bolster: NextEra Energy Partners owns a large portfolio of high-quality, long-term contracted clean energy assets, and the partnership has attractive organic growth from the repowering of its existing portfolio. We expect to share more in the coming quarters as we address these objectives. NextEra Energy Partners expects run rate contributions for adjusted EBITDA and cash available for distribution from its forecasted portfolio at December 31, 2024, in the ranges of $1.9 to $2.1 billion and $730 to $820 million, respectively.
Speaker Change: Nextera energy partners owns a large portfolio of high quality long term contracted clean energy assets in the partnership has attractive organic growth from the repowering of its existing portfolio.
Brian Bolster: We expect to share more in the coming quarters as we address these objectives. NextEra Energy Partners expect run rate contributions for adjusted EBITDA and cash available for distribution from its forecasted portfolio at December 31, 2024, to be in the ranges of $1.9 to $2.1 billion and $730 to $820 million, respectively. As a reminder, year-end 2024 run rate projections reflect calendar year 2025 contributions from the forecasted portfolio at year-end 2024. As a further reminder, our expectations are subject to our caveats.
Speaker Change: We expect to share more in the coming quarters as we address these objectives.
Speaker Change: Nextera energy partners expects run rate contribution for adjusted EBITDA and cash available for distribution from its forecasted portfolio at December 31 2024.
Speaker Change: The ranges of one nine to $2 1 billion.
Speaker Change: $730 million to $820 million respectively.
Brian W. Bolster: As a reminder, year-end 2024 run rate projections reflect calendar year 2025 contributions from the forecasted portfolio at year-end 2024. As a further reminder, our expectations are subject to our caveat. That concludes our prepared remarks, and with that, we'll open the line for questions. We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touchtone phone.
Speaker Change: Kinder year end 2024 run rate projections reflect calendar year 2025 contributions from the forecasted portfolio.
Speaker Change: At year end 2024.
Speaker Change: As a reminder, our expectations are subject to a caveat.
Unknown Executive: That concludes our prepared remarks, and with that, we'll open the line for questions. We will now begin the question and answer session. To ask a question, you may press star, then one on your touch-tone phone. If you're using a speaker phone, please pick up your hands up before pressing the key. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two.
Speaker Change: That concludes our prepared remarks and with that we will open the line for questions.
Speaker Change: Well now begin the question and answer session.
Speaker Change: I ask a question you May press Star then one on your Touchtone phone.
Operator: If you are using a speakerphone, please pick up your handset before pressing the key. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. The first question comes from Steve Fleishman from Wolf Research. Please go ahead. Yeah, excuse me.
Speaker Change: If you are using a speakerphone please pick up your handset before pressing the keys.
Speaker Change: If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
Steve Fleishman: The first question comes from Steve Fleishman from Wolf Research. Please go ahead. Yeah, excuse me. I Good morning. Can you hear me? Yes. Okay.
Speaker Change: The first question comes from Steve Fleishman from Wolfe Research. Please go ahead.
Speaker Change: Okay.
Steven Isaac Fleishman: Hi. Good morning. Can you hear me?
Steven Isaac Fleishman: Yes, excuse me hi, good morning can you hear me.
Unknown Executive: Yes, Steve, we can hear you. Okay. Hey, just, just first on the comments on the kind of update on the reserve amortization and earned ROE. Could you just go back through that again, John, in terms of just the, What's driven the increased usage? Is it just that you've ramped up?
Speaker Change: Yes, Steve.
John Ketchum: Hey, just first on the comment on the kind of update on the reserve amortization and earned ROE. Could you just go back to that again, John, in terms of just the what's driven the increased usage? Is it just that you've ramped up? Capital a lot quicker than initially planned or just maybe give a little bit of color on a little more color on that comment. Yeah, no, absolutely, Steve. So, you know, we've had a lot of population growth in Florida. A lot of that has impacted our service territory. When we first entered into the settlement agreement back in 21, we thought our regulatory capital employed to be around 9%.
Speaker Change: Hey.
Speaker Change: Just.
Speaker Change: Just first on the comments on the.
Speaker Change: Kind of update on the reserve amortization and earned ROE.
Speaker Change: Could you just go back through that again, John in terms of just the.
Speaker Change: What's driven the increased usage or is it just that you've ramped up.
Steven Isaac Fleishman: Capital a lot quicker than initially planned or just maybe give a little bit of color on a little more color on that comment, Yeah, no, absolutely, Steve. So, you know, we've had a lot of population growth in Florida. A lot of that has impacted our service territory. When we first entered into the settlement agreement back in 21, we thought our regulatory capital employee would be around 9%.
Speaker Change: Capital a lot quicker than initially planned or just maybe give a little bit of color on a little more color on that comment.
John: Yes, no absolutely Steve So we've had a lot of population growth in Florida, a lot of that has impacted our service territory. When we first entered into the settlement agreement back in 'twenty, one we thought our regulatory capital employed to be around 9% its actually been around 12 as we have accomplished.
John Ketchum: It's actually been around 12, as we have accommodated that growth. And so we've got a surplus that's right around $586 million today as we look forward for this year and next based on where we are. The capital plans that we have for the FPL business, which are still very strong, that take into account the further growth that we see. We believe that with that amortization balance and those cap explains will probably be, you know, right around 11.4% ROE for the full year 24 and for the full year 25. And that has about a 6-cent impact here this year and a 6-cent impact next year.
John W. Ketchum: It's actually been around 12 as we have accommodated that growth, and so we've got a surplus that's right around $586 million today. As we look forward for this year and next, based on where we are, and the capital plans that we have for the FPL business, which are still very strong to take into account the further growth that we see, we believe that with that amortization balance and those CapEx plans, we'll probably be right around an 11.4% ROE for the full year 24 and for the full year 25. And that has about a 6% impact here this year and a 6% impact next year. But it's already folded into our financial expectations and is not a concern in terms of our ability to cover it.
Speaker Change: David.
David: That growth and so we've got surplus thats right around $586 million today as we look forward for.
David: This year and next.
Speaker Change: Based on where we are is the capital plans that we have for the FPL business, which are still very strong but take into account. The further growth that we see.
Speaker Change: We believe that with that amortization balance and those capex plans will probably be <unk>.
Speaker Change: Right around 11, 4%.
Speaker Change: Ro.
Speaker Change: For the full year 'twenty four and for the full year 'twenty five and that has about a 6% impact here this year and a 6% impact next year, it's already folded into our financial expectations and not.
John Ketchum: It's already folded into our financial expectations and not a concern in terms of our ability to cover it.
Speaker Change: Not a concern in terms of our ability to cover it and a big Big plus from this Steve is it really.
John Ketchum: And, you know, a big plus from this, Steve, is it really, you know, I think is a good fact heading into a refiling in 25 because it demonstrates how the surplus mechanism can really help customers. And the last point that I'll make is, don't forget these additional capital investments that we've made; we would expect to seek full recovery in our next filing. So this, remember that the surplus mechanism is intended really just to deal with the regulatory lag as we make new investments at FPL to accommodate the additional growth. So we're not worried about this.
John W. Ketchum: And, you know, a big plus from this, Steve, is that it really is, you know, I think it's a good fact heading into filing in 25 because it demonstrates how the surplus mechanism can really help customers. And the last point that I'll make is don't forget these additional capital investments that we've made, which we would expect to see full recovery of in our next filing. So this, remember that the surplus mechanism is intended really just to deal with the regulatory lag as we make new investments at FPL to accommodate the additional growth.
Steven Isaac Fleishman: I think is a good fact heading into a rate filing in 25, because it demonstrates how the surplus mechanism can really help customers and the last point that I'll make is don't forget these additional capital investments that we've made we would expect to see.
Steven Isaac Fleishman: A full recovery of our in our next filing. So this remember that the surplus mechanism is intended really just to deal with the regulatory lag as.
Steven Isaac Fleishman: As we make new investments at FPL to accommodate the additional growth. So we're not worried about this this is something that.
John W. Ketchum: So we're not worried about this. This is something that we feel very comfortable about addressing in our financial expectations and doesn't impact where we feel like we will end up this year. Okay, thanks. And then on this Blackstone financing that you mentioned, the 900 million. Any information on just the size of the portfolio that was sold and or the stake in that portfolio?
John Ketchum: This is something that is something that we feel very comfortable about addressing in our financial expectations and doesn't impact where we feel like we will end up this year and next.
Steven Isaac Fleishman: As is.
Steven Isaac Fleishman: It's something that we feel very comfortable about addressing and our financial expectations and doesn't doesn't impact where we feel like we will end up this year indexed.
John Ketchum: Okay, thanks. And then on the Blackstone financing that you mentioned, the 900 million, any information on just the, you know, size of the portfolio that was sold or the stake in that portfolio. It was a 1.6 gigawatt portfolio, just a mix of renewable assets. I think the real positive takeaway here for investors is there's a real demand for NextEra assets. We are recognized in the private equity market as being really the top developer, and given all the growth, this quarter is a great example of the three gigawatts that we've were able to do. We have a strong trajectory going forward, and this private equity has opportunities to work with us, and we've had a long history of working with private equity going back the last five or six years.
Speaker Change: Okay. Thanks, and then on the Blackstone financing that you mentioned the $900 million any information on just the.
Steven Isaac Fleishman: Yes.
Speaker Change: Size of the portfolio that was sold and the stake in that portfolio.
Steven Isaac Fleishman: Yeah, it was a 1.6 gigawatt portfolio, just a mix of renewable assets. And I think the real positive takeaway here for investors is that there is real demand for NextEra assets. I mean, we are recognized in the private equity market as being, you know, really the top developer, and given all the growth, and this quarter is a great example of the three gigawatts that we were able to do.
Speaker Change: Yes. It was a one six gigawatt portfolio, just a mix of renewable assets and I think the real positive takeaway here for investors is.
Speaker Change: So there's a real demand.
Speaker Change: For Nextera assets, we are recognized in the private equity market as being.
Speaker Change: No really the top developer and given all the growth in this quarter is a great example of the three gigawatts that we were able to do.
Steven Isaac Fleishman: You know, we have a strong trajectory going forward, and as private equity has opportunities to work with us, and we have a long history of working with private equity, going back to the last, you know, five or six years, it really is a potential win-win for us and for them. With the Blackstone organization, we really like the capability that they bring to the table, and there's a lot of crossover between our two organizations in terms of what we do, and so, you know, this was a good fit for us. And just what's the percent? Is the percent stake a piece of the 1.6, or is their stake 1.6?
Speaker Change: We have strong trajectory going forward and as private equity.
Speaker Change: It has opportunities to work with us and we have a long history of working with private equity.
Speaker Change: Going back the last five or six years.
John Ketchum: It really is a good potential win-win for us and for them. With the Blackstone organization, we really like the capability that they bring to the table, and there's a lot of crossover between our two organizations in terms of what we do, and so this was a good fit for us.
Speaker Change: It really is.
Speaker Change: Good potential win win for us.
Blackstone: And for them and with the Blackstone organization, So we really like the capability.
Blackstone: That they bring to the table and Theres a lot of crossover between our two organizations in terms of what we do and so this was a good fit for us.
Blackstone: And just as is.
John Ketchum: What's the percent stake a piece of the 1.6, or their stake is 1.6? They invested capital alongside us, and so they have a partial interest in that portfolio of 2.6 gigawatts.
Whats the percentage as a percent stake.
Speaker Change: So the $1 six or their stake as one six.
John W. Ketchum: They invested capital alongside us, and so they have a partial interest in that portfolio of 1.6 gigawatts. And then last question, just on the recent issue. I know you're not doing offshore wind, but just this recent issue with the G turbines, turbines at Vineyard Wind, and I know there was a lawsuit filed by AAP.
Blackstone: They invested capital alongside us and so they have a partial interest in that portfolio got it six gigawatts.
John Ketchum: And then last question, just on the recent issue. I know you're not doing offshore wind, but just this recent issue with the GE turbines at Vineyard Wind, and I know there's a lawsuit filed by AP. Can you just maybe talk to your turbine performance with them and just are you seeing any issues and how you're feeling about that? Yeah, for us, I mean, look, first I'll start with the fact that we are a top design operator of wind. I think really recognized as the best operator wind in the business. And we have a real partnership with GE, and so when turbines have moving parts, they'll have issues from time to time.
Blackstone: And then last question just on the recent.
Speaker Change: Issue I know youre not doing offshore wind, but just this recent issue with the.
Speaker Change: GE turbines.
Blackstone: Ben.
Speaker Change: That vineyard wind and I know there was a lawsuit filed by AEP can you just maybe talk to your turbine performance with them and just are you seeing any issues.
Steven Isaac Fleishman: Can you just maybe talk about your turbine performance with them and just are you seeing any issues and how you're feeling about that? Yeah, for us, I mean, look, you know, first, I'll start with the fact that we are, you know, a top decile operator of wind, you know, I think really recognized as the best operator of wind in the business. And we have a real partnership with GE. And so, you know, look, when turbines have moving parts, they'll have issues from time to time. But our partnership with GE has been going on 20 years, and so, you know, we've really never had any issues with getting things fixed.
Blackstone: Are you feeling about that.
Speaker Change: For Us I mean look first I'll start with the fact that we are.
Speaker Change: A top decile operator of wind I think really recognized as the best operator of wind in the business and we have a real partnership with GE and so wind turbines have moving parts still have issues from time to time, but.
John Ketchum: But our partnership with GE runs 20 years, and so we've really never had any issues in getting things fixed, and we're always able to structure wind arrangements with them. So, as any problems arise through the portfolio, they've always been well managed and addressed in a conciliatory way with GE and future.
Blackstone: Our partnership with GE runs 20 years, and so we've really never had issues in getting things fixed.
Blackstone: We're always able to structure win win.
Blackstone: Arrangements with them. So it's any problems arise for the portfolio.
Blackstone: They've always been well managed and dressed in a conciliatory way with GE.
Blackstone: Well.
Blackstone: Future.
Unknown Executive: Okay, great.
Speaker Change: Okay, great. Thank you.
Shahriar Pourreza: Thank you. The next question comes from Sharra Paraza. Good on high partners. Please go ahead. Hey guys, good morning. Good morning, John. Good morning. How are you, Shar? Good. All good.
John W. Ketchum: And we're always able to structure win-win arrangements with them. So as any problems arise through the portfolio, they've always been well managed and addressed in a conciliatory way with GE. Okay, great. Thank you. The next question comes from Shahriar Pourreza of Guggenheim Partners. Please go ahead.
Unknown Attendee: The next question comes from sharp Guereza.
Unknown Attendee: Hi partners. Please go ahead.
Shahriar Pourreza: Hey, guys. Good morning. Good morning, John. Good morning. How are you, Shahriar?
Speaker Change: Hey, guys. Good morning, good morning, John.
John: Good morning, how are you sure.
Unknown Executive: Good, all right. So just real quick, I want to start on NEP. I mean, obviously, you guys have the standard language around continuing to evaluate all options. I mean, Brian obviously reiterated the current CAGR but also used the word for now, quote unquote, which is somewhat new language, believe it or not. Can we get a sense of timing, what range of options you're thinking about, and I guess how confident are you we can get something done at favorable pricing before the dividend goes under some level of pressure in 27? Thanks. Yeah, hey, thanks, Shahriar.
John: All good so just real quick I wanted to start on that I mean, obviously you guys have the standard language around continuing to evaluate all options I mean, Brad.
Shahriar Pourreza: So just look, I want to start on NEP. I mean, obviously you guys have the standard language around continuing to evaluate all options. I mean, Brian obviously reiterated the current Kager, but also used the word "for now," quote unquote, which is somewhat new language, believe it or not. Can we get a sense on timing, what range of options you're thinking about, and I guess how confident are you we can get something done at favorable pricing before the dividend goes under some level of pressure in 27. Thanks. Yeah, hey, thanks, Shahriar. You know, obviously, any P is getting a lot of our attention in terms of, you know, looking at what the alternatives are.
Sharp Guereza: Ian obviously reiterated the current CAGR, but also used the word for now quote unquote, which is somewhat new language believe it or not can we get a sense on timing what range of options, you're thinking about and I guess, how confident are you or we can get something done at favorable pricing before the dividend goes under some level of pressure.
Speaker Change: In 2007.
John W. Ketchum: You know, obviously, NEP is getting a lot of our attention in terms of, you know, looking at what the alternatives are to both improve the cost of capital, which really requires us to be able to successfully address the back end SEPIFs. And, you know, as we said in the prepared remarks, all options are on the table. And, you know, what we really are spending time on, and we're looking at, you know, various solutions around this is, you know, how do you tackle those back-end SEPIFs in a constructive way that makes sense, you know, in terms of the cost of capital that would be required to do that? And then how do we put NEP in a better position for success going forward?
John: Yeah, Hey, Thanks, Shar obviously.
Speaker Change: <unk> is getting a lot of our attention in terms of.
Speaker Change: Looking at what the alternatives are to.
Shahriar Pourreza: Both improve the cost of capital, which really requires us to be able to successfully address the backend setups. And, you know, as we said in the prepared remarks, all options are on the table. And, you know, what we really are spending time on. And we're looking at, you know, various solutions around this. You know, how do you tackle those backend setups in a constructive way that makes sense, you know, in terms of the cost of capital that would be required to do that. And then, and then how do we put napping a better position for success going forward.
Speaker Change: Both improve the cost of capital, which really requires us to be able to successfully address the backend setups and as we've said in the prepared remarks, all options are on the table and what we really.
Speaker Change: Our spending time on and we're looking at various solutions around this is how do you tackle those backend surface in a constructive way that makes sense.
John W. Ketchum: So as part of that, you know, we are obviously exploring all alternatives. We've mentioned private capital is one potential avenue there, as well. The good thing is that, you know, we have time, we have time in 2024, you know, we've set the market, we don't have to do anything, we don't have any drops planned for 2024, and we don't have growth equity needs until 2027. And so, you know, we are being thoughtful about our approach around, And I think Brian, just to not take words out of his mouth, but mentioned in the next couple In direction this year.
Speaker Change: In terms of the cost of capital that would be required to do that and then how do we.
Speaker Change: Putting <unk> in a better position.
Speaker Change: For success.
Brian Bolster: So it's part of that; you know, we are obviously exploring all alternatives. We've mentioned private capital is, you know, one potential avenue there as well. The good thing is that, you know, we have time. We have time. In 2024, you know, we've said the market. We don't have to do anything. We don't have a dropped plan for 24. Don't have growth equity needs until 27. And so, you know, we are, we are being thoughtful about our approach around NEP.
Speaker Change: Going forward so as part of that we are obviously exploring.
Speaker Change: Alternative so we've mentioned private capital is one potential avenue there as well the good thing is that we have time, we have time at 2024.
Speaker Change: We've said to the market, we don't have to do anything would have any drops plan for 'twenty four.
Speaker Change: Don't have.
Speaker Change: Both equity needs.
Speaker Change: Until 'twenty seven or so.
Speaker Change: We are we are being thoughtful about our approach.
Speaker Change: Around in EP.
Brian Bolster: And I think Brian, just to take words out of Zumpa, mentioned in the next couple of quarters, is this something maybe we'll get to some sort of a definitive direction. Yeah. Sure. I don't want to put a firm deadline on it, but, you know, I think the language we use is over the next few quarters. And, you know, once we have identified a solution that we think makes sense. Then, you know, obviously we will share that, but not until then.
Speaker Change: Got it and I think Brian just to not to take orders that have not been mentioned in the next couple of quarters is that is this something maybe we'll get to some sort of a definitive <unk>.
Brian: Directionally, yes here.
Unknown Executive: Yeah, sure. I don't want to put a firm deadline on it. But, you know, I think the language we use will evolve over the next few quarters. And, you know, once we have identified a solution that we think makes sense, then, obviously, we will share that, but not until, Okay, perfect. And then just on Near, obviously, just congrats on a very strong registration quarter. It was definitely on the higher end, and Google was a key contributor.
Brian: Yeah sure I don't want to put a firm deadline on it but you know.
Brian: I think the language we use is over the next few quarters and once we have.
Speaker Change: <unk> identified a solution that we think makes sense, then obviously, we will share that but but not until then.
Rebecca Kujawa: Okay. Perfect. And then just on year, obviously, just congrats on a, you know, very strong, original quarter. It was definitely on the higher end. Google was a key contributor. I guess do your sort of existing contract protections and supply chain, maybe strategy light to kind of navigate some of the challenges in this space. As you continue to expand development to maybe much higher levels, right. So can supply chain kind of these bottlenecks that we've seen become a governor around backlog conditions. As we look through 25 and beyond, especially as you're trying to meet the needs of these large energy intensive customers, right.
Speaker Change: Okay Perfect and then just on near obviously, just congrats on a very strong origination quarter was definitely on the higher end Google was a key contributor.
Shahriar Pourreza: I guess, your sort of existing contract protections and supply chain, maybe strategy to kind of navigate some of the challenges in this space, as you're continuing to expand development to maybe much higher levels, right? So can supply chain kind of these bottlenecks that we've seen become a governor around backlog additions as we look through 25 and beyond, especially as you're trying to meet the needs of these large energy-intensive customers, right, like the hyperscalers? Thanks. Yeah, a good question, Shahriar.
Speaker Change: Do your sort of existing contract protections in supply chain, maybe strategy lie to kind of navigate some of the challenges in this space as youre continuing to expand development, maybe much higher levels right. So can supply chain kind of these bottlenecks that we've become a governor around backlog additions as we look.
Speaker Change: Through 'twenty, five and beyond especially as you are trying to meet the needs of these large energy intensive customers right like the hyperscale or thanks.
Rebecca Kujawa: Like the hyperscalers. Thanks. Yeah. Good question, Shar.
John W. Ketchum: So here's how I think about the supply chain. You know, number one, there's been some attention around the ADCVD filing and tariffs and those things. But we're not impacted.
Shar: Yes. Good question Shar, so here's how I think about supply chain you know number one there's been some attention around the <unk> filing and tariffs and those things we're.
Rebecca Kujawa: So the, here's how I think about supply chain. You know, number one, there's been, you know, some attention around the ADCV filing and tariffs and those things. We're not impacted. And, you know, I made the comment, and we spent a lot of time with this, both the March and then our investor conference in June. Still matters more than ever in this business. So the way I could think about it from an investor perspective is, you know, the bigger our program, the more leverage we have over our supplier. And in the last couple of years, we have really spent a lot of time and made investment around the data and analytical capability that we have around our supply chain.
Speaker Change: We're not impacted and.
Speaker Change: Made the comment and we spent a lot of time at this both the March and then at our.
Speaker Change: Investor Conference in June scale matters more than ever in this business. So the way I would think about it from an investor perspective is.
John W. Ketchum: And, you know, I made the comment, and we spent a lot of time on this, both in March and then at our investor conference in June. It still matters more than ever in this business. So the way I would think about it from an investor perspective is, you know, the bigger our program, the more leverage we have over our supplier. And in the last couple of years, we have really spent a lot of time and invested in the data and analytical capability that we have around our supply chain.
Speaker Change: The bigger our program the more leverage we have over our supplier.
Speaker Change: And in the last couple of years, we have really spur.
Speaker Change: Spent a lot of time and made investment around the data and analytical capability that we have around our supply chain and we have also made a very conscientious effort around risk transfer and making sure that we have adequate security provided incentives to perform so we.
Rebecca Kujawa: And we have also made a very conscientious effort around risk transfer and making sure that we have adequate security provided incentive to perform. So, we are in a position where, you know, we have really been able to transfer, you know, any tear for ADCVD or related risks, you know, over our suppliers. Why is that the reason for that is when you're, you know, putting numbers up like three gigawatts of quarter and have the type of build that we have and expect to have going forward. Oh, yeah. Contractors want contractors, and vendors want to work with us.
John W. Ketchum: And we have also made a very conscientious effort around risk transfer and making sure that we have adequate security to provide incentives to perform. So we are in a position where, you know, we have really been able to transfer, you know, any tariff or ADCVD or related risks, you know, over to our suppliers. And why is that?
Speaker Change: We are in a position, where we have really been able to transfer any tier four ADC BD or related risks over to our suppliers and why is that the reason for that is when you are.
Speaker Change: Putting numbers up like three gigawatts, a quarter and half.
Speaker Change: The type of build that we have and expect to have going forward.
Speaker Change: OE contractors.
Speaker Change: Contractors and vendors want to work with us and they've also seen a lot of smaller developers that ultimately haven't been able to arrange financing or for whatever reason haven't had terrific fall through on their projects. So that's not the case with with our company and so theres been even a greater emphasis I would say bye.
John W. Ketchum: The reason for that is when you're, you know, putting numbers up like three gigawatts a quarter and have the type of build that we have and expect to have going forward, contractors and vendors want to work with us. And they've also seen a lot of smaller developers that ultimately haven't been able to arrange financing or, for whatever reason, haven't had terrific follow-through on their projects. That's not the case with our company,
Rebecca Kujawa: And they've also seen a lot of small developers that ultimately haven't been able to arrange financing or, for whatever reason, haven't had terrific follow-through on their projects. That's not the case with our company. And so there's been even a greater emphasis, I would say, by our suppliers to want to work with us more than ever. But, but what that means is making sure that we are always left in a position where we are not taking risks around the obvious things that you might put on your list. And so I really feel better than ever about where we stand from a supply chain perspective, and very happy with the job that our team has done.
John W. Ketchum: And so there's been even a greater emphasis, I would say, by our suppliers to want to work with us more than ever. But what that means is making sure that we are always left in a position where we are not taking risks around the obvious things that you might put on your list. And so I really feel better than ever about where we stand from a supply chain perspective and very happy with the job that our team has done. And the lessons that we've learned over the last couple of years have all been folded into how we contractually approach risk in our agreements going forward. Terrific. Thank you guys so much. Congratulations!
Speaker Change: Our suppliers to want to work with us more than ever but what that means is making sure that we are always left in a position where we are not taking taking.
Speaker Change: Risks are.
Speaker Change: Around the obvious things that you might put on your list and so I really feel better than ever about where we stand from a supply chain perspective, and I'm very happy with the job that our team has done and the lessons that we've learned over the last couple of years have all been folded into.
Rebecca Kujawa: And the lessons that we've learned over the last couple of years have all been folded into how we contractually approach risk in our agreements going forward.
Speaker Change: How we contractually approach risk and our agreements going forward.
Unknown Executive: Perfect, thank you guys so much. Congrats, and we'll see you soon. Appreciate it.
Shahriar Pourreza: And we'll see you soon. Appreciate it. Thank you, Shahriar. The next question comes from Julian Dumoulin-Smith from Jeffreys. Please go ahead. Hey, good morning.
Shar: Terrific. Thank you guys. So much congrats and we'll see you soon I appreciate it thank you shar.
Unknown Executive: Thank you, Shahriar.
Julian Dumelensmith: The next question comes from Julian Dumelensmith from Jeffries. Please go ahead. Hey, good morning. Thank you so much, team. Appreciate it. Absolutely, Julian. Good to hear you. Hey, pleasure. Yeah, likewise.
Speaker Change: The next question comes from Julien Dumoulin Smith from Jefferies. Please go ahead.
Julian Dumoulin-Smith: Thank you so much, team. I appreciate it. Absolutely, Julian. Good to hear from you.
Speaker Change: Hey, good morning. Thank you so much I appreciate it.
Absolutely Jillian.
Unknown Executive: Hey, pleasure. Yeah, likewise. Can you speak to how you think about asset recycling here? I mean, I'm curious specifically about the latest portfolio sell-down, right, with Blackstone, as mentioned earlier, but how do you think about other assets here? As you think about, like, for instance, some of these headlines on transmission or gas infrastructure being in focus, it's notable after the FCG sale last year. How do you think about, you know, continued monetization of renewable assets or portfolios relative to sort of the ongoing streamlining and focusing back to the core renewables business, if you will? And then related, how do you think about that 70-30 mix as you pair back, you know, as you pair these different asset sales through the forecast period? Yeah, no, good question, Julian.
Speaker Change: Good to hear yes, hey, pleasure Likewise can you speak to how you think about asset recycling here I mean, I'm curious specifically on the latest portfolio sell down right with Blackstone as mentioned earlier, but how do you think about other assets here as you think about like for instance, some of these headlines on transmission or gas and for us being in focus. It's notable after the FCC sale last year.
Julian Dumelensmith: Can you speak out your thinking about asset recycling here? I mean, I'm curious specifically on the latest portfolio sell down, right, with Blackstone has mentioned earlier. But how do you think about other assets here? How do you think about, like, for instance, some of these headlines on transmission or gas inference being in focus? It's notable after the FCG sale last year. How do you think about, you know, continued monetization of renewable assets or portfolios relative to sort of these assets? The ongoing streamlining and focusing back to the core renewables business, if you will. And then related, how do you think about that 70 30 mix as you pair back, you know, as you pair these different assets sales through the forecast rate?
Speaker Change: How do you think about it.
Speaker Change: Monetization of renewable assets or portfolios relative to sort of the ongoing streamlining and focusing back to the core renewables business. If you will and then related how do you think about that 70 30 mix as you pair back.
Speaker Change: Pair these different asset sales through the forecast period.
Julian Dumelensmith: Yeah, no good question, Julian. So from a recycling standpoint, I feel better than I ever have in terms of the options that we have going forward for the portfolio in terms of asset mix and how we think about that. Obviously, you know, we've always had a history of being able to recycle capital around renewables, which are terrific assets, which, you know, I think we have a great reputation in the market around in our ability to attract capital on the renewable portfolio. But look, you know, we are also making a conscientious effort, and I think I made these comments at the investor conference that we're looking at our core business, right?
John W. Ketchum: So from a recycling standpoint, I feel better than I ever have in terms of the options that we have going forward for the portfolio in terms of asset mix and how we think about that. Obviously, we've always had a history of being able to recycle capital around renewables, which are terrific assets and about which I think we have a great reputation in the market because of our ability to attract capital on the renewable portfolio.
Speaker Change: Yes good.
Speaker Change: Good question Julien so from a recycling standpoint feel better than I ever have in terms of the options.
Speaker Change: That we have going forward for the portfolio in terms of asset mix.
Speaker Change: And how we think about that.
Speaker Change: Obviously, we've always had a history of being able to recycle capital.
Speaker Change: Around renewables, which are terrific assets, which I think we have a great reputation in the market around in our ability to attract capital.
Speaker Change: On the renewable portfolio, but look we are also making a conscientious effort I think I made these comments at the Investor Conference that.
John W. Ketchum: But look, we are also making a conscientious effort, and I think I made these comments at the investor conference, that we're looking at our core business. Our core business is wind, it's solar, it's battery storage, it's transmission, both inside Florida and outside of Florida.
Speaker Change: We're looking at.
Speaker Change: Our core business right, our core business as wind and solar battery storage its transmission, both inside Florida outside of Florida.
Julian Dumelensmith: Our core business is wind and solar, it's battery storage, it's transmission both inside Florida, outside of Florida. And so, to the extent we can do some targeted capital recycling or ran our gas infrastructure business, that will continue to be type of top of mind. Transmission, you raised as well. We are having a lot of success in transmission, and, you know, the team has done a terrific job, I think, on the competitive transmission side of identifying new opportunities and just based on the return structure that we could target. There's good sense to be in a partner on some of those deals, and so those have been opportunities that we have been targeting as well as we think about the future.
John W. Ketchum: And so to the extent we can do... some targeted capital recycling around our gas infrastructure business, that will continue to be top of mind. Transmission, you raised as well.
Speaker Change: So to the extent we can do.
Speaker Change: Some targeted capital recycling around our gas infrastructure business that will continue to be type of top of mind.
Speaker Change: Transmission you raised as well.
John W. Ketchum: We are having a lot of success in transmission, and the team has done a terrific job, I think, on the competitive transmission side of identifying new opportunities. And just based on the return structure that we could target, it makes good sense to bring in a partner on some of those deals. And so those have been opportunities that we have been targeting as well as we think about the future. But obviously, it puts us in a position where we continue to manage those assets and those opportunities as we think about, you know, how they contribute to the future.
Speaker Change: We are having a lot of success in transmission and the team has done a terrific job I think on the competitive transmission side of identifying new opportunities and just based on the return structure that we could target. There is there's good sense to bring in a partner on some of those deals and so those.
Speaker Change: <unk> been opportunities that we have been targeting as well as we think about the future, but obviously it puts us in a position where we continued to manage those assets and those opportunities.
Julian Dumelensmith: But obviously, it puts us in a position where, you know, we continue to manage those assets and those opportunities as we think about, you know, how they contribute to the future. But, you know, those certainly are two things that we will get in addition to the renewable portfolio. And the numbers that we gave at the investor conference, you know, I certainly don't lose any sleep over in terms of the ability to meet those capital recycling targets.
Speaker Change: As we think about how they contribute to the future but.
John W. Ketchum: But, you know, those certainly are two things that we look at in addition to the renewable portfolio. And the numbers that we gave at the investor conference, I certainly don't lose any sleepover in terms of the ability to meet those capital recycling targets.
Speaker Change: Those certainly are two things that we will get in addition to the renewable portfolio and the numbers that we gave.
At the Investor Conference.
I certainly don't lose any sleep over in terms of the ability to meet those cafeterias capital recycling targets from a business mix perspective, I think which was your last question you know.
Julian Dumelensmith: From a business mix perspective, I think, which is your last question. You know, and I think most folks on the phone know that we are very rigorous about looking at our five-year forecast and even go beyond that. And so we're constantly looking at our mix and what our obligations are and undertakings are with the agencies. And we have a lot ahead of them, a lot ahead of them on our business mix. So that is not an issue. That is not a concern. And the capital recycling planet. I think that's well with what our undertakings are there, but plenty ahead of room on business next.
John W. Ketchum: From a business mix perspective, I think, which was your last question, and I think most folks on the phone know that we are very rigorous about looking at our five-year forecast and even going beyond that, and so we're constantly looking at our mix and what our obligations are and undertakings are with the agency. We have a lot ahead. There is a lot of headroom in our business mix. So that is not an issue, that is not a concern, and the Capital Recycling Plan, I think... well with what our undertakings are there, but plenty ahead of room on. Excellent
Speaker Change: And I think most folks on the phone know that we are very rigorous about looking at our five year forecast and even go beyond that and so we're constantly looking at.
Speaker Change: Our mix and water obligations arent undertakings are what the agencies and we have a lot of headroom.
Speaker Change: A lot of headroom on our business mix. So that is not an issue that is not a concern and the capital recycling plan I think fits well with.
Speaker Change: What's what are undertakings are are there, but plenty of headroom on business mix.
Julian Dumelensmith: Excellent.
Julian Dumoulin-Smith: And just clarification on the last question, just with respect to getting that three gigawatt milestone for the quarter here in terms of booking, is that kind of a good new run rate here? Or again, given the size of these new counterparties, is it going to be fairly lumpy moving up and down quarter to quarter here? Just trying to set a little bit of an expectation. Absolutely. I'm going to turn that one over to Rebecca.
Rebecca Kujawa: Just clarification on the last question. Just with respect to getting a 3-gigawatt milestone for the quarter here in terms of booking. Is that kind of a good new run right here or again given the size of these new counterparties? Is it going to be fairly lumpy moving up and down the quarter to quarter here? Just trying to set a little bit of an expectation there. Absolutely.
Speaker Change: Excellent and just clarification on the last question.
Speaker Change: Just with respect to getting that three gigawatt milestone for the quarter here in terms of bookings is that kind of a good new run rate here or again, given the size of these new counterparties is going to be fairly lumpy moving up and down quarter to quarter here, just trying to set a little bit of an expectation there.
Rebecca Kujawa: I'm going to turn that one over to Rebecca. Good morning, Julian. We couldn't be more excited about the origination, not only that we've been able to produce for the last couple of years. Each of them being a record in their own right. And then the first two quarters being each of them, the ironically the second best quarter, obviously this quarter topping last quarter that we've ever had.
Speaker Change: Absolutely I'm going to turn that one over to Rebecca good morning Julien.
Julian Dumoulin-Smith: Good morning, Julian. We couldn't be more excited about the origination, not only that we've been able to produce over the last couple of years, each of them being a record in their own right, but then the first two quarters being each of them, ironically, the second best quarter, obviously this quarter topping the best quarter that we've ever had.
Rebecca: Shouldn't be more excited about the origination not only that we've been able to produce over the last couple of years.
Rebecca: Each of them being a record in their own right and then the first few quarters being each of them. The ironically, the second best quarter, obviously this quarter topping last quarter that we've ever had.
Rebecca J. Kujawa: I'll caveat it that, you know, origination can be a little bit lumpy. I've consistently said that in quarters where it's a little bit lower than where we are today. And I think I even said it the day that we set the top quarterly additions, you know, a couple of quarters ago. So there's always a little bit of bumpiness in there.
Rebecca Kujawa: I'll caveat it that, you know, origination can be a little bit lumpy. I've consistently said that. In quarters where it's a little bit lower than where we are today. And I think I even said it today that we set the top quarterly editions, you know, a couple of quarters ago. So there's always a little bit of bumpiness in there. But what we continue to see is consistent with the comments that we all made at the investor conference just last month. That and John talked about is opening remarks today. That the combination of the replacement cycle and the growth cycle.
Rebecca: I'll caveat it that origination can be a little bit lumpy.
Rebecca: Consistently said that in quarters, where it's a little bit lower than where we are today and I think I, even said it the day that we that we set the the top quarterly additions a couple of quarters ago.
Rebecca: Theres always a little bit of bumping SMS in there, but what we continue to see is consistent with the comments that we all made at the Investor Conference just last month.
Rebecca J. Kujawa: But what we continue to see is consistent with the comments that we all made at the investor conference just last month that, and John talked about in his opening remarks today, that the combination of the replacement cycle and the growth cycle is a tremendously positive outlook for us over the very long term. Some of this is going to take a little bit longer to materialize on the growth side, as we also highlighted last month.
Rebecca: And John talked about in his opening remarks today that the combination of the replacement cycle and growth cycle is a tremendously positive outlook for us over the very long term.
Rebecca Kujawa: is a tremendously positive outlook for us over the very long term. Some of this is going to take a little bit longer to materialize on the growth side, as we also highlighted last month. And so you'll see some of those, you know, the stronger editions of the three gigawatts that we added to our backlog, particularly notably strong in years 26 and 27. And even some megawatts added to 28 and beyond. But overall, what we see today and the execution of our team and the value proposition that we bring to our customers is a very bright outlook.
John: Some of this is going to take a little bit longer to materialize on the growth side as we also highlighted last month.
Rebecca J. Kujawa: And so you'll see some of those, you know, the stronger additions of the three gigawatts that we added to our backlog, particularly notably strong in years 26 and 27, and even some megawatts added to 28 and beyond. But overall, what we see today and the execution of our team and the value proposition that we bring to our customers is a very bright outlook. Congratulations, guys.
Speaker Change: And so youll see some of those stronger editions of the three gigawatts that we added to our backlog, particularly notably strong and in the years 2006 and 'twenty seven.
Speaker Change: Even some megawatts added 28 and beyond but overall, what we see today in the execution of our team and the value proposition that we bring to our customers is a very bright outlook.
Unknown Executive: Excellent.
Unknown Executive: Congrats, guys. Thanks.
Speaker Change: Excellent congrats guys.
Joanne: Thanks, Thanks Joanne.
Nick Campanella: The next question comes from Nick Campanella from Barclays. Please go ahead. Hey, good morning, Team. Thanks for all the information today. I just want to follow up on Shar's comments. You know, you talked about being able to kind of pass through some of these higher tariff costs to the extent they kind of materialize just. There's also a projection for, you know, two rate cuts this year. And I'm just curious if you can kind of talk about how that changes the returns for near that you can kind of communicated at the analyst day. And previous quarters, if you could just update us on that.
Julian Dumoulin-Smith: Thanks. The next question comes from Nick Campanella from Barclays. Please go ahead.
Joanne: The next question comes from Nick Campanella from Barclays. Please go ahead.
Unknown Attendee: Hey, good morning team! Thanks for all the information you provided today. I just wanted to follow up on Shahriar's comments, you know, you talked about being able to kind of pass through some of these higher tariff costs to the extent that they kind of materialize. There's also a projection for, you know, two rate cuts this year. And I'm just curious if you can kind of talk about how that changes the returns for near that you kind of communicated at analyst day and previous quarters, if you could just update us on that.
Hey, good morning team. Thanks for all the information today.
Unknown Attendee: I just wanted to follow up on <unk> comments, you talked about being able to kind of pass through.
Unknown Attendee: Some of these higher tariff costs to the extent that kind of materialize. Just there's also a projection for two rate cuts this year and I'm. Just curious if you can kind of talk about how that changes the returns from near that you can kind of communicated at the analyst day in previous quarters. If you could just update us on that.
Nick Campanella: Sure. Yeah. You know, you know, first of all, as you know, we are always looking to manage risk around our capital investment decisions. And one of those risks is it's not only locking in equipment costs. It's not only locking in labor. But it's also locking in our cost to capital. So, you know, as we approach our renewable portfolio, you know, we've been very mindful of making sure that we are locking in our cost to capital through registered hedge products swaps in that regard. As I think about the future and, you know, the rate, you know, the one, the two rate cuts, you know, is where we ultimately end up, you know, on those fronts.
Unknown Attendee: Sure, you know, first of all, as you know, we are always looking to manage risk around our capital investment decisions, and one of those risks is not only locking in equipment costs, it's not only locking in labor, but it's also locking in our cost of capital.
Unknown Attendee: Sure.
First of all.
Speaker Change: As you know we are.
Speaker Change: Always looking to manage risk around our capital investment decisions and one of those risks is it's not only locking in equipment cost, it's not only locking in labor.
John W. Ketchum: So, you know, as we approach our renewable portfolio, we've been very mindful of making sure that we are locking in our cost of capital through interest rate hedge product swaps in that regard. As I think about the future and, you know, the rate, you know, the one, the two rate cuts, who knows where we ultimately end up, you know, on those fronts? Obviously, given the financing plans that we have moving forward, you know, those would be tailwinds for the business.
Speaker Change: But it's also locking in our cost of capital. So you know as we approach our renewable portfolio, we've been very mindful of making sure that.
Speaker Change: We are locking in our cost of capital through our interest rate hedge project products swaps.
Speaker Change: In that regard.
Speaker Change: As I think about the future and the.
Speaker Change: The one the two rate cuts you know who knows where we ultimately end up.
Speaker Change: On those fronts obviously.
Nick Campanella: You know, obviously.
Nick Campanella: You know, given the financial plans that we have moving forward, you know, those would be tailwinds, you know, for the business. But at the same time, if those materialize, you know, we have already, you know, taken those into account in our financial expectations and we're very prudent and on top of managing the risk, the interest rate risk exposure that we have across the business. Hey, that's helpful. Thanks a lot.
John W. Ketchum: But at the same time, if those don't materialize, you know, we have already taken those into account in our financial expectations. And we're very prudent, and on top of managing the risk, the interest rate risk exposure that we have across, Hey, that's helpful. Thanks a lot.
Speaker Change: Given the financing plans that we have moving forward you know those would be tailwind for for the business, but at the same time, if those don't materialize.
Speaker Change: We have already.
Speaker Change: <unk> taken those into account.
Speaker Change: And our financial expectations and were very prudent and on top of managing the risk interest rate risk exposure that we have across the business.
Unknown Attendee: And then, you know, John, I think you've been pretty clear about the ability to supplement this power demand inflection with new renewables. And, you know, you also have this nuclear portfolio. I understand a lot of that's kind of contracted, but, you know, there were headlines about potential Dwayne Arnold restarts. I just, I guess, how realistic is that? Is that something you'd even kind of consider at this juncture?
Speaker Change: Hey, that's helpful. Thanks, a lot and then John I think you've been pretty clear about the ability to supplement this power demand inflection with new renewables and you also have this nuclear portfolio I understand a lot of that is contracted but.
John Ketchum: And then, you know, John, I think you've been pretty clear about, you know, the ability to supplement this power demand inflection with new renewables, and, you know, you also have this nuclear portfolio. I understand a lot of that's kind of contracted, but, you know, there were headlines about potential Dwayne Arnold restart. I just, I guess, how realistic is that? Is that something you'd even kind of consider at this juncture, and how do we kind of think about the strategic positioning of your nuclear portfolio? Sure. Thanks, Nick, for that question on nuclear. You know, with regard to Dwayne Arnold, you know, I think there would be opportunities and a lot of demand for the market if we were able to do something with Dwayne Arnold.
John: There were headlines about potential Duane Arnold restart I, just I guess, how realistic is that is that something you would even consider at this juncture and how do we kind of think about the strategic positioning of your nuclear portfolio.
John W. Ketchum: And how do we kind of think about the strategic positioning of your nuclear portfolio? Sure. Thanks, Nick, for that question on nuclear energy. You know, with regard to Dwayne Arnold, I think there would be opportunities and a lot of demand from the market if we were able to do something with Dwayne Arnold.
Speaker Change: Sure. Thanks, Nick for that question on nuclear.
Speaker Change: With regard to Duane Arnold.
Speaker Change: I think there would be opportunities.
Speaker Change: A lot of demand from the market. If we were able to do something with the Wayne Arnold obviously, bringing back.
John W. Ketchum: Obviously, bringing back a nuclear plant into service is not something that you can do without a lot of thought. And, you know, it is something that we are looking at, but there is a lot of thought that has to go into it. And, obviously, a real assessment of the risks associated with that as well.
John Ketchum: Obviously, bringing back a nuclear plant is, and the service is not something, you know, that, that you can do with that a lot of thought. And, you know, it is something that we are looking at, but there is a lot of thought that has to go into it and, you know, obviously a real assessment, you know, around risks associated with that as well. And so, sure, we're looking at it, but we would only do it if, if, you know, we could do it in a way that is essentially, you know, risk-free with plenty of mitigants around the approach.
Speaker Change: Nuclear plant is.
Speaker Change: And the service is not something.
Speaker Change: That.
Speaker Change: You can do without a lot of thought.
Speaker Change: And.
Speaker Change: It is something that we're looking at.
Speaker Change: But there is a lot of thought that has to go into it and see a real assessment.
Around risks associated with that.
John W. Ketchum: And so, sure, we're looking at it, but we would only do it if, you know, we could do it in a way that is essentially risk-free with plenty of mitigants around the approach. And there are a few things that we would have to work through, but yes, we are looking. Thanks. Have a great day.
Speaker Change: Well and so sure were looking at it.
Speaker Change: We would only do it if if we could do it.
Speaker Change: In a way that.
Speaker Change: As essentially.
Speaker Change: Risk free with.
Speaker Change: With plenty of admit against around.
The approach and.
Unknown Executive: And, and there are, you know, there are a few things that we would have to have to work through, but yes, we are, we are looking at it. Thanks.
Speaker Change: And there there are a few things that we would have to have to work through but yes. We are we are looking at it.
Speaker Change: Okay.
Unknown Executive: Have a great day. Thank you, Nick.
Speaker Change: Thanks have a great day.
Unknown Attendee: Thank you Nick.
Jeremy Tonet: The next question comes from Jeremy Tonette, from JP Morgan. Please go ahead. Hi, good morning. Good morning. Just want to get a little bit more color on the renewables market right now, as you've discussed, very strong demand in the market. And just wondering, you know, going back to some of the comments at the analyst day, what trends do you see in PPA pricing at this point and how, you know, could that potentially benefit next year going forward? Thanks, Jeremy. Appreciate the conversation. And in question, you know, we've continued to see very strong returns with respect to what we think we need in order to be highly confident that we're adding shareholder value.
Unknown Attendee: Thank you, Nick. The next question comes from Jeremy Tonet from J.P. Morgan. Please go ahead. Hi, good morning. Good morning.
The next question comes from Jeremy Tonet from Jpmorgan. Please go ahead.
Jeremy Bryan Tonet: Hi, good morning.
Jeremy Bryan Tonet: Good morning.
Jeremy Bryan Tonet: Just want to get a little bit more color on the renewables market right now as you've discussed very strong demand in the market and just wondering, you know, going back to some of the comments at the Analyst Day, what trends you see in PPA pricing at this point, and how, you know, could that potentially benefit NextEra? Thanks, Jeremy. I appreciate the conversation and question. You know, we've continued to see very strong returns with respect to what we think we need in order to be highly confident that we're adding shareholder value. And I would think about the returns that we laid out. The investor conference is almost the minimum thresholds that we have at this point.
Just wanted to get a little bit more color on the renewables market right now as you've discussed very strong demand in the market and just wondering going back to some of the comments at the analyst day.
Speaker Change: What trends you see in PPA pricing at this point.
Speaker Change: And how could that potentially benefit nextera going forward.
Speaker Change: Thanks, Jeremy I appreciate the conversation.
Speaker Change: And question.
Speaker Change: We've continued to see very strong returns with respect to what we think we need in order to be highly confident that we're adding shareholder value and I would think about the returns that we laid out at the investor conferences.
Jeremy Tonet: And I would think about the returns that we laid out. The investor conference is almost minimum thresholds that we have at this point. And there are opportunities where, you know, there's significant customer demand. We have unique positioning in the marketplace to make sure that we get even more attractive returns. I'd say it's a very positive dynamic. You know, it was a very difficult market over the last couple of years. And when we were seeing the supply chain disruption and increasing pricing, both on the capital equipment side and in our returns. And fortunately, we've either seen slightly declining or, at a minimum, stable backdrop, which is certainly helpful for, you know, decreasing our risk and also providing an attractive price and attractive product to our customers.
Speaker Change: Minimum thresholds that we have at this point.
Rebecca J. Kujawa: And there are opportunities where, you know, there's significant customer demand. We have unique positioning in the marketplace to make sure that we get even more attractive returns. I'd say it's a very positive dynamic. You know, it was a very difficult market over the last couple of years when we were seeing supply chain disruption and increasing pricing both on the capital equipment side and the supply side and our returns.
Speaker Change: And there are opportunities, where there is significant customer demand we have unique.
Speaker Change: Listening in the marketplace.
Speaker Change: Make sure that we get even more attractive returns I'd say, it's a very positive dynamic.
Speaker Change: He was a very difficult market over the last couple of years.
Speaker Change: We are seeing the supply chain disruption and increasing pricing on the.
Speaker Change: Capital equipment side and and.
Outside in our returns and Fortunately, we've either seeing a slightly declining or at a minimum stable.
Rebecca J. Kujawa: And fortunately, we've either seen, you know, a slightly declining or at least stable backdrop, which is certainly helpful for decreasing our risk and also providing an attractive price and an attractive product to our customers. So between the attractive price, the speed to market, the clean attribute of renewables and storage, as well as the fact, as we talked about last month, you know, in the queue across the United States today, all of the projects that are waiting to be connected, 90 percent of those megawatts are renewables and storage. And we have a healthy, good portion of those.
Speaker Change: Backdrop, which is certainly helpful for decreasing our risk and also providing an attractive price and attractive products to our customers. So between the attractive price the speed to market.
Jeremy Tonet: So, between the attractive price, the speed to market, the clean attribute of renewables and storage, as well as the fact, as we talked about last month, you know, in the queue across the United States today, all of the projects that are waiting to be connected, 90% of those megawatts are renewables and storage. And we have a healthy, healthy portion of those. And I couldn't be more excited about our positions.
Speaker Change: Clean attribute of renewables and storage as well as the factors we talked about last month.
Speaker Change: Q across the United States today.
Speaker Change: All of the projects that are waiting to be connected 90% of those megawatts are renewables and storage and we have healthy healthy portion of those and I couldnt be more excited about our position. So I think we're in a great shape to continue to add a lot of shareholder value and in the many years ahead.
Jeremy Bryan Tonet: And I couldn't be more excited about our position. So I think we're in great shape to continue to add a lot of shareholder value in the many years ahead. Got it. Sounds good.
Jeremy Tonet: I think we're in great shape to continue to add a lot of shareholder value in the many years ahead.
Unknown Executive: Got it. Sounds good.
Jeremy Bryan Tonet: I'll leave it there. Thanks. Thanks, Jeremy. The next question comes from David Arcaro from Morgan Stanley. Please go ahead. Hey, good morning.
Speaker Change: Got it sounds good I'll leave it there thanks.
Unknown Executive: I'll leave it there.
Unknown Executive: Thanks. Thank you, Jeremy.
Jeremy: Thanks, Jeremy.
David Arcaro: The next question comes from David Arcaro from Morgan Stanley. Please go ahead. Hey, good morning. Thanks so much for taking my questions. You know, we're hearing utilities around the country now with fast growing pipeline, thousands of megawatts of data center requests. It seems to be moving rapidly just month by month. They can be learning more, getting more demand. I'm wondering, just do you think that's already in your numbers, you know, in your renewables targets here, or could we potentially see another wave of demand as some of these utilities nailed down just how much load is really coming into their service territories?
Jeremy: The next question comes from David Arcaro from Morgan Stanley. Please go ahead.
David Keith Arcaro: Thanks so much for taking my question. We're hearing from utilities around the country now with fast-growing pipelines, thousands of megawatts of data center requests. Moving rapidly, just month by month, they seem to be learning more, gaining more demand. I'm wondering, just do you think that's already in your numbers, you know, in your renewables targets here, or could we potentially see another wave of demand? as some of these utilities nail down just how much load is really coming into their services. Hi David, it's Rebecca.
David Keith Arcaro: Hey, good morning, Thanks, so much for taking my questions.
Speaker Change: We're hearing utilities around the country now with SaaS growing pipelines thousands of megawatts of datacenter request it seems to be moving rapidly month by month and they seem to be learning more getting more demand I'm wondering.
Speaker Change: Do you think that's already in your numbers and your renewables targets here or could we potentially see another wave of demand as some of these utilities nailed down just how much load is really coming into their service territories.
Rebecca Kujawa: Hi, David, it's Rebecca. I'll chime in here. You know, we certainly are hearing from our power sector customers a lot of interest from various data center customers, whether it's the data center operators or the hyperscalers. You know, it is a little bit challenging to see how much of that is, you know, potentially multiple requests for ultimately the same data center, but there is no escaping the fact that these are very large numbers and things that numbers that I don't think any utility across the industry has seen before. And so it's going to take some time not only to rationalize that and figure out how you address it, but also to procure and bring online the megawatts and the transmission over the long term that is going to be required to serve this demand if it ends up being as strong as we see it and we think it might be.
Rebecca J. Kujawa: I'll chime in here. You know, we certainly are hearing from our power sector customers a lot of interest from various data center customers, whether it's the data center operators or the hyperscalers. You know, it is a little bit challenging to see how much of that is potentially multiple requests for the same data center. But there is no escaping the fact that these are very large numbers and numbers that I don't think any utility across the industry has seen before.
Speaker Change: Hi, David It's Rebecca I'll chime in here, yes, we certainly are hearing from our power sector customers a lot of interest.
Speaker Change: Bay area data center customers, whether it's the data center operators or the Hyperscale.
Speaker Change: It is a little bit challenging to see how much of that is.
Speaker Change: Potentially multiple requests for ultimately the same data center, but there is no escaping. The fact that these are very large numbers and things that numbers that I don't think any utility across the industry has seen before until it's going to take some time not only to rationalize that and figure out how you address it but also at the <unk>.
Speaker Change: Care and bring online the megawatts in the transmission over the long term that is going to be required to serve this demand if it ends up being as strong as we as we see it and we think it might be.
Rebecca Kujawa: From our perspective, consistent with our comments from last month, you know, we are seeing a lot of interest both from the power sector customers as well as hyperscalers and data center customers. You're clearly seeing some of that show up in our origination, but you're also seeing some of that more of that show up in this 26 and 27 time frame and now even 28 as we are lining up these projects to support when they will come online for our utility customers. So I think, you know, we all are very excited.
Rebecca J. Kujawa: And so it's going to take some time not only to rationalize that and figure out how you address it, but also to procure and bring online the megawatts and the transmission over the long term that is going to be required to serve this demand if it ends up being as strong as we see it and we think it might be. From our perspective, consistent with our comments from last month, you know, we are seeing a lot of interest both from power sector customers as well as hyperscalers and data center customers.
Speaker Change: From our perspective, consistent with our comments from last month.
Speaker Change: We are seeing a lot of interest both net power sector customers as well as <unk>.
Speaker Change: Hyperscale data center customers and you're clearly seeing some of that show up in our origination.
Rebecca J. Kujawa: You're clearly seeing some of that show up in our origination, but you're also seeing some of that, and more of that, show up in this 26 and 27 timeframe and now even 28 as we are lining up these projects to support when they will come online.
Speaker Change: We're also seeing some of that more of that show up in this 26% and 27 time frame and now even 28 as we are lining up these projects to support when they will come online for our utility customers.
Rebecca J. Kujawa: For our utility customers, I think, you know, we all are very excited. It is very interesting for our sector to see this growth that we haven't seen in a couple of decades. But I do think, from a practical standpoint, it's going to take a couple of years for this really to materialize, for the utilities to be able to absorb it and serve it. But that's a terrific backdrop for us.
Speaker Change: We all are very excited it is very interesting for our sector to see us growth that we haven't seen in a couple of decades, but.
Rebecca Kujawa: It is very interesting for our sector to see this growth that we haven't seen in a couple of decades, but I do think from a practical standpoint, it's going to take a couple of years for this really to materialize; the utilities to be able to absorb it and serve it. But that's a terrific backdrop for us. Some of these challenges are going to be difficult to solve, and I believe there's no better company to partner with our customers to help solve them. Yeah, understood. Thanks for that color.
Speaker Change: But I do think from a practical standpoint, it's going to take a couple of years.
Speaker Change: Thats really to materialize and utilities to be able to absorb that and serve it but that's a terrific backdrop for us. Some of these challenges are going to be difficult to solve and I believe there's no better company to partner with our customers help solve them.
David Keith Arcaro: Some of these challenges are going to be difficult to solve, and I believe there's no better company to partner with our customers to help solve them. Yeah, understood. Thanks for that color.
David Keith Arcaro: And then I was curious about, You know, on hyperscaler deals; are there any other details you would be able to provide around the Google relationship here, just maybe the location or timing of when these projects are coming on? Is it a single location or, you know, multiple locations?
Speaker Change: Yeah understood thanks for that color.
Rebecca Kujawa: And then I was curious on, you know, on hyperscalers' deals. Are there any other details you would be able to provide around the Google relationship here, just maybe the location or timing of when these projects are coming on, is it a single location or, you know, multiple locations? Are you embedding wind solar storage, you know, multiple technologies in terms of what product maybe makes sense for these hyperscalers deals? And then just along those same lines, would you be interested in some kind of a multi-gigawatt multi-year framework? Is that an idea that you're pursuing with these bigger hyperscaler customers?
Speaker Change: And then I was curious on.
Speaker Change: You know on Hyperscale deals are there any other details you would be able to provide around the Google.
Relationship here, just maybe the location or timing of when these projects are coming on is it a single location or more.
Rebecca J. Kujawa: Are you embedding wind and solar storage, you know, multiple technologies? Transcripts provided by Transcription Outsourcing, LLC, kind of a multi-gigawatt, multi-year framework, is that an idea that you're considering with these bigger hyperscalers? Sure. Well, David, I'll answer it more broadly than just specific to one customer, certainly for a variety of reasons, including sensitivities.
Speaker Change: Multiple locations are you embedding wind solar storage multiple technologies in terms of what what product maybe it makes sense for these hyperscale deals and then just along those same lines would you be interested in some kind of a multi gigawatt multiyear framework is that an idea that you are pursuing with.
Speaker Change: With these bigger hyper scaler customers sure well, David I'll answer it more broadly than just specific to one customer certainly for a variety of reasons, including sensitivities in some of these these comments would otherwise be sensitive for them for their own competitive positioning.
Rebecca Kujawa: Sure. Well, David, I'll answer it more broadly than just specific to one customer, certainly for a variety of reasons, including sensitivities. Some of these comments would otherwise be sensitive for them for their own competitive positioning. But these, those specifically were new contracts, and they were to support data center demand that our customer had. And then, more broadly speaking, from a hyperscaler's perspective, they are interested in a variety of technologies, including solar and battery storage. And they, you know, I would say probably the biggest change for many of them is a shift, or certainly an increasing percentage of these projects that are very specifically associated with the data centers that these hyperscalers are trying to build.
Rebecca J. Kujawa: Some of these comments would otherwise be sent for them for their own competitive positioning. But those specifically were new contracts, and they were to support data center demand that our customer had. And then more broadly speaking, from a hyperscaler's perspective, they are interested in a variety of technologies, including wind, solar, and battery storage. And they, you know, I would say probably the biggest change for many of them is a shift or certainly an increasing percentage of these projects that are very specifically associated with the data centers that these hyperscalers are trying to build.
Those specifically, where new contracts and they were to support data center demand.
Speaker Change: That our customer had and then more broadly speaking from from a hyperscale or his perspectives.
Speaker Change: They are interested in a variety of technologies wind solar and battery storage.
Speaker Change: And they I would say probably the biggest change for many of them is a shift or certainly an increasing percentage of these projects that are very specifically associated with the data centers that these hyper scaler or trying to build.
Rebecca J. Kujawa: So, there is less interest in just a pure virtual power purchase agreement where the project could be anywhere in the U.S. But I want to make sure these resources are there to support my data centers as they are getting connected to the utilities in those local jurisdictions and can come online at the same time.
Rebecca Kujawa: So it's less interest in just a pure virtual power purchase agreement where the project could be anywhere in the U.S. to I want to make sure these resources are there to support my data centers as they are getting connected to the utilities in those local jurisdictions and can come online at the same time. So very much becoming a more physical market and one in which it's really important that their partners show up and perform and deliver as expected because they are, you know, the load on the other side of that. So that's a very attractive proposition from our perspective.
Speaker Change: So it's less interest in just appear virtual power purchase agreement, where the project could be anywhere in the U S.
Speaker Change: Two I want to make sure. These resources are there to support my data centers.
Speaker Change: As they are getting connected to the utilities in those local jurisdictions and can come online at the same time, so very much becoming a more physical market and.
Rebecca J. Kujawa: So, it's very much becoming a more physical market and one in which it's really important that their partners show up and perform and deliver as expected because they are the load on the other side of that. So, that's a very attractive proposition from our perspective as it relates to the structured agreements. Listen, we are most focused on making sure that we add value for these customers, which could come in a variety of different forms and factors. But our primary focus is being there and delivering for them when they need us, and we'll update you as those structures evolve, but it's really focused on creating value with and for them. Great. Very helpful.
Speaker Change: One in which it's really important that their partners shell up and perform and deliver as expected because they are the load on the other side of that so that's a very attractive proposition from our perspective as it relates to the structured agreements listen we are most focused on making sure that we add value for these customers that could comment.
Rebecca Kujawa: As it relates to the structured agreements, listen, we are most focused on making sure that we add value for these customers. That could come in a variety of different forms and factors, but our primary focus is being there and delivering for them when they need us.
Speaker Change: The idea of different forms and factors, but our primary focus is being there and delivering for them when they need us and we will update you as the structures evolve, but it's really focused around creating value with and for them.
Unknown Executive: And we'll update you as those structures evolve, but it's really focused around creating value with and for them.
Unknown Executive: Great. Very helpful.
Speaker Change: Great very helpful. Thanks, so much.
Carly Davenport: Thanks so much. Thanks, David.
David Keith Arcaro: Thanks, David.
Carly Davenport: The next question comes from Carly Davenport from Goldman Sachs. Please go ahead. Good morning. Thanks for taking the questions.
David Keith Arcaro: Thanks. Thanks, David. The next question comes from Carly Davenport from Goldman Sachs. Please go ahead. Hey, good morning.
David Keith Arcaro: The next question comes from Carly Davenport from Goldman Sachs. Please go ahead, hey.
Carly S. Davenport: Thanks for taking the questions. Maybe just to start, you know, a lot has obviously changed in the U.S. election landscape since your last earnings call. So can you just talk us through your latest expectations for potential implications on the IRA and what impact any modification to that legislation might have on your renewable development plans? Sure, Carly. I'll go ahead and take that.
Carly S. Davenport: Good morning, Thanks for taking the questions.
Carly Davenport: Maybe just to start, you know, a lot has obviously changed in the US election landscape since your last earnings call. So can you just talk us through your latest expectations on potential implications on the IRA and what impact any modification to that legislation might have on your new approval development plans?
Carly S. Davenport: Maybe just to start you know a lot has obviously changed in the U S election landscape since your last earnings call. So can you just talk us through your latest expectations on potential implications on the IRA and what impact any modification to that legislation might have on your renewable development plans.
John Ketchum: Stuart Carly, I'll go ahead and take that. You know, I start with, you know, we've always been able to work with both sides of the aisle in the 22 years that I've been at Next year, and I don't think this time around is any different. I'm going to kind of go through why, and let's not forget that, you know, in that time, we've invested hundreds of billions of dollars in American energy infrastructure across almost every state in the country. Who are benefiting from those investments? And, you know, we invest in American energy dominance every single day, and are the quintessential all-the-above energy company, and that doesn't change from one election to the next.
John W. Ketchum: You know, I start with, we've always been able to work with both sides of the aisle in the 22 years that I've been at NextEra, and I don't think this time around will be any different, and I'm going to kind of go through why. And let's not forget that, you know, in that time, we've invested hundreds of billions of dollars in American energy infrastructure across almost every state in the country, and people are benefiting from those investments.
Carly S. Davenport: Sure Carl I'll go ahead and <unk>.
Speaker Change: That I start with we've always been able to work with both sides of the aisle in the 22 years that I've been at next year and I don't think this time around is any different kind of go through why.
Speaker Change: And let's not forget that in that time, we've invested hundreds of billions of dollars in American energy infrastructure.
Speaker Change: Cross almost every state in the country, who are benefiting from those investments.
John W. Ketchum: And, you know, we invest in American energy dominance every single day and are the quintessential all-above energy company. And that doesn't change from one election to the next, and I think it really helps when we are working with both sides of the aisle. That said, you know, let's look at where the incentive money's going. The incentives favor Republican states. And, you know, we've seen an increase in the number of Republican lawmakers that are embracing the clean energy credits within the IRA as they see the positive impact on their states and communities, which is hard to turn away from. And the tax laws are very difficult to overcome.
Speaker Change: And we invest in American energy dominance every single day and our the quintessential all of the above energy company that doesn't change from one election to the next and I think really helps when we are working with both sides of the aisle that said.
John Ketchum: And I think really helps, you know, when we are working with both sides of the aisle. That said, you know, let's look at where the incentive money is going. The incentive's favor Republican states. And, you know, we've seen an increase in the number of Republican lawmakers that are embracing the clean energy credits within the IRA, as they see the positive impact to their states and communities, which is hard to turn away from. And the tax laws are very difficult to overturn, and we're very likely to have thin margins in the House and in the Senate, particularly in light of some of the recent developments.
Speaker Change: Let's look at where the incentive money is going in the incentives favor Republican states.
Speaker Change #100: And we've seen an increase in the number of Republican lawmakers that are embracing the clean energy credits within the IRA as they see the positive impact to their states and communities, which is hard to.
Speaker Change #100: To turn away from it and the tax laws are very difficult to overturn.
John W. Ketchum: And we're very likely to have thin margins in the House and the Senate, particularly in light of some of the recent developments. And let's not forget the important role that renewables play, and I made some remarks about that in my script today, but renewables create jobs, they create a property tax base that transforms rural communities, and they reduce energy dependence. Because it's electricity generated from the sun and the wind, it's not subject to fuel price volatility.
Speaker Change #100: And we're very likely to have in margins in the house and the Senate, particularly in light of some of the recent developments.
John Ketchum: And let's not forget the important role that renewables play, and I made some remarks about that in my script today, but renewables create jobs. They create a property tax base that transforms rural communities. Renewables are energy independence. It's electricity generated from the sun and the wind. It's not subject to fuel price volatility. Low cost renewables are also bringing power bills down, which attract new investment from data centers, semiconductor chip manufacturers, and other sectors that are looking to invest in the U.S. And low power bills can really dictate which states they select to make those investments.
Speaker Change #101: And let's not forget the important role that renewables play and I made some remarks about that in my script today, but renewables create jobs they create a property tax base that transforms communities.
Speaker Change #101: Renewables or energy independence.
Speaker Change #101: Its electricity generated from the Sun and the wind that is not subject to fuel price volatility.
John W. Ketchum: Low-cost renewables, you know, are also bringing power bills down, which attracts new investment from data centers, semiconductor chip manufacturers, and other sectors that are looking to invest in the US. Low-power bills can really dictate which states they select to make those investments in, and tariffs are going to further drive investment in the U.S. And with industrial growth across sectors, some of that driven by tariffs, power demand is only going to go up from here.
Low cost renewables.
Speaker Change #101: Also bringing power bills down.
Speaker Change #101: Track, New investment from data centers semiconductor chip manufacturers and other sectors that are looking to invest in the U S.
Speaker Change #101: Low power bills can really dictate which states they select to make those investments and tariffs are going to further drive investment in the U S and with industrial growth across sectors. Some of that driven by tariffs power demand is only going to go up from here.
John Ketchum: And tariffs are going to further drive investment in the U.S. And with industrial growth across sectors, some of that driven by tariffs, power ban is only going to go up from here. And our country is going to need low-cost, fast-to-deploy electricity more than ever. And renewables are the quickest to market in the lowest cost option in almost every state. Otherwise, we're going to slow down and curtail economic growth in our own country. And the credits all flow directly to customers in the form of lower power prices. So when you look at all that, why would you cut credits that are creating jobs, creating a much needed property tax base in rural America that flow to customers that result in lower power prices, that attract new investments?
John W. Ketchum: And our country is going to need low-cost, fast-to-deploy electricity more than ever, and renewables are the quickest to market and the lowest-cost option in almost every state. You know, we're going to slow down and curtail economic growth in our own country, and the credits all flow directly to customers in the form of lower power prices. So when you look at all that, you know, why would you cut credits that are creating jobs, creating a much-needed property tax base in rural America, that flow to customers that result in lower power prices, that attract new investors, and that provide a much-needed fast-to-deploy resource at a time when demand is accelerated? It just wouldn't make sense.
Speaker Change #101: Our country is going to need low cost fast to deploy electricity more than ever.
Speaker Change #101: Renewables are the quickest to market and the lowest cost option in almost every state otherwise.
Speaker Change #101: We're going to slow down or curtail economic growth in our own country and the credits all flow directly to customers in the form of lower power prices. So when you when you look at all of that.
Speaker Change #101: Why would you cut credits that are creating jobs created a much needed a property tax base in rural America that flow to customers that result in lower power prices that attract new investments and that provide a much needed fast to deploy resource at a time when demand is accelerating it just wouldn't make sense and for all these reasons.
John Ketchum: Management, and that provided us needed fast that employee resource at a time when demand is accelerated. It just wouldn't make sense. And for all these reasons, we expect the credits to remain in place: the wind, the solar, the battery storage.
John W. Ketchum: And for all these reasons... We expect the credits to remain in place, the wind, the solar, the battery storage. So, all in all, while we would expect to hear heated rhetoric through the fall campaign, we feel good about where things stand. Again, we have a long history of constructive engagement with both sides of the aisle.
Speaker Change #102: We expect the credit Stuart to remain in place for when the solar battery stores. So all in all while we would expect the heater heated rhetoric through the fall campaign, we feel good about where things stand again, we have a long history of constructive engagement with both sides of the aisle.
John Ketchum: So all in all, while we would expect to hear heated rhetoric through the fall campaign, we feel good about where things stand. Again, we have a long history of constructive engagement with both sides of the aisle.
Carly Davenport: Also, I appreciate all of that color. It's really helpful.
Speaker Change #103: Awesome I appreciate all that color, it's really helpful and.
Rebecca Kujawa: The follow-up was just on the backlog. You know, wind saw a bit of an acceleration this quarter from being a bit weaker in the last several.
Speaker Change #104: The follow up was just on the backlog.
Speaker Change #105: <unk> saw a bit of an acceleration this quarter from being a bit weaker in the last several anything in particular you'd point to in sort of driving that and do you think thats a potential signs of an inflection on the wind demand side.
Rebecca Kujawa: Anything in particular, you'd point to in sort of driving that, and do you think that's a potential sign of an inflection on the wind demand side?
Rebecca Kujawa: Hi, Carly. It's Rebecca. You know, we were very pleased to add these projects to the backlog and excited about the partnership with the customers with whom we're going to contract them. I wouldn't necessarily draw any additional lines, as kind of consistent with the prior comments I made around backlog. Things are going to be won't be over time. It's terrific that we were able to add some additional wind projects to the backlog. And right now our expectations remain consistent with what we laid out last month and obviously have, again, in our presentation materials today in terms of the targets over the next four years.
Rebecca J. Kujawa: You know, we were very pleased to add these projects to the backlog and excited about the partnership with the customers with whom we're going to contract them. I wouldn't necessarily draw any additional lines, as kind of consistent with the prior comments I made around the backlog; things are going to be won't be on time. It's terrific that we were able to add some additional wind projects to the backlog, and right now, our expectations remain consistent with what we laid out last month and, obviously, have again in our presentation materials today in terms of the targets over the next four years.
Speaker Change #104: Hi, Carly it's Rebecca Yes, we were.
Speaker Change #106: Very pleased to add these these projects to the backlog and excited about the partnership with the customers with whom we're going to contract them I wouldn't necessarily draw any additional lines.
Speaker Change #106: Kind of consistent with the prior comments I made around backlog things are going to be.
Speaker Change #106: Lumpy over time, its terrific that we were able to add some additional wind projects to the backlog.
And right now our expectations remain consistent with what we laid out.
Speaker Change #106: Last month, and obviously have again in our presentation materials today in terms of the targets over the next four years, but I did say as part of our comments last month I am optimistic hopeful maybe that as we look back. After this four year period that is potentially the area, where we may have been too conservative.
Rebecca Kujawa: But I did say, as part of our comments last month, I am optimistic, hopeful maybe, that as we look back after this four-year period, that is potentially the area where we may have been too conservative and maybe on the lower side of it. It is early in this cycle to make that conclusion. But we strongly believe that wind, solar, and battery storage as complimentary technologies and low cost and staff to deploy, as John just highlighted, are immensely valuable to our customers. And so, having the availability of all three, we think we'll continue to create value for our customer base over a long period of time.
Rebecca J. Kujawa: But I did say, as part of our comments last month, I am optimistic, hopeful, maybe, that as we look back after this four-year period, that is potentially the area where we may have been too conservative and maybe on the lower side of it.
And maybe on the lower side of it. It is early in the cycle to make that conclusion, but we strongly believe that wind solar and battery storage as complementary technologies and low cost and fast to deploy as John just highlighted are immensely valuable to our customers instead of having to be avail.
Carly S. Davenport: It is early in this cycle to make that conclusion, but we strongly believe that wind, solar, and battery storage as complementary technologies and low cost and fast to deploy, as John just highlighted, are immensely valuable to our customers. And so having the availability of all three, we think will continue to create value for our customer base over a long period of time. Got it. Thanks so much for the time and the comments. Thank you, Carly. The next question comes from Andrew Weisel from Deutsche Bank; please go ahead. Hi, good morning, everyone.
John: The ability of all three.
John: We think we will continue to create value for our customer base over a long period of time.
Unknown Executive: Got it.
Unknown Executive: Thanks so much for the time and the comments. Thank you, Carl.
Speaker Change #107: Got it thanks, so much for the time and the comments.
Carla: Thank you Carla.
Andrew Weisel: The next question comes from Andrew Weisel from Deutsche Bank. Please go ahead. Hi, good morning, everyone. Just a quick one to clarify, please. If I heard you right, I think you said you have seven gigawatts in total with tech and data center customers. Can you just give us a sense of the pace, maybe roughly around numbers, how many megawatts per year you've been adding or expect to add? And then if you could also just clarify, is that purely in terms of wind, solar, storage, or does that also include transmission?
Speaker Change #109: The next question comes from Andrew Weisel from Deutsche Bank. Please go ahead.
Andrew Marc Weisel: Just a quick one to clarify, please. If I heard you right, I think you said you have seven gigawatts in total with tech and data center customers. Can you just give us a sense of the pace, maybe roughly round numbers, how many megawatts per year you've been adding or expect to add? And then, if you could also just clarify, is that purely in terms of wind and solar storage, or does that also include transmission? Hi Andrew, it's Rebecca.
Andrew Marc Weisel: Hi, good morning, everyone.
Andrew Marc Weisel: Just a quick one to clarify please if I heard you right. I think you said you had seven gigawatts in total with Tech and data center customers can you just give us a sense of the pace, maybe roughly round numbers, how many megawatts per year, you've been adding or expect to add and then if you could also just clarify is that purely in terms of wind solar store.
Speaker Change #111: Or does that also include transmission.
Rebecca Kujawa: Hi, Andrew, it's Rebecca. So that is just projects with technology companies. Roughly three gigawatts of those are already in service, and roughly four gigawatts now are the ones that are in the backlog that we plan to build over the coming years. It is a mix of technologies, probably brand-wise, fairly consistent with what we have seen for overall trends for renewable development. So projects that are already in service are likely to be more heavily weighted towards wind as we've entered into those relationships over a longer period of time. And then in terms of the backlog. For now, they're more weighted towards solar and storage, but I expect that to even out over time, particularly as these projects get more deliberately balanced with new data center demand as these hyper-scalers and data center operators are starting to put projects in service.
Rebecca J. Kujawa: So that is just projects with technology companies; roughly three gigawatts of those are already in service, and roughly four gigawatts now are the ones that are in the backlog that we plan to build over the coming years. It is a mix of technologies, probably brand-wise fairly consistent with what we have seen for overall trends for renewable energy development. So projects that are already in service are likely to be more heavily weighted towards wind, as we've entered into those relationships over a longer period of time.
Speaker Change #111: Hi, Andrew it's Rebecca so that is just projects Fort with technology companies roughly see Greg three gigawatts of those are already in service and roughly four gigawatts now are the ones that are in the backlog that we plan to build over the coming years. It is a mix of technologies probably <unk>.
Speaker Change #112: <unk> fairly consistent with what we have seen for overall trends for renewables development.
Speaker Change #111: Projects that are already in service or are likely to be more heavily weighted towards wind as we've entered into those relationships over a longer period of time.
Rebecca J. Kujawa: And then in terms of the backlog, for now, they're more weighted towards solar and storage, but I expect that to even out over time, particularly as these products get more deliberately balanced with new data center demand as these hyperscalers and data center operators are starting to put projects in service.
Speaker Change #111: Then in terms of the backlog for now there are more weighted towards solar and storage, but I expect that to even out over time, particularly as these projects get more deliberately balanced with new data center demand as these hyper scaler and data center operators are starting to put projects in service.
Rebecca Kujawa: So broadly speaking, roughly consistent with overall development trends, and we certainly are seeing a lot of demand both directly with them, as well as in these three-way collaborations with utilities that ultimately will need to serve them as they are and will continue to be adding these new data centers and bringing them on themselves.
Rebecca J. Kujawa: So broadly speaking, roughly consistent with overall development trends, and we certainly are seeing a lot of demand, both directly with them, as well as in kind of these three-way collaborations with utilities that will ultimately need to serve them as they are and will continue to be adding these new data centers and bringing them on themselves. Great. Do you see much of an opportunity on the transmission side working with data centers, or is your focus more on what you were describing?
Speaker Change #111: Broadly speaking roughly consistent with overall development trends.
Speaker Change #111: And we certainly are seeing a lot of demand.
Speaker Change #111: Both directly with them as well as in kind of these three way collaborations with utilities that ultimately will need to serve them.
Speaker Change #111: As they are and will continue to be adding these new data centers and bringing them on themselves.
Rebecca Kujawa: Okay, great. Do you see much of an opportunity on the transmission side working with data centers, or is your focus more on what you were describing? I would say from a transmission perspective, all of this demand, whether it was the historical replacement cycle demand, and now further accelerated by the growth demand, particularly as it gets served with renewables and storage, it is incredibly important that new transmission get built in order to be able to get the resources from which they're most optimally generated to where they're most optimally consumed, and that's changing a little bit, but what's not changing is the need to build transmission.
Speaker Change #111: Okay.
Speaker Change #114: Okay, Great do you see much of an opportunity on the transmission side working with data centers or is your focus more on on what you were describing.
Rebecca J. Kujawa: I would say from a transmission perspective, all of this demand, whether it was the historical replacement cycle demand and now, you know, further accelerated by the growth demand, particularly as it gets served with renewables and storage, it is incredibly important that new transmission gets built in order to be able to get the resources from which they're most optimally generated to where they're most optimally consumed. And that's changing a little bit.
Speaker Change #116: I would say from a transmission perspective, all of this demand whether it is the historical replacement cycle demand and now further accelerated by the growth demand, particularly as it gets.
Speaker Change #111: Served.
Speaker Change #113: Renewables and storage.
Speaker Change #115: It is incredibly important that new transmission get built.
Speaker Change #115: In order to be able to get the resources from which they are most optimally generated to where they're most optimally consume and thats changing a little bit, but let's not changing as they need to build transmission.
Rebecca J. Kujawa: But what's not changing is the need to build transmission. We see interest from the hyperscalers and the data center operators to understand transmission and be supportive of it getting built. But it is very technically complex, and you need to understand transmission and how to interact with the system operators and the transmission owners and operators themselves.
Rebecca Kujawa: We see interest from the hyperscalers and the data center operators to understand transmission and be supportive of it getting built, but it is a very technically complex and you need to understand transmission. And how to interact with the system operators and the transmission owners and operators themselves. So I don't see them necessarily wanting to build transmission, but they are very interested in having us and others ensure that it gets built to support their own long-term objective.
Speaker Change #115: See interest from the Hyperscale orders and the data center operators to understand transmission.
Speaker Change #115: And be supportive I think getting built but it is a very technically.
Speaker Change #115: Complex and you need to understand transmission and how to interact with the system operators and the transmission owners and operators themselves. So I don't see them necessarily wanting to build transmission, but they are very interested in having us and others and sure that it gets built to support their own long term objectives.
Rebecca J. Kujawa: So, I don't see them necessarily wanting to build the transmission, but they are very interested in having us and others ensure that it gets built to support their own long-term objectives. That was good. Thank you. Thank you. The next question comes from Durgesh Chopra from Evercore ISI. Please go ahead. Hey, team.
Unknown Executive: Thank you.
Speaker Change #117: Sounds good thank you.
Speaker Change #118: Thank you.
Durgesh Chopra: The next question comes from Durga Shapa from Evercore ISI. Please go ahead. Hey team, good morning. Really appreciate you taking the time and answering my questions here. Just all my other questions have been answered. Just one quick follow-up on Carly's questions on election and potential repeal of either risks. How much of that you had a really strong quarter on renewable origination, but how much of that political instability is actually impacting your ability to sign contracts? Does that come up in your negotiation? Is that keeping your customers away from signing contracts into the future? Any color on that is appreciated.
Durgesh Chopra: The next question comes from <unk> Chopra from Evercore ISI. Please go ahead.
Durgesh Chopra: Good morning. I really, really appreciate you taking the time to answer my question here. All my other questions have been answered. Just one quick follow up on Carly's questions on the election and, you know, potential repeal of IRO risks. How much of that, you had a really strong quarter on renewable origination, but how much of that political instability is actually impacting, you know, your ability to sign contracts? Is that, does that come up in your negotiations? Is that keeping your customers away from signing contracts in the future? Any color on that would be appreciated.
Durgesh Chopra: Hey, Deane good morning, really we appreciate you taking the time answering my questions.
Durgesh Chopra: All my other questions have been answered just one quick follow up on <unk> questions on the election.
Speaker Change #120: Potential repeal of either risks.
Speaker Change #121: Much of that you had a really strong quarter on renewable origination, but how much of that political instability is actually impacting you.
Speaker Change #122: Your ability to sign contracts is that.
Speaker Change #123: Does that come up in your negotiations is that keeping our customers away from signing contracts into the future any color on that as appreciate it. Thank you.
John Ketchum: Thank you.
John Ketchum: Yeah, Durga Shapa, the short answer is absolutely not. If anything, if they really did believe that there were going to be modifications, would only accelerate demand, which is certainly not something that we believe for the reasons I went through, but it's not curtailing demand at all.
John W. Ketchum: Thank you. Yeah, Durgesh, the short answer is absolutely not. You know, if anything, if they really did believe that there were going to be modifications that only accelerate demand, which is certainly not something that we believe for the reasons I went through, but it's not curtailing demand.
Speaker Change #122: Yeah.
Speaker Change #124: Yes, the short answer is absolutely not.
Speaker Change #122: No.
Speaker Change #125: If anything.
Speaker Change #126: If they really didn't believe that.
Speaker Change #126: There were going to be modifications would only accelerate demand, which is certainly not something that we you know we.
Speaker Change #126: We believe for the reasons I went through but.
Speaker Change #127: Its not curtailing demand at all.
Unknown Executive: Perfect. Thank you.
Speaker Change #128: Perfect. Thank you.
Unknown Executive: Thank you, Durga Shapa.
Speaker Change #129: Thank you <unk>.
Unknown Executive: This concludes a question and answer session, and the conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
Durgesh Chopra: Perfect. Thank you. Thank you, Durgesh. This concludes our question and answer session, and the conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
Speaker Change #130: This concludes our question and answer session and the conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
Speaker Change #129: Yes.