AGR - Earnings call 3 2023

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Operator

Good morning, ladies and gentlemen. Welcome to Avangrid's Third Quarter 2023 Earnings Conference Call. [Operator Instructions]

And now at this time, I would like to turn the call over to Mr. Alvaro Ortega, Vice President of Finance, Investor Relations and Treasury. sir. ahead, go Please

Alvaro Sebastian

and to Bob, good you, everyone. morning Thank

Pedro like to we start, a would CEO, our Before share Azagra, message. Pedro?

Pedro Azagra Blázquez

Thank Alvaro. you,

before of life like I'd Lewiston, Maine. few horrific we some in mass think and loss a the words to and shooting -- about I say begin,

We central [indiscernible] of violence. in manpower Lewiston, Maine, all over act have are this likely horrible many who severely employees and impacted by

and our we're to We communities. prepared provide are very monitoring available and the every our closely, employees affected situation resource to

Our community hearts all from of us Iberdrola are at and and thoughts difficult CMP, with during Avangrid the time. Lewiston this

Let's third our quarterly proceed. Please, Alvaro, move now results to presentation.

Alvaro Sebastian

Azagra, joining Results. the Officer; be and and our Quarter us for Financial Catherine discuss to Patricia XXXX Cosgel, Miranda, Executive you our President Presenting Avangrid's Also for the call may executive Avangrid Earnings the up call today also Chief Senior joining us Controller. assist called Third of the Headworks; members will Executive Stempien, Pedro Chief Thank on Officer. question-and-answer Executive today are of part Chief and Q&A to Avangrid us of the today Other part joining Vice with President and on Lagasse, Officer President Jose team call. Officer Justin Renewables; be of and of Antonio the and Chief are today

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

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

to also presentation measures. references includes non-GAAP financial Today's

contained should to definitional non-GAAP accompanying the slides refer You closest measures the GAAP information information presentation financial in to reconciliations for measures. today's the financial of and

turn I call over Pedro. will the to now

Pedro Azagra Blázquez

Thank you, Alvaro.

foundation future, past ahead year the the for resilient pleased U.S. be has months, challenges for the achievements also has many of at we for very continued present. presentation us. have but more I'm how major some the on we'll during able been of to company, the During ago, A obtain have stronger not team working energy Avangrid performed and we the hard building only a our updating and

to Slide $XXX Avangrid million we share quarter income today, per of net or share. If X, income earlier and of $XX reported or adjusted net move third an per XXXX results $X.XX million for $X.XX

of million $XXX of months, or per share adjusted income million $X per an reported X the Over and income $XXX $X.XX net Avangrid share. net or

our impact includes In million $XXX adjusted have offshore City cost of were in avoided these Wind recognized of minimal as after-tax positive offshore share the contracts, for from the an and to million May a joint payment mitigation at settlement or This RG&E billions Public effective per of New and on the the million our of proposal be approved this PPAs quarter wind $XX $XX $XX Wind XX, This Park with of wind Commission and if economics cases fourth X terminating earnings. the year. NYSEG and We Commonwealth was successfully Service improved cost. uncollectibles. about impact our year. for for guarantees terminated rate this write-offs York, million we with $X.XX October after-tax our by is in projects in excluded positive By

XXXX Based and on key of EPS to of adjusted our guidance year-to-date to are of our issues, $X.XX onetime $X.XX. EPS gains reaffirming $X.XX. $X.XX $X.XX potential and progress to achievements $X.XX extraordinary on This we includes transactions from

multiyear have the flow gaps to we to key Over earnings, cash our rates, last One we announced months, avoid and challenges successfully from plan between 'XX. completed year balancing ago, cases file affordability. rate

our on the investment Just of October in $X a received future including investments. we past on for companies York, New rate XX, decision billion for final case over and

billion additions from needed resiliency. billion to increase increases will enhance to 'XX, $X.X Our by to base $X.X the reflecting close in 'XX rate grid and in plant XX% in reliability

proposal long-term goes will approved The provide cash also improve investments changes or up X, well and whole on for on a to as been help well The uncollectibles nearly be million for metrics us to debt back decision will into in million mitigation of excess provisions net as May case X-year credit as X, those and 'XX. income in make in November our historic we back up had -- will meaning able return May costs, even into that improve -- to million as X. make-whole enhance flow projected to settlement on the rates includes the our also provision. management rates new $XXX effect and joint fair though 'XX pay risk we rate XXXX. will as $XXX go This vegetation This make-whole $XXX

high-quality accelerate reliability system The New York. and to deliver ratio equity rate management, the allowed energy clean our vegetation in and transition improve newer return Ultimately, a enable XX%. to customers, us the work X.X% is will to the accelerate resiliency and to on is service equity continue case

put that a successful I If year, into rate not remember many people to last going have case. we're rightly question

things case case I think relationships, explain Maine, and deliver. with that work you same you you correctly, have time you when in regulator, hard, in the spend the your

that outcome a Nobody this believe proud very ago. this very, year happy has work I'm topic. done So of could the on and been

Slide unprecedented Many with costs renegotiation comments contracts been [ we projects. on find unilateral further took and ] A promised were allow and in improve termination state significant last not the ago, Park officials the year collaborative Avangrid time, to we has Since headwinds. things transparent did and ago, The in X. Turning City our to to the same working to in stakeholders or steps think everybody additional Wind the that same and solutions. 'XX, as strategic way. economics plan of said and I to digitally the now due economic exposed Commonwealth year Wind financially a project of the September

have cost minimum massive avoiding both PPAs projects been successfully PPIs, write-offs. Today, at terminated for and

Connecticut we here as month. said every the about the As put filed with documents Utilities billions, The about last PURA, Wind, we're million received not the Park every care limited approved almost PPA we impact million companies was Authority, City distribution money termination they security after from year, danger the deposit On equity electric of to early of the in $XX but to Public care and termination Regulatory contract this PPA's our tax. investors. we dollar, debt we

security in Utilities, On the the $XX Commonwealth August. the million deposit Public of tax approved limited of Wind, of to year. DPU Massachusetts The almost after PPAs this the impact was Department termination

permitting of to Over and these development the the last year, we projects. continued advance

the Group like ready leverage financing offshore constructing Wind have to Now experience Iberdrola and part valuable high as leases developing, X X. and Vineyard we of projects

team. congratulate As case I the the Maine, New would in and rate in to projects, York of rate X the like also case these in case the in

the I in have speaking projects that to billions construction project of which think today. we done and relation work even simply the be to of losses difficult very otherwise, will able to terminate be initiate to a believe we to is not now X

with, best I'm and So legislatures, of company thinking because and and negotiations, congratulations, the all in very, very long and you we to also constitutions this is the the the term. thank parties of thing executive viability other proud the were

approval million Slide The to of necessary XX reliability in grid to Commissions, was case to customer nearly This upgrading can Earlier Maine resiliency. safety, to rate investments base the Utility MPUC, Public the this and approved improve we designed year enhancing our billion electric plant towards multiyear in the Turning first progress received rate for $XXX over increases additions for X. management years. Maine grid, improving and and the making $X.X experience. improve rate CMP continue X, Maine. plan modernize This to that practices ensure in the reflecting year, vegetation

work year, rate best very one. been to for in CMP, Maine Having selected team, case trusted to thank would we job. achieve Again, were this to the going -- I you ago, Maine, year to a few say this work people terrific in a like company the

think it's necessary. I doing because this we're

with all needed all We need are now deal constitutions we're happy to with. the time spending the we

is out done this when basically is what think correctly. work I comes the

So congratulations, continue. and let's

the NECEC, the matters Massachusetts. we you AFUDC. with The And then we restarted in and we in construction, in are On Massachusetts, Massachusetts project, right Mainland item, agreement sorry, in next us and as legal successfully investing key now have enabling this to resolved both know, -- have accrue ADCs.

$XXX the have investing end spend billion almost approximately expected be million. this in earnings $X.X in NECEC $X will the third after-tax quarter $XX earnings add the almost quarter, already third quarter. the contributed is on We the million million approaching to of we and in Through project. fourth

energy on. move we On key XXX,XXX the power per and online, emissions the we Wind also X.X the that operation Massachusetts, Once million removing to we this of over On of end homes on which cars equivalent progress for Vineyard and Slide before is year, X, reducing and construction 'XX. for items will the XXX,XXX achieving generate in commercial are affordable by progressing, make tons end renewable continue from track to clean, delivering first to by road. is over and project businesses X, year carbon while

(sic) the to completed, construction have and successfully including the Nearly of the X [ has been turbines. of first achieved turbines, wind the monopiles cables milestones, monopiles ] XX% key XX installation we connect XX array XX and

been also the of substation earlier offshore this substation summer We completed installation have onshore the the and has energized.

components have the construction kind a billion. needed to $X.X financing secured its executed for support equity fully Additionally, first of tax and we

economics. It commercial depreciation project This allows represents the us win. structure equity a scale first and largest the and supporting tax monetize financing offshore asset capital project, for the closed of the to single trade

proud we work the and in of project team the continue the learned will in new U.S. be are invaluable the developing U.S. The accomplished pioneering lessons a others by in offshore We industry this as

related divestiture of continue in before needed is Finally, plan now We're end the that, Court progressing case also decision. we make and awaiting the arguments September, our and a parties merger presented Supreme Mexico to know, the in you in progress the New to we as PNM, are there. to 'XX,

reasonably will the discuss Regulatory we XX case. our UI hinder its Slide decision issued clean our fair enough ago, Public in and the recover Turning would inability goals. energy environment store and months in down XX of rate from resulted regulatory incur the the ability to without to Connecticut. and rate practices the decision our PURA earn a slow would the to final capital. grid return Two state departs reliability prior over improve to on case notice decision resiliency challenging in and on Utilities a The The costs regarding years PURA invest Authority, progress

have court September XX. the of we Britain an superior the appeal on this Judicial filed, New reason, in among For District others, of

for industry increase Slide to 'XX. and allows X.X X.X by (sic) between XX. reduced crucial repower of now assets by The production and [ tremendous existing around Turning to XX%. our assets XX% the gigawatts is O&M to will plan Repowering costs us up be renewable our approximately to bringing opportunities gigawatts of approximately and ] Avangrid's IRA 'XX to

the Let's much that we of completion years projects, the project credits and allows as and for production, XX it tax does to repowering not not light full for increased production, for next require the reach permitting, asset including not XXX% faster. both wind development only field forget the commented allowing

portfolio value repowered successfully very the years. last This to of X have least existing low-risk the In XXXX. through at a our fact, already represents opportunity in increase we

of Within in awarded XX the sorry, office and development CMP, priorities resiliency the examples. -- the of this milestones continued XX CMP of $XX smart additional achieve secured slide, was of Law networks and innovation program. On Slide our grant deployment position accelerate reduce advancing power brand outages. some million have by established under technologies and we to DOE and Infrastructure key and this by will frequency the Bipartisan This we the impact have year. We in partnership grid grid great have

which the Lee, from been XXX,XXX the XX. hours. CMP majority delivered We of to response XX to customers impacted England has as of on Group region that affected recognized also its and a vast an Companies one of of exceptional Hurricane to their practices This CMP a to work. within company the restored New perspective. September successfully Northern surveys power best also program and is places the Best research-driven Maine's employees evaluate programs benefits examines to perform

Across our our average by interruption or in and system all index average compared we 'XX, companies SAIDI, have to SAIDI XXXX operating X% between and XXXX. improved networks, when duration

reduce We technologies continue put alert, over over to app the an Year-to-date, X% These increase is business network platforms. flow. we costs increase and to of cash million customer the help digital have satisfaction, and at which represents on X.X customer customers XX% expanding a tools improved core will experience outage our on downloads, increase. our X customers million by which

renewables. on Moving to

X.X have and and addressed XXX and are variation. projects to X preventing the gigawatts secured now, are X.X contracted to these 'XX wind months, energy we fully secure, have capacity supply energy, as In of megawatts projects needed strategic under and of solar We our also construction. on reached first install installed have we new between solar megawatts XXX close of plan. PPAs. Equipment track gigawatts Right we for of around in renegotiated an and CapEx and 'XX

this Energy EIM we the CAISO In Market, Imbalance first year, the addition, earlier joined entity. Western generationally as

is Earlier this tax to since our The with Fitch improving This equity. come will of of tax X profile. in from projects recently for credit reached for Regarding totaling over 'XX. tax million wind first PTC one transferability of upgraded operating for in of agreement PTCs farms Vito the Avangrid our that corporate IRA year, $XXX PTCs transfers accomplishments, credits. the stable, also gigawatts X.X transfer are to we allows not an outlook

bringing ESG diverse to with quarter the Related we and of hosted Summit equitable this first promote practices. business to objective together competitive businesses our achievements, Supplier and Diversity small our

design. and Avangrid projects, this operations On Thanks energy solutions to quarter innovation, Summit I year's disruptive recently that cybersecurity the past country drive We awarded event leaders enhance us showcase with our innovation, to experience. recognized with for Also we will for customer technologies hosted Award success, digital our advance our our for technology the the future Digital sector. threats Fortnightly were Innovator that Lewis featured am positioned around and Latimer smart in well related improve response. taking the we to and Annual This simulating latest confident achievements, growth. from the the is Top to these are premise steps grids,

the Stock we the to The goals. XX. to Most by our meet recognitions. Financial to goals. and following S&P. indexes, and aligns to efforts Index, our Avangrid reaffirming Gender Times strong Equality by FTSE Companies XX Yearbook ESG-related over be by Turning Russell received with recognized the year, X, Bloomberg Sustainability the and the for This Exchange in Slide continues have 'XX governance like ESG Ethisphere, which would sustainability World's our I Ethical ESG highlight Good

of XXXX Ethisphere, as in ethical being marks the and advancing year Ethical recognized defining Companies the World's a global by fifth practices. consecutive leader the Most standards business of one

Avangrid's workforce of utility executive and one aligned ESG goal in in our Gender-Equality and and only with a Index maintain year. and positions. improve connects globally this The targets the are energy culture, We Bloomberg for sector honorees the with leadership build, X women diverse to inclusive

and the matters. each global FTSEXGood in of award have we Xth twice Yearbook, the dedication the quality teams by data Russell. has industry. company's time of FTSE index been the more management and Sustainability governance All index XXXX the these possible. testament of average of a scoring S&P's The environmental, also included and the are of than awards Avangrid and won measures created provider, is social This make FTSEXGood this to accomplishments the work hard the

goals. to to As contribution I customer over hard I employee many day particular, would works continue to In thank Avangrid the the and every contributions to experiences, have wanted excellent you these Avangrid, X and in innovative you, ESG for like thank who your such, past dedication years. Patricia, made to deliver ideas everyone to and

us You join here. didn't

years here us. were X for You with

President will Patricia, that has week, She our Avangrid November. the at you you this we all in now. be Earlier UIL as been leaving, we integral we wish Treasurer shared of Relations. welcome from Patricia as part President then of first best. Vice working retiring And Justin, Vice an and and Investor company,

long return and as to been time, with now me have that, interim also to And You you. call you it's CFO. have a over pleasure for here the let

Patricia Cosgel

you, Good Pedro. morning, Thank everyone.

Before with for on comment financial remain a this personal of supportive Board, thankful the of I very I've and the is family-related matter reasons, the resignation my the recent quarter's performance, I'm that and company. I to company I from the announcement It requires admire company. opportunities start support commitment to and the my I had. want and their Iberdrola Pedro as for Chairman the to CEO, Pedro, attention. Avangrid

everyone, energy have real and the November. tenure you including here our we financial complex look some I company's managing achieved, enjoyed Avangrid, advancement at at the promote and to U.S. clean seeing business I the the objectives environment accomplishments the of and in a proud all and effectively have you transition my I to efforts forward EEI in of really to in Thank of am challenges some through successfully of

earnings on to Slide XX. Turning

quarter the a the of were $X.XX third third rate third drivers by in plans and The existing higher to the key quarter XXXX. plan in our included rate our for was CMP. implementation new third our $X.XX to For of year $X.XX XXXX. results was $X.XX, EPS adjusted the companies compared of and implementation of due to a compared of $X.XX, compared of York share, New $X.XX third XXXX, $X.XX the positive to the XXXX, quarter-over-quarter, Networks our quarter the of quarter the in EPS

in in $X.XX These not approved results which our include rates York, will do be the quarter of onetime new benefit the New results. fourth

results plans experienced impact of in also bad quarter-over-quarter. a AFUDC O&M, the of the of of our write-offs start additional The NECEC to primarily an interest including We $X.XX in York. higher lower implement had debt versus third third businesses, to quarter operator New and $X.XX which quarter in investment XXXX, cost quarter-over-quarter August due XXXX positive construction depreciation positive and in our project resulted Networks earnings the Offsetting were of at costs. uncollectibles,

Renewables segment Wind benefits quarter projects quarter-over-quarter. reflected the tax tax also of impact which share XXXX, a of related the performance business contributed Our and strong performance, to new operating service, and higher pricing, $X.XX $X.XX performance production operating solar $X.XX by and for third spreads. includes of and

management also taxes $X.XX from interest of reflect decrease thermal We earnings primarily from quarter-over-quarter, share XXXX. operations share, higher benefited implementation a due costs. reflected asset of primarily the to IRA a $X.XX a and the our in costs higher and of Corporate

Moving slide. now next the to

of XXXX EPS our to ranges EPS $X.XX reaffirming $X.XX are outlook $X.XX We of and $X.XX for a per share. share adjusted to

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

remainder million the share or through implementation of $XXX first, We expectations of XXXX. also provide November This New from for includes, $X.XX X. case May X a the after-tax with York impact positive rate a the our of

explain if incremental in uncollectible the regulatory of a further, This allows the match to the on uncollectibles we reserve $XX our reflects and -- uncollectible new case X to rate adjustment set To this amounts onetime the a match reserve. aside existing been of for million as implemented a of million of rate reflects treatment adjustment deferral onetime has make $XX amounts. catch-up whole May adjustment for

project has $X.XX, a to earnings. of NECEC $X.XX reflecting Our AFUDC range

have of business a NYSEG transactions RG&E, we area the renewable brings to quarter. which $X.XX, This to the Additionally, which as indicated fourth is our includes CMP, disclosed, our renewables from Renewables in range $X.XX operational in us and we cases transactions in range $X.XX Kitty the quarter prior UI. $X.XX sale of performance And expected results and cost in to of our to in Hawk the is previously to which of range $X.XX. $X.XX rate Networks for of at $X.XX. of lease ongoing $X.XX the management and implementation the impact reaching initiatives of includes our to same to XXXX a the partial that Adding the $X.XX, range outlook last we've range $X.XX,

that quarter. Note which impact with of closing a disclosed our and rates $X.XX closing what assumed has as our of contribution year, PNM Considering of debt the of the in is and had net we $X.XX for PNM had fund to minus the transaction. impact XXXX last the merger interest the on of billion $X.X operations cost funding delay in the guidance the

adjusted management risks regulatory impacting XXXX today, reaffirming midpoint are our off O&M, that rotation. And our base interest, is pricing, renewables growth opportunities annual in EPS guidance. thermal and finally, X% results include taxes, XXXX our XXXX and adjustments, production Additionally, other the results, asset we rate asset to of a our through X% and and compound uncollectibles

and Moving now aware We're next of focused our to the exposure. environment very are rate interest macro slide. managing on much the

XX% is key fixed. to this points Some that debt highlight of slide. wanted are on long-term the our of we

quarter debt parent a which rate. paper variable did we our with bond hedge at pay by exposure is term intercompany X.XX% company Our loan an earlier existing $XXX limited and in commercial to down Iberdrola the an on million XX-year program, a

Importantly, higher in our their financing recover utilities regulated rates. can costs

and interest New rate advance pre-issuance debt draw example, at the CMP, the at of are use to And we to a were the York base, debt and in our reconciled costs hedge. feature delayed fund of In market, we includes allows a each able of that when new issued in debt utilities our placement price costs reconciliation case year. rate taking end rate of private us the of our mechanism. a represents rate XX% For fixed recovery utilities, annual UI allowed for which

United and and maturities at Through parent a bond utilities XXXX, Illuminating tax million include exempt at the at million $XX million $XX note. the a $XXX our

debt, does debt. Our not external including renewables project business have

wind a September offshore our with very at is debt an Our variable rates. a XXXX sensitivity is average exposure with through low interest in as of our XX, the materials debt a -- interest hedged the to and loan our several project project, construction ago rates X Vineyard change on and provided swap for weighted fixed interest Investor rate Overall, X.XX% to of was debt, with 'XX a $XX basis financed years through with million. the cost estimated XX point our impact Day September XX% XXXX of about Wind

We also place want chain we strong to in to supply that have manage highlight costs. processes

fully chain supply is for CapEx variations. contracted secured, onshore construction projects our presenting and Our under

are transformers, other of suppliers equipment. working and We ensure availability panels and with to affiliates the also

We PPAs have chain rates. of renegotiated and reflect supply higher gigawatt X inflation, interest disruptions to

our in global rates and And supply the Commonwealth supplies in volatility offshore, insulating said, Vineyard Wind and project For Wind City have saw our the we the we X chain and market. spike from contracts we write-offs. the when interest project Park avoid cost as in closed unprecedented to securing current XXXX, billions exited before contracts

through supply and is Iberdrola Group, the initiatives the Finally, as distinction Overall, managing are chain the an and drive sector. leveraging and optimization that efficiencies macroeconomics the impacting well savings mitigate their part that supply synergies are experience, costs across and we are we're network chain for of business. to important and Avangrid we

credit to liquidity, our and financing, to dividend our ratings. Moving updates on

This Vineyard we project wind deal the transaction and offshore -- monetize Wind for asset $X.X week, a signed tax single the to equity depreciation. the tax this transaction Just equity milestone equity is accelerated for U.S. ITCs for largest and renewables in transaction tax billion X first

we of of credits to For recently $XXX not we from transfer -- financing the existing so IRA. wind the do monetize benefiting recently tax also agreement, from one assets, tax equity a credit structures, to tax in first million renewables, in executed the sector

to tax flow monetize to financing. to to as by expect alternative credits the transferability enabled the We provisions generated IRA cash enhance to our continue tax use and equity

green X.XX% During at growth note $XXX for $XXX the And fixed of the term encourage note XX-year [ quarter, short-term noted, we (sic) And I an each the note a at million (sic) businesses. refinance a and issued NYSEG, X-year which high-cost XX-year issued XX-year rate and X.XX% Iberdrola with [ XX-year used at to as to X.XX%. we X.XX% of fund (sic) million million $XXX note ] [ we ] a investments ] of loan debt.

We also $XX Illuminating at XXXX. an recently of tax-exempt the United of for rate million attractive through maturity remarketed in the bond X.XX% bond

we Investor we Finally, our billion in we presented expected no for in as in XXXX. And planned equity have outlook XXXX Day, XXXX. our September had $X.X in

other metrics. also need, other other at our levers as we are manage renewable partnerships items targeted However, including options looking well divestiture manage this securitization financing and as equity, alternatives, credit to to including transferability, tax asset rotations and

the objective. liquidity, all Maintaining from This includes ratings are XX billion At letter $X.X billion commitment in on that key Iberdrola solid backstops stable $X.X a covering we is our the credit ratings level, merger. have X months, For outlook. months. Avangrid of our our

payout XX% to of our remains on payable and a targeting $X.XX of a January X, recently Board XXXX. dividend declared a policy dividend our quarterly unchanged, XX%, share, Finally,

long-term summary, we've In continue demonstrated. to expect transmission executing plan. to and materialize rate impacts as quarter results renewable to we focus we on cases, financial There that recognize the asset in monetization the our timing fourth construction of are

of financial will on successes that achievement support you milestones see, have many As can the our we had on goals. important have we -- successes

our back from by for joining Pedro. closing today financial call for now followed you remarks questions, update. us to hand I'll Thank the for our operator

Operator

first this question our take from we'll Richard of And morning Instructions] JPMorgan. [Operator Sunderland

Richard Sunderland

me? hear you Can

Patricia Cosgel

Yes.

Richard Sunderland

right about contemplated is give targets an you and thinking if provide your XXXX, where repowering update in basis? you now? kind timing how looks the into Curious might asset that brought since up progress a and sales sales, development are long-term when for at in update can the Looking those right maybe really terms to that give platform when there the megawatts any asset time on of factored to are of onshore on the the processes those want update? I And that overall,

Pedro Azagra Blázquez

that. on comment I'll

think to one that's we had done was capital sales, to strategic the basically billion this the the increase. be 'XX, on in plan, Because asset I when second okay? no than something said on that, 'XX remember we sorry, $X.X -- than that that later

divestitures, you do don't it. to If you need do

do don't to you you need do it. it, If

end that's when the do So of need to not we in divestitures by the 'XX. why it's 'XX

We are progressing well.

on we I have that. come have, but we'll decision we options, to When need back. have final some we think a of finish options we the

is renewables on different. think I

on renewables, come to do detailed back to a what the plan. think I in upcoming I like months with full is you would

now -- in RG&E, billion . New the than investments as more in imagine, can $X CPA we're think case, we rate regulated both you have I now York

think have Maine. CapEx huge in of we also a I amount

I think going NECEC have on. we

we have completed. think Vineyard I being

going right So things a we huge have amount of on now.

So all that put with that's to beyond detail the months a to bring you time of upcoming think I to to together -- repowering. And lot the a think our in I idea into in path back come go is clear 'XX.

I have the good to years XX thing think we do is about repowering it.

with be the And second. the need and will pieces, that a So very have we And we what we do to there changed. back assets I it specific rush is to think need come in identified on all nothing proposal. a

Richard Sunderland

though. helpful. 'XX circle back it. Got asset point, the it. on to want just sales That's by Got I did

if gain the 'XX 'XX something So there in in you're the the doing is leave to announce proceeds the to would 'XX? the a path that gain, 'XX asset guidance for in crystallize gain shift Or that guess, but I would sales 'XX? contemplated

Pedro Azagra Blázquez

separate X things. No, it's

huge that year issues you If with. year. remember, had was deal amount a of made was year a a last We we it to transition clear 'XX

do we right. think almost we to get are that them doing I had to everything

year do some the was 'XX, very and the 'XX and was So there that do remember, you gain without "Well, "Why And gain. fine, well." the there gain was of a put said, gain, okay don't there. think no But 'XX, that's we we do If I in gain. the very, But minimus de 'XX, 'XX a as amount guidance of you with there?" the we said, get gain

approach that is we the think now I simple. very right have So

[ sure finalize going We to are things working were this all have smoothly we as that said 'XX 'XX they ] make year these turn to. and to

'XX, contemplating were I any we in gain. not think

want in we that's why one So move the one. to to other

care because or of of the structures semi in course, will not rotation but think the case we mean any value, not gain, about of semi I control. assets, we're divestitures maybe

the So sure XX up the basically, angle, to needs it nonstop. financing divestiture what with cash group more for top years, to the important about capital thing have that avoid the asset increase we in a done or we past rotation, make the the is

to that's X things. we're 'XX. it's any So But why moving not gain separate

of in I and 'XX, think comfortable very we're delivering right no business cost ordinary expect, now it for the business gains be that we in as should 'XX. --

Richard Sunderland

Okay.

is follow-up about forward? That's uncollectible here. a terms just little Okay. And of quick parse on Got break covers protection going basis The deviating that one a getting that baseline? helpful. you periods this, down that very And Could bit prior uncollectibles it. of are $XX more trued up? what much then guess, you from much change, I And how covers a in that go-forward the just million, does for I to guess, and of just XXXX? changed how what's

Pedro Azagra Blázquez

comment. But and Catherine answer to Patricia let yes. is the I'll

think And we'll we of go presentation, we a things but item this the single in with think put separately if sign very on the positive is I rate up needed. you that every each didn't again, I follow case. through

increase. you is or the the last remember X% just to of rate year, said, rate think many well, have I case going you a X% Inflation there. not increase is But increase. we're

you rate the increases. seen think have I

conversations the of what very seen And strongly last you're starting in the haven't CapEx. recognition in set the saying. have our week I it You

achieved, things not more cases what say, the go rate should which we in that is, have many are There have but let's I around technical, achieved would we backwards.

this in be in achieved right also one have helping of allows them, to governor Keep them is the And going now. is this forward We budget. mind because done. the

going combination us right I with that one. a of now examples are things that's like there on deal think this to allows So why

important. very you Patricia, So Catherine can this is But comment. and also

Catherine Stempien

you, Yes. Thank Pedro.

think going uncollectibles. So a the ongoing year, you the onetime this $XX about forward mitigating risk should uncollectible as million on but

that accounting to NYPSC we the accounts into our reserves default matches make acknowledging uncollectible need we when that from an we up that uncollectibles. from be go deferred it able the make So the from amount collect with write-offs to on perspective, the will ultimately

So won't match our up, but balance sheet, on deferral a it you and those going risk forward, X will increased see with be matched will entry.

Patricia Cosgel

It's Just It's full is -- has our we uncollectible has to amount And not uncollectibles. $XX that on the as that balance. the when give that amount a set impact reserve we've million do a for we a that little earnings. set that, reserve more aside a negative it. description a reference aside to

this to we're now amount. So to aside deferral able new set match with that a reserve order, now

will deferral upsetting amounts to and the earnings risk incremental reserves aside future. you'll your these mitigate forward, match in going so uncollectible And the reserve

it expense getting a had $XX because with and reserve, do now that. the million had catch-up set effect to up rate set where we case, we to up to to goes now into do new we're But was actually the the get offset that

and So a there a catch-up expense to mitigation really onetime expected forward. but risk going P&L, going is forward, no impact

Pedro Azagra Blázquez

If I thank senior to really want commission, leadership I New comment, a can administration York. staff, you the say public make the in in to

a table are is things, very regulatory think fixing you as the is have And I something very, they This come now. why probably taken, an this decisions on puts see environment. past, think they the which that's not from when New York predictable I issue many the that okay?

say, in environment. think "Well, people York, predictable think New many that times hear I we this state a regulatory very and this is stable I that very, one."

continue is we this similar because think with it have recurrent. and allows commission, be very, this dealt said, for situations to other why becomes are think just future I This deal Patricia time. I that's X not we still but the that to positive, is very working the things as with, There which public with,

with this that leadership the think come also things more be the the But to to to And able we're commission. but thank the past. are team, you help. working that public congratulations there things from again, I to fix

increase case, wrong impact, to commission people, I the the public we thing will and was it by which rate acknowledging time. X% previous at the be done a we're remind now had that that rate

now, when allowed. they investments, going only not are but forward, we getting being you right going 'XX see not think backwards were I still

the public many many I the that of you conclude the something you commissioner. I by understand The commission, compensated, need senior settlement to to you be So settlement the you leadership in so have to right think would parties rate. the do and things encourage the staff the that the comments read when is agree

anybody is regulatory if New thinks environment York So not an unpredictable true. that's

they think public get and I right staff the senior are at they should the I now. the because in the all job leadership a terrific doing on credit, [indiscernible] think the administration commission,

Operator

to at Wolfe Michael We'll Research. now go next Sullivan

Michael Sullivan

to we uncollectibles. left wanted where I just there on off start

couple was non-GAAP you well? excluding there were when So from anything that years, costs was of there COVID the out for pulled uncollectibles as past being in

Patricia Cosgel

business the off reserve but uncollectibles No, write future has you this about for our to you aside order, our COVID, specific we you just to I there. it's uncollectibles deferral those on we where of It's what recovery earnings. as that is the a a type at practice set interim, set our that as the amount cetera. And put of need to is really part to normal of the age, collect in and at might in your it put related any regulatory related et we of what get not so With COVID. and a reserve do think reserve. new not the exactly impacting all And like about said in is that all But portion to this impact they aside, get neutral earnings. you place

Michael Sullivan

out pieces It moving moved around. York few things a wanted New this understand to then just And case. like Okay. of looked some of coming the

just about year rate actually that the I up, $X.XX down. for the So waterfall book, to went And the the go, in from I think then but think the went quarter. slides like last in up fact went days your CapEx

more from So little a can what moved of last you quarter? give color kind just on

Patricia Cosgel

to the -- the we handle of on the get to closer end I the the of perspective, the cases end the the year. better we earnings going with a it's better of we as on from forward. what And through achieve just think -- can really expect information year, rate have implementation

case the of the work that through those projects and need a more In determining as are. we rate with we and are of the generic when in long-term part we in terms that included base, what past, our of the forecast projects outlook of rate commission rate items to base what CapEx did and place the prioritization as go in the

have for them and of lines construction for Some different time COD.

base. So that rate doesn't impact our

Catherine Stempien

that GPA. won't base CapEx just CLCPA to spend included in our year right be current Yes. in has that until I'll are projects multiyear rate Phase you going the to outside case transmission the X, the remind rate rate which and do with go now into are projects of

along said, this amount a be deploying base. CapEx we it's that up and until a Phase New matching with we go York XXXX. that will of to CapEx in will recovery. the billion for There's X year spending of So and into rate significant win CLCPA spending kind just start $X.X future up as that the But Patricia we're actually items CLCPA of Phase X for

Michael Sullivan

year. helpful. That's gain in guidance that. the Also and then appreciate one I another Okay. on the just the for rest the -- assumed of

put understand out? has kind since So to of that you not out options? of based that Does where in other being something the $X.XX that or the like is still beginning to things have are trying going? to and same Just Is really sure? refreshed actively stayed put initially Or what's since that there it that just initially Hawk evolved are you you gave on $X.XX out. Kitty kind we're be

Pedro Azagra Blázquez

think considering. on you you when number potential specific guidance transactions put are I a some is as based

in that the right will very is number a go ahead not if we'll the not, the right is we this divestitures answer If value, So we're go cannot explain. numbers now we are you targeting. now those ahead. simple. and And And get

and of then it view, what So cash gain. I point think for important from that a 'XX, any don't and These for this coming gains. was since thought again, with 'XX we year were need a we was just

to was think bigger the year this a because transaction, CapEx. to amount we with a specific assets. forward better from order not of go which sell opportunities to had it of decided We in I to go massive cash what involves

CapEx billion I almost have in last $X think year. Catherine the projections just CLCPA. example mean additional didn't we the mentioned have we I of

we why to that's need So all work forward. going those things on

But that as it I well. see happen, case for need next if we of doesn't be if in the basically, of and this year, think are year this were If fine. will the that's we year, the okay to to it variation try we transactions gain, potential not to amounts. in ahead. can we those don't get those we not valuation was to a achieve the valuations, there in If done happens working it go

We will do don't rush we it. just to because have any wait

Operator

next go Karp We'll now to at KeyBanc. Sophie to

Sophie Karp

sort to and or ask environment there I get to there, wanted any on it the about it soon? anytime for regulatory if way you improve is Connecticut, like it you see a to color the improved path of

Pedro Azagra Blázquez

love us. I yes, doesn't it on to depend would say but

law to that's of the what they why we suffer. say unions, with other people relevant and we support can thank noncompliance change employees, precedent, like decision trade because perhaps with some to you of have past that very this, do, many the think changing I suppliers, the in I'd practice,

work. think can to only do is we thing I the

we keep think point of is to accounting a turn but around decision, view, point is, need agree know, opinion from the strong our I in of don't from legal that, mind that lot mean, case of view. because I you not what legal regulatory because base a of that we as an with having impact,

law people commissioners of by paid compliance the in New about like the in of way the in just in And to people point case hear do think matters We with legal you companies be of I think offshore, no, a decision. don't investments. with same that disagree strongly York, PPAs people, I remind that personal to this termination we view Some from will the you take comments that. for attacking in need into try

where make sure we business. do I in jurisdiction we want that's case any think to the

just after I So rate been in has decision a think run, the good a there in rate the of Connecticut, the mechanism of case case. in

very working the are to hard action going continue. to take we think think soon. We're in further we're We appeal. going I

I that because say I cases prior we file think case that we're decision to the now. love to learned of rate finding But some have would right a differently. rate the is how problem well, have have read disagree you That's decision, we you but say, also this, the you strongly was why okay? did improve it. you decision if [indiscernible] you the with proven taken.

So decision put in think the we only where information to complaint relationships thing wrongly perhaps the think of. not angle a when done any nothing is can have of correct. things hard on is we can do and work the the you lot do unfortunately, follow manner I table. And in we And also, the and you those

something expect single to I future. think this we the we every We we're Is there do the around near stop. not in in day. future? turn working just think I expect

do We meetings. many to continue

continue We actions. see additional to legal

We actions, actions, actions. have continue management to employee suppliers

proud good are The being family. Avangrid to about is decision are, this prove how Iberdrola thing we of the part we of close how

is between union no nonunion and employees. There company. We are differentiation and workers There's a management workers. differentiation between no

decision of when why will reactive a like us. affect strongly we are that's think have to you I this, all everybody. And

their on approach. same power. employees own thing governing lot it's reacted of that with I the think that control a It's something have against

told if York comment to in a us increase asking a York by because X% of in a we rate you rate X New or increase somebody New going we or are is taken. So year, now But same very proud can have many the reaction I as we what all think the in And I that do us I last do of work, can. as way else. by governor get you're comment think think actions we're we X% again, of

rate think we And I us think I you're told the right work, now, seeing okay? you, cases. let

York by this one. Connecticut less $X have compensated plan. $XX in very in Keep mind that in this small. seen Again, billion million that New we is the is investment in You've

want. you number by pick you any up So multiply

[indiscernible] whole are the So affected.

That's have and in But change not are to invest business -- do our illegal, without we notice, we of the precedent. simply do not to accept practice having believe of way change sector. decisions where

point continue think and personal time we not need to These working. This to is us that from objective view, continue with working. I need So of we matter. some just deal give to that matters are

Sophie Karp

Terrific. kind And offshore big wind. my picture on was other question of like question a

You guys U.S. space probably and are to the closest utility expertise. the the have the most in

in for canceled, of of you equipment, So Can the equity about that's environment you cost et been the sit, way be you and a current other kind the also as rate states? things payers right those and wind both curious thoughts? availability, where PPAs stakeholders given just for of to know they the in capital, economic cetera, have what I a that acceptable the like right? I'm guess, stand, LCOE Is palatable for from like policymakers offshore guess right, I hear it's rebid question. like the from your tax cost now, of

Pedro Azagra Blázquez

there are say project we building here a in I in think the risk U.S. are in our lot Europe. going case, to offshore are good on They present. business, of a at

the -- So because it's stereotypes or I don't true. like generic don't we not comments,

to case. case think go by you need I

year financial in company. a the the I of we And done simple. think Iberdrola for year That's We're is ago. said case, the in we think of was last it. And business danger put message have to our not years. that XX this health I going how in

done we some what this. didn't Other people any didn't It to negotiation us, bid. think have a matter have other that we bad I that people here, do. do said doesn't say we people

not information, we we we we already already those the will our we think and got after got we have information with down project a it so kind -- work. got in sat as contracts with write-off cannot have billion clear, doesn't week I that the of start we and were reopen and it renegotiating, ahead soon in case, you if leadership we project as the a know $X.X opening they're you're are go the $X.X contractors billion, to going you the states, because PPA

to us, a stop. for not why is that's have the So you answer --

stop do this, lot we did not what And We that's start. to of start. did. a people to refer not think simply I

a that couple right of think I leases participate? you new going we if see. Let's now, you see valuable, I are think, to have very the are options,

any unless you have indexation you not risk. will have think have, able unless we I to be

run for we thing will important risks. is The not us

I don't know. think that's we message. the Other people,

You need now. our are. have they everybody don't with billions In right to check where losses of we case,

think losses because have those way, I often gains very budget. in losing those By of have loss the you guarantees. quite you a we beat sometimes in the some with in because renewables, are that modest projects other other projects compensating

case, this we lot are And a are have I leases. in we X the think in now. space. I right worth right think beautiful They

transition, I keep Governor we green they're are Governor as would the the leading in change, terms President, Healey, U.S. and now, I Hochul, you right in encourage of Lamont, renewable, Governor of to mind, cetera, all climate well. et think

from this offshore. in in to to with stop Avangrid, right into will going line But how to we but to only what are now are years. for our do We X of from our building not scale shareholders And basically Well, and building sometimes the transmission in Canada and X only project a lenders coming a years, Massachusetts, year, get continue? for billions that's the risk it we business. put we're stop sometimes for rolling dollars larger in things case, all danger, at is now do whole

our So will I case, think we in case case. by go

Operator

of Dumoulin-Smith to America. Bank We go at next Julien now

Julien Dumoulin-Smith

you Can me? hear

Patricia Cosgel

Yes.

Julien Dumoulin-Smith

to successive both you here your Excellent. on congrats And of here. moves

it? latest It's don't the obviously, see, here, an related the in to the if that, with CFO here mind? at context role, a the new just bit sort of you in day the with affirm can starting the speak this the you all can, intriguing you was you drove And turnover a actually that you around if other committee certainly as to release what here, little if of maybe that So decision X-K well? bit can what little precipitated backdrop the further. that and confirm to Can the just commentary decisions

Pedro Azagra Blázquez

Okay.

your happy, As concern, Julien. as I'm that's long very

happy speak about than So I'm more that. to

answer speak anything the compliance then First, do if can on and you to you I will with has retiring. that Patricia,

stopped and our compliance, the we unit. on never improving think enhancing I compliance

compliance the put X we think further of compliance of each believe of probably the just in to moving there I months from compliance. Basically, one improvement we're of the Avangrid to has in unit X analysis businesses. units been level

group. in by So X in the terms now we multiplying to going focus compliance of the how are right we're do

group Ukraine at we the never go well, We level, X, tax lot it's So at I say, that is. issuing 'XX to say had and it wants going back think to X accounts. maybe is of the wrong we're stop to something that to compliance. A maybe now of think at war we is related not what that is the we right this a may also subsidiary. had years and to level let's important XXXX, for people because somebody doing right dynamics, so need continue ESG to Avangrid enhancing If us, we something each Well, beyond. there. ago the other now This

a to is have there were what why there matter that a reaction. got and we time and finished stop and later. agencies is loved things organization. the This analysis, to This know enhance certificate units a is with is some perfect that's across we to very those going key when. basically we not positive announce not the believe validate when -- improvement. They is like this. not of proposing. We're the compliance one We And compliance an we of we check the of And

believe on probably this action. but Maybe is first we at move. in others, in U.S. ones there least the the think we're to this making are we're analysis, I company that the first make our

table for whole contractual X, table commitment at is reasons, our And we're is if from to about enhance I soon the ideas they the must. we're moving put on because it that reasons, for the compliance simple, the ESG very legal other renewables that rationale So compliance are departments put beautiful case, finished. to our enhance one we diversity got how we and this and have networks, that increase to around show one least as And in on X and company, put because we for it's think compliance, reasons, the we much as compliance in that. in to going a to

right finished We that. are the as as because work ago announcing that weeks some now we simple

for leave you. relating But Patricia, you if anything I'll about sad again, to to speaking me it And be topic on to you want comment this things these you. and

Patricia Cosgel

really just going to add disappointing that only extremely to it No, hear that. I'm is

offensive. it's think regulation I basis. I it's without -- [indiscernible]. always I long like just and [indiscernible] hesitation. a completely and had X defended I assassination in is personal I've a defended character had career I law, throughout every feel

Julien Dumoulin-Smith

out terms -- to times perhaps of meaningful contributor the West again, maybe Look, talk quarter terms seems third elaborate Got confound the in I volatile here, West just like And that's of results, results. rather, and that realized the the of it. over how things. third dynamics front. know a people $XXX much Excellent. good at bit about going on a in elevated a clarity a fairly to more appreciate been I about seeing Power? like can Can It's year-over-year megawatt seems on you if it. mind. it's it quarter here get just market there? little backdrop, driving Obviously, that in you precisely was call Power quarter you what hour clarify what's but don't you're

Pedro Azagra Blázquez

very didn't you question. to Do understand we repeat? mind Sorry, Julien, well the

Julien Dumoulin-Smith

Yes.

Sorry.

want contributing years. more very seen hour has what's implied. to So Power indeed here segment this recent elevated there Obviously, results a seems West over and to drove results a precisely, specifically, in in ask like confirm quarter? really out the West $XXX the meaningful I just to that megawatt the quarter it asset is that, it of your tune to benefit

Pedro Azagra Blázquez

Sorry, because it word the were so answer. ] West, in you the hearing we [indiscernible] Antonio, not also can [ court so was speak

Jose Miranda Soto

Julien.

contributor or first, climate when trading to above we're team I the also regions. this highlight been one and able you like year yes, results versus most is very quarter well So way has also and compare that the among and also But would important our different our to versus expectations. quarter, also important the West year performing win

in in all, contributors all So composition of the this main is today results. the

Pedro Azagra Blázquez

why think now, now because results it whole mind, us had a year, please to you very was. mind to So your and been take back we're okay? think and [indiscernible] year, we very keep I full working not we going stop, year. mind, of because were But that And forward, I it planned CapEx to in stop which right keep very it's And strongly. review mandatory. in the right and last good speed that's again that delivering have as is this in unfortunately, good having the Keep has not

Jose Miranda Soto

performing this a this year that of like the West is And CAISO our in costs Market, helping is are lot first member to the also, and and highlight the also good results. we as year also the Imbalance new a I'd that also driving

Patricia Cosgel

the about we've of in we multiple of we're that of renewable think always sector benefits I in kind to just have our all company highlighted one and over and regions. the And the assets diversified, the what country business finalize,

over time. X So that see better you another does will than period-to-period, and could then change region

Pedro Azagra Blázquez

comment on since X think things people are X back we on to again, But that, like renewables, year. go ago years the years at I ago, of sometimes the when think this last since Julien end year. I or here we'll

renewables, think was a can doing. for and I of El a in in deviated. specific long history reasons But explain La what we So there why we Niño materially case many are was the year Niña,

right the I doing direction. months things why lot a the right to in pleased it I'm months. That's now, everything very us planning of for X we're X think that stopped took put We last year.

we to that and this where be. very exactly last we almost year, pleased I'm going we year are So thought were

the you be year. credit I something us, going the to solid, think other megawatts a people are XXX doing think I'm I think of that are just were I around probably we people very year, really to a we make what that's X,XXX. to doing well, ask think take all renewable Also, last pleased. team of comment, And

that We ago asked [indiscernible] November. we years that in when clear year question. but at were the said also [indiscernible] didn't made we that think that in level, last believe we I X we said

of that We be return. put the also money. to megawatts. that going race projects of said deliver making think going per point to the we're I not right the growth And from of view, race in in we're We're

think I year, we have megawatts. in this XXX already

So we we're more ones, think, I than to going said what fix. And chain we have have those XXX done supply do.

have nice very We return.

least We or have material PPAs, renegotiated think PPAs, at with I existing increases. X X

material we have the or it, networks, been negotiate Both When we PPAs, to have or the comment, to I that impact also making the pass-through X basically penalties And from us, impact. we the X, other which debt. call have the to you is have been Alvaro, things okay? penalties, can renegotiate rates. the do. and new think a which you -- in look increase able perhaps interest able its And we is at price, related a same

expense. existing the the and PPAs the the but we don't of debt of at very is business. level I small new have interest we think And floating, may XXX% have interest be affecting, bit holding where maybe new amount a PPAs reflecting rates little it a basically there. It's are still that

we're -- So nicely, interest new PPAs of -- for [indiscernible] adjustment because very for X I with something and it's us, think rates past revised assets. dealing adjusted

we that risk don't acquisition that now an turning this from mentioning around the then cost So from that's that's of I renewables. helps okay? debt those have X%, also we that you So results in it's item have assets fixed that that I'm And were think something flat otherwise in not comfortable have us, point you less people. you And that, that to X% with that -- acquisition view, of revenues. than has bought

but thought well. to I comment expand, it an was as to Sorry opportunity

Julien Dumoulin-Smith

it right? we just I I gain still bit. to balance year, expecting clarify It's this And year. in wanted know about of little for 'XX, comment. a not here that the the your earlier you're Excellent. the just through talked

Pedro Azagra Blázquez

Yes, don't 'XX, gain. a we need

because, be now X on I point these I But call from we obtained. remember, not I'm and And could again, some items have end X the but transition being or year will only be think, a way about things was we not 'XX, I it going we will of that an make earnings done. material very forward. the 'XX, year here comments pleased, think we view, it different in with the of for

we achieve view, my full based point ago. was 'XX of 'XX to the able and a opinion, think in I things been a And cost of year have remember 'XX credible to not that, from transition on that were business. ordinary

we said, I think without And us. gain. onetime with moved an a up. if do not, and that's said it's fine, can if what many so And well, we into put you the of you extraordinary did and numbers why it -- you last happens, year, because for

need that. work We continue if it that to on not And will happens for fine. 'XX.. we And if not,

Operator

And Angie we'll at go Storozynski next to Seaport Research. now

Agnieszka Storozynski

So I have a question about transferability.

the the transferability? you basically the of finance changing levering just $XXX wondering project way you're that if projects at assets using [indiscernible]? also how going projects versus power instead transferability. using And from to tax was I are mentioned about level IRA use equity expect the renewable forward? you You do to I million monetizing you existing plan mean,

Patricia Cosgel

our initial of being that definitely our definitely, Well, those adopt first the was the because by backdrop enabled from able This transferability early of huge provisions see some we sure. there transaction to in we a IRA. IRA, a Yes, tax into are was Angie, foray equity are of PTCs that holding we were assets generating not retaining equity. because on tax books. These have do that are and number used that structures, haven't assets just we always

able and a monetize impact we're credit actually to IRA, material for which from with now our [indiscernible] metrics. benefit cash, the has So

step was that first the So kind to do that. of

where transferability. sell that projects and because we have we across Certainly, existing CapEx build we looked there new make a that depreciated doing the generated, sense. But can assets. a are this have where can to to are they're large a of is have than plans that repowering definitely lot continue business, we'll As could you lot those ahead in assets. lower We do that where -- -- lot see they're it have where the about talked makes continue a a we assets of assets of because think where us. sense, lot Those PTC, those already that are to we are assets use we

more generating of losses. not tax lot you're So a

transferability of and sense. lot makes PTCs So a

we'll big We operations, Again, the think look equity. have still transferability so tax actually proceeds are cash our a credit metrics. from they to at do benefit

of I think balance review, one-and-done because it's NOLs isn't a important sheet. tax a do a There that we we to continue capacity, on our have to our lot of take look have sort monitor. we and at

sense, particularly sense. projects, larger for makes ITC for So can more CapEx where large we tax where a equity projects make ITC have

NOLs. add just we're So continuing not those to to

but projects repowering. summary, in think, will we very it look only not that these ad-generated a do tool I valuable and have, and So at PTCs, it's more, for we for new

Agnieszka Storozynski

in would additional be And tax cases be what financed Again, those Okay. that CapEx with okay. where use equity usually with would debt? -- of financed you the just transferability, portion

Patricia Cosgel

we the right. really depends -- asset, it but on that's Yes,

just your It of how business. The options. the we -- question, much are and looking other future we part we depends on at grow financing

[indiscernible] as business, I are debt to well. think us company it has support at at green parent been fund to historically do for we to but the effective that cost project looking options with

Agnieszka Storozynski

PNM. to topics changing then And Okay.

be. or just just know been it when Court. don't waiting we the wondering, happens for from are I'm taken it So this and Mexico the -- And for will what decisions given we PE we're multiples obviously Supreme long one, dramatically different exactly a has utilities. how again, I'm that But in

two, number chance Court to does we price? the kind potential with give of route not And you to again, And then what you transaction? you one, I'm if So should reprice the side expect? of potentially that you Supreme Would asking, if renegotiation about had would refile? -- a this

Pedro Azagra Blázquez

comments. X think I

one that. comment Supreme is after potential things first either and for we're The to the the outcome we Court waiting prefer or not decision, in just

that. for wait Let's

you in X think you the or price I transactions, one, down. second M&A The renegotiate do up don't when things go year,

a think on always the present value I and that's point do to So that valuations it, of we view, basis look from at approach okay?

wait X we it think be prefer to to need Supreme that say there just I we history is to comment the but think going a months, people said X silent. And was for a -- So I somebody be makes of and Court. we months, X months, then

and decision Let's court wait the let's for there. decision, respect we go that from and

Operator

and that have to closing any for comments. you over this the for time to Ladies Mr. back gentlemen, I'd morning. questions like is all we things turn Azagra

Pedro Azagra Blázquez

Okay. here very you much Thank being for to today. everybody

that thank some my employees, case, to us thing I have is, say in you the Many to to difficult suppliers. supporting as think them been first I matters on I'd I the stopping said, like the [indiscernible] power union think do first, are you. of we would to the not say have the table, some see it's from rate committed a group. in being case Avangrid decisions, at they government and control pleasure a to I point thank And of how view,

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returns, that CapEx, point are rate XXX we good base, from So now renegotiations view, projects right XXX, we everywhere. of megawatts, in in earnings, said renewables,

I dynamic different. think the is

success, make only nonstop. the comment let's is as sure now that we And So would in saying make last the the think, I right I is everybody need XX simple months work. as that's

teams Generals, investors, I right Attorney are public legislatures, think public rating nonstop. the agencies, meeting now advocates, executive brands, commissions,

when you take. come there from view, that because have work And point think is results we this, the of nothing I to like

we're very We also on are we we're but that have. doing, what the objective needs proud of

we many of very and that all as transition year. to them 'XX that the clear we hopefully So all I insist successful think lot outstanding in year them. of able are been many could. a being clear almost we were we of last things challenges to very as have solve I way we or fix the in Again, were 'XX. And had trying a for was much we

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to we still done. think other have things I be

turn I Connecticut. on Vineyard think I have the we complete sure asset in We and NECEC to need right we time basically think dynamics need to make that have on now we rotations on and X we Wind track, around budget.

think by the I to where also, also I'm with to you decision she the Talent be personal don't metrics, continues PNM have we're pleased just we a difficult. financial keen This sometimes We're developing Patricia, is -- moment the making the even very about like Court. waited Supreme that's because get to credit be. liquidity also sure on has our diversifying when and And a for important one take situations talent. very decision. critical, strong

for for can see, you months looking not X we As are anybody.

ready same and decision a strong We day, is succession that we have plan. have very a because the taking

future and fix that issues our and continue I in better we in opportunities building sustainable, for and we feel generate that positioned more positioned the not would the are company, we growth growth a result, and well only believe general. also ahead like a very comfortable us comment long-term to to for of very any As to well certainty but

So thank you.

have if each we're a have we any you follow-up going of other separately. I think questions, to with I know

So please, Alvaro, or a everybody, have the great further on. I'll Q&A And let with now you to so day. deal

Operator

you Avangrid's gentlemen, and so wish Ladies for Quarter us will like you. Conference thank that joining XXXX you Third and all Thank much Call. great conclude I'd Again, Goodbye. all to the day. a Earnings

Avangrid (AGR) 26 Oct 232023 Q3 Earnings call transcript