Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. freshman Avg
|
New words:
abate, al, bargaining, bonded, broken, capable, CODM, composition, conditionally, county, CWIP, disapprove, drew, electronic, Engineering, EPC, exacerbate, expedient, footnote, foreclosure, forfeited, format, gathering, Gillam, golden, heard, inability, indemnification, indemnified, influence, inherently, intervenor, jurisdiction, Klickitat, Larger, meruit, Montague, Multnomah, nondeductible, nontaxable, occupancy, platform, Prompt, prudency, quantum, referenced, registration, regularly, repowering, RTO, Sterling, strategic, subordinate, superseding, tabular, timetable, Topic, unable, Unaffiliated, unvested, warranty, Washington, wider, Wilson, withdrawn
Removed:
accept, acquired, acted, adder, addressed, aggressive, agree, amendment, amici, Antitrust, arbitrary, argued, arrange, arranged, Asnat, assigned, attraction, ATU, automatically, ballot, barring, battery, bear, Beebe, bellwether, Blank, bound, broader, brought, built, burden, called, CAMT, cancelled, CAPM, capture, carbon, carved, certified, certiorari, circumstance, Citizen, clarified, clearance, comment, Commissioner, complied, conclude, conduct, consented, conspiracy, constituted, constitutional, consummate, consummated, continuation, council, Counsel, covenant, credited, crossing, CT, curia, custom, DCF, deadline, decommissioning, Delaware, delineated, demanded, demolition, demonstrating, discovery, dismissal, diversity, Divestiture, documented, draft, earlier, Education, elapsed, eliminate, elimination, emission, employing, equitable, ERCOT, establishing, European, Evergreen, evidence, examiner, excessive, excise, exclusive, exercising, exit, expand, expeditiously, experienced, expire, expired, explanation, explore, export, extend, extended, facing, failed, fashion, FCC, fifteen, force, forcefully, formed, fossil, foster, found, foundational, FPA, framework, freeze, funded, GE, growing, GW, GWh, halt, heading, holder, HSR, Hyde, hydrogen, ICE, iii, impacting, implement, importing, improvement, Industrial, infringing, initiate, intellectual, Intercontinental, interference, intermediate, introduced, investigating, involving, IRA, issue, IV, join, joinder, Joining, jointly, judge, justify, justifying, legislature, light, linear, low, maintaining, mediation, Memorandum, merge, merger, Mexico, Midcontinent, midpoint, minimum, MISO, modern, modified, MoU, multidistrict, Navajo, negatively, NETO, NM, NMPRC, NOPR, NRC, NTUA, NTUAG, objective, obligated, opposed, opposition, ordering, Outreach, owner, Park, participated, PBR, permanent, petitioned, PNM, PNMR, pretax, priority, private, proceed, produced, producing, prospectively, PUCT, pursue, Qatar, Qualifying, quartile, realize, Realty, reapply, recommended, referred, reform, rehearing, reimburse, reintroduce, rejecting, remain, remanding, remediating, remedy, replied, reply, reservation, resolve, retaliatory, reversed, revised, roll, RPM, Rulemaking, Russell, Russian, safely, satisfaction, scheduled, Scoping, Secretary, Secured, seize, seller, setting, signature, sovereignty, staffing, stand, stayed, stipulated, stop, submit, surviving, suspension, targeting, technical, terminate, terminated, territory, Theoretical, thereon, therewith, TNMP, toolkit, transforming, transition, tribal, True, turbine, undrawn, unexecuted, unilaterally, Union, unjust, unlawful, unpaid, unprecedented, unreasonable, validly, variety, viability, void, voided, vote, voted, weighted, weighting, wholly, writing, zone
Financial report summary
?Risks
- The success of Avangrid depends on achieving our strategic objectives, which may be through mergers, acquisitions, joint ventures, dispositions and restructurings and failure to achieve these objectives could adversely affect our business, financial condition and prospects.
- We expect to invest in development opportunities in all segments of Avangrid, but such opportunities may not be successful, projects may not commence operation as scheduled and/or within budget or at all, which could have an adverse effect on our business, financial condition and prospects.
- Avangrid may be materially adversely affected by negative publicity related to or in connection with development projects, government-controlled power initiatives and in connection with other matters.
- Avangrid is subject to substantial regulation by federal, state and local regulatory agencies and our business, results of operations and prospects may be adversely affected by legislative or regulatory changes, as well as liability under, or any future inability to comply with, existing or future regulations or requirements.
- Avangrid’s regulated utility operations may not be able to recover costs in a timely manner or at all or obtain a return on certain assets or invested capital through base rates, cost recovery clauses, other regulatory mechanisms or otherwise.
- Changes in regulatory and/or legislative policy could negatively impact Networks’ transmission planning and cost allocation.
- Avangrid’s operating subsidiaries’ purchases and sales of energy commodities and related transportation and services expose us to potential regulatory risks that could have a material adverse effect on our business, and financial condition.
- The increased cost of purchasing natural gas and electricity during periods in which prices have increased significantly could adversely impact our earnings and cash flow.
- Climate related proceedings and legislation may result in the alteration of the public utility model in the states we operate in and could materially and adversely impact our business and operations.
- Renewables relies in part on governmental policies that support utility-scale renewable energy. Any reductions to, or the elimination of, these governmental mandates and incentives or the imposition of additional taxes or other assessments on renewable energy, could adversely impact our growth prospects, our business and financial condition.
- New tariffs imposed on imported goods may increase capital expense in projects and negatively impact expected returns.
- Avangrid is subject to numerous environmental laws, regulations and other standards, including rules and regulations with respect to climate change, which could result in increased capital expenditures, operating costs and various liabilities, and could require us to cancel or delay planned projects or limit or eliminate certain operations, all of which could have an adverse effect on our business and financial condition.
- Security breaches, acts of war or terrorism, grid disturbances or unauthorized access could negatively impact our business, financial condition and reputation.
- Catastrophic or geopolitical events may disrupt operations and negatively impact the financial condition of the business, cash flows, and the trading value of its securities.
- If Networks’ electricity and natural gas transmission, transportation and distribution systems do not operate as expected or are not available for operation, they could require unplanned expenditures, including the maintenance, replacement, and refurbishment of Networks’ facilities, which could adversely affect our business and financial condition.
- Storing, transporting and distributing natural gas involves inherent risks that could cause us to incur significant costs that could adversely affect our business, financial condition and reputation.
- If Renewables’ equipment is not available for operation, Renewables projects’ electricity generation and the revenue generated from its projects may fall below expectations and adversely affect our financial condition and reputation.
- Renewables’ ability to generate revenue from renewable energy facilities depends on interconnecting utility and/or RTO rules, policies, procedures and FERC tariffs and market conditions that do not present restrictions to renewable project operations which could adversely impact our operations and financial condition.
- Avangrid’s subsidiaries do not own all the property and other sites on which their projects are located and our rights may be subordinate to the rights of lienholders and leaseholders, which could have an adverse effect on our business and financial condition.
- Avangrid and our subsidiaries face risks of strikes, work stoppages or an inability to negotiate future collective bargaining agreements on commercially reasonable terms which could have an adverse effect on our business and financial condition.
- Advances in technology and rate design initiatives could impair or eliminate Avangrid’s competitive advantage or could result in customer defection, which could have an adverse effect on our growth prospects, business and financial condition.
- Avangrid’s efforts to maintain a responsive sustainability program may impact business operations and investor sentiment.
- Geopolitical instability could exacerbate existing risk factors.
- Avangrid’s operations and power production may fall below expectations due to the impact of natural events, which could adversely affect our financial condition and reputation.
- If weather conditions are unfavorable or below production forecasts, Renewables projects’ electricity generation and the revenue generated from its projects may fall below expectations and have an adverse effect on financial condition.
- Lower prices for other fuel sources may reduce the demand for wind and solar energy development, which could adversely affect Renewables’ growth prospects and financial condition.
- There are a limited number of purchasers of utility-scale quantities of electricity, which exposes Renewables’ utility-scale projects to additional risk that could have an adverse effect on its business.
- The benefits of any warranties provided by the suppliers of equipment for Networks and Renewables’ projects may be limited by the ability of a supplier to satisfy its warranty obligations, or if the term of the warranty has expired or has liability limits which could have an adverse effect on our business and financial condition.
- Renewables’ revenue may be reduced upon expiration or early termination of PPAs if the market price of electricity decreases and Renewables is otherwise unable to negotiate favorable pricing terms which could have a negative effect on our business and financial condition.
- Our risk management policies cannot fully eliminate the risk associated with some of our operating subsidiaries’ commodity trading and hedging activities, which may result in significant losses and adversely impact our financial condition.
- Iberdrola exercises significant influence over Avangrid, and its interests may be different from yours. Additionally, future sales or issuances of our common stock by Iberdrola could have a negative impact on the price of our common stock.
- We have elected to take advantage of the “controlled company” exemption to the corporate governance rules for NYSE-listed companies, which could make shares of our common stock less attractive to some investors or otherwise harm our stock price.
- Our dividend policy is subject to the discretion of our board of directors and may be limited by our debt agreements and limitations under New York law.
- Avangrid may be unable to meet our financial obligations and to pay dividends on our common stock if our subsidiaries are unable to pay dividends or repay loans from us.
- If we are unable to maintain effective internal control over financial reporting in the future, investors may lose confidence in the accuracy and completeness of our financial reports and the trading price of our common stock may be negatively affected.
- Changes in tax laws, as well as judgments and estimates used in the determination of tax-related asset and liability amounts, could adversely affect our financial condition.
- Our investments and cash balances are subject to the risk of loss.
- The cost and availability of capital to finance our business is inherently uncertain and may adversely affect our financial condition.
- Avangrid and our subsidiaries are subject to litigation or administrative proceedings, the outcome or settlement of which could adversely affect our business, financial condition and reputation.
- Avangrid is not able to insure against all potential risks which could adversely affect our financial condition.
- Pension and post-retirement benefit plans could require significant future contributions to such plans that could adversely impact our business and financial condition.
- Avangrid and our subsidiaries may suffer the loss of key personnel or the inability to hire and retain qualified employees in a competitive labor market, which could have an adverse effect on our operations and financial condition.
Management Discussion
- (1)"Other" represents Corporate and intersegment eliminations.
- Operating revenues decreased by $58 million from $2,076 million for the three months ended March 31, 2023 to $2,018 million for the three months ended March 31, 2024. The decrease in operating revenues is primarily due to a decrease of $190 million in purchased power and purchased gas (offset in purchased power) driven by lower average pricing in commodities in the period, offset by an increase of $15 million in flow through amortizations (offset in operating expenses). Additionally, electricity and gas revenues increased by $84 million, primarily due to rate increases in New York effective October 12, 2023, and a $33 million favorable impact from deferrals mainly driven by new regulatory mechanisms established by the rate case in New York.
- Operating revenues increased by $10 million from $390 million for the three months ended March 31, 2023, to $400 million for the three months ended March 31, 2024. The increase in operating revenues was primarily due to an increase of $30 million in favorable thermal and power trading due to wider spark spreads in the period primarily driven by weather, $26 million increase in merchant prices driven by higher average prices in the current period, offset by unfavorable MtM changes of $26 million on energy derivative transactions entered for economic hedging purposes and a $20 million decrease from production in the current period.