AGR - Earnings call transcript Q3 2021

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to AVANGRID’s Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. now today, turn of Patricia Shareholder would to conference Investor I Services. speaker your Cosgel, Instructions] like the to over and [Operator Vice President you. Thank go Please ahead.

Patricia Cosgel

for good quarter Stuver, third earnings our and and Arriola, results. call President everyone. Thank our discuss the XXXX morning Chief on Senior are Erica, today to Vice and Thank you, Financial Doug you today joining Presenting Chief us AVANGRID’s Officer; the President today call Chief Jose to us Also Officer. Dennis of President for Bill Co-CEO and Kump, President part of Onshore; AVANGRID Co-CEO be the Deputy White, will joining and Executive of question-and-answer Bob AVANGRID; and Networks; and Offshore. Officer President Miranda, and Catherine Antonio Executive Stempien, CEO

not our presentation of do you at press are on copy a today's for our have or www.avangrid.com. available website they call, release If

call, During XXXX, Harbor make the statements. on presentation measures. which Safe statements found forward-looking in duty the Litigation subject do release the latest the reports today's forward-looking Act filings AVANGRID's Risk earnings and accompanying and news can our of to update undertake to each be references non-GAAP of Securities the our also to this results Today's avangrid.com. differ Commission, forward-looking website, any of Exchange not Actual could we meaning includes any or in during expectations our risks or and financial in and We the will Private key Factors on comments current the factors Reform conference call, made presentation section of of within uncertainties. with are and from Securities provisions because various U.S. based other discussed are of incorrect if materially assumptions any statements which our assumptions, of

the today's call now You information for measures. GAAP definitional reconciliations to to financial information accompanying slides Dennis. presentation the over will turn contained and should the of measures closest the non-GAAP financial to in refer I

Dennis Arriola

our to We performance and some everyone. goals third Overall, We for income shareholders. good we to appreciate and operating generating continue our you consistently right delivering call. joining and on our and really quarter our at And Day headed We're year. the of commitments. Patricia, in financial Adjusted morning, set XX% earnings year-to-date. the net our thanks started Well, I'm improving with Analyst first momentum company in us year-over-year and year-over-year the is focused results versus through our nine ambitious on up XX% execution, XXXX for third to focused up the pleased journey a the quarter works is In employees, at drive better last direction make increased November, our results we're positive XX% third our up and a our nine months. quarter quarter, increased on everyday with At communities, company. first performance that building AVANGRID, our through months. customers, XXXX and plan our and net the accountability, for income XX%

XXXX. the continue we terms are throughout the was our strong And guidance last solid authorized performance ROE the of York implement earnings as which and road case, to for were Networks we plan to execute in excellent our approved by driven as business, on Our year, results affirming our we thanks to New rate our performance year.

we'll we recall I'm of the You'll that our and confident the numbers year, we now, our deliver. beginning stand increased right in twice where from guidance original from

customer performance, on commitment service. continue to objectives. our we to improve on In our Maine, addition strong to strategic delivering we're In financial our execute

point remove to subsequently XXX we months, filed to the of expect XX Over exceeded close we're commission. Regulation basis the met for ROE merger, approval metrics quality and service and the Commission main the public Public Mexico, utilities our last we've QX. and established receive the the PNM from Resources to in adjustment. awaiting the all New transaction by And continue In that final approval to

milestone of first When project the and gigawatts to and the including PPAs, Coast, onshore projects secure the to areas under nearly solar, through also one to pursuing gigawatt growth Wind including partnership X X.X our will most pipeline have actively X.X begin crossed we Vineyard U.S. it. by In construction Massachusetts historic lease financial the with we CIP. our commercial construction. recently, opportunities RFP, project complete partner have restructuring, Hawk. behind scale substantial wind East Our We're access achieve Renewables to Avangrid close Kitty becoming approximately and of restructuring along gigawatts in our a assets near-term additional with offshore the bids recent with wind

we continued we've appointed positioned as We new CEO. Joe company our the Purington recently and Central strengthen Maine addition, success. future to Maine, Power’s team at as executive President our for In

two bring Renewables’ We Bill our team for businesses our Onshore strengthen announced also that further changes our Antonio for Co-Presidents Joe, roughly Offshore the for AVANGRID Miranda Jose CEOs, and focused team. business business. executive four decades onshore of the and Bill executive will to Antonio through our by offshore and and Jose White providing leadership Altogether, experience

report provide of missed going servant leadership. also well leader, energy to into U.S. to September, and he's as mentor approach by to the sustainability, the company our want priorities for was former goals the to our de many. dedicated wish saddened sustainable Flanagan, to him we our best the as I I’m years. the of Avangrid person. released to webinar as And of passionate, a Maine. as also a employees, deprivation David ESG&F by the Chairman exceptional recent selfless, thank key and of to first in to In people Hoz, returned Alejandro but epitomized become an insight was Spain our be Renewables our Executive He all David of Now, CMP. passing hard join to back work all we however not his his CEO former family. our only leading of seek he the over David we all And

our the more. even Lastly, green at we we strong totally level, bonds $XXX for the And utility million. market first demand experienced extremely issued from

execution another all-in-all, all focused us I'm on even of their excited our get opportunities that where but to strong AVANGRID. for proud on team and more our for we So ahead I'm really commitments. to are hard quarter work the delivering today, lie for

to So X. let's turn Slide

making approximately Our the close foundation is merger. business and the of earnings, by the PNM and our after capital Networks business our of plan XX% today close XXXX, of to XX% up

still our critical transition. culture, our Bolstering through implementing to at cultivating system our to and support to drive a our driving utilities. plans the rate authorized investments with restoration growing we and time. base customers, vegetation needed safety, our As well our our continuous resiliency, improvement management rate to We is on have and equivalent work with those make of plan reliability, road and all plans modernization projects did investment companies. will while and focusing XXXX we lot billion in improving earnings ROEs is invest investment specific And in $XX excellence and Investor affordability energy helping We're and growth. our long-term enhancements store successful us as states, continuing a to our on we're clean planning the earned of improve as better our Also targeted tropical rate hurricane we mentioned ROE XXXX Networks storm more serve spending at Day, plans honoree items. focus for in resiliency do. future November new over our over support each operational as By

help action. customer putting every Slide of local with commitment over X, this, the we're last Maine, in exceeded better in XXX the we us customers Turning our We've utilities our but months. point adjustment. And to Councils to CMP communities and achieved, each day. only at network serve to filed has Customer to In Listening quality XX established basis our our ROE service metrics the not remove

resolved to the hopeful main commission let's Well, early We in are XXXX. be by this clear. have

plan address to has York rather and to on our a bar in our we're day in issues Maine, because Our filing with COVID-XX them work deliver service a for and every an the to continue in to to and focused the challenges more and our customers customer I'm team costs, continue maintain end also customers are making solution on Purington’s good each it's to is We and be service pandemic. done not part we've but the cost working it momentum the pledge, And of expect Joe defer our even going. and to do In COVID-XX reinforce commitment, to allowing pledge submit regulators that able need better And positive stakeholders Connecticut, to relating regulators to to under going CMP our facing key been the recognize and recovery. for a excellent in raise leadership, our we'll with And will us to customers our quality, that main reliability New keep response confident of continued future. to states actively support and we're we customers. addressing the Maine. to ongoing collaborate our

is grassroots and the the to with to tied seen We LePage, to-date underway leaders Herald Lastly, influential going jobs Governor is to economy, to and this all the corridor months These New project Daily former already encouraged IBEW, our labor focused activities are way. understand New combat been on News, have been we've England. to NECEC. through England Supporters continues and supported of support XXX construction team Governor better and Xnd region. Maine two working against most transmission Clean Law to NECEC by the the so from own of existing referendum NECEC campaign good include benefits the that companies generation payments the the poles as going state, referendum of the just the remain the around Portland largest on approximately vote spread newspapers parties facts what Mainers, tax and Foundation, referendum for misinformation name hard Conservation on Connect the growing voters about. project, of NECEC the construction the Janet or of remain installed of XX% Paul cleared and making in our the help is We're few, while main the out well has environment, our Press Over AFL–CIO informing defeating every And Chambers line Bangor and progress. focused by the and related to and and the XXX November over getting Energy fuel the Mills, we're fossil our voters team majority in is and the a day project last several rights towns benefiting including the far. of share Commerce to the that

with an merger the our Let's Resources quarter, Public the turn close approval combined PNM to X Slide track We Regulation remaining remain on rate people one New together attractive base from across serve PNM, state just $XX in with AVANGRID X. and business Mexico million and regulated mix a over billion. When this to with we of Commission.

both over the of commitments have interveners that sense not Mexico. first approval. bolster support And growth XX we leaders transition. decided renewables Texas pleased directly opportunities merger customers the New transaction PNM will the Our to for for will full the support the expect year. oppose regulated merger attractive accreted New X% growth filing makes XX and transaction Mexico the The strong or And to in of business. and the and energy the either ESG&F we're renewables This clean as create be in our in

gigawatt X. I'm we'll the continue to later one construction. future. gigawatts project make people solar in Renewables, of very developer the third scale, and has of operator into continuing our X.X and pipeline, now leadership that renewables the have are for expertise, Moving XXXX. including modules largest Avangrid on overall, the our the Jose experience to to continued Vineyard Antonio’s growth fully business excited and We our PPAs wind Slide and actively which U.S. White challenges growth And commissioned, on touch recognize onshore wind with to in customers our producing Wind through the and people We're to near-term and projects faced our wind X. does, That solution. offshore that clean of need our help on through New [indiscernible] order and inflation, And progress of projects growing XXXX, approximately is the York. of we're by onshore of year, our solar projects continues early are evolve is our leading our contracted opportunities to Bill be organization but energy this contracted going to that address was under on nearly focused business. part

Regarding our onshore long-term growth business. in our

XX gigawatts PPAs in or approximately We bilateral gigawatt pipeline. have mature for shortlisted negotiations our of another X.X onshore projects, in

XX. an and wind extraordinary our the on Let in month, September Slide me turn both of industry of business offshore AVANGRID. to the history was

Vineyard venture financing construction the scale Vineyard approach with and close. in joint offshore community billion of nine our project Our The Vineyard commercial Wind Wind X Waters, lending confidence U.S. to project and term mode project global $X.X brought validates the Wind by has banks. financing created This and pioneering loan from underscores wind financial our value first X. of economic closed

have has reach power construction Renewables we will in first delivering Vineyard start construction submitted Massachusetts contract We continue and CIP. commercial full XXXX We’ll expect be two approximately substation Massachusetts’ and offshore XXXX third onshore owned begin to Avangrid cable response started equipment and already XXXX. the by Now in for for in operation which to secured proposal the request to and half offering for September On of clean XXX X, XX, the XX-XX megawatts. proposals in offshore XXXX. megawatts wind Vineyard options routes, and under and export to Wind of XXX% of Wind

the it for project strong City economic wind offshore development with the of projects. calling two an includes of very Vineyard Wind bids put project Commonwealth in We just and area Park this Commonwealth forward Massachusetts. benefits We’re and an social Wind Wind of and exceptional X the south

into portfolios utilities municipal first year and in the city company Maritime major transform is electric of enable renewable to them a XX kind partnership their will to to Wind them offshore purchase a of in to announced Harbor JV addition with state. Massachusetts Vineyard its part also credits. partnership allow a of hours second the up As Salem of Salem port. with our the state’s proposal Corporation And that to grain XXX announced to electricity going the energy gigawatt wind across this Crowley

RFP Massachusetts the Please results to expect turn of We Slide December. XX. the in mid

will As we our wind Vineyard the earlier, announced Wind to in industry. position Renewables we leader Avangrid further that undisputed mentioned venture changes also recently as an offshore joint

partnership our before XXX% now a of gigawatts from this capacity, which current in Virginia gigawatts will largest partnership, end as will capacity Ocean restructuring gigawatts of of Kitty in and an the of select Hawk offshore it the Connecticut X.X New fully Bureau our from bid approval and option AVANGRID year As restructuring in X.X the company. Massachusetts our distribution and additional available result ownership North Energy The includes England wind requires the have from project. Carolina X.X well of contracted Management, electric as with be

nation’s restructuring during approvals strategy growth year. quarter industry. to is expect We aligned aspiration completed the next long-term to first our of This our the wind and be lead offshore with

a to areas. wind gigawatt we’re with turning XX. to leadership positioned lease Now Slide our X.X With offshore play uniquely role

track expertise of globally a on-budget. In they’ve leverage. well wind are our addition a as proven wind offshore gigawatts offshore track Iberdrola to X.X bench with projects to affiliation and this team, availability offshore us building operated has to pipeline. being more development gigawatts leases a gigawatts have Iberdrola even To than and And you strong by in on PPAs. be wind, record, in successful just figures. offshore production have advanced XX X.X and provides has with in very now on-time record strong constructed our These deep backed Iberdrola successful global

know-how construction wind. You and to also and Iberdrola offshore a an And experienced our affiliation advantage and in dealing have capital. access competitive AVANGRID need gives team to with with contractors

XX. Let me finish on Slide

stands a the transformational renewable and and forefront of of up we in the in energy. the generate one nation’s AVANGRID at use how cleanest leader change As utilities energy,

webinar and our through And or emissions long-term The sustainable website. core to we renewables goals, success. supplier is inclusion, titled sustainability first are to reach our and our doing what Clean ever practices AVANGRID proposition and showcase presentation and value AVANGRID’s diversity Connected. we’re ESG&F released available and sustainability key reduction, to this Our on including growth the equity recently webinar and

Clean as which we’re Index, benefit has record can multiple by Energy have this up joined the external that XXX recognized AVANGRID Our track companies from highlights transition. best S&P area honored to the parties, energy Global in worldwide recently of been one to clean and

it over results. you Now, the to to turn financial I’ll Doug take through

Doug Stuver

morning Dennis you, good and Thank everyone.

of the in Slide AVANGRID the first and and our quarter, by the the and months financial months a the XXXX. producing rate line with quarter are third XX% of in Networks, benefit quarter to the increase were strong results adjusted XX% $XXX investment tax the improvement XXXX The of for increase performance same compared first Turning from year, for first $XXX the first credits results nine performance of months XX% billion, the up XX. nine year-over-year, $X.X reported business. months nine AVANGRID’s our for third reflecting EBITDA to growth plans. first on value increasing XXXX that of increased consolidated segment million Renewables of XXXX, led the net period income strong third XX% a consolidated third of nine for XXXX. business from months adjusted for our nine quarter was the of which million largest investments in in including the

Turning XX. to Slide

For by investment growth rate XX% our the key growth year-over-year driver to EPS year the an of driver income partially reduced resiliency, months network’s customer has higher PTC also from important the service asset enhance base. was predominantly Networks reliability, adjusted implementation nine New plans our growing of a in safety. been of York and depreciation first the to related

have year-over-year. costs restoration outage our Importantly, flattened

As for restoration years under were a and in outage costs prior rising you’ll earnings. networks recall, driver major

the at in the the rate and costs our levels these flatten and more resiliency recovering to helping York by benefiting we’re these plans, improving for New vegetation management costs. system rate recent authorized plan additional York New and investments the higher With

Our period from asset the offset energetic the partially higher the by third and adjusted lower weak operations included strong curtailments availability, EPS pricing, production benefits for Texas Those asset and of event, quarter persisted weather positive quarter. in management and are growth wind during also impacts wind renewables improved year-to-date through first thermal PTCs in the management our earnings. resource that additional

from results equity $X.XX Our offering. negative a the impact share per consolidated dilution reflect also May

to year-over-year megawatts of Turning September to over And We capacity September we’ve XX%. XXX energetic XX. existing to XXXX. new availability the improved of XXXX projects Slide added from our

to production low trend However, COVID-XX continues impacted transmission as due when our well which are by curtailments, and resource, to as averages wind below long-term congestion.

partially are XX Our commitment approximately our of to earnings XX% net through PPAs. assets the we’re central per to existing year-to-date during reflection those to strong regions results, adjusted production we a offset north and nine curtailments the partially to the first for levels in outlooks. EPS execution. income, adjusted continued On were XXXX impacts. Therefore, reimbursed affirming levels Slide share our The XXXX months with our east of and our are the lower primarily helping XXXX region, with compared net income, pleased

for the reflects fund our and issued a acquisition, PNM XX to outlook shares primarily reminder, in may outstanding in EPS XXXX. As for shares the EPS weighted XXX million million adjusted which results average

resources costs. assumes the year also merger associated close on outlook Our with earnings or merger did end of that the closing PNM no the not PNM we until

New XXXX that recall cases. XXXX, $X.XX the fourth of from the settlement to in quarter benefit April York rate we XX, retroactive Finally, recognized the of the cumulative

ROE, road focus and achieve authorized as excellence. to our plans for focus with we drive ongoing risk on operational execute management investment a these continuously our remains Our progress discipline and to targets

the management we its sense commodity you With AVANGRID these sector, and XX. give in where Slide risks. to of to rising a Moving of wanted prices impacting inflation stands

we benefits scale. purchasing one family the global of Importantly, larger Iberdrola is their of economies a member several have power access as and to of significant the

year. are and As to per helping power a a rising We has supply reference, In cost approximately access spend capital to prices a energy Networks, a and supply. our hedging point of sourced our benefit cost to contracting the exposure Being third-parties for the actively us. when of we manage not our largest large of material, part tremendous Iberdrola supplier this is through customers buying by to business practices. $XX with significant segment, exposure pass-through effectively mitigate billion organization directly is either were

are minor. of are all the with substantially additional been NECEC, supply to commodity we the substantially the expect XXXX is our Onshore contracted XXX% inflation in XXXX. has business, equipment the In for and for project exposure a lock Vineyard Wind City projects For to In renewables, our Wind costs project investments Park our construction DOD, and Wind secured. capital purchased in X under

for Regarding projects in have to business, modules to exposure are XXXX solar lock projects. for working our in construction executed XXXX exposure the plus under the agreements we our and framework we our currently

the impacting on and involved actively also uncertainties We’re through sector. solar trade tariffs, managing related discussions organizations the solar we’re through

a we’ve a While transition onshore online megawatts of as for future development and we solar have wind for significant our in towards XXXX number from material growth. traditional have us more year near focus, come pivoted was the we to expected opportunities

wind our Directionally are are current we’re projects onshore solar XXXX renewables supply for for through opportunity. and PPA our are and seeing about increases chain. rising support new a material and of temporary federal for prices optimistic state strong between demand. mismatch in continue value renewables is the Demand While offshore raw growth will translated and as we’re and along with policies potentially contracted, prices and XXXX

XX. to Moving Slide

We’re can also we gas the focused on and mitigate customers. prices impacts our nationwide the how rising utility on

and the in spring months, In we are this Our regulatory deregulation state mind supply not well-positioned of did gas in for distribution Customers companies pass-through. costs a hedges. distribution acts gas in issues the usage however, as summer line Connecticut. purchase are though, generation policy not so is pass-through our our by winter. the as natural the Maine’s Central our With supply by during This our the gas summer managed also and a and with procurement in customers spring businesses and bear in laddering Power. expect for costs procure and impact, we also the procurement winter gas hedge, supply financial a we of processes New utilities longstanding the York and territories, Keeping electric service our supply commodity are Maine well-established, guidance. procure are and electric in months companies, and

this We’ll closely impacts, as an assistance. we’ll our business monitor work payment stakeholders we offset. the improvement ensure that about to manage trends also we trend available look drivers keep As informed with and for the potential key the the continuous to of price programs provide in them

with moving our Slide Now to liquidity and XX financing.

access terrific sustainable liquidity Iberdrola. have to We resources and demonstrated support from

we the equity and equity XXXX. position past this cash With additional billion we issuance May, strong not $X.X did have expect in a

We’re solid committed grade our investment maintaining ratings. to credit

In we third Wind previously debt for Vineyard $XXX $X.X financing expect PNM a As closed we our announced, construction on million with the quarter. project fund from raising the group the we in in of billion banks. fourth and quarter, to merger the loan

million, and We’re number This our which earlier, level. bonds of committed green issued and among $XXX financing out sustainable bond utility in issuers green to a at as issued were bonds social ranking of of green U.S. to of all rates sustainability Dennis first million mentioned nine. total our the the of $XXX

initiatives strategic sustainability. our and focus the and financing transition and quarter success summarize, low achievement standing recognition. on with with Our strong focused sustainable are our and on was the addition Index, Energy the up clean targets Clean commitment similarly by carbon execution to month Global to we evidenced and S&P energy of this that leadership our another companies includes XXX which had strong long financial To to also in

for a affirming XXXX. As result, guidance we’re our

our We quarter results. manage joining customer third sustainable have back operator, and at the our call emerging profitably goal by Erica of followed as our with remarks top you risk from adding a to us value. Dennis. mind focused growth closing now I’ll risks questions the Thank management we on of for to and for today hand update achieve our

Operator

Your Stanley. comes of question the line from with David Instructions] [Operator Morgan first Arcaro

David Arcaro

particularly the Thanks I Hi. for just supply so on around underway. much you could maybe taking the little solar bit a projects my chain, that Great. if wondering, elaborate was question. are

at volume the mentioned do you’ve You in – as contracted is the agreements, is least that and well? framework those or locked that essentially pricing accessible for got

Dennis Arriola

things question. the for we’re think with that David developers the do of into the largest seeing Thanks although fast to relationships of these flexibility solar, we’re we think there, is Sure. one which that given can in Look, get. being globally people allow out framework that for one growing I Iberdrola, I us. that able and have especially And through best business agreements, to enter we’re pricing we the want that

only and tariff sensitive what’s to tax obviously standpoint, We’re supply a with the in going happening also but markets the on not chain what’s from implications.

things the agreements. closely. that how want So on those watching a color are Antonio, we’re Jose little But we you about may more bit provide to think framework

Jose Antonio Miranda

secured our from view. supply rollout. will and on Very to Dennis already – good XXXX Yes. Thank a secured David. I about you, morning this everyone. point of to Yes, we substantially good question, and before have We go back what embarked project mentioned Doug

bringing and the regulation amount the depend the share and and now. suppliers. risk. just agreements you will the order this course mentioned tariffs some will I as with we the inflation to important the is finally it fluid panels. get watching that’s have in negotiating Dennis that And panels. what with situation, be up not are already They it Also, of We are of inside future, our can is construction actively panels can execute for But an imposed on on we

Dennis Arriola

recognize And and some PPA the dealing cases, David, they tight seeing that that prices. the obviously, we’re Doug changing with given other demand as that I supply, as customers, in and on the growing reflected as market, expect well touched sophisticated as think are thing this in very we as the well. you would

on But be going doing may enter also whether give them commodity because, new through down. into we’re consistent side, going that making the to PPAs, to current we that price people the or on what as are busy pay to contractors them right prices. want and labor in They are adjustments work. business that with indices it market they do tied is reflect be sure what’s So realities that

manage So and we’re those standpoint. management from a really to we looking best all risk find aspects The at can. it

Doug Stuver

add too Dennis. I’ll just

we buffer contingency As these estimate, – CapEx, about that’s we and new for think also build at look a types into projects, the as as events well. cost we of

David Arcaro

near-term a Great. of – you No, see bit lot maybe of just elaborating projects that a to getting Obviously, drill contracted you to on of to I solar? any you factors. helpful moving and the color. on the kind guess, I pieces as those pertains more. of here. a are all one in quick do that ton anticipate the or risk Do delayed down of follow-up any very that’s appreciate ones pipeline little it

Just you out pushing wondering it specifically next of we get think year? consider the projects about any economically might or sense into that if risk to as make how

Dennis Arriola

and I look might well. I on, manage way we And this delay closely There think that of sense project each we’re on the individually, like and look continue things this, I the moving shortages or going because the at in but as of make delays we Could to direction. same be. that think we there obviously think that contract labor? side some in could that. right the But modules I directionally it having at flexibility proactively what’s of direction. that as think portfolio things where because overall the But labor a things move be to overall

David Arcaro

Thanks Great. so much. Understood.

Dennis Arriola

Thanks.

Operator

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

Michael Sullivan

Yes. morning. Hey, good

Dennis Arriola

Michael. morning, Good

Michael Sullivan

hey, Dennis. – First

you you the date any corporate give on just the of recovery First drove status more COVID color on what QX. on much to the also that earnings and then and remind how us question, segment been for exclusion? Can has the at what increase is? just Can the excluded on

Dennis Arriola

Sure.

a he Let over provide and more can to detail. little it Doug hand me

Doug Stuver

Sure. Hi, Yes. David.

So XXXX. One we QX, you hasn’t in New something really were for recall is in XXXX. $X a may corporate And of roughly for tax recurred year York at last a two state there in that QX drivers. million took was reserve that’s impact that audit

interest is So just the And of had effect through giving year-over-year us a really other We Iberdrola rates. the year for that then May part that’s lower early the the benefit. had very expense. in element alone attractive interest

year. equity compared May same of the helped in helpful. to and And was debt us level that that’s avoid so last the issued we to And having then the

and it’s just driving corporate So those combination results. are that the really interest of taxes

Dennis Arriola

And then on COVID.

Doug Stuver

Yes.

$XX quarter, year-to-date a earnings So we’ve in arriving at our effect standpoint, about adjusted costs. such began even second deferring rate any in been we’ve for costs year. year deferring with that’s Connecticut COVID GAAP in in results, for deferred year any been York to costs million. COVID-related the adjusted been our one, on we out not million last New in $XX recovery rate our two. costs we’ve Maine, we’ve in that’s of not begun And deferring in COVID From COVID earnings something just And

Michael Sullivan

to gave pushed out year? last at Okay. on And color latest Fact Thank And the XXXX seems one is the Any about the on solar having you. then impact being that Book some there now you renewables XXXX we to showing should that back of XXXX. can you there. any guide on you looking circling commentary, the indicate timelines have just some the just guys out think give

Dennis Arriola

give I why They that But there. here that’s Michael, shifting we X% could when I and what look months year of over reasons at for think be of the Analyst gave go X% five-year we you we that the and the of is one there we some at period. everything. think the thinking – And it when would I gave range year-over-year way directionally calendar about for the a were XXXX. November talked Day, about to the the we earnings growth

the think range – we it within numbers. So overall, reaffirmed falls feel still haven’t XXXX I our we

doing be But the direction impact to material know we’re want to But the headed. I to if end at We’re any fourth projects and think to directionally anything you don’t don’t quarter. Jose any of Antonio, going overall I shifts have that that. the add

Jose Antonio Miranda

I the solar of Yes. very and feel in all actually of construction. our positive sites

that. two wind employers most And in ultimately win of feel positive there’s so of wide construction about stage a now early additional it solar Dennis have situation Of for progressing them. very other new that players see in issues through But are call labor the course, installer in that for also payments have referred we we and and like we the so advanced project, they nothing before. months we an and industry in we the will

Dennis Arriola

over on. those work And so last the sites both were about a we’re going excited a making. myself panels, you, Jose of I people, is weeks. actually there are lot Antonio There out of we’re there are lot of visiting couple and progress tell a can lot the

Michael Sullivan

Thanks. Awesome. Thanks, everyone.

Dennis Arriola

Thanks, Michael.

Operator

Your next Sachs. question comes from Insoo Goldman Kim with

Insoo Kim

of offshore you. wind. actually are Both related Thank Yes. to my questions

to billion. reflecting some I thought that around $X was the the one at the billion And to that billion year. or – this and head, in was last on was Book least first little Is $X.X increase. billion $X overall September. that so, financing bit looking if like $X.X of the one earlier at achieved around I this increasing maybe driving late costs? got – project my The seems be total In might Vineyard It you you original Wind range this what’s that I Fact a for X,

Dennis Arriola

Sure.

to Doug. Let me over pass that

Doug Stuver

Yes.

you. thank So,

we $X.X financing the that into We there’s and infused the are for I project earlier, that $X.X be and costs, an up to financing then the that contingency project. mechanical expect completion And is costs, and financing construction into cost equity enter also pure do adds the additional looking we that’s to to tax for think transaction that’s We an how in at we’ve project. then $X.X remainder financing roughly done to overall but closer would good being $X.X sponsors loan standpoint, billion the standpoint. equity get get in and you cetera billion costs costs, as construction total from the number pointed the of From et a terms billion. billion

Insoo Kim

of those just is any up some your And largely or the If to PPAs in that contingencies playing is follow-up perspective? do flexibility Okay. secure out, end to escalator there that. set from

Doug Stuver

are PPAs the Yes, set.

Insoo Kim

Okay. Got it.

is for that I XXX% mentioned Just the I second ships Jones again, know, Act are secured. think past, you on in compliant Vineyard X, those vessels. had that my the question

to timing with you status contracts control are usage of the or your the Just and and those have structured is that much how projects on other believe the and to wondering for I’m megawatt and flexibility curious of have on ships. how ability XX turbines, just the those enough those And of carry GE – that, I ones. they then large the use are larger related

Dennis Arriola

Yes.

ask me equipment as to Bill far Let some for we the additional contracts start I that I’ll provide Park have mean, color. as Wind, on not or for and the City everything. and entered ships into the yet

recent I there opportunities think Massachusetts for construction, as the the the phases. the that one looking with be have place we to during the as X, we’re could synergies procurement that is that at of in bids things well

– ship So comes that are when that a the I as to we to the going looking what case there. business, who’s think they the they perhaps it’s about out that have being or well. in as mentioned, recognize produced as look, But result, adjust cost. Commonwealth we’re to same City Vineyard that’s the at that. it and a size have are the supplied turbines going that to. contractors X Wind larger excited The builders ships, themselves. case that everyone’s market Park probably large by the to you made the And of there’s They of haven’t getting Wind And be final being to the we determination anticipate

underway. Bill, color lot provide to you additional a I any But don’t are those So want discussions of there. know if

Bill White

in you’re it’s operating CTVs U.S. underway build is as SOVs, ship Dominion right is Just building and including the the that the the of known enormous service an addition there’s enormous now. activity down vessels. But planning there’s crude I briefly think aware vessels, the Texas transfer amount amount obviously which vessels, in for the right now, of down

now, activity going right of coming into players market. a lots of So lot on the

for Jones compliance. expected so over next years And lots on couple the Act developments of a good front

Insoo Kim

there. you so much. leave I’ll it Okay. Thank

Dennis Arriola

Insoo. Thanks,

Operator

JPMorgan. line next Richard from of the Sunderland with The comes question

Richard Sunderland

circle this Hi. I Good around commentary of near-term origination renewables back the gigawatts considerations of really just your the pace earlier of onshore to timing wanted pipeline on and morning. to the opportunities. onshore the some year X.X

portfolio managing activity challenges earlier about that curious of versus about some already these pace you broader of around spoke Just managing your You on the a the kind expectations. seen? a industry little basis. has of of Are

Dennis Arriola

Sure.

think I in. a Antonio projects Let got existing jump Jose to underway. me I’ll Look, we’ve start We’ve and that pipeline. ask strong got

on don’t But we focused budget Antonio, on that project, can to we can add leverage things How panels not it of you we said, same through but when on industry through to bringing contracted that And and we’re each I if like they’re off relationship of see about, to In Iberdrola we’re Antonio some others as the try that? we the those control projects we the that focused managing contractors. some any comes have But XXXX think through time things and that other much and solar things We’re as and there in color agreements the at case are we’ll when on them things look we’ve there, need here should far we’ve we got it coming to talked influence that that. get of framework that Jose labor out are have we and in the want I Jose individual tightness seeing as things our in XXXX. what faster, risks as well. control. if

Jose Antonio Miranda

the the to an course is is, I momentum first say, Yes. all, Well, think have see in all and demand in we Yes, a market Thank of helping to we the the right. situation you, Richard are high for of to not question. that extension. players I traction business is

are X.X are to capital in or We restricted in negotiation really very this some some gigawatt. of others. receiving them active by These

on we negotiation what are the with there we in Of happen course, going convention what we adjust sector to it. case out an of unbiased November that industry. an – will is impact and the But see closely is will watching people whole the have XX, we can industry situation

Doug Stuver

Yes.

to sell-side looks over but or month of this by we're is community I'd that projects the way get on or the focused I so delay exactly you, everything and shifting things on look, in week there's time. those we're control bring here. of thing long we've a we're at We and projected and improvement that there's it. that costs continuing our Absolutely, to a the as sensitive the Richard or to one going each think got a control other say bring I year-end. these some focus in The can we're on whether long to run in we end, successful be delay things calendar a as a month to for how one We're but of to some tell projects to continuous like if

Richard Sunderland

the all of averages terms separately it Understood. between or the on the typically the in plan Appreciate the what's just broadly, and long-term your wind adjust maybe of in color. the wind and just resourcing at plan, average has quarter, of bake the that you as narrowed into resource average, risk so And light you some recent baked maybe on recent do in production come do Delta down, performance? just

Dennis Arriola

years shorter side. considering. about as Historically, the on reflected a we're we gets what thinking long-term long-term trends in a now smart ago But bad the our it. But something year, obviously mentioned on or we done we're probably is we've It's good to think that the is for really negative several as the we're still at it the energetic But or is base could average candidly trends us not also XX%. that way impact positive think about. his that and that, year making I how key looking of and comments, numbers taken availability above that something boast do looked at But off the our that. at sure new that to continues looking in at may the is Doug improve that

that so even either we'll consistent or blow, ready and deliver expect it wind going better. to the is means are with that we historical to that averages our So able the when results machines be blows

Richard Sunderland

Thank you for the time.

Dennis Arriola

Richard. Thanks

Operator

Julien line Your next comes of of the from Dumoulin-Smith America. with Bank question

Dennis Arriola

Julien. morning, Good

Julien Dumoulin-Smith

opportunity. the for Thanks

mind, you don’t first If your off, origination… on

Dennis Arriola

let's out. you're this. cutting Julien, can't you. do Operator, and in hear we Julien,

then Julien caller bring and can to the we next go back. Let's

Operator

Partners. the Your next Storozynski question with from Seaport Research comes of line Angie

Dennis Arriola

Good morning, Angie.

Angie Storozynski

Hi. Hopefully, you? How are hear me. you can

Dennis Arriola

We can.

Angie Storozynski

great. That's

ask construction and of activity perspective. I a NECEC Okay. perspective its regulatory lots from about both always lots of and

half corridor? So please and challenges at a happening update and to an legal to what's one also that FERC mile us give

Dennis Arriola

Sure.

Let me do this.

crews areas we First comments, construct, things well of really standpoint. all, a a from going are as I On said, those have job. opening been can where my great in the doing construction

about the installed, But areas line, again, transmission more site the got a I to FERC the been basically be Bob, we piece now we line equipment that of color be said, to there. that's already forward, you the we’ve we've that XXX got on some and poles transmission go but to have of manner. to I where have able clear, XX% can do of hand As on over addressed mile continue going one what's in And going little with we're let to think a activities. bit confident you provide satisfactory that, it me other over and on have

Bob Kump

whether a this And lot. the said, an on one alteration And putting represents lease already there's on line issue line use lands. of you're or the I'm The the lease. on thanks, absolutely existing that transmission not as mile for substantial Dennis the CMP Sure, right is transmission in Dennis.

out it So satisfactory asked that getting we represents the we or framing On And to issue case to transmission. the a at in came of ultimately don't with resolution respect represents. that and of to doesn't us. how generation that it's quite and in for think see this or We whether breaker FERC, interveners think whether not series about see it's Seabrook were either and that's they it that pleased alteration. a PPL us substantial the questions frankly, helpful a

ISO have So ISO, gets the New replacement I'm to that done there to determine ongoing Having York we're allow the see also sorry, said the expedited alternatives move are Seabrook we on New England the that, project basis. breaker discussions whether forward. with hoping to to that an

we'll of we positive the that So in we're a in really options optimistic again, we're near-term. get that there, asked the I but have FERC here that questions terms resolution think and in of types proceeding

Dennis Arriola

before, energy may this and country, different to I'd the ways. about bills. the are including providing in are this think But in be parties I the certain are is clean say this we're the economies, people this And transmission challenged it are talked Angie, local I thing livelihood. as there in more going change other their generation. this that of And in going that one fuel infrastructure the have transition, project, there In the add increase that isn't isn't want be to fossil that environment, the transmission in the this Maine, to total. that case, to probably basically energy losers. ambitious to given those need there as because we've climate challenge and And a that impacts amount are not to renewables country have to of the the the winners from like we as goals project going that winners that losers

that on state. took expect projects of think going has within be thing's are. manner. challenged, that we to so be there I shouldn't this in review been types the satisfactory And going And so this confident one to But that these lease aren't case, they even addressed much within work mile feel in we done that, that the that place a

Doug Stuver

for Dennis to energy, of energy. not Angie, the said, England what's the economy country, growing clean continue but recognition just importance a is really see as around New for and for transitioning this the to And clean needed and transition benchmark Yes. project, because to our to support we project

out op-eds we labor pacers, support the three Maine, now they’re So as the in had we've of unions. largest Dennis have mentioned, state from

saw, there We was had, administrator. was EPA op-ed he have in an a the recently the governor, Reilly if by William former the Post current who governor Washington former you

fact projects are this of sector. this key to to transformation Speaking really like is project that energy the and just key our

and and the to project, but who’s good motive and there. only the feel what’s opposition Dennis grow continue forward we make about people push sure of behind that as the So really then mentioned, and understand not the benefits support,

Dennis Arriola

Angie, we color want you more probably gave than you it.

Angie Storozynski

mean, just also that’s and Doug. I one follow-up Yes, yes, Yes.

dollar that the far much has billion have reached. recognition once of – the how earnings changes money COD project this So is construction on been and and the just project thus spent ACDC then during how

Doug Stuver

yes. Angie, Hi,

little it project. for we NECEC the gave our an the In $XXX guidance on over to a September spent through XXXX, we’ve AF-PDC million. XXXX standpoint XX, million range was when from $XX of in So million $XX

The essentially is know, associated traditional for project terms you price requirement as project. the rate-based put the the as transmission of this for And AF-PDC type revenue level of and service. such service and well the you in a earnings levelized grows. then date that the construct, as we’ve continue income agreement project, earnings profile to and than work this different see the the will for would in grow you balance contracted a construction project a up where through profile the we we progress In project

So there you once escalators goes that the project transmission price the adders. see service, annual are do in a are in dip agreement service

general earnings the the profile that’s So shape this. for of

Angie Storozynski

guys. you. Thank Thank you, Very good.

Dennis Arriola

Thanks, Angie.

Doug Stuver

Thanks.

Operator

Your next America. the from Dumoulin-Smith with of Bank Julien question comes line of

Julien Dumoulin-Smith

this Hey, morning, good time. it’s teams. swear I working

Dennis Arriola

that. Hi, of course

Julien Dumoulin-Smith

about as have do this but annualized commodity like back very would pace looking to you of the today, love we’re you origination kind time expectation the half. think what on a the Second an But sorry. solar, sort deck of ads the on gentlemen, and in especially build, considering backdrop at modest considering of hear late of also renewable

Dennis Arriola

that we’re our the in are in on specific that some and of going portfolio customers. grow forward part driven and we’ve overall total that capacity to we in included a be good solar, that XXXX. for say to in the we looking overall standpoint more hard November because that. Julien, from It’s a expect really onshore I’d roughly to by plan it’s I seeing articulated have XX.X customers that we expectations mean, growth is gigawatts because And more by

able that, But and making positioning sure in we’ve hookups what color, we right you give things want want. to that. they the transmission I any more don’t tell got of the the One that, you just Jose, provide that generally to pipeline be know I’ll how see if that is customers to have you, the

Jose Antonio Miranda

numbers, has it more much start is to I a majority built shift thank are now our solar. and we is in yes, see manage our Yes, pipeline focused by already will on is And to to but a are the months it’s with in this been wind. About in are that mean say activity. compensating megawatts repeat come that going And all future, probably program the wind Yes. an something our you. projects around specific recovery XXX free an I so being next so projects. decision the numbers, that it’s want see that important as on I fleet us. strategic stage to our When a [indiscernible] construction that big again, two milestone was in of are big true difficult two XX diversifying that Yes, we is doing. the advance

Dennis Arriola

sign we can taking in is on talked customers, about inflation because said with PPA also with a are thing bilateral seeing we One is go Having opportunities, commodity on, we’re I they’re a of with these dependent many determine PPA to upon forward. want, say, deals with faster. discussions able as that, about being customers prices, the we want to that of advanced part going little pipeline of what rich think to they costs, what’s Julien impact got and more other many going we’ve bit concerns of And market in prices. said, discussions we time really the as

month the second one, because the about think in or months. the one I the sign the I headed two we in Do dynamics that is concerned less versus of trajectory right on think given we’re first again, we’re individual quarter, the projects market. PPA the on the direction. that So I’m right quarter

Julien Dumoulin-Smith

bit obviously past to just quick versus expectation, long-term And expectation in the factor on little capacity deviating the factors – any Got your from talked capacity that nuance a historical the about be to it. your levels? you’ve you’re know I well, update

Dennis Arriola

here sure far expect we going the not the of When in as of years XXXX five for plan that completing that look at I’d in we next I’m is as, our what deviated. a and long-term portfolio that we forward, midst the we’re Yes. as couple say months. I’d the and say next

is, behind call. ago. the a on actually that as – our our we’ll fleet bit what So, are again, couple really of going said I have on couldn’t more years We with a elaborate is fourth But are mentioned, what’s on directionally our we’re availability above at quarter XX%. energetic assumptions pleased little our projections that think Doug with the

And so things are moving right in the direction.

Doug Stuver

wind positive recover generating that Yes, when very resource does your well-poised just we’re results. very to wind Dennis, that does, that point, for the

Julien Dumoulin-Smith

arrangement, that’s approval final a PNM that Entech just that nuance sale acquisition? on the deal in decision And the arrangement, changed close wouldn’t impact quick the right if on here on to process, the your

Dennis Arriola

I’m sorry, you broke up there on…

Julien Dumoulin-Smith

here. Entech on Sorry,

if on doesn’t changed sale impact some arrangements the Just around they your PNM decision right? that the close of to

Dennis Arriola

four You’re quarters? about talking

Julien Dumoulin-Smith

that there. Yes. nuances none I’m just that to matters curious, of yes, I Yes, yes. that PNM change be could that know some close.

Douglas Stuver

from the proceeding proceeding. merger It's Correct. a totally separate

Dennis Arriola

something that where merger do overall Yes, Getting what's what I ownership key regulators deal. in and with consistent that make an our is cleaner. standpoint. consistent was with it's out for there, think to of into ESG they go It's is entered from to Julien portfolio that, want the our announcement PNM pushing that transaction been want by to PNM before the and has we order of

a remember but don't only also like all they corners. there I is they're can minority rid it's what and thing getting XX% and they basically some the their So that doing sometimes manage ownership. there They're that make basically sounds of and important the they to decision. four own they information And whole is think owner out

Julien Dumoulin-Smith

you want much as sure to so much. again. consistent. thought Thank I was I No, make just that

Douglas Stuver

Julien. Thanks,

Operator

conference at remarks. closing And Dennis for time, Arriola any this turn to the I'll

Dennis Arriola

the the smart our on say and better communities everybody before everyday us me today. a And and year this say continuing you you. don't we're heard solid appreciate a two We thank you. I'm and or trend start you've can't trend, we a started working make joining behind for hard really three proud I'm make customers but serve. one, even we quarters to last And We'll without November we're to Like And momentum. invest what but We're it. a company months, how to on order of build the the culture we're that's more we've our team as in well on stay to and recognizes our We're strong doing performance, and a as building and in inclusion, that game. people continuing got has innovation that that values really proud XX not so in of diversity execution, only in to last accomplished accountability, and results. focused ahead technology

Our forefront at be for everything do, energy of must solution the a we we them. part the remain transition of customers and

of have your I great back more Stay Please do look pretty day. that, a questions, you and and to in person that you down that any AVANGRID’s the have meeting with bring about look our lot put if your I We your know face. still other to I had, handsome many a to you please to have but I forward so asked confident or we EEI. Michelle. at about am mask see I but tell chatting you, excited safe got with Patricia future. work business, If mask on. we can and And So of then you and with forward follow-up

Operator

for Thank you participating.

this time. at may You disconnect

Avangrid (AGR) 27 Oct 212021 Q3 Earnings call transcript