Avangrid Inc (AGR) 2023 Q2 法說會逐字稿

Welcome to Avangrid's Second Quarter 2023 Earnings Conference Call.

歡迎參加 Avangrid 2023 年第二季度收益電話會議。

(Operator Instructions)

（操作員說明）

I will now turn the call over to Álvaro Ortega, Vice President of Finance, Investor Relations and Treasury. Please go ahead.

我現在將把電話轉給財務、投資者關係和財務副總裁 Álvaro Ortega。請繼續。

Thank you, Dennis, and good morning to everyone. Thank you for joining us today to discuss Avangrid Second Quarter 2023 Earnings Results. Presenting on the call today are Pedro Azagra, our Chief Executive Officer; and Patricia Cosgel, our Chief Financial Officer. Also joining us today for the question-and-answer part of the call will be Catherine Stempien, President and Chief Executive Officer of Avangrid Networks; and Jose Antonio Miranda, President and Chief Executive Officer of Avangrid Renewables. Other members of the executive team are also joining us today and may be called upon to assist with the Q&A part of the call.

謝謝你，丹尼斯，祝大家早上好。感謝您今天加入我們討論 Avangrid 2023 年第二季度盈利結果。今天出席電話會議的是我們的首席執行官 Pedro Azagra；以及我們的首席財務官 Patricia Cosgel。今天參加電話問答部分的還有 Avangrid Networks 總裁兼首席執行官 Catherine Stempien；何塞·安東尼奧·米蘭達 (Jose Antonio Miranda)，Avangrid 可再生能源公司總裁兼首席執行官。執行團隊的其他成員今天也加入我們，可能會被要求協助電話的問答部分。

If you do not have a copy of our press release or presentation for today's call, they are available on our website at avangrid.com. During today's call, we will make various forward-looking statements within the meaning of harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 based on current expectations and assumptions, which are subject to risks and uncertainties. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect or because of other factors discussed in Avangrid's earnings news release in the comments made in this conference call in the Risk Factors section of the accompanying presentation or in our latest reports and filings with the SEC, each of which can be found on our website. We do not undertake any duty to update any forward-looking statements.

如果您沒有今天電話會議的新聞稿或演示文稿的副本，可以在我們的網站 avangrid.com 上獲取。在今天的電話會議中，我們將根據當前的預期和假設，做出 1995 年《美國私人證券訴訟改革法案》港口條款含義內的各種前瞻性聲明，這些聲明存在風險和不確定性。如果我們的任何關鍵假設不正確，或者由於Avangrid 收益新聞稿中討論的其他因素、本次電話會議隨附演示文稿的風險因素部分或我們的評論中討論的其他因素，實際結果可能與我們的前瞻性陳述存在重大差異。向 SEC 提交的最新報告和文件，每一份都可以在我們的網站上找到。我們不承擔更新任何前瞻性陳述的責任。

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

今天的演示還提到了非公認會計準則財務指標。您應該參考今天演示文稿隨附的幻燈片中包含的信息，以了解非 GAAP 財務指標與最接近的 GAAP 財務指標的定義信息和調節情況。

I will now turn the call over to Pedro.

我現在將把電話轉給佩德羅。

Thank you, Alvaro, and good morning to all. Thank you for joining us today on our second quarter results presentation. Let's get started on Slide #5. Avangrid reported second quarter earnings per share of $0.22 and adjusted earnings per share of $0.21. As we anticipated last year, the beginning of '23 would have timing effects such as the implementation of key rate cases expected later in the year. This year, we have accomplished various important milestones in our core business and strategic initiatives.

謝謝你，阿爾瓦羅，祝大家早上好。感謝您今天參加我們的第二季度業績發布會。讓我們從幻燈片 #5 開始。 Avangrid 報告第二季度每股收益為 0.22 美元，調整後每股收益為 0.21 美元。正如我們去年預期的那樣，23 年初將會產生時間效應，例如預計在今年晚些時候實施關鍵利率案例。今年，我們在核心業務和戰略舉措方面實現了多個重要里程碑。

In Networks, Central Maine Power received approval for a 2-year rate case effective July 1. On the New England Clean Energy Connect transmission NECEC in this quarter, we received favorable rulings from Maine's Business court supporting the advancement of this project. We also have 2 new positive developments. First, the Massachusetts House and Senate have included legislation supporting cost recovery for change of law, the referendum costs in Apache appeal. And second, we have an agreement to extend the commercial operations date for the change in law delay if needed. We continue our discussions regarding price adjustments for the change of law cost. Today, we have provided with the regulator in Maine with the required notice that we will continue some critical path construction activities in August.

在網絡方面，中央緬因電力公司獲得了一項為期2 年的費率案件的批准，該案件於7 月1 日生效。在本季度的新英格蘭清潔能源連接輸電NECEC 中，我們收到了緬因州商業法庭的有利裁決，支持該項目的推進。我們還有兩個新的積極進展。首先，馬薩諸塞州眾議院和參議院已納入支持法律變更成本回收的立法，即阿帕奇上訴中的公投成本。其次，我們達成協議，如果需要的話，將因法律變更延遲而延長商業運營日期。我們繼續討論法律成本變更的價格調整。今天，我們已向緬因州監管機構提供了所需的通知，表明我們將在 8 月份繼續進行一些關鍵道路建設活動。

On Commonwealth Wind, the Massachusetts electric distribution companies have filed with the Department of Public Utilities for the termination of the PPA contracts, which will pave the way for Avangrid's participation in future offshore solicitations. In addition, we are progressing on our Vineyard Wind 1 offshore project, which is on track to deliver first power this year. Finally, our ESG efforts continue to be recognized by third parties. We have earned 11 sustainability and governance awards or recognition in the first half of the year. We have also made significant strides in our New York rate case.

關於Commonwealth Wind，馬薩諸塞州的配電公司已向公共事業部提出終止購電協議合同的申請，這將為Avangrid參與未來的海上招標鋪平道路。此外，我們的 Vineyard Wind 1 海上項目正在取得進展，該項目有望在今年交付第一批電力。最後，我們的ESG努力繼續得到第三方的認可。今年上半年，我們獲得了 11 項可持續發展和治理獎項或認可。我們在紐約利率案例方面也取得了重大進展。

We filed the joint proposal agreement with Public Service Commission with new rates expected to go into effect in October with a make whole provision back to May 1. We are also aiming to repower over half of our existing fleet, beginning this year through 2032 to benefit from opportunities created by the IRA. And we continue to address with regulators and electric distribution companies a path forward for our Park City offshore wind project. Finally, we remain committed to the PNM merger. We extended the merger agreement to December 31. This extension will enable us to work through the legal process in the coming months.

我們與公共服務委員會提交了聯合提案協議，新費率預計將於10 月生效，並在5 月1 日之前提供完整的準備金。我們還計劃從今年開始到2032 年對一半以上的現有機隊進行重新供電，以受益來自 IRA 創造的機會。我們將繼續與監管機構和配電公司共同探討帕克城海上風電項目的前進道路。最後，我們仍然致力於 PNM 合併。我們將合併協議延長至 12 月 31 日。這一延期將使我們能夠在未來幾個月內完成法律程序。

Based on our year-to-date achievements and progress on key issues, we are reaffirming our full year 2023 EPS of $1.90 to $2.10 and adjusted EPS of $2.2 to $2.35. In the Slide 6, in May, we have successfully completed the first multiyear rate case settlement in 15 years. We received approval from the Maine Public Utility Commission for our CMP rate case, which is centered around over $380 million of investments to improve safety, reliability and resiliency. This will increase our rate base to $1.3 billion by rate year 2. The plan also includes an authorized ROE of 9.35% and 50% equity with an ability to earn up to 10.35% prior to sharing.

根據我們今年迄今為止在關鍵問題上取得的成就和進展，我們重申 2023 年全年每股收益為 1.90 美元至 2.10 美元，調整後每股收益為 2.2 美元至 2.35 美元。在幻燈片 6 中，5 月份，我們成功完成了 15 年來的第一個多年期費率案件和解。我們的 CMP 費率案例獲得了緬因州公用事業委員會的批准，該案例涉及超過 3.8 億美元的投資，旨在提高安全性、可靠性和彈性。這將使我們的利率基礎在第二年增加到 13 億美元。該計劃還包括 9.35% 的授權 ROE 和 50% 的股本，在分享之前能夠賺取高達 10.35% 的收益。

The decision provides mechanisms that will reduce our risk exposure, such as the ability to charge restating costs to our storm reserves and protection against hyperinflation. Ultimately, these rate cases will balance customer affordability with needed investments while strengthening our credit metrics. In addition to a successful rate case, we have also achieved another notable accomplishment in Maine. On the regulatory front, we received approval for our compliance filings, generating $80 million of additional cash for the second part of the year.

該決定提供了減少我們風險敞口的機制，例如向我們的風暴儲備金收取重述成本和防止惡性通貨膨脹的能力。最終，這些利率案例將平衡客戶的承受能力與所需的投資，同時加強我們的信用指標。除了成功的率案例外，我們還在緬因州取得了另一項顯著成就。在監管方面，我們的合規申請獲得批准，為今年下半年帶來了 8000 萬美元的額外現金。

These filings enable us to recover pass-through items like generation expenses on a timely annual basis. In customer service, we have met or exceeded our service quality indicators for over 3 years. In operations, we have conducted over 9,000 distribution line inspections and removed over 5,018 poles. Finally, we also closed the 2020 CMP management audit resulting in no actions from the commission.

這些文件使我們能夠每年及時收回發電費用等轉嫁項目。在客戶服務方面，我們連續三年多達到或超過我們的服務質量指標。在運營中，我們已對配電線路進行了 9,000 多次檢查，拆除了 5,018 多根電線桿。最後，我們還結束了 2020 年 CMP 管理審計，導致委員會沒有採取任何行動。

In the next slide, regarding our NECEC project, we are very pleased that the jury in the Maine business and consumer court unanimously determined that NECEC can locally resume construction and that there are no appeals on the ruling. In May, the Maine Department of Environmental Protection lifted its permit suspension clearing the way for project construction. We are having ongoing discussions on cost adjustments and have reached an agreement with the counterparties to extend the COD time line under the contract, if necessary.

在下一張幻燈片中，關於我們的 NECEC 項目，我們非常高興緬因州商業和消費者法院的陪審團一致裁定 NECEC 可以在當地恢復施工，並且不會對該裁決提出上訴。 5月，緬因州環境保護部取消了許可證暫停，為項目建設掃清了道路。我們正在就成本調整進行持續討論，並已與交易對手達成協議，如有必要，將延長合同規定的貨到付款時間。

In addition, we will be working on critical path activities in the Lewiston substation as of August 3. The transmission project, costs an expected total capital expenditure at present of $1.5 billion with $638 million already capitalized. Once complete, NECEC will benefit all of New England by reducing the region's dependence on fossil fuels and providing more stable energy prices. Recently, the Massachusetts House of Representatives and the Senate included favorable legislation in the budget bill to provide the Department of Public Utilities, the flexibility to approve amended transmission services agreements, which will support the recovery of cost increases.

此外，我們將於 8 月 3 日開始在 Lewiston 變電站開展關鍵路徑活動。該輸電項目目前預計總資本支出為 15 億美元，其中 6.38 億美元已資本化。一旦完成，NECEC 將使整個新英格蘭地區受益，減少該地區對化石燃料的依賴並提供更穩定的能源價格。最近，馬薩諸塞州眾議院和參議院在預算法案中納入了有利的立法，為公用事業部提供批准修訂後的輸電服務協議的靈活性，這將支持成本增加的恢復。

On Slide #8, we are proud of the partnership we have built with Massachusetts, and we lead the offshore wind industry in the United States. We remain committed to constructing our offshore wind pipeline and helping New England meet their ambitious 2030 climate targets for a better, brighter. clean energy future. Commonwealth Wind with the electric distribution companies have filed termination documents with the Massachusetts Department of Public Utilities. Once approved, we plan to repeat in future solicitations.

在幻燈片 #8 上，我們為與馬薩諸塞州建立的合作夥伴關係感到自豪，我們在美國海上風電行業處於領先地位。我們仍然致力於建設海上風電管道，幫助新英格蘭實現雄心勃勃的 2030 年氣候目標，讓世界變得更美好、更光明。清潔能源的未來。聯邦風電與配電公司已向馬薩諸塞州公用事業部提交終止文件。一旦獲得批准，我們計劃在未來的招標中重複。

The termination agreement limits our financial impact solely to the project security deposits. This outcome is significantly better than our peers who have paid up to $350 million to terminate the respective offshore wind project contracts. Construction is progressing well on Vineyard Wind 1. The 806-megawatt project is on track for power in 2023 and commercial operation in 2024. Once online, these projects will generate clean, renewable, affordable energy for over 400,000 homes and businesses across Massachusetts, while reducing carbon emissions by over 1.6 million tons per year.

終止協議將我們的財務影響僅限於項目保證金。這一結果明顯好於我們的同行，後者支付了高達 3.5 億美元來終止各自的海上風電項目合同。 Vineyard Wind 1 的建設進展順利。這個806 兆瓦的項目預計將於2023 年發電，並於2024 年投入商業運營。一旦上線，這些項目將為馬薩諸塞州超過400,000 個家庭和企業提供清潔、可再生、經濟實惠的能源，同時每年減少碳排放超過160萬噸。

We have achieved many construction milestones this summer from Vineyard Wind 1, including energization of the onshore substation in Barnstable, Massachusetts. Construction has also started on the operation and maintenance facilities on Martha's Vineyard. Offshore, we have installed 6 monopiles and transition pieces. And shown on this slide is 1 of the 6 completed turbine foundations. We have also completed the installation of the offshore substation and export cable, which connects the onshore and offshore facilities.

今年夏天，我們通過 Vineyard Wind 1 實現了許多建設里程碑，包括馬薩諸塞州巴恩斯特布爾陸上變電站的通電。瑪莎葡萄園島的運營和維護設施也已開始建設。在海上，我們安裝了 6 個單樁和過渡件。這張幻燈片顯示的是 6 個已完成的渦輪機基礎中的 1 個。我們還完成了連接陸上和海上設施的海上變電站和輸出電纜的安裝。

In the next slide, in June, we filed the joint proposal agreement for the New York rate case with the Public Service Commission, which has been signed by 8 parties. The record will be completed on August 4, so that it is ready for the commission to act. Last week, the ConEd joint proposal was approved almost as filed. Our joint proposal agreement requests $6.4 billion in capital expenditures over 2022 - 2026, including $634 million for New York's climate leadership and Community Protection Act CLCPA Phase 1. The new rates are expected to go into effect in October 2023, with a make-whole provision back to May 1st, 2023.

在下一張幻燈片中，6 月份，我們向公共服務委員會提交了紐約費率案件的聯合提案協議，該協議已由 8 方簽署。記錄將於8月4日完成，以便委員會採取行動做好準備。上週，聯合教育委員會的聯合提案幾乎按原樣獲得批准。我們的聯合提案協議要求在2022 年至2026 年期間提供64 億美元的資本支出，其中包括用於紐約氣候領導力和社區保護法案CLCPA 第1 階段的6.34 億美元。新費率預計將於2023 年10 月生效，並有一項全面規定時間回到2023年5月1日。

The agreement includes an authorized ROE of 9.2% and 48% and 50-50 earnings sharing above 50 basis points and contains a provision for fixed debt rate reconciliation. The rate case yields an additional $1.45 billion of authorized revenues. The 3-year rate settlement also includes regulatory asset language for uncollectibles providing risk mitigation against customer outages. There are also provisions for improved storm recovery and funding for vegetation management. Additionally, we've taken significant steps in customer service performance in New York with a positive trend over the last several months. Furthermore, we received approval to build transmission projects through CLCPA Phase 2 and New York Transco, bringing the total transmission opportunities in the state beyond 2025 to over $3 billion for these projects.

該協議包括9.2%和48%的授權ROE以及50個基點以上50-50的收益分享，並包含固定債務利率調節的條款。該費率案例額外產生了 14.5 億美元的授權收入。三年期費率結算還包括針對壞賬的監管資產語言，以緩解客戶中斷的風險。還有改善風暴恢復和植被管理資金的規定。此外，我們在紐約的客戶服務績效方面採取了重大舉措，並在過去幾個月中呈現出積極的趨勢。此外，我們還獲得了通過 CLCPA 二期和紐約 Transco 建設輸電項目的批准，使這些項目到 2025 年之後該州的輸電機會總額超過 30 億美元。

Finally, our teams have worked to improve system reliability by enhancing vegetation management, targeting infrastructure replacement for aging assets and modernizing the grid. As a result of this work, we are seeing a 12% improvement in NYSEG and 16% improvement in RG&E in system average interruption duration or SAIDI year-over-year as compared to 2022.

最後，我們的團隊致力於通過加強植被管理、針對老化資產的基礎設施更換和電網現代化來提高系統可靠性。通過這項工作，我們發現與 2022 年相比，系統平均中斷持續時間或 SAIDI 同比 NYSEG 提高了 12%，RG&E 提高了 16%。

In Slide #10, the inflation reduction act has created an attractive environment for clean energy projects by extending tax credits. Due to the IRA, we are pursuing opportunities between 2023 and 2032 to improve the earnings profile of our renewable business by recovering over half of our fleet with about 4.6 gigawatts identified as of today. Repowering is a great opportunity for our renewable business. First, for technical reasons, the sweetest spot of repowering is when turbines are between 13 and 20 years old, and over half of our existing fleet is in this range.

在幻燈片 #10 中，通貨膨脹削減法案通過擴大稅收抵免為清潔能源項目創造了一個有吸引力的環境。由於 IRA，我們正在尋求 2023 年至 2032 年間的機會，通過恢復我們一半以上的機隊（截至目前已確定約 4.6 吉瓦）來改善我們的可再生能源業務的盈利狀況。重新供電對於我們的可再生能源業務來說是一個絕佳的機會。首先，出於技術原因，重新供電的最佳時機是渦輪機使用年限在 13 至 20 年之間，而我們現有機隊的一半以上都在這個範圍內。

Second, the technology has improved significantly with new turbines producing 30% more energy than the aging turbines. Finally, the permitting process for repowering is simpler and faster, while the profitability is expected to be the same as new build. Thus, we are beginning the repowering process this year by working to secure the supply chain and commencing development activities. We will begin by assessing our 80-megawatt Leaning Juniper wind project. Repowering these assets enable us to receive additional PTCs on existing assets under incremental production for 10 years. Extending our assets useful life will help us avoid the diminished returns and performance of the aging fleet.

其次，該技術已得到顯著改進，新渦輪機的發電量比老化渦輪機多出 30%。最後，重新供電的許可流程更加簡單快捷，而盈利能力預計與新建項目相同。因此，我們今年將通過努力確保供應鏈安全並開始開發活動來開始重新啟動進程。我們將首先評估我們的 80 兆瓦傾斜杜松風電項目。對這些資產進行重新供電使我們能夠在 10 年內對現有資產進行增量生產並獲得額外的 PTC。延長資產的使用壽命將有助於我們避免老化機隊帶來的回報和性能下降。

We will provide additional details on these plans in the coming months. Slide #11. In Connecticut, we filed the UI rate case with the Public Utilities Regulatory Authority in September 2022. The draft decision was received on July 21, and we are preparing our response. We expect a final decision by August or September with new rates in effect by September or October. In addition, as part of our earlier agreement with the Connecticut Office of Consumer Council, which was approved by the Public Utility Regulatory Authority, we will be filing rate cases for Connecticut Natural Gas and Southern Connecticut Gas this November.

我們將在未來幾個月內提供有關這些計劃的更多詳細信息。幻燈片#11。在康涅狄格州，我們於 2022 年 9 月向公用事業監管局提交了 UI 費率案件。決定草案已於 7 月 21 日收到，我們正在準備回應。我們預計最終決定將在 8 月或 9 月做出，新費率將在 9 月或 10 月生效。此外，作為我們之前與康涅狄格州消費者委員會辦公室達成的協議的一部分（該協議已得到公用事業監管局的批准），我們將於今年 11 月提交康涅狄格州天然氣和南康涅狄格州天然氣費率案件。

SB7, a Senate bill to reform utility regulation, passed the legislature and was signed by the governor in July. It was a political response to increased -- increases that customers saw in their electric bills. Our team worked hard with the state regulators and the outcome was much better than the original draft to the bill. Finally, for Park City Wind, we continue working to address the economic viability of the power purchase agreement with regulators and electric distribution companies with the goal of finding a path forward. Moving on to PNM. We continue working towards closing the merger with PNM Resources. We are committed to the merger and the benefits it will bring to the state of New Mexico. This merger agreement has been extended to December 31 as we work through the legal process. There is also an option to extend it for an additional 3 months if agreed. The merger has received approval from 5 federal agencies and the Public Utility Commission of Texas. The parties in the merger case will present arguments in front of the New Mexico Supreme Court in September.

SB7 是一項改革公用事業監管的參議院法案，已在立法機關獲得通過，並於 7 月由州長簽署。這是對客戶電費上漲的政治反應。我們的團隊與州監管機構一起努力工作，結果比最初的法案草案要好得多。最後，對於帕克城風電，我們繼續努力與監管機構和配電公司解決購電協議的經濟可行性問題，以找到前進的道路。繼續討論 PNM。我們將繼續努力完成與 PNM Resources 的合併。我們致力於合併及其將為新墨西哥州帶來的好處。隨著我們完成法律程序，該合併協議已延長至 12 月 31 日。如果同意，還可以選擇將其再延長 3 個月。此次合併已獲得 5 個聯邦機構和德克薩斯州公用事業委員會的批准。合併案雙方將於 9 月份在新墨西哥州最高法院進行辯論。

In Slide 12, I am honored to mark my 1-year anniversary as a Avangrid's CEO. Over the past year, I appreciate the support of the Chairman of the Board and all my team in this task that we had ahead of us. We have navigated through unprecedented macroeconomic and supply chain challenges. As you have seen, we have made significant progress in most of our priorities and also achieved some additional important accomplishments. For example, in Connecticut, after 8 months of discovery, our companies received an overall positive audit report and finalized the management audit with no material negative findings.

在幻燈片 12 中，我很榮幸地慶祝我擔任 Avangrid 首席執行官一周年。在過去的一年裡，我感謝董事會主席和我的所有團隊對我們面臨的這項任務的支持。我們克服了前所未有的宏觀經濟和供應鏈挑戰。正如您所看到的，我們在大多數優先事項上取得了重大進展，並且還取得了一些其他重要成就。例如，在康涅狄格州，經過 8 個月的發現後，我們的公司收到了總體正面的審計報告，並完成了管理審計，沒有發現重大負面結果。

We also made substantial strides in customer digitalization, which will help us drive further improvements in our customer service metrics. Efforts from our customer experience team have resulted in over 1.2 million customers enrolled in eBill, 10% increase year-to-year, plus over 1 million mobile application downloads, a 54% increase. In addition, we almost multiplied by 4x the number of customers with outage alerts from 430,000 to over 1.6 million customers. We continue to prioritize customer service by automating Net Energy Billing and the Move in process, and we launched a new electric vehicle portal and self-service payment tool.

我們還在客戶數字化方面取得了長足進步，這將有助於我們進一步改進客戶服務指標。在我們客戶體驗團隊的努力下，已有超過 120 萬客戶註冊了 eBill，同比增長 10%，移動應用程序下載量超過 100 萬次，同比增長 54%。此外，我們將收到斷電警報的客戶數量幾乎增加了 4 倍，從 43 萬增加到超過 160 萬。我們繼續通過自動化淨能源計費和遷移流程來優先考慮客戶服務，並推出了新的電動汽車門戶和自助支付工具。

These tools and technology will help increase customer satisfaction, reduce cost to customers and improve cash flow. In renewables, we reached 8.6 gigawatts of wind and solar capacity, signed 321 megawatts of new power purchase agreement and renegotiated 1 gigawatt. We've achieved operational success by reaching 97.3% fleet-wide availability in 2022 and are currently maintaining energy availability at 97%.

這些工具和技術將有助於提高客戶滿意度、降低客戶成本並改善現金流。在可再生能源方面，我們的風能和太陽能裝機容量達到8.6吉瓦，簽署了321兆瓦的新購電協議，並重新談判了1吉瓦。我們在運營方面取得了成功，到 2022 年整個車隊的可用性達到 97.3%，目前能源可用性保持在 97%。

Preparing for Vineyard Wind 1 operation, we've integrated the project into the national control center for remote operations. We have also joined the California Independent System Operator's Western Energy Imbalance Market as the first generation only entity, enabling Avangrid to optimize real-time trading in the energy balancing market and reduce curtailments. In addition, we have also signed a memorandum of understanding to explore opportunities to develop up to 1 gigawatt of green energy projects within the Navajo Nation, in New Mexico and Arizona.

為Vineyard Wind 1運行做準備，我們已將該項目集成到國家控制中心進行遠程操作。我們還作為第一代唯一實體加入了加州獨立系統運營商的西部能源不平衡市場，使 Avangrid 能夠優化能源平衡市場的實時交易並減少限電。此外，我們還簽署了一份諒解備忘錄，探索在新墨西哥州和亞利桑那州納瓦霍族保留地開發高達 1 吉瓦綠色能源項目的機會。

Lastly, for accomplishments across the rest of the company, we have executed a transferability term sheet for $100 million tax credit for multiple projects that are not in tax equity. In addition, we've signed the tax equity term sheet or Vineyard Wind 1 and fully funded the tax equity for Lund Hill solar. We also issued $575 million of long-term debt in Networks and $800 million of a 10-year green loan with Iberdrola.

最後，為了表彰公司其他部門取得的成就，我們為多個不屬於稅收股權的項目執行了一份可轉讓條款清單，提供 1 億美元的稅收抵免。此外，我們還簽署了稅收股權條款表或 Vineyard Wind 1，並為 Lund Hill 太陽能的稅收股權提供了全額資金。我們還向 Networks 發行了 5.75 億美元的長期債務，並向 Iberdrola 發行了 8 億美元的 10 年期綠色貸款。

Earlier this year, Fitch also upgraded Avangrid's outlook to stable, improving our ability to access the capital markets. Thanks to these achievements and a solid operational earnings track record in hand, I'm confident that we are on firm footing to deliver future growth.

今年早些時候，惠譽還將 Avangrid 的前景升級為穩定，提高了我們進入資本市場的能力。得益於這些成就和可靠的運營盈利記錄，我相信我們為實現未來增長奠定了堅實的基礎。

Turning now to Slide 13. In the first half of '23, Avangrid has earned awards and recognitions expanding various aspects of sustainability and governance. On our Q1 earnings call, I discussed Avangrid's inclusion in JUST 100 list, Bloomberg's Gender Equality Index and Ethisphere's World's Most Ethical Companies for the fifth consecutive year. We received another 8 prestigious awards in '23. S&P Global '23 Sustainability Yearbook named Avangrid as one of the world's most sustainable companies. Avangrid is one of the only 2 U.S. electric utilities to be recognized. USA Today recognized Avangrid as one of the nation's climate leaders. The Edison Electric Institute recognized Avangrid for exceptionally strong restoration performance following winter storm Elliot in December 2022 as well as for mutual aid provided in Nova Scotia following hurricane Fiona.

現在轉向幻燈片 13。23 年上半年，Avangrid 贏得了獎項和認可，擴展了可持續發展和治理的各個方面。在我們第一季度的財報電話會議上，我討論了 Avangrid 連續第五年入選 JUST 100 榜單、彭博性別平等指數以及 Ethisphere 評選的全球最具商業道德公司。 2023 年，我們又獲得了 8 項享有盛譽的獎項。 S&P Global '23 可持續發展年鑑將 Avangrid 評為全球最具可持續發展能力的公司之一。 Avangrid 是美國僅有的兩家獲得認可的電力公司之一。 《今日美國》將 Avangrid 評為美國氣候領導者之一。愛迪生電力研究所表彰了 Avangrid 在 2022 年 12 月冬季風暴埃利奧特 (Elliot) 後出色的恢復表現，以及在颶風菲奧娜 (Fiona) 後在新斯科舍省提供的互助。

This recognition serves as a testament to our continued commitment to customer reliability. This is the sixth consecutive year that Avangrid is included in the FTSE4Good Index series. We received top scores in climate and governance, which includes assessments of risk management, corporate governance and anticorruption. As part of Iberdrola Group, our sustainability commitments are central to our company strategy. So we are incredibly proud that our climate leadership is being recognized by third party. Each of these awards and recognitions highlight our commitment to building a cleaner future, while maintaining socially responsible business practices.

這一認可證明了我們對客戶可靠性的持續承諾。這是 Avangrid 連續第六年被納入 FTSE4Good 指數係列。我們在氣候和治理方面獲得了最高分，其中包括風險管理、公司治理和反腐敗評估。作為 Iberdrola 集團的一部分，我們的可持續發展承諾是我們公司戰略的核心。因此，我們對我們的氣候領導力得到第三方的認可感到無比自豪。這些獎項和認可中的每一個都突顯了我們對建設更清潔的未來的承諾，同時保持對社會負責的商業實踐。

Now I will turn the call over to Patricia, our CFO, to provide more detail on our financial results.

現在我將把電話轉給我們的首席財務官帕特里夏，以提供有關我們財務業績的更多詳細信息。

Thank you, Pedro. Good morning, everyone. For the second quarter of 2023, our EPS was $0.22 compared to $0.48 in the second quarter of 2022, and our adjusted EPS was $0.46 compared to $0.21 in the second quarter of 2022. Networks results were $0.20, lower by $0.14 quarter-over-quarter compared to our second quarter of 2022. The key drivers included a positive $0.04 due to the implementation of the third year of the existing rate plans for our New York company. This does not include the proposed new rates in our joint proposal filed in New York, which we expect to go into effect in October with the make whole back to May 1.

謝謝你，佩德羅。大家，早安。 2023 年第二季度，我們的每股收益為0.22 美元，而2022 年第二季度為0.48 美元；調整後每股收益為0.46 美元，而2022 年第二季度為0.21 美元。網絡業績為0.20 美元，環比下降0.14 美元與 2022 年第二季度相比。主要驅動因素包括由於我們紐約公司實施第三年現有費率計劃而帶來的 0.04 美元的正增長。這不包括我們在紐約提交的聯合提案中提出的新費率，我們預計該新費率將於 10 月生效，整體時間可追溯到 5 月 1 日。

While we were supported by joint utility arrearages orders in New York in '22 and 2023, to reduce impacts from uncollectibles, the positive impact in 2022 was in the second quarter and in 2023, it was the first quarter which explains the minus $0.03 impact this quarter related to the timing. We continue to experience higher uncollectibles, which had a negative $0.04 impact quarter-over-quarter.

雖然我們在22 年和2023 年得到了紐約聯合公用事業欠款令的支持，以減少無法收回的影響，但2022 年的積極影響是在第二季度，而在2023 年是第一季度，這解釋了本次負0.03 美元的影響。與時間相關的季度。我們繼續遇到更多的壞賬，這對季度環比產生了 0.04 美元的負面影響。

Additionally, we experienced higher costs to implement our investment plans and operate the businesses, including O&M, depreciation and interest costs. O&M includes new headcount and cost to the business. Higher depreciation represents new assets placed in service and higher finance costs reflect higher interest rates and short-term debt balances. We anticipate improvement later in the year with the implementation of our rate cases and that will update the cost of the business.

此外，我們實施投資計劃和運營業務的成本較高，包括運維、折舊和利息成本。運營和維護包括新員工人數和業務成本。較高的折舊代表新資產投入使用，較高的財務成本反映較高的利率和短期債務餘額。我們預計，隨著費率案例的實施，今年晚些時候會有所改善，這將更新業務成本。

Our Renewables segment was $0.18, lower by $0.01 quarter-over-quarter. Wind and solar operating performance, which includes the impacts of pricing, production and tax benefits explained minus 1% -- I'm sorry, minus $0.01 and was related to lower wind generation output and a decrease in merchant prices, partially mitigated by tax credits and new projects in service.

我們的可再生能源部門為 0.18 美元，環比下降 0.01 美元。風能和太陽能運營績效，其中包括定價、生產和稅收優惠的影響，解釋為負1%——抱歉，負0.01美元，與風力發電產量下降和商業價格下降有關，稅收抵免部分緩解了這一影響以及投入使用的新項目。

While we had strong wind performance in the first quarter, our wind resource was low this quarter. Our net capacity factor for our fleet was 28.6% for the quarter versus our long-term average of 33.4% for the second quarter period from 2011 to 2022. Lower earnings from our thermal operations and asset management of $0.02 reflected the planned maintenance of our planned -- Klamath thermal plant, which concluded in mid-July. O&M costs are a positive $0.04 due to higher capitalized maintenance. Corporate cost reflects a decrease of $0.11 quarter-over-quarter, primarily due to tax timing as we balance to our annual expected tax rate and higher interest costs.

雖然我們第一季度的風能表現強勁，但本季度我們的風能資源較低。本季度我們機隊的淨容量係數為 28.6%，而 2011 年至 2022 年第二季度的長期平均值為 33.4%。我們的熱力運營和資產管理收入下降了 0.02 美元，反映出我們計劃的維護計劃——克拉馬斯熱電廠，於七月中旬竣工。由於資本化維護成本較高，運營和維護成本為正 0.04 美元。企業成本環比下降 0.11 美元，主要是由於我們平衡年度預期稅率和較高的利息成本時的納稅時間。

Moving to the next slide. We are reaffirming our 2023 outlook ranges for EPS of $1.90 to $2.10 and adjusted EPS of $2.20 to $2.35. Our ongoing focus remains on achieving these targets as we execute our investment plans with discipline and a risk management focus. We also provide our expectations for the remainder of 2023. This includes the implementation of our New York joint proposal with a make-whole back to May 1, as we previously mentioned, and the remaining months in our Maine final rate order combined with a range of $0.28 to $0.32. The rate cases capture the cost of the business and investments that support safety, reliability and resiliency.

轉到下一張幻燈片。我們重申 2023 年每股收益展望為 1.90 美元至 2.10 美元，調整後每股收益為 2.20 美元至 2.35 美元。我們持續的重點仍然是實現這些目標，同時我們嚴格執行投資計劃並註重風險管理。我們還提供了對2023 年剩餘時間的預期。正如我們之前提到的，這包括實施我們的紐約聯合提案，並將其調整至5 月1 日，以及我們緬因州最終利率命令中的剩餘月份以及一系列0.28 美元至 0.32 美元。費率案例反映了支持安全性、可靠性和彈性的業務和投資成本。

While we recently received the proposed final decision in our UI rate case, we are still evaluating that decision. We will be filing written exemptions and providing oral arguments. And we believe our testimony briefs in the many interrogatories that we filed fully support our rate filings. Therefore, the outlook does not reflect any adjustments related to the STRAP decision. Additionally, we're also anticipating the start of construction of our NECEC project with a range of $0.06 to $0.07 per share, reflecting AFUDC earnings.

雖然我們最近收到了 UI 費率案例中擬議的最終決定，但我們仍在評估該決定。我們將提交書面豁免並提供口頭論證。我們相信，我們提交的許多質詢中的證詞摘要完全支持我們的費率申請。因此，展望並不反映與 STRAP 決定相關的任何調整。此外，我們還預計 NECEC 項目將開始建設，每股價格為 0.06 至 0.07 美元，反映了 AFUDC 的收益。

Operating performance of our Networks and Renewables businesses in the second half of the year in the range of $0.72 to $0.78 and cost management initiatives of $0.04 to $0.06. This brings us to expected results prior to our renewables transactions in the range of $1.95 to $2.08. Adding the renewables transactions as we have previously disclosed, which include the partial sale of our Kitty Hawk lease area and partnership transactions had a range of $0.24 to $0.28, and with that, we reach our 2023 outlook of $2.20 to $2.35.

下半年我們的網絡和可再生能源業務的運營業績在 0.72 美元至 0.78 美元之間，成本管理計劃在 0.04 美元至 0.06 美元之間。這使我們在可再生能源交易之前的預期結果在 1.95 美元至 2.08 美元之間。加上我們之前披露的可再生能源交易，其中包括部分出售我們的 Kitty Hawk 租賃區和合作夥伴交易，交易價格為 0.24 美元至 0.28 美元，據此，我們的 2023 年展望為 2.20 美元至 2.35 美元。

Note that the delay in the closing of our merger with PNM has a minus $0.03 impact on the year, considering the net impact of PNM operations and the interest rates on the cost of the funding -- or the closing -- funding to close the transaction. As our guidance assumes $0.30 contribution from PNM in 2023 and $4.5 billion of debt at the parent level to close the merger transaction midyear. This amount is included in the second half business operations bar in the chart.

請注意，考慮到 PNM 運營的淨影響以及完成交易的融資成本（或成交融資）的利率，延遲完成與 PNM 的合併對本年度產生了負 0.03 美元的影響。我們的指導假設 PNM 在 2023 年出資 0.30 美元，母公司層面負債 45 億美元，以在年中完成合併交易。這個金額包含在圖表的下半年業務運營欄中。

Additionally, the opportunities and risks impacting our 2023 results include renewable production and pricing, other regulatory adjustments and final rate case outcomes, thermal and asset management results, taxes, interest, O&M, uncollectibles and asset rotation. Finally, today, we are also reaffirming a 6% to 7% compound annual growth rate in our adjusted EPS through 2025, off a base that is the midpoint of our 2022 guidance.

此外，影響我們 2023 年業績的機遇和風險包括可再生能源生產和定價、其他監管調整和最終費率案例結果、熱能和資產管理結果、稅收、利息、運營和維護、壞賬和資產輪換。最後，今天，我們還重申，到 2025 年，調整後每股收益的複合年增長率為 6% 至 7%，以 2022 年指引的中點為基礎。

On the next slide, we move on to updates on our financing, liquidity, dividends and credit ratings. In July, we signed a 10-year green term loan with Iberdrola for $800 million at a rate of 5.45%. This highlights the unique benefit of our relationship with Iberdrola, which provides us with flexible cost successes -- cost-effective access to capital. Similarly, we increased our intercompany credit facility with Iberdrola from $500 million to $750 million. We do not have anything outstanding under that facility, but the higher amount enhances our available liquidity. We also recently remarketed a NYSEG tax exempt bond for $100 million at an attractive rate of 4% through maturity of that bond in 2034. For renewables, we recently executed a term sheet to monetize our $100 million -- over $100 million of tax credits from existing assets not in tax equity, benefiting from the transferability provisions enabled by the IRA.

在下一張幻燈片中，我們將繼續介紹融資、流動性、股息和信用評級的最新情況。 7 月，我們與 Iberdrola 簽署了 8 億美元的 10 年期綠色定期貸款，利率為 5.45%。這突顯了我們與 Iberdrola 關係的獨特優勢，它為我們提供了靈活的成本成功——以具有成本效益的方式獲得資本。同樣，我們將與 Iberdrola 的公司間信貸額度從 5 億美元增加到 7.5 億美元。我們在該設施下沒有任何未償還的東西，但較高的金額增強了我們的可用流動性。我們最近還以1 億美元的價格重新銷售了NYSEG 免稅債券，利率為4%，該債券將於2034 年到期。對於可再生能源，我們最近簽署了一份條款清單，將我們的1 億美元貨幣化——超過1 億美元的稅收抵免不屬於稅收權益的現有資產，受益於 IRA 啟用的可轉讓性條款。

For the first half of the year, we have $7.4 billion in liquidity covering 16 months as we target to maintain at least 15 months of liquidity. This includes $4.3 billion from the commitment letter from Iberdrola that backstops our PNM merger. Maintaining our solid credit ratings is a key objective. At the Avangrid level, all of our ratings are on stable outlook. Finally, our dividend policy remains unchanged, targeting a payout of 65% to 75%, and our Board recently declared a quarterly dividend of $0.44 a share payable on October 2.

今年上半年，我們有 74 億美元的流動性覆蓋 16 個月，我們的目標是維持至少 15 個月的流動性。其中包括來自 Iberdrola 的承諾函中的 43 億美元，該承諾函支持我們的 PNM 合併。維持我們穩健的信用評級是一個關鍵目標。在 Avangrid 層面，我們所有的評級展望均為穩定。最後，我們的股息政策保持不變，目標派息率為 65% 至 75%，並且我們的董事會最近宣布將於 10 月 2 日派發每股 0.44 美元的季度股息。

In summary, we continue to focus on executing our long-term financial plan. There are timing impacts to the recognition of the results of rate cases, transmission construction and renewable asset monetization that we expect to materialize in the second half of the year. As you can see, we've had successes in many important milestones that will support the achievement of our financial goals. Thank you for joining us today for our financial update. I'll now hand the call back to our operator, Dennis, for questions followed by closing remarks from Pedro.

總之，我們繼續專注於執行我們的長期財務計劃。我們預計將在下半年實現對費率案例、輸電建設和可再生資產貨幣化結果的認可，這會產生時間影響。正如您所看到的，我們在許多重要的里程碑方面取得了成功，這將支持我們實現財務目標。感謝您今天加入我們的財務更新。現在我將把電話轉給我們的接線員丹尼斯，詢問問題，然後由佩德羅致結束語。

(Operator Instructions)

（操作員說明）

And your first question is from the line of Richard Sunderland with JPMorgan.

你的第一個問題來自摩根大通的理查德桑德蘭。

Great. Maybe I'll pick it up where you left off on the waterfall for the second half of the year. The $0.72 to $0.78 were for 2H business operations, I think you did around $0.70 last year for 2H. Could you walk through some of the drivers year-over-year within that bucket, just quantifying the positives and the negatives? Presumably, there's some renewables megawatts that are in service, but likely some other offsets as well. So could you quantify a few of those pieces?

偉大的。也許我會在下半年繼續你在瀑布上停下來的地方。 0.72 至 0.78 美元用於 2H 業務運營，我認為您去年的 2H 業務運營約為 0.70 美元。您能否逐年回顧一下該類別中的一些驅動因素，僅量化積極因素和消極因素？據推測，有一些可再生能源兆瓦正在投入使用，但也可能有一些其他抵消。那麼你能量化其中的一些部分嗎？

Yes, certainly, Richard. I think just overall, the second half business operations is just our normal operations of the business. So we called out some specific items like rate case implementations that are new this year, NECEC. But this is -- this reflects just the normal collection of revenues in our Networks business, the normal production and operations in our renewables business and the overall cost of the business depreciation, interest, et cetera. So some of the impacts maybe year-over-year, they are looking -- if you're comparing to the last second half of 2022 would be some efforts that we have made to improve capitalization of labor and maintenance costs, also normal wind production.

是的，當然，理查德。我認為總體來說，下半年的業務運營只是我們業務的正常運營。因此，我們提出了一些具體項目，例如今年新增的費率案例實施、NECEC。但這只是反映了我們網絡業務的正常收入、可再生能源業務的正常生產和運營以及業務折舊、利息等的總體成本。因此，如果與 2022 年下半年進行比較，可能會出現一些逐年影響，那就是我們為提高勞動力資本化和維護成本以及正常風力發電而做出的一些努力。

We have incremental new assets in service. We actually added 405 megawatts since the second half of last year for our Lund Hill and our Montague assets, and we have 899 megawatts under construction. On those new assets, we have incremental PTCs. PTCs are also inflation-adjusted. And then we also have strong thermal results now that our thermal Klamath plant is back in operation this July. So those are kind of the main incremental benefits, and then we have the normal cost of the business as I mentioned, depreciation, interest costs factored in there.

我們有增量新資產投入使用。自去年下半年以來，我們的 Lund Hill 和 Montague 資產實際上增加了 405 兆瓦，並且我們有 899 兆瓦在建。在這些新資產上，我們有增量 PTC。 PTC 也經過通貨膨脹調整。現在，我們的克拉馬斯熱電廠於今年 7 月恢復運營，我們也取得了強勁的熱力成果。因此，這些是主要的增量收益，然後，正如我提到的，我們將業務的正常成本、折舊、利息成本考慮在內。

Okay. Got it. Got it. Very helpful. And sticking with the walk here. I know you mentioned that the UI draft decision is not factored in. At a high level here, if you -- if the draft decision holds or substantially close to the draft decision, would you look to find other offsets within the plan to stick with the $2.20 to $2.35 range, whether on the cost management side, the renewables transactions or elsewhere?

好的。知道了。知道了。很有幫助。並堅持在這裡散步。我知道你提到 UI 草案決定沒有被考慮在內。在較高的層面上，如果你——如果決定草案成立或基本上接近決定草案，你是否會在計劃中尋找其他抵消措施來堅持2.20 美元到2.35 美元的範圍，無論是在成本管理方面、可再生能源交易還是其他方面？

Let me react to that. I think as 1 year ago, when we had probably 10 things on the table, probably all of them not easy to deal with. I think we told you we need to work, okay, and try to get these things done. I think in the case of Connecticut, there is a draft decision right now, let us work, okay? We're going to be filing briefing, hearings, working on that. And I think let's not forget, Connecticut is a very small part of our business. So if you compare -- we're investing in Connecticut $150 million a year, more or less in CapEx. I think that compares with $2 billion right now in New York, if you add CPL, it's even more. So it's a small part of the business as a whole, but it's important. We care about $1 million as we care about $1 billion. Let us work on that, give us 1 or 2 months, that is we know we have pending, and then we'll come back to you. .

讓我對此做出反應。我認為一年前，當我們擺在桌面上的可能有 10 件事時，可能所有這些都不容易處理。我想我們告訴過你我們需要工作，好吧，並努力完成這些事情。我想就康涅狄格州而言，現在有一個決定草案，讓我們努力吧，好嗎？我們將提交簡報、聽證會並就此開展工作。我想我們不要忘記，康涅狄格州只是我們業務的一小部分。因此，如果您進行比較，我們每年在康涅狄格州投資 1.5 億美元，或多或少用於資本支出。我認為，與紐約現在的 20 億美元相比，如果加上 CPL，那就更多了。因此，它只是整個業務的一小部分，但很重要。我們關心 100 萬美元就像我們關心 10 億美元一樣。讓我們努力解決這個問題，給我們 1 或 2 個月的時間，也就是說我們知道我們有待處理的問題，然後我們會回复您。 。

Of course, we are always focused if something goes down to find ways of getting that up, efficiencies on top of us 24 hours a day, the whole year. But on Connecticut, I think we prefer not to comment right now, work. We are not criticizing anybody making public statements, we need to work, okay, and go there, work with the different parties, make sure we put our cases strongly. And then once that's done, we'll come back to you.

當然，如果出現問題，我們始終會專注於尋找解決方法，全年、每天 24 小時始終保持高效。但在康涅狄格州，我認為我們現在不想發表評論，工作。我們並不是批評任何發表公開聲明的人，我們需要努力，好吧，去那裡，與不同各方合作，確保我們強有力地表達我們的觀點。一旦完成，我們就會回复您。

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

您的下一個問題是來自美國銀行的 Julien Dumoulin-Smith。

Maybe just taking a different tact on things. Can we talk a little bit about the wind and maybe wind repowering opportunities. Obviously, with prices coming off here, you guys have perhaps a unique opportunity here to step in and pursue that versus many of your peers. How do you think about the timing, size and sort of cadence of those investment opportunities here materializing post IRA?

也許只是對事物採取不同的策略。我們可以談談風能以及風力發電的機會嗎？顯然，隨著價格的下降，與許多同行相比，你們可能有一個獨特的機會介入並追求這一目標。您如何看待 IRA 後這些投資機會實現的時機、規模和節奏？

We intend to do a very detailed presentation in the months ahead of us. But we wanted not to delay to present an initial big picture of what we're going to be doing. I think as we mentioned in the presentation, IRA allows right now for additional PTCs for 10 years. And those of us, there's very few of us that we have thousands of megawatts already in operation more than 13, 15, 17, almost 20 years. We are the perfect candidates to take care of this. I think we've been working now for months on a very detailed asset by asset review, which ones we could do. And I'm very comfortable that between now and the end of the decade, we are at least going to go ahead with this amount of megawatts. I think this is something important.

我們打算在接下來的幾個月裡做一個非常詳細的演示。但我們不想拖延地展示我們將要做什麼的初步大局。我認為正如我們在演示中提到的，IRA 現在允許額外 PTC 為期 10 年。而我們當中，很少有人擁有數千兆瓦的電力，已經運行超過 13、15、17、近 20 年。我們是解決這個問題的最佳人選。我認為我們已經通過資產審查進行了非常詳細的資產幾個月的工作，我們可以做到這一點。我感到非常放心的是，從現在到本十年末，我們至少將繼續推進這一兆瓦的發電量。我認為這是很重要的事情。

As you know, the way in which the profile of the earnings works for U.S. renewable assets, you get PTCs up front and accelerated depreciation. So the last part of the life of the asset, you actually have negative results. By doing this repowering, we turn that around. I think from a cash flow point of view, it's going to be very positive. It's going to be a business of finance. So when you look at 2030, 2035 numbers, this business through the PTCs allows for also financing of that. So I think this is a very positive piece of news. I think this says that we're going to be doing, let's say, like new investments in renewables nonstop for the next 8 years in a very simple manner. I don't know, Jose Antonio, if you want to complement on that.

如您所知，美國可再生資產的收益狀況如何發揮作用，您可以預先獲得 PTC 並加速折舊。因此，在資產生命週期的最後階段，您實際上會得到負面結果。通過重新供電，我們扭轉了這一局面。我認為從現金流的角度來看，這將是非常積極的。這將是一項金融業務。因此，當您查看 2030 年、2035 年的數字時，您會發現通過 PTC 開展的這項業務還可以為其提供融資。所以我認為這是一個非常積極的消息。我認為這表明我們將在未來 8 年以一種非常簡單的方式不間斷地對可再生能源進行新的投資。何塞·安東尼奧，我不知道你是否想補充這一點。

Yes, you are totally right. I think that as you pointed out, we have fleet that allows us like no others to profit from the IRA guidance on the repowering because remember that we have 30% of our assets in merchant. So it's a great opportunity to reengage with new PTCs another 10 years for the whole production, plus also we see traction in offtakers, telling us that they would be agreeable to sign PPAs for power. So all in all, I think that is a good opportunity, thanks to our installed fleet.

是的，你完全正確。我認為，正如您所指出的，我們擁有的船隊使我們能夠像其他人一樣從 IRA 的重新供電指南中獲利，因為請記住，我們 30% 的資產來自商業。因此，這是在整個生產過程中再與新的 PTC 重新合作 10 年的絕佳機會，而且我們還看到了承購商的吸引力，告訴我們他們將同意簽署電力購電協議。總而言之，我認為這是一個很好的機會，這要歸功於我們已安裝的機隊。

Yes. No, I agree. I'm curious to see when and how it happens. If I can come back to another side of the equation here. I mean just given the delays in PNM., Does it have to be -- the next big update on your long-term outlook has to be after close? Or could we be seeing that sooner than later here as you think about '24 and beyond guidance? I just want to clarify when you think you'll come back with a more refreshed view -- does it need to be post that deal? And I got a quick clarification on that.

是的。不，我同意。我很好奇它何時以及如何發生。如果我能回到等式的另一邊。我的意思是，考慮到 PNM 的延遲，您的長期前景的下一個重大更新是否必須在收盤後進行？或者，當您考慮 24 日及超出指導時，我們是否可以早日看到這一點？我只是想澄清一下，當你認為你會帶著更新鮮的觀點回來時——是否需要在這筆交易之後發布？我很快就得到了澄清。

Yes. I think now PNM, we have -- the next step is the oral hearing in the Supreme Court in September 12. So I think after that, we will wait for a decision. So I think the answer probably you're right. I think we have to wait until we have that because that's a very material part of the business going forward. But in that context, I think it's very interesting what we said before that we're going to be working on the 3-year plan that we announced last year. We made clear '23 was the most difficult year for several reasons. First, because we had a lot of things on the table. And you've seen on Page 5, I'm very pleased with the work the team has done.

是的。我認為現在 PNM，我們下一步是 9 月 12 日在最高法院舉行口頭聽證會。所以我認為在那之後，我們將等待決定。所以我認為你的答案可能是對的。我認為我們必須等到這一點，因為這是未來業務的一個非常重要的部分。但在這種情況下，我認為我們之前所說的非常有趣，我們將致力於去年宣布的三年計劃。我們明確表示 23 年是最困難的一年，原因有幾個。首先，因為我們有很多事情要討論。正如您在第 5 頁看到的，我對團隊所做的工作非常滿意。

We have basically put out of the table, things that had either billions of risk, hundreds of millions of impact. So very pleased on many of the outcomes. I think the Maine rate case, I don't think a year ago, anybody would think of having a 20-year actual cash rate increase in 2 years. I think we were expecting -- a lot of people were expecting, I think, negative outputs, et cetera. So I think many things have happened.

我們基本上已經排除了那些具有數十億風險、數億影響的事情。對許多結果非常滿意。我認為緬因州利率案例，我認為一年前，沒有人會想到在 2 年內增加 20 年的實際現金利率。我認為我們正在期待——我認為很多人都在期待負產出，等等。所以我認為發生了很多事情。

When you look at PNM, compare that with the $6 billion capital expenditure in New York, that's almost a PNM. You think about that $3 billion. Now we are referring to 4,600 megawatts. So we -- I think we're working on fixing the things that we need to fix in the short term. But as you can see, we are laying out a strong foundation probably for the next 10 years ahead of us. So that's why I think we're working in the long term as well because those things need to happen right now.

當你看 PNM 時，將其與紐約 60 億美元的資本支出進行比較，這幾乎就是一個 PNM。你想想那 30 億美元。現在我們指的是 4,600 兆瓦。所以我們——我認為我們正在努力解決短期內需要解決的問題。但正如您所看到的，我們正在為未來 10 年打下堅實的基礎。這就是為什麼我認為我們也在長期努力，因為這些事情需要立即發生。

Awesome. And just a quick clarification on timing, too. It seems like the next opportunity here is around the climate investments and proposals in New York. Can you talk a little bit about your expectations on timing there, especially with the JP still pending? And then again, given the sort of the protracted process for your peer, what's the timing expectation for that JP approval too? So just really kind of getting at the process here on the climate and the JP in parallel?

驚人的。也只是對時間安排進行快速澄清。看來這裡的下一個機會是圍繞紐約的氣候投資和提案。您能否談談您對在那裡的時間安排的期望，特別是在 JP 仍懸而未決的情況下？話又說回來，考慮到您的同行的漫長流程，JP 批准的時間預期是什麼？那麼，真的可以同時了解氣候和 JP 的進程嗎？

Yes. I think on the rate case in New York, and I'm pleased Catherine now complement, I think for me it's very simple. We've been working very well with the parties with the public commission. I think you saw how in a very short period of time, we reached a settlement with multiparty support, I'm very pleased with the work we've been doing with the staff of the Public Commission with the trade unions, with some of the key consumers, key parties also involved. And I think the case will be done in August. And after that, we just look forward to a rapid decision. I would not like to guarantee it's going to be in one month or another one. But I think we've been working very well right now and making good progress in all the fronts we have in New York. So I'm very pleased on that. Catherine, if you want to... .

是的。我認為關於紐約的利率案例，我很高興凱瑟琳現在補充，我認為對我來說這非常簡單。我們一直與公共委員會的各方合作良好。我想你已經看到我們如何在很短的時間內在多方支持下達成和解，我對我們與公共委員會工作人員、工會以及一些主要消費者、主要各方也參與其中。我認為此案將在八月完成。之後，我們只期待快速做出決定。我不想保證它會在一個月或另一個月內發生。但我認為我們現在工作得很好，在紐約的所有方面都取得了良好的進展。所以我對此感到非常高興。凱瑟琳，如果你想……

Sure, Pedro. I'll just add some commentary on the CLCPA, both Phase 1 and Phase 2. So, if you look at those investments, it's almost $3 billion worth of transmission investments that we'll be making between now and 2030. So 2030 is the date by which we'll have those projects complete per the legislation in New York. And we're already starting to work on preliminary engineering. There's over $684 million that are included in the JPA. And we've worked hard with the settling parties to work on how much of the Phase 1 investments would be included in this rate case. And as I said, we're already starting our preliminary engineering on those projects.

當然，佩德羅。我將僅對 CLCPA 第一階段和第二階段進行一些評論。因此，如果您查看這些投資，您會發現從現在到 2030 年，我們將進行價值近 30 億美元的輸電投資。因此，2030 年是我們將根據紐約立法完成這些項目的日期。我們已經開始進行初步工程設計。 JPA 中包含超過 6.84 億美元。我們與和解方努力合作，確定本費率案件中將包含多少第一階段投資。正如我所說，我們已經開始對這些項目進行初步設計。

On the Phase 2 projects, those, of course, are not subject to rate case approval, those have already been approved through the Phase 2 proceeding. And we'll -- we've already provided our first update to the commission on the Phase 2 project. And again, we're already starting our preliminary engineering on those projects. and they are anticipated to be complete by 2030.

在第二階段項目中，這些項目當然不需要費率案例批准，這些項目已經通過第二階段程序獲得批准。我們已經向委員會提供了第二階段項目的第一次更新。再說一次，我們已經開始對這些項目進行初步設計。預計將於 2030 年完工。

(Operator Instructions)

（操作員說明）

Your next question is from the line of Michael Sullivan with Wolfe Research.

您的下一個問題來自 Wolfe Research 的 Michael Sullivan。

I just wanted to go back to the with and without PNM scenario again. So I think you all talked about it being like a $0.03 swing factor this year netted against the debt. But can you maybe just explain how we think about that next year when you talked about the $1.9 billion of equity out there and how that gets you to the same place? I guess I'm just struggling with if you do close the deal, and you do the equity, how that ends up being better versus not doing the deal and you're in the same place, it seems this year and then you don't have to do the equity?

我只是想再次回到有和沒有 PNM 的場景。所以我想你們都談到了今年 0.03 美元的波動因子抵消了債務。但是，當您談到明年 19 億美元的股本時，您能否解釋一下我們如何看待這個問題，以及這如何讓您達到同樣的目標？我想我只是在掙扎，如果你確實完成了交易，你做了股權，這最終會比不做交易更好，而且你在同一個地方，似乎今年，然後你就沒有了不必做股權嗎？

Let me answer more on the capital increase, and then you can answer more on the actual number there. I think remember, we put a plan for 3 years and the capital increase for next year, it was subject to 2 different things. The first one is whether PNM closes or not. If it closes, then it is different that if it does not close. And the second one was also our asset rotation. I think we continue to work on the asset rotation. So that's why in the update that we will give in the upcoming months for next year, we hope to have a final decision on that asset rotation. And then once we know if PNM closes or not, I think we will be able to put everything together. And that's I think the 2 things that will continue to drive that decision. I don't know, Patricia, if you want to...

讓我更多地回答增資的問題，然後你可以回答更多關於實際數字的問題。我想請記住，我們制定了三年計劃和明年的增資計劃，它受到兩個不同因素的影響。第一個是PNM是否關閉。如果關閉的話，和不關閉的話是不同的。第二個也是我們的資產輪換。我認為我們將繼續致力於資產輪換。因此，在我們將在明年接下來的幾個月中提供的更新中，我們希望就資產輪換做出最終決定。一旦我們知道 PNM 是否關閉，我想我們就能夠把所有事情放在一起。我認為有兩件事將繼續推動這一決定。我不知道，帕特里夏，你是否願意...

Yes. I think that covers it. I think the real important thing was that, that $1.9 billion in 2024 was not related to PNM. It was really to fund the rest of the business. The funding for PNM was the prior capital equity issuance and then the debt to close the transaction. But I think we just need to understand better what the timing is. So in terms of putting that all together. I mean the additional equity was just to maintain our credit metrics over time and make sure we're at our targeted levels and maintain our investment-grade rating. So the timing may impact the timing of how we do the debt and the equity, but the pieces are the same and for the same purposes.

是的。我認為這涵蓋了它。我認為真正重要的是，2024 年的 19 億美元與 PNM 無關。這實際上是為了為其餘業務提供資金。 PNM 的資金來源是之前的資本股權發行，然後是完成交易的債務。但我認為我們只需要更好地了解時機。因此，將所有這些放在一起而言。我的意思是，額外的股本只是為了隨著時間的推移維持我們的信用指標，並確保我們達到目標水平並維持我們的投資級評級。因此，時間安排可能會影響我們處理債務和股權的時間安排，但這些部分是相同的，並且出於相同的目的。

Okay. Okay. And on the asset rotation and the renewables, I guess, why now on that? Obviously, things seem pretty pressured in the offshore business right now if we just look at what some of the peers are announcing and looking to do on the sale front. Why do it now if you don't have to and why not wait until maybe things rebound a little to try and capture more value?

好的。好的。我想，關於資產輪換和可再生能源，為什麼現在才開始呢？顯然，如果我們看看一些同行在銷售方面宣布和計劃採取的行動，那麼目前離岸業務似乎面臨相當大的壓力。如果沒有必要，為什麼現在就這樣做？為什麼不等到事情稍微反彈時再嘗試獲取更多價值呢？

I'm going to answer based on the 25 years I've been in Iberdrola group. I think we have done more than 100 deals in that period. We will never sell if the price is not right. We will never do a transaction if we cannot explain it's a good and attractive valuation for us. We will never do anything like that, okay? So feel comfortable that unless we have a right proposition on the table, we will not go ahead. So that's how we have done always transactions. We continue to do this at the group level in the same way. I continue to think that the market, in general, may be the way you were commenting but I can tell you, good assets and good platforms and good proposals always find the right buyer at the right price.

我將根據我在 Iberdrola 集團的 25 年經驗來回答。我想我們在那段時期已經完成了超過 100 筆交易。如果價格不合適，我們絕不會出售。如果我們無法解釋這對我們來說是一個良好且有吸引力的估值，我們永遠不會進行交易。我們永遠不會做那樣的事，好嗎？因此，請放心，除非我們有正確的提議，否則我們不會繼續進行。這就是我們一直以來進行交易的方式。我們繼續以同樣的方式在集團層面這樣做。我仍然認為，總體而言，市場可能就是您評論的那樣，但我可以告訴您，好的資產、好的平台和好的建議總是以合適的價格找到合適的買家。

And you may not have 7 people competing. But I think you have some people as we are the case when we want to buy things, very keen on good opportunities. So I think that the market that you have right now probably affects 90% of transactions going on, but you still have the good deals, the good platforms that is a once in a time available. So people are ready to put the right price on those deals as well.

而且你可能沒有 7 個人參加比賽。但我認為有些人就像我們一樣，當我們想買東西時，非常熱衷於好的機會。因此，我認為現在的市場可能會影響 90% 的交易，但您仍然擁有好的交易、好的平台，這是一次難得的機會。因此，人們也準備好為這些交易設定合適的價格。

Okay. And on the -- specifically on the onshore piece, is it still more so you're looking at individual assets? Or you're looking at a larger portion of the portfolio, the portfolio itself? Or is it kind of all options on the table in terms of asset rotation.

好的。在特別是在岸方面，您是否更關注個人資產？或者您正在查看投資組合的較大部分，即投資組合本身？或者說這就是資產輪換方面的所有選項。

Yes. All the options continue to be on the table. As you know, we have been receiving offers for specific assets. I think we have interest in a stake in the business, in a partnership. I think we're just looking into what is the best option from a restructuring point of view, from a value point of view. So we don't rule out any option.

是的。所有的選擇仍然擺在桌面上。如您所知，我們一直在收到特定資產的報價。我認為我們有興趣在業務中、在合作夥伴關係中持有股份。我認為我們只是從重組的角度、價值的角度來研究什麼是最好的選擇。所以我們不排除任何選擇。

At this time, there are no further questions. I will now turn the call over to Pedro Azagra for closing remarks.

目前，沒有其他問題了。現在我將把電話轉交給佩德羅·阿薩格拉（Pedro Azagra）做總結髮言。

Okay. So thank you again for joining us for the second quarter earnings call. Looking ahead, our team is focused on execution growth and value creation in order to deliver our 2023 guidance and the years to come. As such, ongoing priorities include the resolution of our New York and Connecticut rate cases, balancing cash flow, earnings and customer affordability, and we will focus on achieving a lot of ROEs in the different jurisdictions.

好的。再次感謝您參加我們的第二季度財報電話會議。展望未來，我們的團隊將專注於執行力增長和價值創造，以實現我們的 2023 年指導和未來幾年的目標。因此，持續的優先事項包括解決紐約和康涅狄格州的利率案件，平衡現金流、收益和客戶承受能力，我們將專注於在不同司法管轄區實現大量股本回報率。

Our priorities also include continuing to work towards the construction of NECEC and the completion of our PNM merger. In renewables, we plan to execute on our repowering plan while continuing to bring new profitable projects. With regards to our offshore projects, we will begin exporting power from Vineyard Wind 1 later this year. On top of that, we are working with Connecticut stakeholders to find a path towards Park City Wind. And also, we are concentrated on terminating the Commonwealth Wind contracts and see any opportunities in the RFP coming ahead of us. Additionally, we will remain focused on our commitment to financial sustainability, prioritizing the maintenance of solid credit ratings and strong liquidity.

我們的首要任務還包括繼續致力於 NECEC 的建設和完成 PNM 合併。在可再生能源方面，我們計劃執行我們的重新供電計劃，同時繼續帶來新的盈利項目。至於我們的海上項目，我們將於今年晚些時候開始從 Vineyard Wind 1 輸出電力。最重要的是，我們正在與康涅狄格州利益相關者合作，尋找通往帕克城風能的道路。此外，我們正集中精力終止英聯邦風電合同，並看到 RFP 中出現的任何機會。此外，我們將繼續專注於對財務可持續性的承諾，優先考慮維持可靠的信用評級和強勁的流動性。

Cash flow is key for us. and we will continue developing and promoting talent and diversity, which will drive employee engagement across the organization. We believe that Avangrid has exceptional growth prospects. Our business mix with a core regulated network mix and expanding renewable energy investments represents an attractive opportunity at the forefront of the energy transition.

現金流對我們來說至關重要。我們將繼續發展和促進人才和多元化，這將推動整個組織的員工敬業度。我們相信 Avangrid 具有非凡的增長前景。我們的業務組合與核心監管網絡組合和不斷擴大的可再生能源投資代表了能源轉型前沿的一個有吸引力的機會。

By leveraging additional long-term growth opportunities like the IRA and New York CLCPA, we are confident Avangrid will continue to drive value for our customers, communities and shareholders. We look forward to sharing our progress with you over the coming months and appreciate your continued support. Thank you for joining us in today's call. If you have any other questions, please follow up with Alvaro and the IR team. Have a good day.

通過利用 IRA 和紐約 CLCPA 等其他長期增長機會，我們相信 Avangrid 將繼續為我們的客戶、社區和股東創造價值。我們期待在未來幾個月與您分享我們的進展，並感謝您的持續支持。感謝您參加今天的電話會議。如果您有任何其他問題，請聯繫 Alvaro 和 IR 團隊。祝你有美好的一天。

This does conclude Avangrid's Second Quarter 2023 Earnings Conference Call. Thank you for participating. You may now disconnect.

Avangrid 的 2023 年第二季度收益電話會議到此結束。感謝您的參與。您現在可以斷開連接。