- Earnings call transcript Q3 2022

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Operator

Good morning and welcome to the Altus Power Third Quarter 2022 Conference Call.

As a reminder, today's call is being recorded and participants are in a listen-only mode. [Operator Instructions] At this time, for opening remarks and introductions, I would like to turn the call over to Chris Shelton, the Head of Investor Relations. Thank you.

Chris Shelton

Good morning. of analysts. all to welcome investors and And

Speaking Officer; Officer. and call are Chief Executive Gregg Felton, Dustin on today’s Weber, Chief Financial

addition, today's morning, Lars for Officer, related to release Co-Chief be be presentation In us discussed to joining on and Norellco a the issued we will This matters a call. press Q&A. Executive

information on SEC's in the www.altuspower.com You both press the website, the can on release section. our is This access website. available and the presentation also Investor

identify on this forward-looking words Altus results assumes comments predicted used expressions on outlook, statements. future, various may anticipate, contain forward-looking Power and no uncertainties such future As including they the could, These our and and a subject call, vision future statements. update statements future aim, change. strategy, When call forward-looking statements. in those obligation intend, seek, relate cause may, goal, financial will, statements events objective, in statements the as and to reminder, expect, as on as based similar the this performance. or from these to to should, Altus those target, are refer believe, forecast, operations plan, Altus Power's and differ assumptions materially circumstances could risks forward-looking are our Power to These to certain actual project,

other the forward-looking uncertainties XX-Q on For our that SEC to these and more SEC our you information, with impact factors today. in specifically statement, filed discussed in and form encourage XX the risks, review filings could XX-K March the with we SEC filed

EBITDA margin refer to measures. also EBITDA which call, adjusted financial we and this will During are non-GAAP adjusted

by used exclude information performance financial issued non-GAAP measures press believe detailed Power's about financial non-GAAP differ and certain financial measures reconciliation plan other substitute items monitor these management not from is considered measures information similar GAAP a both should These to a computing evaluate we measures. for measures these this measures our useful uses and these be may financial financial in Our financial be non-GAAP to financial of presentation investors. comparable and Altus today. our the companies. the contained to methods non-GAAP and non-GAAP More team measures GAAP we may and release from these

Finally, third during our reference speakers prepared will slide our deck today their quarter remarks.

information information call We Executive be the that financial you discussing providing Officer I'm are And that, certain Power. the this Feltonco, Gregg with to of to we Co-Chief understanding will of assist to today. pleased in turn over Altus

Gregg Feltonco

challenges our the are to near weeks of we investors are report With of that where the our industry until experiencing, to and XXXX Altus quarter six in of of the revenue be that cash end most Thanks, exactly in also Chris. analysts. and are finishing welcome profitable markets just recurring history to annualized and the we we And spite incredibly broader Power, terms excited in envisioned and the the flow. reporting

supply long EBITDA. With for capital chain Altus more secular experiencing tightening let growth. incredibly well the to thrive Power me updated XXXX we our tailwinds this adjusted will designed is is headwinds, term attractive of industry uniquely support Our expectations backdrop, And address availability. notwithstanding believe that and recent

these have glad up term that XX our our to our compensated guidance. will and closed described report lead delay were EBITDA. for of We reflects revenue long EBITDA Friday. to end anticipated are release, past the started initially near reduced recorded of flow. of the expect now announced additional closing of our megawatt adjusted this at closed form assets cash D.E. acquisition renewable from delays investments, than As currently which later in to our or low a we in EBIT price and in was in the and a recurring that purchase This September in lieu contributing We're Shaw come administrative

for our proud and has reiterating of business we adjusted well are we building dedicated the Altus whom full culture why in each XX% would are executing to key underlying at is applaud are which ingredient Our been EBITDA our we like year Power Lars I of mid to margins is range. a employees, expectation and the our performance.

During conditions. as slowdowns, tightening faced including chain others, many and industry delays, headwinds XXXX our more financial has with supply related recently, numerous COVID

expect notwithstanding professionals, Please turn external seasoned Altus a any of Power will through slide we As what we success pressures differentiates to X, in the way deliberately Power. cycle. Altus I talk built which drive as

with pressure our company which the customers because electricity the These other commercial company public buy than the of commercial from contracts solar we has rate prefer more providing and solar driven scale investment in aren't upward our independent Many term grade focused chose revenues. benefit our customers utility are of contracted and integrated Notably, contract outside Power tailwind market of attractive commercial we a profiles, the vertically of only representing of size arrays. skill long our this contracts, segment market market our variable sector. segments economics sector entities and Altus by solar majority currently operating on to the common are specifically space. which generally our contracts, segment on is First, unit rates. largest the a from

decarbonizing their and utility, on Power's discount commercial, to utility focused who include deliver are Altus at a customers to electricity community increasingly clean municipal, grid, and the to members ability are provider. Our attracted

margins. of accomplished profit potential strategic attractive which while profitable We're a partners customer offer our our our And by who the asset recurring corporate a significant customers. cash and a with we've assembled market, growth. adjusted us increase model and Second, for planning of unparalleled overhead. recurring desirable support allowing anticipate flow, maintain pipeline believe strong We've of year, annual we an growth, business we next platform in now to will our costs, virtue in us limiting our profitable our growth controlling acquisition margins, revenue, by and segment we've this for this built EBITDA and

to public Third, you our I enhanced position capital, to on which flexible been access has company. update as by our want a

cost of on consists developers with Please private competitive predominantly X segment to Our slide of I turn this relatively higher CNI advantage. elaborate as capital.

Our strategic us growth. Blackstone the market to support efficiently securitization allows our partner access to with

facility, provide on facility further up spite to completed. revolving to financial and when yet are largest support facility years. and flexibility for finance have advantage. in to The liquidity of competitively revolving term the In commitments including U.S. our the facility, If tool the add credit to another our many with sized be bank purposes, million available and provide will expect which and access by competitive loan credit financial five for arsenal to corporate at of or sheet, enhancing our be tighter a be first banks, general term we on both In sources the addition we our loan the our pleased obtaining short financing term would construction we to This our with and syndicated $XXX In a priced of syndicated Blackstone environment, markets, we working requirements. financing combination well-positioned financing support needs which debt are solutions. our us to we of of fund to capital summary, other financing. cash diverse balance believe growth our through

as flow this which all huge additional for a generation cash our differentiator serves is addition, valuable growth source a In capital. of

capitalize well our characteristics represent to that of it competitive a pillars to combined in to as These the over we the believe company without years. Altus market periods of offers particularly fundamental us model positions business current is Our we provide growth additional to equity expecting three environment, the flexibility incredible business, weather on the believe moat capital. volatility, access financial powerful and we're with profitable coming Power the the need

of include our our call. portfolio as third an significant dive Now our some on update portfolio me business into since the details on of let quarter of and our pipeline. our on quarterly updates the end additions, the last refresh These

from our Lastly, Weber we'll taking me our your Join review financial we questions. Dustin developments. X before on hear slide recent as CFO highlights

the ability term new contracts for the a transact to in our with scale come portfolio Power in reputation customer will service. a additions of these part announced and During in which customers excellent megawatts New these acquire megawatts profitability transaction solar services XX megawatts Both the scale as approximately included This solar. commercial has X long adjusted expectation located is whole another Shaw started like potential of to mid We're for DESRI for storage definitive approximately short. clean was local battery with margins with and natural excited efficiently energy of to EBITDA counterparty, new we to XX Altus a Power or larger make D.E. announced for very the vehicle Altus offer electric our renewable provider bilateral DESRI market developer, a and platform. place, now utility the of Jersey XXs leading meet welcome as a DESRI portfolios approximately and a to Critically and charging. position, which closed investments in negotiation portfolio these assets Power range. operating focus Altus portfolio. bilateral The from relationships portfolio its agreement with given deciding our was of the additions customer quarter, viewed a to additional narrow to

now slide Turning X. to

September only of portfolio as megawatts. disclosures approximately include portfolio statistics including financial totals match acquisition this as our various Our XX. assets today, slide, updated this To of our recent XXX on our

which contracts, structured portfolio Our escalate are over includes of to our XX% now time. updated approximately

to updating are the year We other margins. call. long contracts, reflected our disclosures of with various to of cash which portfolio end our in adjusted as for customers is our appropriate provides our look on these forward flow level and provide happy We additions profitability forms our so risk

our of made slide to by our substantial bucket. we've the on than doubling on of Starting X. progress acquisitions, a portfolios targeted more with turn now few Let's update enclosing reflected operating our as pipeline

be rates, announced conditions. rising this at excludes additional in working of close which we to of previously we're clarity, and the financial light months in acquisitions tightening coming these megawatts of transactions the For and the attractive, now prices particularly interest backdrop believe bucket to XX

our pipeline. the Let's on now review progress development

megawatt originating We client to programs our that initial We're portfolio through engagement to way resulted now XX pleased strategic customers making report are continue pipeline, XX projects to our in partners. customers engagements of introductions and of through including have client CBRE each. commercial few success have our are that their large new a with by with some new introductions

scale relationships to the are take While our vision scale to to that fruition, partners channel come customers asset fit longer profitably. of these our compared sourced as from business they our precisely to

sites. projects our inverters some under rooftops, of being at to more modules being to installed Turning construction, commercial our equipment on more see being placed encouraged secured, we're and

compared assets our many our of them While completion to to during forward construction XXXX. these looking years, to experience of we're adding timelines extended, remain from previous and portfolio

ways including for permits of equipment, the of CBRE number further support a are inventory and management. We earlier with adapting in project and interconnections filing

update, As and projects a this labor. for further we remain secured equipment to with well into access equipment comfortable point, have and development our at now XXXX

the our call Dustin turning one me Before competitive the to widening decisive moat. drivers let of reinforce

together leverages ocean partners which CBRE, or own Our targeted unique Blackstone and with partnerships our industrial including specific which partners close Slide channel origination and strategic the various relationships or to our partners strategy, CNI. commercial describes our customers, both represent of with opportunities our landlords tenants. have X manage,

call let both me excitement these that, our and decarbonize CBRE a coincidence Weber sector. to become now share streamlined of our with to financial chose over We that and to in CFO, highlights. no additional our and in are believe available expense. limited Dustin? there's All company marketing fashion the investors the us Dustin to significant With hand and sales for CNI Blackstone

Dustin Weber

of increase the slide most tuning which increase thanks portfolio X cover And our for results into profitable summarize, revenues to of an all and with in XX%. and EBITDA drove last our contracts. no quarter EBITDA $XX.X $XX.X you of revenue of on record an call. into variable XXXX months. increase third benefited reflecting third record in XX% adjusted revenues recorded over our Please drives quarter million, our EBITDA. Greg. of rate me we of But over operating third was the XX Thanks, our quarter We an is from the rising XXXX margin adjusted through a the revenues financial join highlights. XX% a company's exception. to prices of the also XXXX history growth power respect To to adjusted of the beginning filter more Seasonality XXXX to This over of million

to EBITDA the performance $XX.X million year-over-year to million first Turning amounted to a earn for our nine same increase. $XX.X compared to revenues million increase. of first period months, Adjusted of $XX.X nine we for XX% compared a in from million months XXXX, the $XX.X XX% XXXX, the

which goals for our expectations both year the is year. by our line margin revenue growth improved With us quarter, As growth the third margin of results, adjusted driven with confidence and adjusted to EBITDA our EBITDA GAAP the our can I in were on like achieve EBITDA primarily we portfolio. also income. our XX%, quarterly expanded for the of comment we in and net gives adjusted margins with in our year-to-date to our remainder asset

For the loss million result non-cash the quarter mark-to-market redeemable which of we third recorded a $XX due alignment the shares. million primarily to of warrants a $XXX our loss and of of was

half. first which net netted income nine securities out months first largely to the GAAP $XX.X For on of the same the sum million, over gains loss a

compared in with avoided. intensive the Third most tons to as XXX,XXX quarter was almost carbon of metric avoided terms carbon of power, carbon utility similarly impactful

generation For utility XXX,XXX from their XX tons provides of replacing customers proud have equivalent of dioxide, while using projects carbon intensive metric months utility as over of also affordable with over compared saved our to their power. of gallons consumption the or last our our carbon business solar gasoline. power carbon from We're that the million XX rates consumed

EBITDA slide X, we're On side line as top growth building well the track of growth. of a can adjusted right you as see record

We flows, into cash expect to we our this business. yield progression plan which reinvest to recurring

cost the as we putting we minimize strategy a dilution. As as expect of which will capital well in plan future, we're shareholder for our funding place

tax, on as mentioned. our from cash cash debt, generated which Gregg into sheet, reinvested for calls be equity, balance can plan also growth current and our Our operations business

first with as Moving These cash. DESRI long total we on our but coming do the million shareholder dilution. well redeem private you to to took weeks. expect our quarter warrants debt million, the ended quarter, and public designed in creating balance financials minimizing sheet, and yet highly opportunity dilution. of we forma third reflect focused with to we term balances shareholder that the during We To provide remain $XXX as of value end, levels at not to transaction, $XXX pro minimize the

chose not sale issue conjunction of stock shares In Power with of Blackstone secondary shares in approximately addition, we Altus also in primary to million September. X

require growth XX months. As our mentioned, and flexibility when capital currently does cash any the on offers equity Gregg generation markets, plan us over our timing accessing next not equity

platform any reducing consideration resulting shares, better notwithstanding earliest increase Regarding existing to we the Blackstone believe their which has public term float significant of our both market stakes, excited shareholders investors. secondary, to strategic will while our well-positioned among long plan grow Blackstone consistent a we we're result a sensitive was shareholder and remains in we're In our continue be partner. the new and the to ultimately to XXXX. execute backdrop, conclusion, in our in investors of our liquidity been in and

team our EBITDA organization across and Given adjusted at growing our margins and turn for the our I'll back same our looking Gregg call we're recurring profitability. the parts to annual all while increase to remarks. asset forward maintaining closing in time growth targeted revenue, now associated of

Gregg Feltonco

Thanks, Dustin.

as the company proposition here first As month, appreciate our invested Power. truly analysts next believe a we at to the public we understand and anniversary all creating investment what unique of time is Altus we approach we're have investors a

welcome shared we've with you achieve past We we vision continue questions. year. the daily work your to the With that, to now over

Operator

Thank you.

first proceed conducting question Justin comes answer We from will Clare Justin. [Operator a with from your now Instructions] ROTH Please and Capital be Markets. session. question The question

Justin Clare

Thanks for our taking questions. Yes. guys. Hi,

Gregg Feltonco

Absolutely.

Justin Clare

about in talk pre-construction the that being assets the was of So I phase and if made that's the pipeline. progress are I wondering guess you that first construction more on off just your

equipment just of XXXX, us could things Or hurdles these the expect should be a mentioned, weighted sense completion talk give bottleneck? You could for assets? timing, If these to bit many then a assets later? And year? interconnection? you just a finally, as in more that anything the we little or for Are XXXX expect stand balanced you of but in give cadence if year be some there the the throughout online this just brought Does of wondering needs or these out remain assets? could it you through assets on us is earlier for kind

Lars Norell

me Lars. for lot a thanks to let answer. question. Justin Sure, that This begin And is

As we turning stated coming remarks, in we're the that prepared out construction on of are the assets pipeline. of

solar of compensation and electricity them from that provides And have some the served with with to those begun be savings. benefits clients Altus

The timeline last talked permitting couple construction in with others in into on assets XXXX, As the of on availability, getting themselves to pleased in further cases, them along that component assets the during of overcome this in challenges the find we others we've year. online further work weeks and and bucket. find ways early the year, have some gradually more we're construction bucket interconnections and some around still come next the out previously the some of about progress in and that

like construction resources on diligently ensuring time and as site where to throughput as the lead to reduce actually place. this of you extended for timelines mentioned, to when outputs Stanford in level permits, working buckets obstacles in can get current construction version in XXX megawatts year. XXX at and see how contract negotiation per look our new most Importantly, Altus have efficient we we its around to having of of of to be we construction and both well the assets pipeline, platform deliveries, the there, goal begin development taking the the is switchgear on that of combined way the for working the of the is We're office in towards have

Justin Clare

different you XXX I a than like bit closing acquisitions close just the great. then two more that. environment And one or color here category here? large over wondering just there if the a on of the this interest there. was in within could that if more the year? close There's are then timing here us many about How it some And Or And rates, little acquisitions a acquisitions? it lot I of megawatts legislation. IRA, to you of you seeing appreciate likely about are time more that be looks there. have could Or speak this broadly is Could for you're of Okay, with transactions better then little give going next set opportunity acquisitions? those acquisitions? year? for for but also sense things seeing a rising you maybe bit is

Gregg Feltonco

Thanks, Justin, take for one. the question. Gregg. that I'll This is

along proud executed, So, it of of we're certainly that bucket as be its of DESRI expected would choice some the general, we XX%, but are course, that are what continue very our complexity and because ones you reflected transaction the us. in call has to And some acquisition months. you to within out, our that each to process larger a pipeline the for about, see their own you as transactions, say closing efficiency of combination a and in we complexity. are that's that in backdrop obviously, far the and horizon, an to are to opportunity they close characteristics these it ability some I extent, the our relates think from perspective, of that asked that of transact. matter But In we to of require, embrace some buyer and transactions frankly, transactions of

our reflected be in acquisition We or it that market might a on required reputation, our it to we're capital whether cost financing. up is operating access as an mindful going the in development returns, relates you the of incredibly our position our And are set asset. on to And expect, up. well of as

to time. that's the capital our But continue to of over of we position is influencing And through continued and cost lead opportunity very everyone should true return in market. flow requirements. strong certainly, that flowing a think So have we and of

Justin Clare

already that in longer then could the of and refinance financing was likely about speak should you financing acquire have terms credit you if you're might taking here. if place. Okay, great. accessibility then And or but facility assets and you more just about financing assets them your you just acquisitions, also this of through have at more, financing construction, to term And whether here. then mentioned new both to that then in look just assets project think financing? look to strategy new we one for How in you assets, for I wondering

Gregg Feltonco

Sure.

a So diversity desirable a terms in funding we're position very having of in sources. of different

is strategic available we've talked streamlined with we continue provides the Blackstone borrowing. a securitization have to us have fashion, unique for really with to a opportunity about which So upsizing continued that in facility that the we in relationship Obviously, Blackstone access the market. place,

point. a So that's first certainly

the of have acquisition, loan and from market, we excellent term accessing a of an in that, access Secondly, another funding bank comes then source the I the as context have for a loan bank is time where leading of we which, opportunity term formats, broader say DESRI finally, in in market, would we is, in mentioned, the we financial funding. that indicated loan that first will example market. revolver, a be the the diversity institutions, And of as that

spots, So a the to in and on these our has of the to opportunity together think, flexibility, is source make you all pick of is funding. best of that should what case determination basis, industry case leading a Altus that taken this having frankly terms demonstrate we by

it's that's, so we development about funding when note think, I I with or would how rate asset, you to has be a finally acquire, thinking that operationalize asset it. fixed ought And it. every associated that

in those we're every of long we and asset decisions a the basis. locking on case financing making optimizing case rates that on So by we're term course, own. And fixed

Justin Clare

great. Okay, very much. Thanks

Gregg Feltonco

you. Thank

Operator

Souther Chris question, Riley. from Thank you. Please proceed question your Chris. B. with next from The comes

Chris Souther

was here. among per third Can the It for portion like the variable taking about up the generated of just rate quarter? revenue you bit like talk we for about question thanks could about overall XX%. little talk portfolio. megawatt my the hour rate a year-over-year Maybe looked group Hey, that more what looks

get piece to there? was that sense wanting a what of driving just So

Dustin Weber

this is I'll take that Dustin, one. Chris, Hey,

for from did increases, say with margins. as will number don't have exact were for two our along price I an QX So and I impact to definitely the the main increases, in they power but experience you seasonality, QX that drivers we

and portfolio a floating a at in now contracts XX We the have majority rate. diverse of power are states, those sell

a PPAs. for Because rates rate money alignment save floating make only industry in this is have also unique think preference we go not our do We creates with more customers and when We customers. but more. our powerful structure up, our

Chris Souther

it. Got

Okay. It's out? helpful. Maybe some of the kind just a of of newer assets kind also how had some played can good of higher think pricing, is about that to way that

Dustin Weber

Yes, or like power with escalate And diverse as s I all varies, our an know, escalate, time prices, will some portfolio, think that, asset said, on I a some when real annually up. they're generally, lag. are we going contract individual we

think the timing vary by I And which So broad will it's, asset. of it's definitely based.

Lars Norell

take our are And happy are have because course, avoidable they And, does power those power generally in feel costs, contract it assets, XX% escalate is Chris, extent that against customers, power the call we're customers from their so of sort so app, our customers because matter, from in corporate we revenue electricity this come go very we during each or is some And Lars, clean discount, to time tariff, up, gradually that tend preferred that sell up, or we at of, of as give with when that savings prices structure or enterprises a market to the good gradually sign given the grid or general they're, against constructing communities, some buy as up price. because those a a the that savings percentage contracts. we because price. that fixed apparent power to of floating power

Chris Souther

Got it.

opportunities, of that Are I'm those additional Okay, mentioned across versus be maybe in higher kind place and cost the of commercial at, like, that higher some relationship. were they on to with then exit would them D.E. different that and of were Shaw the the are you're kind focus? that of how about other assets out, And there looking of talk capital just makes not included initial maybe shaken just space. transaction, looking to IRRs sense. an the kind curious, the level you

Gregg Feltonco

Yes. relates Shaw, is say that feeling an I D.E. we experience, it I'd as had excellent think mutual. to

or find that, And so relationship vice that to as some if of a we hope be opportunity will, reality or the feels we work to adding opportunity and focused more with market. in site where Altus adding charging. a they I scale the we'll think a of a the vehicle talked initiatives, relationships additional on with there's customers, doing commercial market, long customers, focused storage of engaging relationships there's to particularly adding And create scale the or before, commercial solar will strong those assets, this on of in opportunities as all our very at variety commercial is to together, are future versa. with Shaw that as consequence there's view term able market. the look that The we utility electric with scale segment policy whether mutual the on expand broadening the segment a And scale we value. of the or of are segment ways locations. more we've And create value about, that doing And D.E. incremental to

margins objectives. small was I and a consistent a say all with the opportunity. for our So and think, cash we'd were Shaw, of attractive flow Power, Altus this one D.E. And to very for frankly, returns play disposition our but those

Chris Souther

asset there to the I of if it's market sense of new if kind kind waking market far development. of wanted -- Okay, as acquisition higher any or lag up is the and capital, to generally, kind cost the changes, those as of kind of of the and you get understanding a that's pipeline know a the was

Gregg Feltonco

capital. there's number be of the say might what market that And to a how No. in different of seller recognition a just find of expectation We good buyer you're behave. It's of influence relative in that terms often ultimately selective. describing higher a to question. of a I'd causes us terms effect cost factors dynamic of bit lag

many the you've meaning of We are our that nature sophisticated historical we're and lack as We that sellers consequence, sort a heard of transaction Shaw really processes, come plagued the in the view, if a about for together been reflective bilateral. focused in operating of we've competitive And opportunity fashion of bucket of think on. those bilateral. in seeing, processes in a what our are are but ones, the the those us talk a you of not of we're pipeline still and see, bilateral said with reset buyers What enclosing pricing. competitive example, where was environment and the any bilateral D.E. is present recognize of

Chris Souther

up very helpful. it’s queue. be in guys. Thanks, Now, I will the

Gregg Feltonco

Thanks Norell Thank Lars Chris. you. A -

Operator

next you. JP Thank with Strouse The question, proceed from comes Please your Mark. Morgan. from Mark question

Mark Strouse

very morning. you good much for Excuse Yes, me. Thank our taking questions.

your through So in stages good closing. towards moving projects progress different to see

though, curious from the of Just as treasury guidelines regarding awaits the specific kind industry IRA.

baked on Just contract is for language? you being of that color any your waiting Or projects Are somehow your how into kind that's seeing impacting that? pipeline?

Lars Norell

about their a velocity portfolios, and continuing process. them, with and spending for operations Mark, this clean are where on on clients of and in a but seeing noticing alpha procedures, documents up to then also the clients sort very increase lean can form use see power those our put construction of programmatic origination focused our use. big etc. of large greater of higher to we try and some question. have Thanks. pace remaining good sense those documents, in natural shift before, that we on clients of engagement Hey, think with gas, Thanks time focused come most We're because we that has towards your to I'll enterprises in, We're of I leaning think And prices. by as of is we've predominantly it's And talked Lars. answer currently we sort that. connected security the electricity both to but obviously to resiliency, energy grid, standard as

at least that from they think are our more the the we IRA. for coming is and the energy engagements security than in from And discussions so the moment, origination increases are we price client effect in noticing

Mark Strouse

makes with under since question, one Okay, months belt Thank few last a yes, slightly you. that related just our the then sense. call. more now, And just

to I what of from a you from to XXXX, some think different next like level we tax your might be, the pipeline with on year? weighted of just what kind all as But As waiting still we average the high XXXX, should and adders granularity look you're credit kind look looks potential know about treasury. of how

Gregg Feltonco

that This Gregg. take I'll Sure, Mark. is

one variety is as highlighted perspective, are from So know, most that different that our and going XXXX. the to offtake. available low a The we've adder I community to in there relative think income our be are interesting, pipeline associated that is moderate you of adders, solar with

And well. pipeline projects Altus and diversity low for having other that happened been locations in of that is the a our that the XX% are And historically, Power, additional moderate all have we pipeline as in to is and are so notion the have of to tax that exists up that government assets, focus offtake New Maryland a of Jersey have income encouraging, credits. and profile which those adders our assets of

but we desirable a think on are more solar building. Frankly, interesting. an Historically needs of with to array. business. it's a building pretty guidance, There's associated And adder in new bit we that's the well so brownfields, place as little a that adder develop brownfield

spot. tried incentive of yet we is of in spot, providing. So advantage sweet we're a that a the in the course, government these mean for to storage, available on terms think opportunity that than the assets one, which more kind basis other the of that we're haven't But quantify to And say have now standalone some as storage additional would XX% opportunity sources be where tax of that the should taking portfolio there's find of of storage to should right credit a attachment in we well. final

Mark Strouse

Yes.

helpful. very Thank you. Okay,

Gregg Feltonco

Norell Thanks Thank you. A Mark. - Lars

Operator

you. from comes your question, ISI. [Operator Instructions] with The question Thank James James. next go West ahead Evercore from Please

James West

Hey, good morning, guys.

Gregg Feltonco

morning. Good

Lars Norell

Hey. are you? How

James West

And that's few than of then how for kind curious necessary. few be seeing as to think huge differentiator able there? progressing? use What you I that a And evolving? just the And you're construction an on on them months is situation hoping into it's competitive to more use to a a to update now you're get how teams going where I enhanced relationship Curious, we're projects. was CBRE their

Lars Norell

bring of fleet as they the exist we group differentiators charging completely don't issue. it CBRE, agree where key Empire Los Inland They Altus's of intellectual James. and are already be in exists, and in PMG going and this sleeper France. Group think storage you. is which solar basically We single center to Paris, in because and is something constructing Angeles, and to in And with front they're Management Lars. Thanks, Project about Maryland, market as everywhere. relationship and designing of the its This partnership of Baltimore, comes and a We think CBRE in every or issue, the in property which, ability are one basically

at working process And construction coming design charging. involve storage in groups put first with now us handing early is for slowly off begun into process of on different now And take an And we permitting so sure with that construction. for that being the process. And develop to documents, what start solar make CBRE have CBRE we with on to process. the the And some is us like together extent or latent asset, interconnection the they don't all sit to groups us next it's these up together. are the with represent coming then horsepower. at locations, up a they and the process. then team whether assets them the or In Altus. right that And that that efficient to horsepower we're interface we project things with we solar a And standardized tapping

the that one first Hawaii. in be following will be will closely and Maryland The after then and California assets

you. particular going we year, in will we a There's us to the a And think to for out that level we difficult scale with come any left relationship. agreement are replicate. is complete take work our next to peers of see beginning But going So be done. to of lot it's to that of during to be very

James West

Right.

today from be significantly. be great. big a be with to the projects. that one was And much work. your much title etc. given should tax there's storage so secondarily me and horsepower. fire Okay, be rent part supply that portfolio is current or of building and me given [latent] the winner in that significant going idea may But how chain, aid There will in more How you from should of of kind up and this term starting be steal current the is I storage I to to IRA? storage that seems like our

So just kind on of curious thoughts to hear that. your

Lars Norell

absolutely. Lars Yes, again. this And is

integral we So as say storage, an interconnection storage, of some construction has needs project. the to borrows outset do solar through It because a instrumental of grid, part become years, everything at the to over the building extent the connectivity is two the the well. let's or solar that last the

If think a as get to the building pipe, the building into the of same grid. pipe you the storage or grid access both the an and interconnection to into uses

in add determinant occasion a it with the consider installed free just particular the slightly whether ask for this that not So they Because reduce the client And structure reduces reduced it's storage of if the we case system can every from add of California and savings If we those pipe Altus run solar electricity or we, a the programs or yield extent storage long part left building factor already ask then for that But will going us it the want that client as the for grid I we XX my location look, rate the malfeasance every prepared some And to to has cost reason unless operation with hours solar pencil. been is thing I'm somehow more we to higher says have down, do it. to or on goes when to is if to in even IRA getting solar fully services. that the in us storage, storage immediately expect we'll if benefit you What's single might will solar. asset for for not situation, like be of easier system. storage, that the course, one resiliency. to to some they Altus in be don't immediately as the to based storage, give granularity, utility is client. it's now, to right to pay the we're

Maryland be last a thing. we're good storage California The not early year. weeks The forward the launched in moving with case. good those storage utility together a is same rebate. New of next a Jersey New because So Hawaii, interconnections the we couple for beginning program program, thinking regulator has the to and coming structure about think Maryland, yet. to this Jersey of It's of be during is year. rate

that inverter beneficial that's around third the sense define source and the equipment. from systems we getting really to allows on cases most storage in that added the then the storage the so And solar in both and not storage to to it's or way the to source sit that have the impossible party by it's make And shift the controlling energy client. the actually many a evaluation, it's pencils us market market skill harvest us to second by

James West

Thanks Okay, Lars. got it.

Operator

this further and conclude no does are teleconference. questions There this you. at time Thank today's

time disconnect very for now may thank this your at lines and participation. You your much you

Altus Power (AMPS) 14 Nov 222022 Q3 Earnings call transcript