Q2 2024 NextEra Energy Partners LP Earnings Call

July 24, 2024

Julien Dumoulin: Julien Dumoulin, Jr.

Operator: Good day and welcome to the Nextera Energy and Nextera Energy Partners LP 2.2024 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.

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.

Operator: Good day, and welcome to the NextEra Energy and NextEra Energy Partners, LP Q2 2024 Earnings Conference Call. All 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. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Mark Eidelman, Director of Investor Relations. Please go ahead.

Operator: UsedGood day, and welcome to the NextEra Energy and NextEra Energy Partners, LP Q2 2024 Earnings Conference Call. All 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. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Mark Eidelman, Director of Investor Relations. Please go ahead.

Speaker Change: Good day and welcome to the Nextera Energy and Nextera Energy Partners LP second quarter 2024 earnings conference call.

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: All 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.

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

Speaker Change: After today's presentation, there will be an opportunity to ask questions.

Speaker Change: To ask a question, you may press star, then 1 on your touchtone phone. To withdraw your question, please press star, then 2. Please note, this event is being recorded.

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.

Mark Eidelman: I would now like to turn the conference over to Mark Eidelman, Director of Investor Relations. Please go ahead.

Speaker Change: I would now like to turn the conference over to Mark Eidelman, Director of Investor Relations. Please go ahead.

Mark Eidelman: 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, all of whom are also officers of Nextera Energy Partners, as well as Armando Pimentel, President and Chief Executive Officer of Florida Power John will start with opening remarks, and then Brian will provide an overview of our results.

Mark Eidelman: Thank you, Danielle. Good morning, everyone, and thank you for joining our Q2 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, all of whom are also officers of NextEra Energy Partners. As well as Armando Pimentel, President and Chief Executive Officer of Florida Power & Light Company. 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. We will be making forward-looking statements during this call based on current expectations and assumptions, which are subject to risks and uncertainties.

Mark Eidelman: Good morning, everyone. 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, 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.

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.

Speaker Change: With me this morning are John Ketchum, Chairman, President, and Chief Executive Officer of Nextera Energy.

Speaker Change: 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, all of whom are also officers of Nextera Energy Partners

Armando Pimentel: as well as Armando Pimentel, President and Chief Executive Officer of Florida Power and Light Company.

Mark Eidelman: 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.

Speaker Change: 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: 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 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.nexteraenergy.com and www.nexteraenergypartners.com. We do not undertake any duty to update any forward-looking statements.

John W. Ketchum: 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 are 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.nexteraenergy.com and www.nexteraenergypartners.com, we do not undertake any duty to update any forward looking.

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.

Mark Eidelman: 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, 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 website, www.nexteraenergy.com and www.nexteraenergypartners.com. We do not undertake any duty to update any forward-looking statements. Today's presentation also includes references to non-GAAP financial measures. You should refer to the information contained in the slides accompanying today's presentation for 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.

Speaker Change: Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect or because of other factors discussed in today's earnings news release.

Speaker Change: and the comments made during this conference call and the risk factor 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.nexteraenergy.com and www.nexteraenergypartners.com.

Mark Eidelman: 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.

John W. Ketchum: 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 Mark. Thanks, Mark, and good morning, everyone.

Speaker Change: We do not undertake any duty to update any forward-looking statements.

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 .

Mark Eidelman: With that, I'll turn the call over to John.

John Ketchum: 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. 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.

John Ketchum: Thanks, Mark, and good morning, everyone. NextEra Energy delivered strong Q2 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. 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.

John W. Ketchum: 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 rate settlement in 2022. 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 saved customers nearly $16 billion since 2001.

John W. Ketchum: Thanks, Mark, and good morning, everyone.

John W. Ketchum: Nextera Energy delivered strong second quarter results with adjusted earnings per share increasing more than 9% year-over-year.

John W. Ketchum: In addition, through the first six months of the year, our adjusted earnings per share has increased 9.4% year over year.

John W. Ketchum: The continued strong financial and operational performance of both FPL and Energy Resources position our company well to meet its overall objectives for the year.

John W. Ketchum: 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: We are making smart capital investments in low-cost solar generation and battery storage.

John W. Ketchum: We're continuing to reduce our overall fuel cost.

John W. Ketchum: and combined with generation modernizations have saved customers nearly $16 billion since 2001.

John Ketchum: 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. This year, we identified 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 cost, FPL has kept residential bills nearly 40% below the national average and by far the lowest among all of the Florida investor-owned utilities.

John W. Ketchum: 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 Ketchum: 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. 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.

John W. Ketchum: 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 W. Ketchum: A big driver of our outperformance has been our team and culture of continuous improvement and productivity.

John W. Ketchum: 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: 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 W. 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.

John W. Ketchum: 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.

John Ketchum: 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. Florida continues to be one of the fastest growing states in the U.S. 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.

John Ketchum: 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. 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 US, with roughly 1,000 people moving to Florida every day. 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.

John W. Ketchum: 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 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 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.

John W. Ketchum: Florida continues to be one of the fastest growing states in the U.S. 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.

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 shouldered this additional growth through our Reserve Amortization Mechanism, which enables FTL to absorb the costs for these capital investments without increasing customer bills in the interim.

John W. Ketchum: 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.

John Ketchum: Compared against an estimated 9% compound annual growth rate, that was originally anticipated for the four-year settlement period. We have shouldered 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. 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. LPL ended the second quarter with a remaining reserve amortization balance of $586 million, which is expected to be sufficient to support LPL's capital investment plans and its abilities are earned an 11.4% regulatory ROE this year and next.

John W. Ketchum: compared against an estimated 9% confident annual growth rate that was originally anticipated for the four-year settlement period.

John Ketchum: We have shouldered this additional growth through our reserve amortization mechanism, which enables FPL to absorb the cost for these capital investments without increasing customer bills in the interim. 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 Q2 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.

Speaker Change: We have shouldered this additional growth through our reserve amortization mechanism, which enables FTL to absorb the cost for these capital investments without increasing customer bills in the interim.

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 plans and its ability to earn an 11.4% regulatory ROE this year and next.

Speaker Change: 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.

Speaker Change: FPL fully expects to seek recovery of these increased expenditures in its rate case filing next year.

Speaker Change: FPL ended the second quarter with a remaining reserve amortization balance of 586 million dollars which is expected to be sufficient to support FPL's capital investment plan and its ability to earn an 11.4 percent regulatory ROE this year and next.

John Ketchum: An 11.4% 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 the content 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 LPL 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.

John W. Ketchum: 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 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.

John Ketchum: A 11.4% regulatory ROE is expected to have a $0.06 EPS impact in each of 2024 and 2025, which has already been taken into account in our financial expectations. We will be disappointed if we are unable to deliver financial results at or near the top of our adjusted earnings 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. 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.

Speaker Change: 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.

Speaker Change: 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.

Speaker Change: 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.

Speaker Change: 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.

John Ketchum: 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. 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: 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 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.

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: At Energy Resources, we are benefiting from two types of demand.

Speaker Change: 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.

Speaker Change: We expect this to continue, and while replacement cycle demand has been around for a long time, growth cycle demand is new.

Speaker Change: With the exception of a few states such as Florida, power demand from new growth has been static in our industry for decades.

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 is 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.

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 fast to deploy, low-cost generation. As we 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 GW pipeline, half of which is in the interconnection queue process or is 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, commercial, and industrial customer base.

Speaker Change: That's changing as power demand is projected to grow four times faster over the next two decades compared to the prior two.

Speaker Change: 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.

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.

Speaker Change: energy resources couldn't be better positioned.

Speaker Change: as it has a 300 gigawatt pipeline, half of which is in the interconnection queue process or is already interconnection ready.

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 go. 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.

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.

Speaker Change: our scale.

Speaker Change: 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.

John Ketchum: 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. Energy Resources added over 3,000 MW of new renewables and storage projects to the backlog this quarter, 860 MW of which come from agreements with Google to meet their data center power demand. 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 economy's growing demand for power has never been more evident.

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.

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 came from agreements with Google to meet their data center power demand. 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 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 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, 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: 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.

Speaker Change: The importance of renewable storage to help meet our economy's 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.

John Ketchum: As data center growth accelerates to facilitate our economy's shift to artificial intelligence, and as we continue to redomesticate 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. They also are extremely fast to deploy compared to alternative forms of generation, making them vital to our country's success going forward. 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: 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,

Speaker Change: 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.

John Ketchum: They also are extremely fast to deploy compared to alternative forms of generation, making them vital to our country's success going forward. 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. In our uniquely position to help them make the right decisions for their business. 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.

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.

Speaker Change: And importantly, the country has stood up a significant domestic industry to support their growth.

Speaker Change: which is driving investment in factories and is creating good-paying jobs 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.

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-build 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 3 to 4-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. As I've been saying, NextEra Energy was built for this moment, and our future outlook has never been stronger.

Speaker Change: as the owner and operator of a large natural gas fired fleet in Florida.

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 fire generation as a bridge fuel.

John Ketchum: 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 renewables in particular. As I've been saying, next-area energy was built for this moment, and our future outlook has never been stronger.

Speaker Change: Yet, we also are well aware of the realities of new billed gas fire generation.

Speaker Change: It's more expensive than 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.

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 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, and the future has never been brighter for the power generation sector as a whole, and renewables in particular.

Nextera energy: As I've been saying, Nextera Energy was built for this moment, and our future outlook has never been stronger.

John Ketchum: 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 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. 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.

John Ketchum: 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 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. 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.

Nextera energy: 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 generation.

Nextera energy: We have the playbook and the platform to win in any environment and most importantly we have the team.

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.

Nextera energy: Our competitive advantages continue to grow every day, providing industry differentiation that is over two decades in the making and difficult to replicate.

Nextera energy: And I firmly believe we will continue to expand that strategic distance, creating value for customers and shareholders.

Nextera energy: 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.

Brian Bolster: With that, I will turn the call over to Brian to cover the detailed results, beginning with FPL.

Nextera energy: With that, I will turn the call over to Brian to cover the detailed results beginning with FPL.

Brian Bolster: Thank you, John.

Brian 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 agreement's four-year 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.

Brian Bolster: Thank you, John. Good morning, everyone. For Q2 2024, FPL increased earnings per share by 3 cents year over year. The 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's four-year 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 investments to be between $8 and $8.8 billion. Over the current four-year settlement agreement, we expect FPL's capital investments to exceed $34 billion.

Brian Bolster: Thank you, John. Good morning, everyone. For Q2 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% year-over-year. We continue to expect FPL to realize roughly 10% average annual growth in regulatory capital employed over our current rate agreement's four-year 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 investments to be between $8 and $8.8 billion. Over the current four-year settlement agreement, we expect FPL's capital investments to exceed $34 billion.

Brian Bolster: Good morning, everyone. For the second quarter of 2024, FPL increased earnings for share by three cents year over year. The 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 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 investments to be between $8.8 billion. Over the current four-year settlement agreement, we expect FPL's capital investments to exceed $34 billion.

Brian: Thank you, John . Good morning, everyone. For the second quarter of 2024, FPL increased earnings per share by three cents year over year.

Brian: The principal driver of this performance was FPL's regulatory capital employed growth of approximately 10.7% year-over-year.

Brian: We continue to expect FPL to realize roughly 10% average annual growth in regulatory capital employed over our current rate agreements four-year term, which runs through 2025.

Brian: FBL's capital expenditures were approximately $2.1 billion for the quarter, and we expect FBL's full-year 2024 capital investments to be between $8 and $8.8 billion.

Brian 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 FDL's capital investments to exceed $34 billion.

Brian Bolster: 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%. 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 Bolster: FPL's Q2 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%. As a result, FPL grew retail sales in Q2 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%, and the 11.4% regulatory ROE mentioned previously is expected to be realized in Q4 for the 12 months ending December 2024. Now let's turn to Energy Resources, which reported adjusted earnings growth of approximately 10.8% year-over-year. At Energy Resources, adjusted earnings per share increased by $0.03 year-over-year.

Brian Bolster: FPL's Q2 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%. As a result, FPL grew retail sales in Q2 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%, and the 11.4% regulatory ROE mentioned previously is expected to be realized in Q4 for the twelve months ending December 2024. Now let's turn to Energy Resources, which reported adjusted earnings growth of approximately 10.8% year-over-year. At Energy Resources, adjusted earnings per share increased by $0.03 year-over-year.

Brian: 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: As a result, FPL grew retail sales in the second quarter by roughly 1.1 percent on a weather-normalized basis.

Brian 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 $0.03 year-over-year.

Brian: For the 12 months ending June 2024, FPL's reported ROE for regulatory purposes will be approximately 11.8 percent.

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 reflected in increased 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 call 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% year-over-year. At Energy Resources, adjusted earnings per share increased by $0.03 year-over-year.

Brian 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 3 cents per share.

Brian 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 Q2 2024 was approximately 104% of the long-term average versus 88% in Q2 2023. The comparative contribution from our customer supply business, which you'll recall had stronger needs last year, decreased by $0.03 per share. Contributions from our gas infrastructure business decreased by $0.07 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 NextEra Energy Partners.

Brian: Contributions from new investments increased $0.12 per share year over year, primarily driven by continued growth in our renewables portfolio.

Brian: Our existing clean energy portfolio increased $0.06 per share, primarily reflecting an increase in wind resources during the quarter.

Brian: Wind resource for the second quarter of 2024 was approximately 104% of the long-term average, versus 88% in the second quarter of 2023.

Brian: the comparative contribution from our customer supply business,

Brian: which you'll recall had strong earnings last year, decreased by three cents 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 on recurring items, and the sale of the Texas pipelines by Next-Area Energy Partners. While we may see a few pennies impact again next quarter, we expect gas infrastructure 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 and gas infrastructure growth going forward.

Brian Bolster: Contributions from our gas infrastructure business decreased by $0.07 per share due to a combination of higher depletion expense related to lower production, certain non-recurring items, and the sale of the Texas Pipeline 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.

Brian: 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.

Brian: certain non-recurring items.

Brian Bolster: 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 reduced earnings by $0.05 per share. Energy Resources had a strong quarter of new renewables and storage origination, adding 3,000MW to the backlog.

Brian: and the sale of the Texas Pipelines by Nextera Energy Partners.

Brian: 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.

Brian Bolster: 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: 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. 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 cost. 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.

Brian: all other impacts reduce earnings by five cents per share.

Brian: Energy resources had a strong quarter of new renewables and 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.

Brian Bolster: With these additions, our backlog now totals roughly 22.6 gigawatts after taking into account more than 1600 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.

Brian Bolster: With these additions, our backlog now totals roughly 22.6GW after taking into account more than 1,600MW of new projects placed into 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' 300GW pipeline is years in the making and ready to respond to customer demand. We have competitive advantages understanding 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: providing great visibility into energy resources ability to deliver on our development program expectations.

Brian: 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. We have competitive advantages understanding transmission and grid constraints.

Brian Bolster: We have competitive advantages understanding 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 Bolster: We have competitive advantages in understanding 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 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 Bolster: A great example is our collaboration with Energy, where we are targeting 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. 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 and operation and in backlog, to seven gigawatts.

Brian Bolster: 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: A great example is our collaboration with Entergy, where we are targeting to build 4.5GW of renewable storage solutions to help them meet both their new increased load demand and energy transition goals. 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. As John said earlier, this quarter's backlog additions include 860MW 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 7GW. Our competitive position is even further advantaged by our existing portfolio.

Brian: 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 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 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: 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.

John W. Ketchum: That brings our total renewables portfolio with technology and data center customers, including assets in operation and in backlog, to 7 gigawatts.

Brian Bolster: Our competitive position is even further advanced by our existing portfolio. With interconnection timelines for new sites stretching for three to seven years or beyond, we 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. This optionality provides a unique resource to meet our customer needs while also capitalizing on the embedded option value from the existing portfolio.

Speaker Change: Our competitive position is even further advantaged by our existing portfolio, with interconnection timelines for new sites stretching for 3 to 7 years or beyond.

Brian Bolster: 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. 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 Q2 2024 consolidated results, adjusted earnings from corporate and other increased by $0.02 per share year-over-year. 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.

Speaker Change: 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 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.

Speaker Change: 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 two cents per share year over year.

Speaker Change: Turning now to second quarter 2024 consolidated results. Adjusted earnings from corporate and other increased by two cents per share year over year.

Brian Bolster: During the quarter, next year, it 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. 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: 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 are 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 into an agreement with Blackstone to sell a partial interest in a portfolio of wind and solar projects for approximately $900 million.

Brian Bolster: 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 in operating cash flow will be at or above our adjusted EPS compound annual growth rate range. We also continue to expect to grow our dividends per share at roughly 10% per year through at least 2026 off a 2024 base. As always, our expectations assume our caveats. Turning next to NextEra Energy Partners.

Speaker Change: Our long-term financial expectations, which we extended last month at our investor conference, remain unchanged.

Speaker Change: We will be disappointed if we are not able to deliver financial results at or near the top end of our adjusted EPS expectations range in 2024, 2025, 2026, and 2027.

Brian Bolster: 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. And we also continue to expect to grow our dividends per share at roughly 10% per year through at least 2026, off a 2024 bid. As always, our expectations assume our caveat. Turning next to Nextera Energy Partners. Yesterday, Nextera Energy Partners Board declared a quarterly distribution of 90.5 cents per common unit or $3.62 per common unit on an annualized basis, up approximately 6% from a year earlier.

Speaker Change: 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 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.

Speaker Change: And we also continue to expect to grow our dividends per share at roughly 10% per year through at least 2026 off a 2024 base.

Brian Bolster: As always, our expectations assume our caveats.

Speaker Change: As always, our expectations assume our caveats.

Brian Bolster: Turning next to next-era energy partners. Yesterday, NextEra Energy Partners' board declared a quarterly distribution of 90.5 cents per common unit or $3.62 per common unit on an annualized base. basis, up approximately 6% from a year earlier.

Brian 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 hold code 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. 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.

Brian Bolster: Yesterday, NextEra Energy Partners' 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. 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 holdco debt maturity earlier this month, the partnership now has approximately $2.7 billion of liquidity. Let me now turn to the detailed results. Q2 adjusted EBITDA was $560 million, and cash available for distribution was $220 million.

Speaker Change: Turning next to Nextera Energy Partners. Yesterday Nextera Energy Partners board declared a quarterly distribution of 90.5 cents per common unit or three dollars and sixty two cents per common unit on an annualized basis.

Brian 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 hold code debt maturity earlier this month, the partnership now has approximately $2.7 billion of liquidity.

Speaker Change: up approximately 6% from a year earlier.

Speaker Change: Turning to the balance sheet, since our last earnings call, the partnership completed the next NEP Renewables II equity buyout of roughly $190 million in June 2024 and paid down our 2024 convertible maturity with cash on hand.

Speaker Change: After repayment of a $700 million hold code 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. 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 $62 million a year over year, driven primarily by favorable wind resource during the quarter and partially offset by a lower solar generation.

Brian Bolster: Second quarter adjusted EBITDA contribution from existing projects grew by approximately $62 million year over year, driven primarily by favorable wind resource during the quarter and partially offset by lower solar generation. Wind resource is approximately 103% of the long-term average versus 88% in the second quarter of 2023. Finally, adjusted EBITDA on 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 sales of these assets.

Speaker Change: Let me now turn to the detailed results. Second quarter adjusted EBITDA was 560 million dollars and cash available for distribution was 220 million dollars.

Brian Bolster: New projects, which primarily reflect contributions from approximately 780 net MW of new assets that either closed in Q2 2023 or achieved commercial operations in 2023, contributed approximately $39 million of adjusted EBITDA and $9 million of cash available for distribution. Q2 adjusted EBITDA contribution from existing projects grew by approximately $62 million year over year, driven primarily by favorable wind resource during the quarter and partially offset by lower solar generation. Wind resource was approximately 103% of the long-term average versus 88% in Q2 2023.

Speaker Change: New projects, which primarily reflect contributions from approximately 780 net megawatts of new assets.

Speaker Change: 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.

Speaker Change: Second quarter adjusted EBITDA contribution from existing projects grew by approximately 62 million dollars year-over-year, 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 8% 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 to the Texas pipeline portfolio, which is partially offset by the interest benefit of the remaining cash proceeds received from the sale of these assets. From a base of our fourth quarter 2023 distribution per common unit at an annualized rate of $3.52, the partnership continued to see 5-8% 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.

Speaker Change: Wind resource was approximately 103% of the long-term average versus 88% in the second quarter of 2023.

Brian Bolster: 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. From a base of our Q4 2023 distribution per common unit at an annualized rate of $3.52, 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 as a reasonable target range of expectations through at least 2026. NextEra Energy Partners expects the partnership payout ratio to be in the mid- to high 90s through 2026.

Speaker Change: Finally, adjusted EBITDA on 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 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. Nextera Energy 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 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.

Brian Bolster: Next, there are energy partners expects 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.

Speaker Change: Nextera Energy Partners expects the partners' payout ratio to be in the mid to high 90s through 2026.

Brian Bolster: We expect the annualized rate of the Q4 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. At the same time, the partnership's 6% distribution growth target remains for now. NextEra Energy Partners does not need an acquisition or related financing in 2024 to meet its 6% target and does not need growth equity until 2027. 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.

Speaker Change: 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 Bolster: In terms of next steps for next-era 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. 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 at 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.

Brian 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 buyouts. 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 have discussed with you previously, the partnership 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.

Speaker Change: At the same time, the partnership's 6% distribution growth target remains for now.

Speaker Change: Nextera Energy Partners does not need an acquisition of related financing in 2024 to meet its 6% target and does not need growth equity until 2027.

Brian 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 dollars and $730 to $820 million, respectively.

Speaker Change: 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.

Brian Bolster: 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, to be 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.

Brian Bolster: 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 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. That concludes our prepared remarks, and with that, we'll open the line for questions.

Speaker Change: We expect to share more in the coming quarters as we address these objectives.

Speaker Change: Nextera Energy Partners expects run rate contributions for adjusted EBITDA and cash available for distribution from its forecasted portfolio at December 31, 2024.

Speaker Change: to be in the ranges of $1.9 to $2.1 billion.

Speaker Change: and $730 to $820 million dollars respectively.

Brian 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 touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the key.

Speaker Change: As a reminder, year-end 2024 run rate projections reflect calendar year 2025 contributions from the forecasted portfolio at year-end 2024.

Brian Bolster: As a further reminder, our expectations are subject to our caveats.

Speaker Change: As a further reminder, our expectations are subject to our caveats.

Operator: That concludes our prepared remarks, and with that, we'll open line for questions.

Speaker Change: That concludes our prepared remarks and with that we'll open the line for questions.

Operator: 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 keys.

Operator: We will now begin the question and answer session. To ask a question, you may press star, then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. The first question comes from Steve Fleishman from Wolfe Research. Please go ahead.

Speaker Change: 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: If you are using a speakerphone, please pick up your handset before pressing the keys.

Operator: 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.

Operator: If at any time your question has been addressed and you would like to withdraw your question, please press star, then two.

Speaker Change: If at any time your question has been addressed and you would like to withdraw your question, please press star then 2.

Steve Fleishman: The first question comes from Steve Fleishman from Wolf Free Search. Please go ahead.

Speaker Change: The first question comes from Steve Fleishman from Wolf Research. Please go ahead.

Steve Fleishman: Yeah, excuse me, aye. Good morning. Can you hear me? Yes. Okay.

Steven I. Fleishman: All right. Good morning. Can you hear me?

Steve Fleishman: Yeah. Excuse me. Hi, good morning. Can you hear me?

Operator: Yes, Steve, we can hear you. 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 driving the increased usage? Is it just that you've ramped up?

Brian Bolster: Yes. Steve, we can hear you.

Steven I. Fleishman: yeah excuse me hi good morning can you hear me

Steve Fleishman: 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 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 more color on that comment.

John Ketchum: Hey, just first on the comments, 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%.

Steven I. Fleishman: Yes, Steve we can hear you. Okay, hey, 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

Speaker Change: What's driven the increased usage? Is it just that you've ramped up?

John W. Ketchum: 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%. It's actually been around 12 as we have accommodated that growth.

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 that comment.

Brian Bolster: Yeah. No. Absolutely, Steve. 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 2021, we thought our regulatory capital employed to be around 9%. It's actually been around 12% as we have accommodated that growth. We've got surplus that's right around

John W. Ketchum: 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.

Speaker Change: When we first entered into the settlement agreement back in 21, we thought our regulatory capital employed would be around 9%.

John Ketchum: It's actually been around 12, as we have accommodated that growth. And so we've got 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 plans will probably be right around 11.4% ROE for the full year 24 and for the full year 25. And that has about a six-cent impact here this year and a six-cent impact next year.

John W. Ketchum: 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 to take into account the further growth that we see. We believe that with that amortization balance and those CapEx plans, we 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 six percent impact here this year and a six percent impact next year. It's already folded into our financial expectations and is not a concern in terms of our ability to cover it.

Speaker Change: It's actually been around 12 as we have accommodated that growth. And so we've got surplus that's right around.

John Ketchum: $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 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, you know, right around, you know, an 11.4% ROE for the full year 2024 and for the full year 2025. That has about a $0.06 impact here this year and a $0.06 impact next year. It's already folded into our financial expectations and not a concern in terms of our ability to cover it.

Speaker Change: $586 million today as we look forward for

Speaker Change: This year and next, based on where we are, 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,

Speaker Change: 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.

Steve Fleishman: It's already folded into our financial expectations and not a concern in terms of our ability to cover it.

Steven I. Fleishman: 6th Impact here this year and a 6th Impact next year. It's already folded into our financial expectations and not a concern in terms of our ability to cover it. And, you know, a big plus from this, Steve, is...

John W. Ketchum: And, you know, a big plus from this, Steve, is that it really is, you know, I think is a good fact heading into 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, which we would expect to see full recovery of in our next filing. So 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.

John Ketchum: You know, a big plus from this, Steve, is really a good fact heading into a refiling in 2025 because it demonstrates how the surplus mechanism can really help customers. 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 of in our next filing. This, remember, is intended really just to deal with the regulatory lag as we make new investments at FPL to accommodate the additional growth. We're not worried about this. 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.

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 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. 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.

Speaker Change: It really, you know, I think is a good fact heading into refiling in 2025 because it demonstrates how the surplus mechanism can really help customers.

Speaker Change: The last point that I'll make is...

Speaker Change: Don't forget these additional capital investments.

Speaker Change: that we've made, we would expect to see full recovery of in our next filing.

Speaker Change: 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. 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.

Speaker Change: 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.

Steve Fleishman: Next. Okay, thanks.

John W. Ketchum: And then on the 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? 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.

Steve Fleishman: Okay. Thanks. 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?

John Ketchum: And then on the Blackstone financing that you mentioned, the 900 million, any information on just the size of the portfolio that was sold or the stake in that portfolio? 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 there's a real demand for Nextera assets. I mean, we are recognized in the private equity market as being, you know, really the top developer.

Speaker Change: Okay, thanks. And then on the Blackstone financing that you mentioned, the $900 million, any information on just the...

Speaker Change: The size of the portfolio that was sold, or the stake in that portfolio.

John Ketchum: Yeah. It was a 1.6 GW portfolio, just a you know mix of renewable assets. I think the real positive takeaway here for investors is there's a real demand for NextEra assets. I mean, we are recognized in the private equity market as being you know really the top developer. Given all the growth, you know, this quarter is a great example with the 3 GW that we were able to do, you know, we have a strong trajectory going forward. As private equity you know has opportunities to work with us, and we have a long history of working with private equity going back the last you know 5 or 6 years, you know, it really is a good potential you know win-win for us and for them.

John Ketchum: Yeah. It was a 1.6 GW portfolio, just a you know mix of renewable assets. I think the real positive takeaway here for investors is there's a real demand for NextEra assets. I mean, we are recognized in the private equity market as being you know really the top developer. Given all the growth, you know, this quarter is a great example with the three GW that we were able to do, you know, we have a strong trajectory going forward. As private equity you know has opportunities to work with us, and we have a long history of working with private equity going back the last you know five or six years, you know, it really is a good potential you know win-win for us and for them.

Speaker Change: 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

Speaker Change: There's a real demand for Nextera assets. I mean, we are recognized in the private equity market as being

John Ketchum: And given all the growth and, you know, this quarter is a great example with the 3 gigawatts that we were able to do, you know, we have a strong trajectory going forward in this private equity, you know, has opportunities to work with us. And we've had a long history of working with private equity. Going back the last, you know, five or six years, you know, it really is a good potential, you know, win-win for us and for them. And 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.

Speaker Change: you know, really the top developer and given all the growth and you know, this quarter is a great example of the three gigawatts that we were able to do

John W. Ketchum: 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 the last, you know, five or six years. You know, 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: You know, we have a strong trajectory going forward and as private equity, you know, has opportunities to work with us And we've have a long history of working with private equity

Speaker Change: going back the last, you know, five or six years. You know, it really is a good potential, you know, win-win for us.

John Ketchum: 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. You know, this was a good fit for us.

Speaker Change: and for them. And 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.

John Ketchum: And so, you know, this was a good fit for us.

John Ketchum: And just what's the percent? Is the percent stake a piece of the 1.6, or their stake is 1.6? Yeah, they invested capital alongside us. And so they have a partial interest in that portfolio of 1.6 gigawatts.

Steve Fleishman: Is the percent stake a piece of the 1.6 or their stake is 1.6?

Speaker Change: And just, what's the percent, is the percent stake a piece of the 1.6 or their stake is 1.6?

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.

John Ketchum: Yeah. They invested capital alongside us, and so they have a partial interest in that portfolio.

Speaker Change: They invested capital alongside us, and so they have a partial interest in that portfolio of 1.6 gigawatts.

Steve Fleishman: Got it.

John Ketchum: ... of 1.6GW.

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 G turbines, turbine, a Vineyard Wind. And I know there's a lawsuit five by AP. Can you just maybe talk to your turbine performance with them and just are you using 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 style operator of wind. You know, I think really recognized as the best operator wind in the business.

Steve Fleishman: 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. I know there was a lawsuit filed by AAP. Can you just maybe talk to your turbine performance with them, and are you seeing any issues, and how you're feeling about that?

Speaker Change: And then, last question, just on the recent...

Speaker Change: I know you're not doing offshore wind, but just this recent issue with the

Speaker Change: G Turbine at Vineyard Wind, and I know there was a lawsuit filed by AAP. 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?

John W. Ketchum: 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.

John Ketchum: 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. We have a real partnership with GE. You know, look, wind turbines have moving parts, they'll have issues from time to time. Our partnership with GE runs 20 years. You know, we've really never had any issues in getting things fixed. 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.

Speaker Change: 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.

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. Uh... uh... Okay, great.

John Ketchum: 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 runs 20 years. And so, you know, we've really never had any issues in getting things fixed. And we're always able to structure when 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.

Speaker Change: operator wind in in in the business and

Speaker Change: 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 runs 20 years, and so, you know, we've really never had any issues in getting things fixed.

Operator: Okay.

Steve Fleishman: Okay. Great. Thank you.

Operator: Great.

Operator: Thank you.

Speaker Change: See you in the future.

Shahriar Pourreza: The next question comes from Charo Perezza. I'll go to the high partners. Please go ahead.

Operator: Thank you. The next question comes from Shahriar Pourreza of Guggenheim Partners. Please go ahead.

Operator: The next question comes from Shar Pourreza of Guggenheim Securities. Please go ahead.

Speaker Change: Okay, great. Thank you.

Speaker Change: The next question comes from Shahriar Pourreza of Guggenheim Partners. Please go ahead.

Shahriar Pourreza: Hey guys, good morning. Good morning, John. Good morning. How are you, Jar? Good. All good.

Shahriar Pourreza: Hey guys, good morning. Good morning, John. Good morning. How are you, sir?

Shar Pourreza: Hey, guys. Good morning. Good morning, John.

John Ketchum: Good morning. How are you, Shar?

Shahriar Pourreza: Hey, guys. Good morning. Good morning, John .

Operator: Good. Everything is good. 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.

Shar Pourreza: Good. All good. Just real quick, I wanna 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 on timing, what range of options you're thinking about? I guess how confident are you we can get something done at favorable pricing before the dividend goes under some level of pressure in 2027? Thanks.

Shahriar Pourreza: So just look, I want to start on a nap.

John W. Ketchum: Good morning. How are you, Shahriar?

Shahriar Pourreza: I mean, obviously you guys have the standard language around continuing to evaluate all options.

Shahriar Pourreza: Good. All good. 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.

Shahriar Pourreza: I mean, Brian obviously reiterated the current Kager, but I'll also use 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. It's favorable pricing before the dividend goes under some level of pressure in 27 things.

Speaker Change: I mean Brian obviously reiterated the current CAGR but also used the word for now quote-unquote which is

Speaker Change: 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.

John Ketchum: Yeah, hey, thanks, Shahriar. Obviously, any P is getting a lot of our attention in terms of looking at what the alternatives are. Both improve the cost of capital, which really requires us to be able to successfully address the back-end setups. And, as we said in the prepared remarks, all options are on the table. And what we really are spending time on, and we're looking at various solutions around this, is how do you tackle those back-end setups in a constructive way that makes sense in terms of the cost of capital that would be required to do that.

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 SEPAs. 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 SEPAs 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 Ketchum: Yeah. Hey, thanks, Shar. 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 CEPFs. You know, as we said in the prepared remarks, all options are on the table. 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 CEPFs 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?

Speaker Change: Yeah, hey, thanks, Shahriar. 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

Speaker Change: 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

Speaker Change: 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 SEPAs.

Speaker Change: 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?

John W. Ketchum: So as part of that, you know, we are obviously exploring all alternatives. We've mentioned private capital as, you know, one potential avenue there as well. The good thing is that, you know, we have time. We have time until 2024.

Brian Bolster: And then how do we put napping a better position for success going forward. So, as part of that, we are obviously exploring all alternatives. We've mentioned private capital as one potential avenue there as well. The good thing is that we have time. We have time in 2024. You know, we've said the market; we don't have to do anything when I'm a drops plan for 24. Don't have the growth equity needs until 27. And so, you know, we are being thoughtful about our approach around NEP.

John Ketchum: As part of that, you know, we are obviously exploring all alternatives. We've mentioned private capital as, 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 to the market we don't have to do anything. We don't have any drops planned for 2024. Don't have growth equity needs until 2027. We are being thoughtful about our approach around NEP.

Speaker Change: for success.

Speaker Change: going forward. So it's part of that, you know, we are obviously exploring.

Speaker Change: All alternatives, we've mentioned private capital as one potential avenue there as well. The good thing is that, you know, we have time. We have time in 2024.

John W. Ketchum: You know, we've said to 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 to NEP. And I think Brian, just to, not to take words out of his mouth, but mentioned in the next couple of quarters, is that, is this something maybe we'll get to some sort of a definitive direction this year. Yeah, sure. I don't want to put a firm deadline on it.

Speaker Change: You know, we've said to the market we don't have to do anything. We don't have any drops planned for 2024. We don't have growth equity needs until 2027.

Speaker Change: You know, we are being thoughtful about our approach around NEP.

Brian Bolster: And I think Brian just to take words out of Zump and mention in the next couple of quarters, is this something maybe we'll get to some sort of a definitive direction this year? Yeah, sure. I don't want to put a firm deadline on it, but I think the language we use is over the next few quarters. And once we have identified a solution that we think makes sense, then obviously we will share that. But, but not until then.

Shar Pourreza: Got it. I think, Brian, not to take words out of his mouth, but mentioned in the next couple of quarters, is this something maybe we'll get to some sort of a definitive direction this year?

Speaker Change: And I think Brian just to not to take words out of his mouth but mentioned in the next couple of quarters is that is this something maybe we'll get to some sort of a definitive

John W. Ketchum: But, you know, I think the language we use will be important for 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, Okay, perfect. And then, obviously, on NIR, just congrats on a very strong registration quarter. It was definitely on the higher end.

John Ketchum: Yeah. Yeah, sure. I don't wanna put a firm deadline on it, but, you know-

Brian: direction this year.

Shar Pourreza: Okay

Brian: 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.

John Ketchum: 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.

Shahriar Pourreza: Okay, perfect.

Shar Pourreza: Okay. Perfect. Just on NEER, obviously, just congrats on a, you know, very strong origination 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 allow you to kind of navigate some of the challenges in this space as you're continuing to expand development to maybe much higher levels, right? 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.

Shar Pourreza: Okay. Perfect. Just on NEER, obviously, just congrats on a, you know, very strong origination 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 allow you to kind of navigate some of the challenges in this space as you're continuing to expand development to maybe much higher levels, right? Can supply chain, kind of these bottlenecks that we've seen, become a governor around backlog additions as we look through twenty-five and beyond? Especially as you're trying to meet the needs of these large energy-intensive customers, right? Like the hyperscalers. Thanks.

Shahriar Pourreza: And then just on year, obviously, just congrats on a, you know, very strong, original quarter. Was definitely on the higher end. Google was a key contributor.

Brian: Okay, perfect. And then just on Nir, obviously, just congrats on a, you know, very strong registering quarter.

Shahriar Pourreza: Google was a key contributor. I guess, your sort of existing contract protections and supply chain, maybe strategy-wide, 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 the 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.

Shahriar Pourreza: 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 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, good question, Shar. So, here's how I think about supply chain. You know, number one, there's been, you know, some attention around the 80 CV filing and tariffs and those things.

Speaker Change: Definitely on the higher end, Google was a key contributor. I guess, do your sort of existing contract protections and supply chain, maybe strategy like to kind of navigate some of the challenges in this space?

Speaker Change: 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.

John W. Ketchum: So here's how I think about the supply chain. You know, number one, there's been some attention around the ADCV filing and tariffs and those things. But we're not impacted.

John Ketchum: Yeah, good question, Shar. Here's how I think about supply chain. You know, number one, there's been some attention around the ADCVD filing and tariffs and those things. We're not impacted. You know, I made the comment, and we spent a lot of time with this, both in March and then at our investor conference in June. It still matters more than ever in this business. 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. 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.

Shahriar Pourreza: Yeah, good question Shahriar. So, here's how I think about supply chain, you know, number one, there's been, you know, some attention around the ADCVD filing and tariffs and those things.

John Ketchum: 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 for 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. And we have also made a very conscientious effort around risk transfer and making sure that we have adequate security provided incentive to perform.

Speaker Change: We're not impacted.

Speaker Change: And, you know, I made the comment, and...

Speaker Change: We spent a lot of time with this both in March and then at our...

Speaker Change: Investor Conference in June 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.

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: In the last couple of years, we have really spent a lot of time and made investment around

John Ketchum: We have also made a very conscientious effort around risk transfer and making sure that we have adequate security to provide incentive to perform. We are in a position where, you know, we have really been able to transfer, you know, any tariff for ADCVD or related risks, you know, over to our suppliers. Why is that? The reason for that is when you're, you know, putting numbers up like 3 GW a quarter, and have the type of build that we have and expect to have going forward, OEM contractors and vendors want to work with us. 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.

Speaker Change: the data and analytical capability that we have around our supply chain, and we have also

Speaker Change: made a very conscientious effort around risk transfer and making sure that we have adequate security to provide incentive to perform so

John Ketchum: So, we are in a position where, you know, we have really been able to transfer, you know, any tear for 80 CVD 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. OEM contractors want; contractors and vendors want to work with us. And they've also seen a lot of small developers that ultimately haven't been able to arrange finance, and senior, for whatever reason, haven't had terrific follow-through on their projects.

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, you know, we have really been able to transfer, you know, any tariff or ADCVD or related risks, you know, over to our suppliers. Why is that? The reason for that is when you're...

Speaker Change: You know, put 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.

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,

Speaker Change: 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.

John Ketchum: 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 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.

Shahriar Pourreza: 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.

Speaker Change: had terrific follow-through on their projects. That's not the case with our company.

John Ketchum: There's been even a greater emphasis, I would say, by our suppliers to wanna 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. 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. 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: 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

Speaker Change: We are not taking risks.

Shahriar Pourreza: 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, and we'll see you soon.

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.

Speaker Change: how we can actually approach risk in our agreements going forward.

Shahriar Pourreza: Thank you guys so much. Congrats, and we'll see you soon. Appreciate it.

Shar Pourreza: Terrific. Thank you guys so much. Congrats, and we'll see you soon. Appreciate it.

John Ketchum: Thank you, Shar.

Shahriar Pourreza: Thank you, Shahriar.

Speaker Change: Terrific. Thank you guys so much. Congrats and we'll see you soon. Appreciate it. Thank you, Shahriar.

Julien Dumoulin: The next question comes from Julien Dumoulin Smith from Jeffries. Please go ahead.

John W. Ketchum: I appreciate it. Thank you, Shahriar. The next question comes from Julien Dumoulin-Smith from Jeffreys. Please go ahead. Hey, good morning.

Operator: The next question comes from Julien Dumoulin-Smith from Jefferies. Please go ahead.

Speaker Change: The next question comes from Julian Dumoulin-Smith from Jeffreys. Please go ahead.

Julien Dumoulin: Hey, good morning. Thank you so much, team. Appreciate it. Absolutely, Julien. Good to hear you. Yeah, pleasure. Yeah, likewise.

Julien Dumoulin: Thank you so much, team. I appreciate it. Absolutely, Julian. Good to hear from you.

Julien Dumoulin-Smith: Hey, good morning. Thank you so much, team. Appreciate it.

John Ketchum: Absolutely, Julien. Good to hear you.

Julien Dumoulin: Hey, good morning. Thank you so much, team. I appreciate it.

Operator: 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.

Julien Dumoulin-Smith: Hey, pleasure. Yeah, likewise. Can you speak to how you're thinking about asset recycling here? I mean, I'm curious specifically on the latest portfolio sell down, right, with Blackstone, as mentioned earlier. How do you think about other assets here as you think about like, for instance, some of these headlines on transmission or gas infra as 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? Then related, how do you think about that 70/30 mix as you pare back, you know, as you pare these different asset sales through the forecast period?

Jillian: Absolutely, Jillian.

Julien Dumoulin: Can you speak to us about asset recycling here? I mean, I'm curious specifically on the latest portfolio sell-down with Blackstone, as mentioned earlier. But how do you think about other assets here? As you think about, for instance, some of these headlines on transmission or gas inference being in focus. It's notable after the FTG 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 rate?

Speaker Change: Good to hear you. Pleasure.

Speaker Change: Douglas Goldstein, CFP®, is the director of Profile Investment Services and the host

John W. Ketchum: 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.

Julien Dumoulin: But how do you think about other assets here, as you think about, like, for instance, some of these headlines on transmission or gas infras being in focus?

John W. Ketchum: How do you think about, you know, continued monetization of renewable assets or portfolios relative to sort of the ongoing streamlining and focusing back on 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, good question, Julian.

Speaker Change: It's notable after the FCG sale last year. How do you think about, you know, continued monetization of renewable assets or portfolios?

Speaker Change: Thank you.

Julien Dumoulin: Yeah, no.

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.

John Ketchum: Yeah. No, good question, Julien. From a recycling standpoint, 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 and 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? Our core business is wind, it's solar, it's battery storage, it's transmission, both inside Florida, outside of Florida.

Julien Dumoulin: Good question, Julien. 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. We're going to get around in our ability to attract capital on the renewable portfolio. But look, you know, we are also making a conscientious effort. I think I made these comments at the investor conference that we're looking at our core business, right?

Speaker Change: Yeah, no good question Julian. So from a recycling standpoint, I feel better than than I ever have in terms of the options that we have going forward for the portfolio in terms of asset mix and and how we think about that.

Speaker Change: 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.

Speaker Change: around in our ability to attract capital on the renewable portfolio.

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: But, look, you know, we are also making a conscientious effort, and I think I made these comments at the investor conference, that

John Ketchum: Our core business is wind and solar, it's battery storage, it's transmission, but inside Florida, outside of Florida. And so, to the extent we can do some targeted capital recycling around 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 stepping in a partner on some of those deals.

Speaker Change: We're looking at our core business, right? Our core business is wind, it's solar, it's battery storage, it's transmission, both inside Florida, outside of Florida, and so to the extent we can do

John Ketchum: 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. We are having a lot of success in transmission. You know, the team has done a terrific job, I think, on the competitive transmission side of identifying new opportunities. Just based on the return structure that we could target, there's good sense to bring in a partner on some of those deals. Those have been opportunities that we have been targeting as well as we think about the future. 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.

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: Some targeted capital recycling around our gas infrastructure business that will continue to be type of top of mind 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.

Speaker Change: Just based on the return structure that we could target, there's good sense to bring in a partner on some of those deals.

John Ketchum: 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, 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. From a business mix perspective, I think, which was 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.

Speaker Change: 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.

John Ketchum: you know, those certainly are two things that we look at in addition to the renewable portfolio. 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. From a business mix perspective, I think, which was your last question, you know, 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. We're constantly looking at our mix and what our obligations are and undertakings are with the agencies. We have a lot of headroom on our business mix. That is not an issue, that is not a concern.

Speaker Change: as we think about, you know, how they contribute to the future. 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, you know, I certainly don't lose.

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: Any sleepover in terms of the ability to meet those capital recycling targets from a business mix perspective I think which was your last question, you know

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.

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.

John Ketchum: 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 of headroom, a lot of headroom on our business mix. So that is not an issue, that is not a concern, and the capital recycling planet. I think fits well with what our undertakings are there, but plenty of headroom on business mix.

Speaker Change: Constantly looking at...

Speaker Change: Our mix and what our obligations are and undertakings are with the agencies.

Speaker Change: We have a lot of headroom, 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 what our undertakings are there, but plenty of headroom on business mix.

John Ketchum: The capital recycling plan, I think, fits well with what our undertakings are there, but plenty of headroom on business mix.

Rebecca Kujawa: Excellent. Just clarification on the last question. Just with respect to getting that three-gigawad 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?

John W. Ketchum: And just a clarification on the last question, just with respect to getting that 3 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. Good morning, Julian.

Julien Dumoulin-Smith: Excellent. Just clarification on the last question. Just with respect to getting that 3GW 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 it gonna be fairly lumpy moving up and down quarter to quarter here? Just trying to set a little bit of an expectation there.

Speaker Change: And just clarification on the last question, just with respect to getting that three gigawatt milestone for the quarter here in terms of booking.

Speaker Change: 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 there.

Rebecca Kujawa: 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.

John Ketchum: Absolutely. I'm gonna turn that one over to Rebecca.

Rebecca Kujawa: I'm going to turn that one over to Rebecca. Good morning, Julien. 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, ironically, the second best quarter. Obviously, this quarter topping last quarter that we've ever had. 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 editions, you know, a couple of quarters ago.

Rebecca J. Kujawa: 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 quarters, obviously, this quarter topping the last quarter that we've ever had. I'll caveat it that 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 a couple of quarters ago. So there's always a little bit of bumpiness in there.

Rebecca Kujawa: Good morning, Julien. 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, and then the first two quarters being each of them ironically the second best quarter, obviously this quarter topping last quarter that we've ever had. 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. I think I even said it the day that we set the top quarterly additions you know a couple of quarters ago. There's always a little bit of bumpiness in there.

Speaker Change: Absolutely, 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 over the last couple of years.

Rebecca: each of them being a record in their own right and then the first two quarters being each of them the Ironically the the second best quarter obviously this quarter topping last quarter that we've ever had

Speaker Change: 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...

Rebecca Kujawa: 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 shift last month that, and John talked about in this 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. As 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.

Speaker Change: The top quarterly additions, 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.

Rebecca Kujawa: 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 gonna take a little bit longer to materialize on the growth side, as we also highlighted last month. As you'll see some of those, you know, the stronger additions of the 3GW that we added to our backlog, particularly notably strong in 2026 and 2027, and even some MW added to 2028 and beyond.

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, and John talked about in his opening remark 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.

Speaker Change: 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.

Speaker Change: 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: You'll see some of those 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 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.

Rebecca Kujawa: 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.

Rebecca Kujawa: 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.

Speaker Change: 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.

Julien Dumoulin: Excellent. Congrats, guys. Thanks.

Julien Dumoulin-Smith: Excellent. Congrats, guys.

Rebecca Kujawa: Thanks.

John Ketchum: Thanks, Julien.

Speaker Change: Congrats, guys.

Nick Campanella: And the next question comes from Nick Campanella from Barclays. Please go ahead.

Julien Dumoulin: Thanks. Thanks, Joanne. The next question comes from Nick Campanella from Barclays; please go ahead. Hey, good morning team.

Operator: The next question comes from Nick Campanella from Barclays. Please go ahead.

Joanne: Thanks. Thanks, Joanne.

Speaker Change: The next question comes from Nick Campanella from Barclays. Please go ahead.

Nick Campanella: Thanks for all the information 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.

Nick Campanella: Hey, good morning, team. Thanks for all the information today. I just wanted 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 NEP that you kind of communicated at the Analyst Day in previous quarters. If you could just update us on that.

Nick Campanella: Hey, good morning team. Thanks for all the information today.

Nick Campanella: 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 they kind of materialize.

Nick Campanella: 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 communicate at the analyst day. And previous quarters, if you could just update us on that.

Speaker Change: 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 the Analyst Day and previous quarters, if you could just update us on that.

John Ketchum: Sure. 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 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 of capital through interest rate 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.

John W. Ketchum: Sure. 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 of capital.

John Ketchum: Sure. You know, first of all, as you know, we you know we are always looking to manage risk around our capital investment decisions. 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 of capital. 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 of capital through interest rate hedge products swaps, in that regard. As I think about the future and, you know, the, you know, the 1, the 2 rate cuts, who knows where we where we ultimately end up, you know, on those fronts.

John Ketchum: Sure. You know, first of all, as you know, we you know we are always looking to manage risk around our capital investment decisions. 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 of capital. 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 of capital through interest rate hedge products swaps, in that regard. As I think about the future and, you know, the, you know, the one,two rate cuts, who knows where we where we ultimately end up, you know, on those fronts.

Speaker Change: Sure, you know, first of all, as you know, we are, you know, we are, you know, we are

Speaker Change: Always looking to manage risk around our capital investment decisions and one of those risks

Speaker Change: It's not only locking in equipment costs, it's not only locking in...

Speaker Change: labor But it's also locking in our cost of 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 of capital through interest rate hedge project products swaps

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 products, 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 on those fronts, you know, obviously. You know, given the financing plans that we have moving forward, those would be tailwinds for the business, but at the same time, if those don't materialize, 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, Hey, that's helpful. Thanks a lot.

Speaker Change: in that regard. As I think about the future and, you know, the rate, you know, the one, the two rate cuts, you know, who knows where we ultimately end up, you know, on those fronts, you know, obviously...

John Ketchum: You know, obviously, you know, obviously. You know, given the financial plans that we have moving forward, you know, those would be tailwinds, you know, for the business.

John Ketchum: You know, obviously, you know, given the financing plans that we have moving forward, you know, those would be tailwinds, you know, for the business. 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 interest rate risk exposure that we have across the business.

Speaker Change: You know, given the financing plans that we have moving forward, you know, those would be tailwinds, you know, for the business. But at the same time, if those don't materialize, you know, we have already, you know, taken those into account.

John Ketchum: But at the same time, if those materialized, 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 the business. Hey, that's helpful. Thanks a lot. 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.

Speaker Change: in our financial expectations, and we're very prudent and on top of managing the interest rate risk exposure that we have across the business.

Nick Campanella: 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?

Nick Campanella: Hey, that's helpful. Thanks a lot. You know, John, I think you've been pretty clear about, you know, the ability to supplement this power demand inflection with new renewables.

Speaker Change: Hey, that's helpful. Thanks a lot. 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.

David Arcaro: 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 Duane Arnold restart. I guess, how realistic is that? Is that something you'd even kind of consider at this juncture? How do we kind of think about the strategic positioning of your nuclear portfolio?

Nick Campanella: 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 Duane Arnold restart. I guess, how realistic is that? Is that something you'd even kind of consider at this juncture? How do we kind of think about the strategic positioning of your nuclear portfolio?

John W. Ketchum: And, you know, you also have this nuclear portfolio. I understand a lot of that's kind of contracted, but...

John Ketchum: I just, I guess, how realistic is that? Is that something you'd even kind of consider at this juncture?

Speaker Change: 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?

John Ketchum: And how do we kind of think about the strategic positioning of your nuclear portfolio?

John Ketchum: Sure.

John W. Ketchum: Is that something you'd even kind of consider at this juncture? And how do we think about the strategic positioning of your nuclear portfolio? Sure. Thanks, Nick, for that question on nuclear energy. You know, with regard to Duane Arnold, I think there would be opportunities and a lot of demand from the market if we were able to do something with Duane Arnold.

John Ketchum: Sure. Thanks, Nick, for that question on nuclear. You know, with regard to Duane Arnold, you know, I think there would be opportunities and a lot of demand from the market if we were able to do something with Duane Arnold. Obviously, bringing back a nuclear plant is not something that you can do without a lot of thought. 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 around risks associated with that, as well.

John Ketchum: Thanks, Nick, for that question. I'm nuclear. You know, with regard to Dwayne Arnold, you know, I think there would be opportunities and a lot of demand from the market if we were able to do something with Dwayne Arnold. Obviously, bringing back a nuclear plant into service is not something, you know, that you can do without a lot of thought. And, you know, it is something that we're looking at. But there's 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.

Speaker Change: Sure. Thanks, Nick, for that question on nuclear.

Speaker Change: You know, with regard to Dwayne Arnold, you know, I think there would be opportunities and a lot of demand from the market if we were able to do something with Dwayne Arnold. Obviously, bringing back a nuclear plant into service is not something, you know, that

John W. Ketchum: Obviously, bringing back a nuclear plant into service is not something 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.

Speaker Change: that you can do without a lot of thought and

Speaker Change: 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, hopefully a real assessment, you know, 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.

John 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, you know, risk-free, with plenty of mitigants around the approach. 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.

John Ketchum: 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, you know, risk-free with plenty of mitigants around the approach. There are, you know, a few things that we would have to work through. Yes, we are looking at it.

Speaker Change: as well. 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, you know, risk-free with a...

Speaker Change: 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 at it.

Nick Campanella: Thanks, have a great day. Thank you, Nick.

David Arcaro: Thanks. Have a great day.

John Ketchum: Thank you, Nick.

Speaker Change: Thanks. Have a great day.

Jeremy Tonet: The next question comes from Jeremy Tenet from JP Morgan. Please go ahead.

Nick Campanella: Thank you, Nick. The next question comes from Jeremy Tonet from J.P. Morgan. Please go ahead. Hi, good morning. Good morning.

Operator: The next question comes from Jeremy Tonet from J.P. Morgan. Please go ahead.

Nick Campanella: Thank you, Nick.

Nick Campanella: Wow.

Nick Campanella: The next question comes from Jeremy Tonet from JP Morgan. Please go ahead.

Jeremy Tonet: Hi, good morning. Good morning. Just want to get a little bit more color on renewable's market right now, as you've discussed, very strong demand in the market.

Jeremy Tonet: Hi. Good morning.

John Ketchum: 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 Analysts' Day, what trends you see in PPA pricing at this point, and how, you know, could that potentially benefit Nextera? Thanks, Jeremy.

Jeremy Tonet: 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. 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 going forward?

Jeremy Bryan Tonet: Hi, good morning.

Jeremy Bryan Tonet: Good morning.

Jeremy Tonet: And just wondering, you know, going back to some of the comments of the analyst day, what trends you see in PPA pricing at this point and how, you know, could that potentially benefit next year going forward?

Speaker Change: What trends do you see in PPA pricing at this point and could that potentially benefit Nextera going forward?

John Ketchum: 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.

Rebecca J. Kujawa: 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.

Rebecca Kujawa: Thanks, Jeremy. 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. I would think about the returns that we laid out at the investor conference is almost minimum thresholds that we have at this point. There are opportunities where, you know, there's significant customer demand, and 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.

Speaker Change: 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 minimum thresholds that we have at this point.

John Ketchum: And I would think about the returns that we laid out at 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.

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 side and our returns.

Speaker Change: and there are opportunities where 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. It was a very difficult market over the last couple of years.

John Ketchum: 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 decreasing our risk and also providing an attractive price and 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.

Rebecca Kujawa: It was a very difficult market over the last couple of years, when we were seeing the supply chain disruption and increasing pricing, both on the capital equipment side and the rate side and in our returns. Fortunately, we've either seen, you know, slightly declining, or at a minimum, stable backdrop, which is certainly helpful for, you know, decreasing our risk and also, you know, providing an attractive price and attractive product to our customers.

Speaker Change: when we were seeing the supply chain disruption and increasing pricing both on the capital equipment side and in our returns.

Rebecca J. Kujawa: And fortunately, we've either seen a slightly declining or at least stable backdrop, which is certainly helpful for decreasing our risk and also providing an attractive price and 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 getting to be connected, 90 percent of those megawatts are renewables and storage. And we have a healthy, good portion of those.

Speaker Change: And fortunately, we've either seen slightly declining or at a minimum stable backdrop, which is certainly helpful for decreasing our risk and also providing an attractive price and attractive product to our customers.

Rebecca Kujawa: 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 portion of those, and I couldn't be more excited about our position. I think we're in a great shape to continue to add a lot of shareholder value in the many years ahead.

Speaker Change: 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.

John Ketchum: All of the projects that are being 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: All of the projects that are waiting to be connected, 90% of those megawatts are renewables and storage. And we have a healthy portion of those, 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.

Rebecca J. Kujawa: And I couldn't be more excited about our position. 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.

John Ketchum: I think we're in a great shape to continue to add a lot of shareholder value in the many years ahead. Got it. Sounds good. I'll leave it there. Thanks. Thank you, Jeremy.

Jeremy Tonet: Got it. Sounds good. I'll leave it there. Thanks.

Rebecca Kujawa: Thanks, Jeremy.

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. Thanks, Jeremy.

David Arcaro: The next question comes from David Arcaro from Morgan Stanley. Please go ahead.

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

Speaker Change: The next question comes from David Arcaro from Morgan Stanley . Please go ahead.

David Arcaro: Hey, good morning. Thanks so much for taking my questions. You know, we're hearing utilities around the country now that would look fast growing pipelines, thousands of megawatts of data center requests. It seems to be moving rapidly, just that month by month. They can be learning more, getting more demand.

David Arcaro: Hey, good morning. Thanks so much for taking my questions. You know, we're hearing utilities around the country now that with fast-growing pipelines, thousands of MW of data center requests, it seems to be moving rapidly just month by month. They seem to 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 nail down just how much load is really coming into their service territories?

David Keith Arcaro: Thanks so much for taking my questions. You know, we're hearing utilities around the country now that with fast-growing pipelines, thousands of megawatts of data center requests, it seems. Moving rapidly, just month by month, they seem to 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 nail down just how much load is really coming into their service? Hi David. It's Rebecca.

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

Speaker Change: You know, we're hearing utilities around the country now with fast-growing pipelines, thousands of megawatts of data center requests. It seems to be...

David Arcaro: I'm wondering, just do you think that's already in your numbers, you know, in your renewable 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 service territories?

David Keith Arcaro: moving rapidly, just month by month, they seem to 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 nail 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.

Rebecca Kujawa: Hi, David. It's Rebecca. I'll chime in here. Yeah, 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. 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.

David Keith Arcaro: Hi David, it's Rebecca. I'll chime in here. We certainly are hearing from our power sector customers a lot of interest.

Speaker Change: from various data center customers, whether it's the data center operators or the hyperscalers.

Speaker Change: You know, it is a little bit challenging to see how much of that is...

Speaker Change: 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: 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.

Rebecca Kujawa: 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 the power sector customers as well as hyperscalers and data center customers.

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, 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. 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.

Speaker Change: from our perspective, consistent with our comments from last month.

Speaker Change: We are seeing a lot of interest both from the power sector customers as well as

Rebecca J. Kujawa: 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 timeframe 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. It is very interesting for our sector to see this growth that we haven't seen in a couple of decades.

Rebecca Kujawa: 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 2026 and 2027 timeframe, and now even 2028, as we are lining up these projects to support when they will come online 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. I do think from a practical standpoint, it's going to take a couple of years for this really to materialize and the utilities to be able to absorb it and serve it. That's a terrific backdrop for us.

Speaker Change: 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.

Speaker Change: as we are lining up these projects to support when they will come online for our utility customers.

Speaker Change: So 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.

Rebecca J. Kujawa: But I do think from a practical standpoint that it's going to take a couple of years for this really to materialize, and for the utilities to be able to absorb it and serve it. But that's a terrific backdrop for us.

Speaker Change: But I do think from a practical standpoint, it's going to take a couple of years.

Rebecca Kujawa: 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 helps solve them.

Speaker Change: for this really to materialize and 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.

Rebecca Kujawa: 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.

Rebecca Kujawa: Yeah, understood. Thanks for that color.

David Arcaro: Yeah. Understood. Thanks for that color. I was curious on, 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? Are you embedding wind, solar storage, you know, multiple technologies in terms of what product maybe makes sense for these hyperscaler 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?

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 hyperscaler 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: Yeah, understood. Thanks for that color. And then I was curious on...

Speaker Change: You know, on hyperscaler deals, are there any other details you would be able to provide around the Google?

Speaker Change: 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 hyperscaler deals? And then just along those same lines, would you be interested in

Speaker Change: Some kind of a multi-gigawatt, multi-year framework, is that an idea that you're pursuing with

Rebecca J. Kujawa: 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.

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. Those specifically were new contracts, and they were to support data center demand that our customer had. More broadly speaking, from a hyperscalers' perspective, they are interested in a variety of technologies, wind, solar, and battery storage. 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 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 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: 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.

Speaker Change: with these bigger hyperscalers.

Speaker Change: [inaudible]

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?

Rebecca J. Kujawa: Are you embedding wind and solar storage, you know, multiple technologies? of what product maybe makes sense for these hyperscaler deals? And then just along those same lines, would you be interested in a 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: that our customer had, and then more broadly speaking from a hyperscaler's perspective.

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, such as 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.

Speaker Change: They are interested in a variety of technologies, wind, solar, and battery storage, and 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: 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 US. 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.

Rebecca Kujawa: It's less interest in just a pure virtual power purchase agreement, where the project could be anywhere in the US, to I wanna 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. Very much becoming a more physical market, and one in which it's really important that their partners show up, perform, and deliver as expected, because they are, you know, the load on the other side of that. 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.

Speaker Change: So it's less interest than just a pure virtual power purchase agreement where the project could be anywhere in the U.S. 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 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, you know, 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 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: 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 the load on the other side of that. So that's a very attractive proposition from our perspective.

David Arcaro: 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, and will update you as the structures evolve. But it's really focused around creating value with and for them. Great, very helpful. Thanks so much.

Speaker Change: 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. And we'll update you as those structures evolve, but it's really focused around creating value with and for them.

Rebecca Kujawa: 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. We'll update you as those structures evolve, but it's really focused around creating value with and for them.

Rebecca J. Kujawa: And we'll update you as those structures evolve, but it's really focused around creating value with and for them. Great. Very helpful.

David Arcaro: Great. Very helpful. Thanks so much.

David Keith Arcaro: Thanks. Thanks, David. The next question comes from Carly Davenport from Goldman Sachs; please go ahead. Hey, good morning.

David Arcaro: Thanks, David.

Rebecca Kujawa: Thanks, David.

Speaker Change: Great, very helpful. Thanks so much.

Carly Davenport: The next question comes from Carly Davenport, from Goldman Sachs.

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

David Keith Arcaro: Thanks, David.

Carly Davenport: Please go ahead. Hey, good morning. Thanks for taking the questions.

David Keith Arcaro: The next question comes from Carly Davenport from Goldman Sachs. Please go ahead.

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 Davenport: Hey, good morning. Thanks for taking the questions. Maybe just to start, you know, a lot has obviously changed in the US election landscape since your last earnings call. 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?

Carly Davenport: Maybe just to start, 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 renewable development plans?

Carly S. Davenport: Hey, good morning. Thanks for taking the questions.

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?

Carly Davenport: Sure, Carly. I'll go ahead and take that.

John Ketchum: Sure, 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 NextEra, and I don't think this time around is any different, and I'm gonna kind of go through why. 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. You know, we invest in American energy dominance every single day and are the quintessential all-of-the-above energy company. That doesn't change from one election to the next, and I think really helps, you know, when we are working with both sides of the aisle.

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.

John Ketchum: 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. I don't think this time around is any different. I'm going to 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-of-the-above energy company. And that doesn't change from one election to the next.

Carly S. Davenport: Sure 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 Nextera and I don't think this time around is any different and I'm going to kind of go through why.

Carly S. Davenport: 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.

John W. Ketchum: 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, 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 is going. The incentives favor Republican states.

Carly S. Davenport: 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

John Ketchum: And I think really helps, you know, when we are working with both sides of the aisle.

Speaker Change: from one election to the next, and I think really helps when we are working with both sides of the aisle. That said, let's look at where the incentive money is going. The incentives favor Republican states.

John Ketchum: That said, you know, let's look at where the incentive money's going. The incentives favor Republican states. 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. The tax laws are very difficult to overturn, and we're very likely to have thin margins in the House and the Senate, particularly in light of some of the recent developments. Let's not forget the important role that renewables play, and I made some remarks about that in my script today. 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.

John Ketchum: That said, you know, let's look at where the incentive money is going. The incentive is 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.

John W. Ketchum: 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 overturn. 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, and they create a property tax base that transforms rural communities.

Speaker Change: 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...

Speaker Change: 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 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, you know, 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: 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.

John W. Ketchum: Renewables are energy independence; 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. 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.

Speaker Change: Renewables are energy independence. It's electricity generated from the sun and the wind. It's not subject to...

John Ketchum: It's not subject to fuel price volatility. Low-cost renewables are, you know, 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 US. Low power bills can really dictate which states they select to make those investments in. Tariffs are going to further drive investment in the US. With industrial growth across sectors, some of that driven by tariffs, power demand's only gonna go up from here. Our country's gonna need low cost, fast to deploy electricity more than ever. Renewables are the quickest to market and the lowest cost option in almost every state. Otherwise, if, you know, we're gonna 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.

Speaker Change: Fuel Price Volatility

Speaker Change: Low-cost renewables are, you know, 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.

Speaker Change: 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.

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 plans 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.

John W. Ketchum: 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. 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, and that attract new investors? and that providers needed fast to deploy resources at a time when demand is accelerated. It just wouldn't make sense.

Speaker Change: And our country's 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. Otherwise...

John Ketchum: Otherwise, you know, we're going to slow down and curtail economic growth in our own country. And the credits also 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, create a much needed property tax base in rural America, that flow to customers that result in lower power prices, that attract new investments. and that provided us needed fast and employer resource at a time when demand is accelerated. It just wouldn't make sense.

Speaker Change: You know, we're going to slow down and curtail economic growth in our own country. And the credits...

John Ketchum: 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 investments, and that provide a much needed fast to deploy resource at a time when demand is accelerated? It just wouldn't make sense. For all these reasons, we expect the credits to remain in place, the wind, the solar, the battery storage. 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: 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 investments?

Speaker Change: and that providers needed fast to deploy resource at a time when demand is accelerated. It just wouldn't make sense and for all these reasons

John W. Ketchum: And for all these reasons, we expect the credits to remain in place, the wind, the solar, the battery stores. 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.

John 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, what 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. I also appreciate all that color. It's really helpful.

Speaker Change: We expect the credits to remain in place, the wind, the solar, the battery stores. So all in all, while we would expect to hear heated rhetoric through the fall campaign, we feel good about where things stand.

Speaker Change: We have a long history of constructive engagement with both sides of the aisle.

Durgesh Chopra: Awesome. Appreciate all of that color. It's really helpful. 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. 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?

Carly Davenport: Awesome. Appreciate all of that color. It's really helpful. 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. 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?

Carly Davenport: The follow-up was just on the backlog. You know, wind saw a bit of an acceleration in 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 that's a potential sign of an inflection on the wind demand side?

Speaker Change: Awesome. I appreciate all of that color. It's really helpful. 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: 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 lumpy over time.

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 gonna be lumpy over time. It's terrific that we were able to add some additional wind projects to the backlog. 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: Hi Carly, it's Rebecca. 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.

Speaker Change: 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 lumpy over time. It's terrific that we were able to add some additional wind projects to the backlog.

Carly S. Davenport: 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. 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, you know, maybe on the lower side of it.

Speaker Change: 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 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 Kujawa: 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 you know, maybe on the lower side of it. It is early in this cycle to make that conclusion. 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. Having the availability of all three, we think will continue to create value for our customer base over a long period of time.

Speaker Change: 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, you know, 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 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.

Rebecca J. Kujawa: 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 Wiesel of Deutsche Bank. Please go ahead. Hi, good morning, everyone.

Speaker Change: We think we'll continue to create value for our customer base over a long period of time.

Carly Davenport: Got it. Thanks so much for the time in the comments.

Durgesh Chopra: Got it. Thanks so much for the time and the comments.

Operator: Thank you, Carl.

John Ketchum: Thank you, Carly.

Speaker Change: Got it. Thanks so much for the time and the comments.

Andrew Weissel: The next question comes from Andrew Weissel from Deutsche Bank. Please go ahead.

Operator: The next question comes from Andrew Weisel from Deutsche Bank. Please go ahead.

Carly S. Davenport: Thank you, Carly.

Speaker Change: The next question comes from Andrew Wiesel from Deutsche Bank. Please go ahead.

Andrew Weissel: 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.

Andrew Wiesel: 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.

Speaker 15: Hi, good morning, everyone. Just a quick one to clarify, please. If I heard you right, I think you said you have 7GW in total with tech and data center customers. Can you just give us a sense of the pace, maybe roughly round numbers, how many MW 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?

Andrew Weisel: Hi, good morning, everyone. Just a quick one to clarify, please. If I heard you right, I think you said you have 7GW in total with tech and data center customers. Can you just give us a sense of the pace, maybe roughly round numbers, how many MW 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?

Andrew Wiesel: 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.

Rebecca Kujawa: 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?

Andrew Wiesel: 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 storage 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 planned to build over the coming years. It is a mix of technologies, probably friend-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 hyperscalers and data center operators are starting to put projects in service.

Rebecca J. Kujawa: So those are 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 have entered into those relationships over a longer period of time.

Rebecca Kujawa: Hi, Andrew, it's Rebecca. That is just projects with technology companies. Roughly 3GW of those are already in service, and roughly 4GW 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 blend-wise, fairly consistent with what we have seen for overall trends for renewables development. 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. In terms of the backlog, for now they're more weighted towards solar and storage.

Andrew Wiesel: Hi Andrew, it's Rebecca. So that is just projects.

Speaker Change #100: for with technology companies.

Speaker Change #101: Roughly 3 gigawatts of those are already in service, and roughly 4 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 trend-wise fairly consistent with what we have seen for overall trends for renewables 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

Rebecca J. Kujawa: And then in terms of the backlog, for now, they 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 hyperscalers and data center operators are starting to put projects in service.

Rebecca Kujawa: I expect that to even out over time, particularly as these projects get more deliberately balanced with new data center demand as these hyperscalers and data center operators are starting to put projects in service. You know, broadly speaking, roughly consistent with overall development trends. You know, we certainly are seeing a lot of demand both directly with them as well as in kind of these three-way collaborations with the 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.

Speaker Change #100: get more deliberately balanced with new data center demand as these hyperscalers and data center operators are starting to put projects in service. So, broadly speaking, roughly consistent with overall development trends.

Andrew Wiesel: 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?

Rebecca Kujawa: 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. Okay, great.

Speaker Change #100: And, you know, we certainly are seeing a lot of demand.

Speaker Change #100: both directly with them, as well as in, you know, kind of 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.

Speaker 15: 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?

Andrew Weisel: 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?

Rebecca Kujawa: 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 #102: 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?

Andrew Wiesel: 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, but what' 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. So I don't see them necessarily wanting to build the transmission line, but they are very interested in having us and others ensure that it gets built to support their own long-term objectives.

Rebecca 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, 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. That's changing a little bit, 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 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.

Speaker Change #103: 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...

Speaker Change #104: 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.

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 #104: We see interest from the hyperscalers and the data center operators to understand transmission and be supportive of it getting built.

Speaker Change #104: But it is a very technically...

Speaker Change #104: 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.

Rebecca Kujawa: 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 objectives.

Andrew Weissel: Thank you.

Speaker 15: Sounds good. Thank you.

Andrew Weisel: Sounds good. Thank you.

Rebecca Kujawa: Thank you.

Durga Shapa: The next question comes from Durga Shapa from Evercore ISI. Please go ahead.

Rebecca J. Kujawa: It was good. Thank you. Thank you. The next question comes from Durgesh Chopra from Evercore ISI. Please go ahead. Hey, team.

Operator: The next question comes from Durgesh Chopra from Evercore ISI. Please go ahead.

Speaker Change #105: Sounds good. Thank you.

Speaker Change #105: Thank you.

Speaker Change #105: The next question comes from Durgesh Chopra from Evercore ISI. Please go ahead.

Durga Shapa: 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, you know, potential repeal of fire risk. 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 into the future? Any color on that is appreciated. Thank you.

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 irony 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?

Durgesh Chopra: Hey team. Good morning. Really appreciate you taking the time and answering my question here. Just all my other questions have been answered. Just one quick follow-up on Carly's questions on election and, you know, potential repeal of IRA 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 into the future? Any color on that is appreciated. Thank you.

Durgesh Chopra: Hey team good morning really really appreciate you taking the time and answering my questions here just all my other questions have been answered just

Durgesh Chopra: One quick follow-up on Carly's questions on election and you know potential repeal of either risks

Speaker Change #107: 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?

Speaker Change #108: Does that come up in your negotiations? Is that keeping your customers away from signing contracts into the future? Any color on that is appreciated. Thank you.

Durgesh Chopra: Is that keeping your customers away from signing contracts in the future? Any color on that is appreciated. Thank you. Yeah, Dergache, the short answer is absolutely not, you know, 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.

John Ketchum: Yeah, Durga Shapa. The short answer is absolutely not. You know, if anything, if they really, if they really did believe that there were going to be modifications, would only accelerate demand, which is certainly not something that we, you know, we believe for the reasons I went through, but it's, it's not curtailing demand at all. Perfect. Thank you. Thank you, Durga Shapa.

John Ketchum: Yeah, Durgesh, the short answer is absolutely not. You know, if anything, if they really did believe that there were going to be modifications, it would only accelerate demand, which is certainly not something that we, you know, we believe for the reasons I went through. It's not curtailing demand at all.

Speaker Change #108: Yeah, Dergache, the short answer is absolutely not. You know, if anything, if they really did believe that...

Dergache: there were going to be modifications that only accelerate demand, which is certainly not something that we, you know, we believe for the reasons I went through, but it's it's not curtailing demand at all.

John W. Ketchum: Perfect. Thank you. Thank your guests. This concludes our 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.

John Ketchum: Thanks, Durgesh.

Speaker Change #110: Perfect. Thank you.

This concludes our question and answer session, and the conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Operator: This concludes our question and answer session, and the conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Mr. Gesch: Thank you, Mr. Gesch.

Speaker Change #112: This concludes our question and answer session and the conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

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