Avangrid Inc (AGR) 2023 Q4 法說會逐字稿

Welcome to Avangrid's Fourth Quarter and Full Year 2023 Earnings Conference Call. I would now like to turn the call over to Charlotte Ancel, Vice President of Investor Relations. Please go ahead.

歡迎參加 Avangrid 2023 年第四季和全年財報電話會議。我現在想將電話轉給投資者關係副總裁夏洛特·安塞爾 (Charlotte Ancel)。請繼續。

Thank you, Eric, and good morning to everyone. Thank you for joining us today to discuss Avangrid's fourth quarter and full year 2023 earnings results. Presenting on the call today are Pedro Azagra, our Chief Executive Officer; and Justin Lagasse, our Chief Financial Officer and Controller. 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，艾瑞克，祝大家早安。感謝您今天加入我們討論 Avangrid 第四季度和 2023 年全年盈利結果。今天出席電話會議的是我們的執行長 Pedro Azagra；以及我們的財務長兼財務總監 Justin Lagasse。今天參加電話問答部分的還有 Avangrid Networks 總裁兼執行長 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執行長。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 the safe 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.

如果您沒有今天電話會議的新聞稿或簡報的副本，可以在我們的網站 avangrid.com 上取得。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》安全港條款含義內的各種前瞻性聲明，這些預期和假設存在風險和不確定性。

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 and the comments made during 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.

實際結果可能與我們的前瞻性陳述有重大差異。如果我們的任何關鍵假設不正確，或者由於Avangrid 的收益新聞稿中討論的其他因素以及本次電話會議期間隨附演示文稿的風險因素部分或我們向SEC 提交的最新報告和文件中發表的評論（其中每一項），可以在我們的網站上找到。

We do not undertake any duty to update any forward-looking statements. 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. I will now turn the call over to Pedro.

我們不承擔更新任何前瞻性陳述的責任。今天的演示也提到了非公認會計準則財務指標。您應該參考今天簡報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 財務指標的定義資訊和調整。我現在將把電話轉給佩德羅。

Thank you, Charlotte, and good morning, everyone. I'm pleased to share with you our company's fourth quarter and full year 2023 results, which demonstrate our strong commitment to delivering sustainable value for our shareholders, customers and communities. Throughout 2023, Avangrid has continued reaching important milestones on its projects at the forefront of the clean energy transition in the U.S. Our commitment to operational excellence and long-term value creation remains unwavering.

謝謝夏洛特，大家早安。我很高興與您分享我們公司 2023 年第四季和全年的業績，這表明我們致力於為股東、客戶和社區提供永續價值。 2023 年，Avangrid 在美國清潔能源轉型最前沿的專案上繼續取得重要里程碑。我們對卓越營運和長期價值創造的承諾仍然堅定不移。

Let's begin on Slide #4. In 2023, we delivered our financial and operational objectives despite the challenges faced. We achieved an earnings per share of $2.03 and adjusted earnings per share of $2.09, above our outlook range. Year-over-year, we delivered a 19% adjusted earnings growth, excluding $181 million from the 22 offshore wind gain and $37 million from the Inflation Reduction Act upfront tax benefits in 2022. We also delivered on our dividend commitment by paying $1.76 per share in 2023.

讓我們從投影片 #4 開始。儘管面臨挑戰，2023 年我們還是實現了財務和營運目標。我們的每股收益為 2.03 美元，調整後每股收益為 2.09 美元，高於我們的預期範圍。與去年同期相比，我們實現了19% 的調整後獲利成長，不包括22 年離岸風電收益中的1.81 億美元和2022 年《通貨膨脹減少法案》預付稅收優惠中的3,700 萬美元。我們也透過支付每股1.76 美元兌現了股息承諾2023年。

Turning to Slide #5. 2023 has been a transformational year, which will set up the company for the future. We executed on our core businesses and removed legacy and uncertainties. First, despite the highest inflation environment in recent history, we received approvals for $9 billion investments, including multiyear rate case plans in New York and Maine, enabling more than $7 billion of regulated investments and an additional $2.3 billion in incremental investments for Climate Leadership and Community Protection Act, or CLCPA Phase 2 authorized by the New York Public Commission.

轉向幻燈片#5。 2023 年是轉型的一年，這將為公司的未來奠定基礎。我們執行核心業務並消除遺留問題和不確定性。首先，儘管面臨近代史上最高的通膨環境，我們還是獲得了90 億美元投資的批准，其中包括紐約和緬因州的多年利率案例計劃，從而實現了超過70 億美元的監管投資以及氣候領導力和氣候領導力的額外23 億美元增量投資。社區保護法，或 CLCPA 第 2 階段，由紐約公共委員會授權。

In New York, our NYSEG and RG&E 3-year rate case plans were unanimously approved by the Public Service Commission on October 12. The new rate plans have a positive after-tax impact of $136 million or $0.35 per share was once recognized in the fourth quarter in 2023. This includes $66 million of positive make-whole impact, which put the company in the same position as if the joint proposal settlement was effective May 1 and $70 million for the mitigation of uncollectibles.

在紐約，我們的NYSEG 和RG&E 3 年期利率案例計劃於10 月12 日獲得了公共服務委員會的一致批准。新的利率計劃產生了1.36 億美元的積極稅後影響，即每股0.35 美元，曾在第四季度得到確認。2023 年第四季。這包括 6,600 萬美元的正面整體影響，這使該公司處於與 5 月 1 日聯合提案和解生效相同的地位，以及 7,000 萬美元用於減少壞帳。

We also received the approval for the first multiyear rate case for a utility in Maine in 15 years. The Maine Public Utilities Commission approved over $380 million of investments to improve safety, reliability and resiliency. In May, there was also a positive outcome on the referendum on government control power, a reflection of the improved dynamics in the state. Voters rejected to propose state ownership of Maine selected utilities with a 70% of the vote. Approximately 400,000 people voted in the election and 98% of Maine cities and towns rejected this initiative.

我們也獲得了緬因州 15 年來首個公用事業多年費率案例的批准。緬因州公用事業委員會批准了超過 3.8 億美元的投資，以提高安全性、可靠性和彈性。 5月，關於政府控制權的公投也取得了積極成果，反映了該州動態的改善。選民以 70% 的票數拒絕了緬因州選定公用事業公司國有化的提議。大約有40萬人在選舉中投票，緬因州98%的城鎮拒絕了這項倡議。

Also, in 2023, CMP was recognized as one of Maine best places to work. These networks achievements occurred in tandem with our operational improvements in customer service and reliability metrics. In 2023, we have improved the majority of customer service metrics, 25 out of a total of 31. We also delivered our best reliability performance since 2019, exceeding 7 out of 8 regulatory targets. On renewables, we successfully terminated our power purchase agreement for Commonwealth Wind and Park City Wind avoiding billions of dollars of potential write-offs. This allows us to maintain future profitable opportunities with these leases. We incurred only $29 million after tax to exit these projects as opposed to our peers' multibillion-dollar write-offs, which continue to mount.

此外，2023 年，CMP 被評為緬因州最佳工作場所之一。這些網路成就與我們在客戶服務和可靠性指標方面的營運改善同時發生。 2023 年，我們改進了大部分客戶服務指標，即 31 項指標中的 25 項。我們還實現了 2019 年以來最好的可靠性表現，超過了 8 項監管目標中的 7 項。在再生能源方面，我們成功終止了 Commonwealth Wind 和 Park City Wind 的購電協議，避免了數十億美元的潛在沖銷。這使我們能夠透過這些租賃維持未來的獲利機會。我們退出這些項目的稅後支出僅為 2,900 萬美元，而我們的同行則需要進行數十億美元的沖銷，而且沖銷金額仍在增加。

We are also executing on our disciplined plan for selective and profitable growth in onshore renewables with over 300-megawatt installed capacity in 2023 and 728 megawatts of new FIDs taken this year. We renegotiated 3 PPA contracts totaling 470 megawatts, increasing prices and avoiding more than $30 million of penalties. In addition, we have another 998 megawatts in new projects under construction all ready to build, all of them with PPAs. Notably, approximately 700 megawatts of these projects are to support data centers with clean energy from onshore wind and solar. This year, we also announced our plan to repower more than 4,600 megawatts of our existing portfolio in the coming years, which will represent in our much long-term outlook update.

我們也正在執行嚴格的計劃，以實現陸上再生能源的選擇性和盈利性增長，到 2023 年裝置容量將超過 300 兆瓦，今年新的最終投資決定將達到 728 兆瓦。我們重新談判了 3 份總容量為 470 兆瓦的 PPA 合同，提高了價格並避免了超過 3000 萬美元的罰款。此外，我們還有另外 998 兆瓦的在建新項目已準備好建設，所有這些項目都已簽訂購電協議。值得注意的是，這些項目中約 700 兆瓦將利用陸上風能和太陽能等清潔能源來支援資料中心。今年，我們也宣布計劃在未來幾年對現有投資組合中超過 4,600 兆瓦的電力進行改造，這將反映在我們的長期展望更新中。

On Vineyard Wind 1, we were making significant progress in the project construction and successfully started the first turbine in 2023. Also, in 2023, we closed the first ever U.S. tax equity financing of $1.2 billion, and the first funding on that landmark deal has been issued. We also made a strategic decision not to proceed with our PNM Resources merger due to our final regulatory approvals not being received by December 31, 2023. Because of that decision, there is no need for an equity issuance previously announced for 2024.

在Vineyard Wind 1 專案上，我們的專案建設取得了重大進展，並於2023 年成功啟動了第一台渦輪機。此外，2023 年，我們完成了首筆12 億美元的美國稅務股權融資，這一里程碑式交易的第一筆資金已於2023 年完成。已發出。由於我們在 2023 年 12 月 31 日之前尚未收到最終監管批准，我們也做出了不再繼續進行 PNM Resources 合併的策略決定。由於這項決定，先前宣布的 2024 年股票發行不再需要。

During the time of the merger pending, we have secured more than $9 billion additional organic investments above those announced in our '22 Capital Markets Day. This includes mainly the repowering plant, incremental regulated investments in New York and Maine and transmission investments like CLCPA.

在合併懸而未決期間，我們已獲得超過 90 億美元的額外有機投資，高於「22 資本市場日」宣布的投資。這主要包括再發電廠、紐約和緬因州增量監管投資以及 CLCPA 等輸電投資。

Finally, we are continuing to reach cybersecurity successes from developing the Avangrid team. Regardless of our security, Avangrid score 97 out of 100 from security scorecard, a cyber ratings organization that evaluates threats, vulnerabilities, and risk mitigations to over 25,000 companies. This score surpasses average industry figures in network and application security.

最後，我們將透過發展 Avangrid 團隊繼續在網路安全方面取得成功。無論我們的安全性如何，Avangrid 在安全記分卡（一個對超過 25,000 家公司評估威脅、漏洞和風險緩解措施的網路評級組織）中得分為 97 分（滿分 100 分）。該分數超過了網路和應用程式安全的行業平均值。

We achieved substantial gains in our diversity, equity and inclusion goals, including reaching our target of over 35% women in executive positions. We want to continue developing our workforce and senior leadership team that reflects the diverse communities that we serve.

我們在多元化、公平和包容性目標方面取得了實質進展，包括實現了女性擔任高階主管職位比例超過 35% 的目標。我們希望繼續發展我們的員工隊伍和高階領導團隊，以反映我們所服務的多元化社區。

Turning to Slide 6, our 2023 rate cases another regulatory proceedings secured $9 billion in new CapEx. We received final decision on the rate case for our New York companies, which includes over $6 billion of investments. Additionally, we also received authorization to invest more than $2 billion in New York CLCPA Phase II. These are critical transmission upgrades necessary for New York state to meet its climate action goals. Separately, the Maine Public Utilities Commission approved over approximately $400 million of investments to improve safety, reliability and resiliency.

轉向投影片 6，我們的 2023 年利率案件另一項監管程序確保了 90 億美元的新資本支出。我們收到了紐約公司費率案例的最終決定，其中包括超過 60 億美元的投資。此外，我們也獲得紐約 CLCPA 二期投資超過 20 億美元的授權。這些是紐約州實現其氣候行動目標所需的關鍵輸電升級。另外，緬因州公用事業委員會批准了約 4 億多美元的投資，以提高安全性、可靠性和彈性。

These multiyear rate plans provide predictable organic long-term growth. Moving to Slide #7. We are executing on our strategic plan on growth opportunities and selective investments in our onshore renewable business. Over the past year, we have commissioned 311 megawatts, increasing our operating capacity from 8.3 gigawatts last year to 8.6 gigawatts today. In addition, a total of 990 megawatts are at present under construction. This includes 472 megawatts of renegotiated PPAs and 526 megawatts of new PPA signed in 2023.

這些多年費率計劃提供了可預測的有機長期成長。轉到投影片 #7。我們正在執行關於成長機會和選擇性投資陸上再生能源業務的策略計劃。過去一年，我們投產了311兆瓦，營運能力從去年的8.3吉瓦增加到今天的8.6吉瓦。此外，目前共有990兆瓦在建。其中包括重新談判的 472 兆瓦購電協議和 2023 年簽署的 526 兆瓦新購電協議。

As part of the growing partnership between Avangrid renewables and technology companies, this includes nearly 700 megawatts to support data centers. Turning now to Slide #7 and #8, Avangrid continues to be recognized as a leader in sustainability and corporate governance. Most recently, Avangrid was ranked #1 in the utility industry category in JUST 100 and #12 overall. Just 100 evaluates companies based on the issues that matter most in defining just business behavior today, including paying a fair wage, creating jobs and supporting workforce retention and training. It is a huge honor to make this prestigious list for the fourth consecutive year, and this milestone reflects our values and also our vision.

作為 Avangrid 再生能源和科技公司之間不斷發展的合作夥伴關係的一部分，其中包括近 700 兆瓦的電力來支援資料中心。現在轉向投影片 #7 和 #8，Avangrid 繼續被公認為永續發展和公司治理的領導者。最近，Avangrid 在 JUST 100 的公用事業行業類別中排名第一，總體排名第 12。 Just 100 根據當今定義商業行為最重要的問題對公司進行評估，包括支付公平的工資、創造就業機會以及支持勞動力保留和培訓。我們非常榮幸連續第四年躋身這項享有盛譽的榜單，這一里程碑反映了我們的價值觀和願景。

Additionally, Avangrid ranked among the country's top 2 utilities in the National Public Utilities Council’s 2023 decarbonization report. This report analyzes the decarbonization efforts of the United States largest investor-owned utilities. Avangrid improved from its prior '22 ranking with the highest possible score in fuel mix, total carbon emissions, emissions for customer and low-carbon investments.

此外，在國家公共事業委員會 2023 年脫碳報告中，Avangrid 名列全國前 2 名公用事業公司之一。本報告分析了美國最大的投資者擁有的公用事業公司的脫碳努力。 Avangrid 較先前的 '22 排名有所提高，在燃料結構、總碳排放量、客戶排放量和低碳投資方面得分最高。

Lastly, Central Maine Power was recognized as one of Maine's best places to work by Best Companies Group. With more than 1,100 projects in Maine, the CMP team works tirelessly to ensure our customers have safe, reliable and clean energy every day as we do in every state where we serve.

最後，Central Maine Power 被 Best Companies Group 評為緬因州最佳工作場所之一。 CMP 團隊在緬因州擁有 1,100 多個項目，他們不懈努力，確保我們的客戶每天都能獲得安全、可靠和清潔的能源，就像我們在服務的每個州所做的那樣。

All these awards and accomplishments are a testament to the dedication of our team, everything we do from serving to our customers to building renewable energy and assets reflects our vision to lead the clean energy transition with a strong commitment to sustainability, community governance and our employees. Now, I will pass it to Justin to review the results and discuss the outlook. Justin, all yours and congratulations to become our CFO.

所有這些獎項和成就都證明了我們團隊的奉獻精神，從服務客戶到建立再生能源和資產，我們所做的一切都反映了我們引領清潔能源轉型的願景，以及對永續發展、社區治理和員工的堅定承諾。現在，我將把它交給賈斯汀審查結果並討論前景。賈斯汀，恭喜您成為我們的財務長。

Thank you, Pedro, and good morning, everyone. Turning to our earnings performance on Slide 9. For the fourth quarter of 2023, our earnings per share was $1.03 compared to $0.38 in the fourth quarter of 2022. And our adjusted earnings per share was $0.97 compared to $0.39 in the fourth quarter of 2022. Networks results were $0.94, this is higher by $0.53 quarter-over-quarter compared to the fourth quarter of 2022. The key drivers include $0.22 from rate changes, mainly due to the implementation of our new rate plans in New York. This includes a make-whole adjustment back to May 1, 2023.

謝謝佩德羅，大家早安。轉向幻燈片9 上我們的獲利表現。2023 年第四季度，我們的每股收益為1.03 美元，而2022 年第四季為0.38 美元。調整後的每股收益為0.97 美元，而2022 年第四季度為0.39 美元。網路業績為0.94 美元，與2022 年第四季相比，季增了0.53 美元。主要驅動因素包括費率變化帶來的0.22 美元，這主要是由於我們在紐約實施了新的費率計劃。這包括對 2023 年 5 月 1 日的整體調整。

Additionally, in New York, uncollectibles explained $0.19 from successfully receiving new regulatory treatment for the deferral of uncollectibles to match the amounts set aside in our uncollectible reserve. With the restart of construction of our NECEC project in August 2023, we had an additional $0.04 of AFUDC earnings quarter-over-quarter. Additionally, we had higher costs quarter-over-quarter to implement our investment plans and to operate our businesses, including O&M and interest costs, but they are in line with our estimates for the quarter.

此外，在紐約，壞帳資產因成功接受新的壞帳帳款延期監管處理而獲得了 0.19 美元的解釋，以匹配我們在壞帳準備金中預留的金額。隨著 2023 年 8 月重新啟動 NECEC 專案建設，我們的 AFUDC 收益比上季增加了 0.04 美元。此外，我們實施投資計畫和營運業務的成本（包括維運和利息成本）較上季上升，但與我們對本季的估計相符。

Finally, taxes are lower by $0.09 quarter-over-quarter, primarily due to the optimizing of tax deductions, which is in line again with our previously shared estimates for the quarter. Our Renewables segment was minus $0.02 for the fourth quarter of 2023, lower by $0.23 quarter-over-quarter. We had higher earnings from our thermal operations and asset management of $0.07, which reflects wider spark spreads quarter-over-quarter as a result of the demand and supply factors of cold weather and scarcity in the Pacific Northwest. Wind and solar operating performance, which includes the impacts of pricing, production and tax benefits, explained minus $0.07, which was really due to lower wind generation output and a decrease in merchant prices. And again, partially mitigated by tax credits and new projects in service.

最後，稅收環比下降了 0.09 美元，這主要是由於稅收減免的優化，這再次符合我們先前對本季的預期。 2023 年第四季度，我們的再生能源業務利潤為負 0.02 美元，季減 0.23 美元。我們的熱力營運和資產管理收益增加了 0.07 美元，這反映出由於太平洋西北地區寒冷天氣和稀缺的供需因素，季度環比擴大了火花價差。風能和太陽能營運績效（包括定價、生產和稅收優惠的影響）解釋為負 0.07 美元，這實際上是由於風力發電產量下降和商業價格下降所致。同樣，稅收抵免和新投入使用的項目也部分緩解了這種影響。

Our wind resource was low for the quarter, producing a lower net capacity factor. However, it's important to keep in mind that thermal and asset management operations are able to capture this value when power prices are high and gas prices are low. When the wind resource is low in times of high demand due to events like weather, our thermal and asset management capture this opportunity. O&M costs are positive $0.01 due to the optimization of our O&M and cost savings and efficiencies, offset by depreciation from new assets in place. Taxes primarily reflect a reduction compared against 2022 for the quarter from higher state tax rate adjustments, which again is compensated by state unitary tax adjustments in corporate.

本季我們的風能資源較低，導致淨容量係數較低。然而，重要的是要記住，當電價高且天然氣價格低時，熱力和資產管理業務能夠捕獲這一價值。當由於天氣等事件而導致風能資源在高需求時期減少時，我們的熱力和資產管理抓住了這個機會。由於我們的運維優化以及成本節約和效率提高，運維成本為正 0.01 美元，但被新資產折舊所抵銷。稅收主要反映了該季度與 2022 年相比因較高的州稅率調整而有所減少，這又透過企業的州統一稅收調整得到了補償。

Moving on to Slide 10 to update to our financing, liquidity, dividends and credit ratings. During 2023, we have diversified our financing to fund investments in growth of our businesses. For renewables, we signed a tax equity transaction for Vineyard Wind for $1.2 billion to monetize project ITCs and accelerated depreciation. In addition, we executed a tax credit transfer agreement to monetize up to $100 million of tax credits from existing wind assets, not in tax equity financing structures. The tax transferability transaction was very successful for us, and we will look to continue executing similar transactions in 2024 and beyond.

前往投影片 10，更新我們的融資、流動性、股利和信用評級。 2023 年，我們實現了融資多元化，為業務成長的投資提供資金。對於再生能源，我們與 Vineyard Wind 簽署了 12 億美元的稅收股權交易，以將專案 ITC 貨幣化並加速折舊。此外，我們還簽署了一項稅收抵免轉讓協議，從現有風電資產（而非稅收股權融資結構）中將高達 1 億美元的稅收抵免貨幣化。稅務可轉讓性交易對我們來說非常成功，我們將期待在 2024 年及以後繼續執行類似的交易。

For our utilities, we issued $1.3 billion of green bonds and $115 million of notes at our utility subsidiaries. And we also issued an $800 million 10-year green term loan with Iberdrola. Our green financing emphasizes our strategy commitment of long-term stability and resilience. Cash and liquidity are key priorities, supported by our ongoing cash from operations and successful rate basis. At the end of 2023, we have $3 billion in liquidity covering 15 months. Maintaining our solid credit ratings is a key objective. At the operating group level, all of our ratings are on stable outlook, and we continue to project stable credit metrics without the need for equity issuance in 2024 based on the successful outcomes of our major rate cases in 2023 and our continued discipline and selective growth in our renewables business.

對於我們的公用事業公司，我們在公用事業子公司發行了 13 億美元的綠色債券和 1.15 億美元的票據。我們也向 Iberdrola 發放了 8 億美元的 10 年期綠色定期貸款。我們的綠色融資強調了我們對長期穩定性和韌性的策略承諾。現金和流動性是關鍵優先事項，並得到我們持續的營運現金和成功率基礎的支持。到 2023 年底，我們 15 個月的流動資金為 30 億美元。維持我們穩健的信用評等是一個關鍵目標。在營運集團層面，我們所有的評級展望均為穩定，並且基於 2023 年重大利率案例的成功結果以及我們持續的紀律和選擇性增長，我們將繼續預測 2024 年無需發行股票的穩定信用指標在我們的再生能源業務中。

Finally, our dividend policy remains unchanged. We are targeting a payout of 65% to 75%. As Pedro mentioned, we delivered on our dividend commitment by paying $1.76 per share in 2023 and our board recently declared a quarterly dividend of $0.44 per share payable on April 1, 2024. Moving now to the next slide. We are introducing our 2024 outlook ranges for earnings per share and adjusted earnings per share of $2.17 to $2.32 per share. On an adjusted earnings per share basis, the midpoint of our outlook for 2024 represents an 8% increase from 2023. Our ongoing focus remains on achieving these targets as we execute our investment plan with discipline and a risk management focus.

最後，我們的股利政策維持不變。我們的目標是支付 65% 至 75%。正如Pedro 所提到的，我們兌現了我們的股息承諾，在2023 年支付每股1.76 美元，我們的董事會最近宣布將於2024 年4 月1 日支付每股0.44 美元的季度股息。現在轉到下一張幻燈片。我們介紹 2024 年每股盈餘的展望範圍，調整後每股盈餘為 2.17 美元至 2.32 美元。在調整後每股盈餘的基礎上，我們對 2024 年前景的中位數表示比 2023 年成長 8%。我們將繼續專注於實現這些目標，同時嚴格執行投資計畫並專注於風險管理。

Our 2024 outlook includes incremental revenues from our rate plans, primarily in Maine and New York. We target equity ratios and ROEs close to our currently authorized levels. We will also have additional production from 311 megawatts of wind and solar projects placed in service in 2023, including the related PTCs. For the rest of our fleet, we are assuming normal wind capacity factor. And further, our 2024 outlook also includes earnings using historical averages from our thermal operations and asset management. Bear in mind, as I previously shared, thermal operations and asset management capture the value and wind production is low, effectively acting as a natural hedge to complement our fleet.

我們的 2024 年展望包括我們的費率計劃（主要在緬因州和紐約）帶來的增量收入。我們的目標是股本比率和股本回報率接近我們目前的授權水準。我們還將在 2023 年投入使用的 311 兆瓦風能和太陽能專案中增加產量，包括相關的 PTC。對於我們機隊的其餘部分，我們假設正常的風電容量係數。此外，我們的 2024 年展望還包括使用我們的熱力業務和資產管理的歷史平均值計算的收益。請記住，正如我之前分享的那樣，熱力運營和資產管理獲取了價值，而風力發電量較低，有效地充當了補充我們機隊的自然對沖。

We remind you that in 2023, we received favorable regulatory treatment to remove earnings exposure from uncollectibles by allowing us to defer our reserve balances. Specifically in New York and therefore, have this assumption included in our forecast. Our NECEC transmission project is also expected to generate additional earnings while under construction for AFUDC and we are expecting additional CapEx spending of over $600 million in 2024 to consider this.

我們提醒您，2023 年，我們獲得了有利的監管待遇，透過允許我們推遲準備金餘額，消除了無法收回的收益風險。特別是在紐約，因此，我們的預測中包含了這個假設。我們的 NECEC 輸電項目預計還將在 AFUDC 建設期間產生額外收入，考慮到這一點，我們預計 2024 年將有超過 6 億美元的額外資本支出。

We are also anticipating O&M optimization and higher depreciation and interest costs. Finally, there is no assumed equity issuance in 2024 and no extraordinary gains from renewable partnerships or divestitures in 2024, as we previously committed. Our 2024 outlook assumes that we maintain our current annual dividend of $1.76 per share, subject to our Board's approval.

我們也預期運維優化以及更高的折舊和利息成本。最後，正如我們之前承諾的那樣，2024 年不會發行股票，2024 年再生能源合作夥伴關係或剝離也不會帶來非凡收益。我們的 2024 年展望假設我們維持目前每股 1.76 美元的年度股息，但須經董事會批准。

Typical with our opportunities and risks impacting our 2024 results, we have our renewables production and pricing. We have our rate cases and other regulatory actions, storms and weather-related events, thermal and asset management results, interest and business costs. As we have mentioned, we are very focused on delivering our results in 2024, considering many uncertainties were removed in 2023.

與影響我們 2024 年業績的機會和風險一樣，我們有再生能源的生產和定價。我們有利率案例和其他監管行動、風暴和天氣相關事件、熱能和資產管理結果、利息和業務成本。正如我們所提到的，考慮到許多不確定性已在 2023 年消除，我們非常專注於在 2024 年交付業績。

Thank you for joining us today for our financial update. I will now hand the call back to Pedro.

感謝您今天加入我們的財務更新。我現在將把電話轉回給佩德羅。

Thank you, Justin. We move to Page 12, I think it's important now to think a little bit about '24, okay? And where are we focused in terms of priorities for the year. First, we're going to be focused on continuing to deliver results through demonstrating on a strong financial performance on the core earnings and the core business. Second, we will execute our commitments in the multiyear rate plans that drove our success in '23, including achieving our ROEs that Justin mentioned.

謝謝你，賈斯汀。我們翻到第 12 頁，我認為現在思考「24」很重要，好嗎？就今年的優先事項而言，我們的重點是什麼？首先，我們將專注於透過展示核心收益和核心業務的強勁財務業績來繼續交付成果。其次，我們將履行我們在多年費率計劃中的承諾，這些計劃推動了我們在 23 年的成功，包括實現賈斯汀提到的股本回報率。

Next, we will continue selective and profitable onshore growth. Turning to major projects. We will continue the steady process progress in constructing Vineyard Wind 1 and NECEC. We will remain focused on our balance sheet to ensure the financial health and long-term stability of the company and aim to close out the ongoing matters in Connecticut.

接下來，我們將繼續有選擇地實現獲利的境內成長。轉向重大專案。我們將繼續穩步推進葡萄園風一期和NECEC建設工作。我們將繼續關注我們的資產負債表，以確保公司的財務健康和長期穩定，並致力於結束康乃狄克州正在進行的事項。

In the last slide, Slide #13, I would like to thank our Board and Chairman, Galan and the rest of our Avangrid team, but also all the Iberdrola Group that without them we will not be here and they have successfully helped us in many, many of the things that we have been able to achieve this year.

在最後一張投影片（投影片#13）中，我要感謝我們的董事會和董事長Galan 以及Avangrid 團隊的其他成員，還有所有Iberdrola 集團，沒有他們，我們就不會在這裡，他們在許多方面成功地幫助了我們，我們今年已經實現了許多目標。

We look forward to continuing to execute on our commitments, focusing our balance sheet and delivering results in 2024. We are excited to announce that Avangrid will be holding a long-term outlook update via webcast on Thursday, March 21. This will include an update on our multiyear strategic plan and financial outlook provided by members of the executive team. I will now hand the call back to our operator for further questions.

我們期待繼續履行我們的承諾，重點關注我們的資產負債表並在 2024 年交付成果。我們很高興地宣布，Avangrid 將於 3 月 21 日星期四透過網路廣播進行長期展望更新。這將包括更新執行團隊成員提供的我們的多年策略計劃和財務前景。我現在將把電話轉給我們的接線生以詢問進一步的問題。

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

（操作員說明）您的第一個問題來自摩根士丹利的 David Arcaro。

Let's see, I was wondering, can we get an update just on how you're thinking about asset sales? That's a financing approach that you've talked about before, but I think the financing outlook has obviously changed quite a bit now heading into 2024. So how strategic would you be or opportunistic on asset sales?

我想知道，讓我們看看您對資產出售的看法是否最新？這是您之前討論過的一種融資方式，但我認為進入 2024 年，融資前景顯然發生了很大變化。那麼您在資產出售方面的策略性或機會主義程度如何？

I think the approaches, it has not changed. I mean we're always keeping an eye on potential divestitures, potential partnerships. I mean since 2001, we've been doing that at the Iberdrola Group level nonstop. You can see the last 2 years how many partnerships and divestitures have been done as well. And in our case, if we have further opportunities to grow beyond what we'll be announcing in March -- in the March's long-term presentation, we will continue to look for partnerships in order to dilute our financial exposure and be able to do even more.

我認為方法沒有改變。我的意思是，我們一直在關注潛在的資產剝離和潛在的合作關係。我的意思是，自 2001 年以來，我們一直在 Iberdrola 集團層面不間斷地這樣做。您可以看到過去兩年中完成了多少合作夥伴關係和資產剝離。就我們而言，如果我們有進一步的發展機會，超出我們在三月宣布的長期演示中所宣布的範圍，我們將繼續尋找合作夥伴，以稀釋我們的財務風險，並能夠做到更多。

So that's not out of the table, but we want to focus on a budget for '24 and the guidance we have provided without any gain or any divestiture being contemplated. That's why I think we go back to how we always have announced guidance, which is focusing on the core business without gains. But we will continue analyzing partnerships, we will continue analyzing opportunities of divestitures at the right price and at the right time, even strategically we think that's something we should do. So that doesn't stop that approach as well.

因此，這並不是不可能的，但我們希望專注於 24 年的預算和我們提供的指導，而不考慮任何收益或任何剝離。這就是為什麼我認為我們回到了我們一直以來宣布的指導方針，即專注於核心業務而沒有收益。但我們將繼續分析合作關係，我們將繼續分析在正確的價格和正確的時間剝離的機會，甚至從策略上講，我們認為這是我們應該做的事情。所以這也不能阻止這種方法。

Okay. Got it. That makes sense. That's helpful. And maybe a similar question just with PNM in the rearview now, you have been acquisitive in the past. How are you thinking about M&A as you look forward, any interest in continuing to consider M&A opportunities going forward?

好的。知道了。這就說得通了。這很有幫助。也許現在 PNM 也有類似的問題，你過去一直在收購。您對未來的併購有何看法？是否有興趣繼續考慮未來的併購機會？

I think as we have done on Iberdrola for many years, there are moments in the cycles that when you have such a huge amount of organic growth, I think that's enough. I mean I think the $9 billion investment above what we already told you 1.5 years ago, I mean that's a lot, okay? That's twice the size of a couple of 4 billion equity market cap company acquisitions. So from that point of view, when you already have now the $7 billion investment, now you have $9 billion more. Seems to me that let's focus on that organic growth.

我認為，正如我們多年來在 Iberdrola 上所做的那樣，在周期中的某些時刻，當你擁有如此巨大的有機增長時，我認為這就足夠了。我的意思是，我認為 90 億美元的投資高於我們 1.5 年前告訴過您的金額，我的意思是這很多，好嗎？這是市值 40 億美元的公司收購規模的兩倍。所以從這個角度來看，當你現在已經擁有 70 億美元的投資時，現在你還有 90 億美元。在我看來，讓我們專注於有機成長。

I don't see that much growth in many parts of the world, in many parts of the U.S. from a regulated point of view. I don't see -- I see a huge opportunity for them up to 2023, on the repowering side. So we have nice 8 years ahead of us to benefit from that. It seems to me when you have the next 3 to 5 to 6 years with multibillion investments that we didn't have even 1.5 years ago on the table, I think let's focus on that, okay? So let's get that done, and then we'll go for further opportunities.

從監管的角度來看，我沒有看到世界許多地方、美國許多地方有如此大的成長。我不認為——我認為他們在 2023 年之前在電力重建方面有巨大的機會。因此，我們還有 8 年的時間可以從中受益。在我看來，當你在未來 3 到 5 到 6 年內進行數十億美元的投資時，我們甚至在 1.5 年前都沒有這樣的投資，我想讓我們專注於這一點，好嗎？因此，讓我們完成這件事，然後我們將尋求更多機會。

When some of you asked about the consumption growth, et cetera, in some of the states, you all know that the states where we do business, there is an absolute need of infrastructure upgrade. So consumption is second. Consumption may be an issue 10 years from now, 15 years from now. But now you need to upgrade those networks and that's why the infrastructure needs that we have in New York, the infrastructure need that we have in Maine. That seems to me together with the repowering, just that, I think is unbelievable, huge for the years to come.

當你們有人問到一些州的消費成長等等問題時，你們都知道我們做生意的州，基礎建設升級是絕對需要的。所以消費是第二位的。 10年後、15年後消費可能會成為一個問題。但現在你需要升級這些網絡，這就是為什麼我們在紐約需要基礎設施，在緬因州需要基礎設施。在我看來，這與重新供電一起，我認為這是令人難以置信的，對未來幾年來說是巨大的。

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

您的下一個問題來自美國銀行的 Julien Dumoulin-Smith。

Just wanted to follow up on a couple of items here in the release and your comments here, if you can. Just first on the near term here. Just how are you thinking about some of the items in '24, specifically, the Vineyard Wind still the and specifically the ITCs or presumably some amount of ITCs reflected in '24 as well as just can you comment year-end '23 rate base came in at $600 million above original guidance. It seems like it's split out between New York and Maine. Can you comment a little bit about those factors as they pertain to '24? And then lastly, just how much O&M are you thinking about here when it comes to a positive driver in '24 as well?

如果可以的話，我只想跟進發布中的幾個項目以及您的評論。首先是近期的情況。您如何看待 24 年的一些項目，特別是 Vineyard Wind，特別是 ITC，或者可能是 24 年反映的一定數量的 ITC，以及您能否評論 23 年年底的利率基礎比原指導值高出6 億美元。看起來它分為紐約和緬因州。您能否對這些與 24 世紀有關的因素發表一些評論？最後，當談到 24 年的積極驅動因素時，您在這裡考慮了多少營運和維護？

Okay. Thank you, Julien. We couldn't hear that well, but I'm going to try to answer the question. I think in terms of Vineyard Wind 1, I think -- so when you think about Vineyard Wind 1, what we have learned in the last 12 months is our focus sometimes on specific deadlines, which are not so relevant. When you're doing these big projects, NECEC is another example. If you're going to have COD in November of a year or February the following year, is totally relevant.

好的。謝謝你，朱利安。我們聽不太清楚，但我會盡力回答這個問題。我認為，就 Vineyard Wind 1 而言，我認為，當你考慮 Vineyard Wind 1 時，我們在過去 12 個月中學到的是，我們有時會專注於具體的截止日期，而這些截止日期並不是那麼重要。當你做這些大專案時，NECEC 是另一個例子。如果您打算在一年的 11 月或隔年的 2 月進行 COD，則完全相關。

The important thing is to finish the project. I think in Vineyard Wind 1, right now, we have turned turbines installed as of today, which is beautiful out of 62, 5 of them in full operation right now, 62 megawatts. So that's a beautiful also outcome exactly today. I mean you will see -- probably you have already seen in a press release by the governor in Massachusetts, very proud of the status right now we have in the projects.

重要的是完成該項目。我認為在 Vineyard Wind 1 中，我們已經安裝了截至今天的渦輪機，這在 62 台中非常漂亮，其中 5 台目前正在全面運行，功率為 62 兆瓦。所以今天這也是一個美好的結果。我的意思是你會看到——也許你已經在馬薩諸塞州州長的新聞稿中看到，他對我們目前在這些項目中的狀況感到非常自豪。

I think we have 48 -- 47 monopiles installed. I think we are on track right now for further transition pieces installment. I think we have the right contracts to terminate everything we need from vessels, foundations, monopiles, transition pieces, blades in turbines. So from that point of view, what we need to do is finish the project. And for me, it doesn't matter if we finish in November this year or in February next year. The important thing is to finish. ITC, as you correctly said, is important. That's what we are working on right now to find out exactly the final amount of ITCs that we think that we will be able to achieve. And then as soon as we finish that work, we'll come back to you.

我認為我們安裝了 48 - 47 個單樁。我認為我們現在正在進一步安裝過渡件。我認為我們擁有正確的合約來終止我們所需的一切，包括船舶、地基、單樁、過渡件、渦輪機葉片。所以從這個角度來看，我們需要做的就是完成這個專案。對我來說，我們是在今年 11 月還是明年 2 月結束並不重要。重要的是完成。正如您所說，ITC 很重要。這就是我們現在正在努力找出我們認為能夠實現的 ITC 的最終金額。一旦我們完成這項工作，我們就會回覆您。

In terms of the rate cases, I think specifically, and you were concerned 1.5 years ago, rightly so and a year ago about the inflation, potential impact in the rate cases and how very few people -- nobody thought we were going to have more than a very low single-digit rate increases. I think I'm very pleased about the leadership in Maine, both in the administration, in the public commission and the staff, both the leadership, the commissions as well also the staff in the Public Commission. I'm very pleased about the leadership in New York and the administration in the Public Commission of the senior staff, staff and commissioners level.

就利率案件而言，我認為具體而言，您在 1.5 年前就擔心通貨膨脹，利率案件的潛在影響以及很少有人 - 沒有人認為我們會擁有更多比非常低的個位數增長率。我想我對緬因州的領導層非常滿意，無論是在行政部門、公共委員會或工作人員方面，無論是領導階層、委員會或公共委員會的工作人員。我對紐約的領導以及公共委員會高級職員、工作人員和專員級別的管理感到非常滿意。

Because as you can see right now that they have a vision that infrastructure is needed, but also you need to pay for the infrastructure. This is something that comes together and sometimes when the policy becomes, okay, you don't want to pay right now and you will pay, you don't know when, but just still one investments, it doesn't work, okay? So you have right now the right leadership in the States because that infrastructure is needed.

因為正如您現在所看到的，他們的願景是需要基礎設施，但您也需要為基礎設施付費。這是綜合在一起的事情，有時當政策變成，好吧，你現在不想付款，你會付款，你不知道什麼時候，但仍然只是一項投資，它不起作用，好嗎？因此，現在在美國擁有正確的領導力，因為需要基礎設施。

You want data centers, you need infrastructure. You want additional capacity, you need investments in the infrastructure. So I think the road map, especially in New York, of course, as well in Maine, it's clear for the years to come, is in the right direction to get those networks upgraded to the right level. And that's why we are very comfortable on the organic growth and the investments needed in those states to continue.

您需要資料中心，您需要基礎設施。您需要額外的容量，需要對基礎設施進行投資。因此，我認為路線圖，特別是在紐約，當然還有緬因州，很明顯，未來幾年的路線圖是朝著正確的方向，將這些網路升級到正確的水平。這就是為什麼我們對這些州持續的有機成長和所需投資感到非常滿意。

I think the last one you said about the several things going on in '24, we'll be more specific in our March presentation. But I think the key highlights, as I think we have been mentioned right now is we need to be either at or very close to the authorized ROEs. That is something that that's a legacy for many, many years. I think sometimes you are over earning, sometimes you have an explanation. But I think right now, with the work in rate cases, especially when you have New York, you have the Maine, you have the referred regulated assets, you have more than 80% of our rate base.

我認為您最後所說的關於 24 年發生的幾件事，我們將在 3 月的演講中更加具體。但我認為關鍵的亮點，正如我認為我們現在已經提到的那樣，我們需要達到或非常接近授權的 ROE。這是很多很多年的遺產。我覺得有時候你賺的太多了，有時候你有解釋。但我認為，現在，隨著利率案件的工作，特別是當你有紐約、緬因州、你有提到的受監管資產時，你就擁有了我們超過 80% 的利率基礎。

And with investments we're currently going to be doing in the years to come in New York, for example, that's going to be, those group of assets more than 90%. So Connecticut is going to become a very small part of our business. So I think when you focus on those ones, I think the ROEs achievement is a must. I think we are absolutely on track. If I move to the 2 projects that you mentioned, you mentioned Vineyard, but I would like to add NECEC is must to us to make those projects profitable.

例如，我們目前將在未來幾年在紐約進行的投資，這些資產將佔 90% 以上。因此，康乃狄克州將成為我們業務的一小部分。所以我認為當你關注這些時，我認為 ROE 的成就是必須的。我認為我們絕對走上了正軌。如果我轉向您提到的 2 個項目，您提到了 Vineyard，但我想補充一下，NECEC 對我們來說是必須使這些項目盈利的。

I think we're working on NECEC on the change of low cost at close, but you know, we have the right in the PPA. And I think in Vineyard, we just mentioned right now ITCs and finishing the work is our priority for the rest of the year. And I think in renewables, let's just say focus. For 2 years right now, we have been able to deliver the budget in renewables selling networks that's a must.

我認為我們正在 NECEC 上致力於改變低成本，但你知道，我們在 PPA 中擁有權利。我認為在 Vineyard，我們剛剛提到了 ITC，完成工作是我們今年剩餘時間的首要任務。我認為在再生能源方面，我們只說重點。兩年來，我們已經能夠交付再生能源銷售網路的預算，這是必須的。

I think predictability and delivery in the underlying earnings with no gains or anything like that is going to be our priority now for 2 years in a row. And I think we are delivering double digit in both years in the underlying growth. So that's a priority to continue delivering on our internal budgets.

我認為，在沒有收益或類似情況的情況下，基本收益的可預測性和交付將連續兩年成為我們的首要任務。我認為我們這兩年的基本成長都達到了兩位數。因此，這是繼續履行我們內部預算的首要任務。

So I think that the focus is that one, to focus. And I would like also to remind remember the other items we also mentioned, we're very proud of being a very green company. We're very proud of our ESG commitments. Even in times that seems not to be on top of the list, we believe there is no come back. That's why very proud about our diversity, inclusion parity, objectives being achieved and to continue with that to make sure that our team reflects a society where we were.

所以我認為重點就是集中。我還想提醒您記住我們也提到的其他項目，我們為成為一家非常環保的公司感到非常自豪。我們對我們的 ESG 承諾感到非常自豪。即使在這似乎不是最重要的時期，我們相信不會再回來了。這就是為什麼我們對我們的多元化、包容性平等、所實現的目標感到非常自豪，並繼續努力確保我們的團隊反映我們所處的社會。

And by the way, we're focused on shareholders. I think the risk aversion that you know we have. We do not dare to take difficult decisions. And in the same way that we presented rate cases that very few thoughts we were going to be successful. We also took the decision not to initiate some projects, that otherwise, we'll be here with a huge mess. And to avoid capital increases because of our mess, in our case, there was a capital increase because of a transaction, well, we have avoided that.

順便說一句，我們關注的是股東。我認為你知道我們有風險厭惡情緒。我們不敢做出困難的決定。就像我們提出的案例一樣，很少人認為我們會成功。我們也決定不啟動一些項目，否則，我們會陷入一片混亂。為了避免因為我們的混亂而增加資本，在我們的例子中，由於交易而增加了資本，好吧，我們已經避免了這種情況。

But I think we have avoided to be now here in front of you with a huge onetime loss that otherwise would have happened. So I think the team is taking difficult decision, but the right ones, not only for us, for us, for the shareholders, for the banks, for the lenders, for the bondholders, for the society, for the leadership in the state, and we're going to continue doing so.

但我認為我們已經避免了現在出現在你們面前的一次性巨大損失，否則就會發生這種情況。因此，我認為團隊正在做出艱難的決定，但這是正確的決定，不僅對我們，對我們，對股東，對銀行，對貸方，對債券持有人，對社會，對國家領導層，我們將繼續這樣做。

Excellent. Is there a specific range that you're thinking about those ITCs. Just to go back to Vineyard, the Vineyard question. And then separately, when you think about the long term that you're going to be providing next month, how many years forward are you thinking about rolling forward? And is there a potential to raise that dividend at last as part of the bigger long-term outlook or at least address the dividend?

出色的。您正在考慮這些 ITC 的具體範圍嗎？回到葡萄園，葡萄園問題。然後，當您考慮下個月將提供的長期計劃時，您會考慮向前推進多少年？作為更大的長期前景的一部分，最終是否有可能提高股息，或至少解決股息問題？

I think on the first one, I think we are comfortable. We have secured 30% of the ITCs. I think we're working right now on the opportunities we have on the IRA to seek some additional ITCs. That's why we need to finish the work. And in terms of dividends, I would like to say that the dividend we have maintained is very strong.

我認為對於第一個，我認為我們很舒服。我們已經獲得了 30% 的 ITC。我認為我們現在正在努力利用 IRA 上的機會來尋求一些額外的 ITC。這就是為什麼我們需要完成這項工作。在股息方面，我想說我們維持的股息非常強勁。

And when you see the underlying growth of our earnings, the complementation -- to have such a nice dividend to be complemented with such a nice growth in our earnings, I think that's the right story, okay? And especially if you have interest rates right now on the way down, as opposed to the way up, I think that should deliver in terms of value creation. So I think we'd like to stay there. But again, that's subject to the Board to take the decisions.

當你看到我們盈利的潛在增長、互補性——擁有如此好的股息與我們盈利的如此良好的增長相輔相成時，我認為這是正確的故事，好嗎？特別是如果你現​​在的利率正在下降，而不是上升，我認為這應該會帶來價值創造。所以我想我們想留在那裡。但同樣，這需要董事會做出決定。

Your next question comes from the line of Anthony Crowdell with Mizuho Securities.

你的下一個問題來自瑞穗證券的安東尼克勞德爾。

Just hopefully, a couple of cleanup questions. I'm just wondering if you're able to disclose what AFUDC rate you're assuming in 2024 for the NECEC line?

只是希望能解決幾個清理問題。我只是想知道您是否能夠透露您對 2024 年 NECEC 線路的 AFUDC 費率是多少？

Yes, we can disclose that. So that's at 8.5%, which again is a publicly filed document as well as part of the NECEC stipulation agreement, so that's a public document, but that is the rate that we're using for AFUDC.

是的，我們可以透露這一點。所以這是 8.5%，這又是一份公開提交的文件，也是 NECEC 規定協議的一部分，所以這是一份公開文件，但這就是我們用於 AFUDC 的費率。

Great. And then I appreciate the Slide 6, you gave a nice breakout of the jurisdictions and I know Connecticut is only 19%. So it's a smaller jurisdiction for you. But I think there's 2 very small rate cases going on in Connecticut right now. Staff had recently recommended maybe a rate decrease. Just curious if you could comment on just interactions with the Connecticut regulatory environment and also ability to maybe deploy capital from Connecticut into the other jurisdictions?

偉大的。然後我很欣賞幻燈片 6，您對管轄區進行了很好的細分，我知道康乃狄克州只有 19%。所以這對你來說是一個較小的司法管轄區。但我認為康乃狄克州目前正在發生兩起非常小的案件。工作人員最近建議可能降低費率。只是好奇您是否可以評論與康乃狄克州監管環境的互動以及將康乃狄克州的資本部署到其他司法管轄區的能力？

I think we have made it clear. Connecticut, it was very disappointing, the rate case. You know we are in litigation right now in appeal in different fronts. I think we're very happy with the leadership in the state, the governor instructing everybody to work together. I think even some of the legislature right now are actually requesting also everybody to work together. We've been saying so for a long time. .

我想我們已經說清楚了。康乃狄克州，利率案件非常令人失望。你知道我們現在正在不同方面進行訴訟和上訴。我認為我們對州的領導感到非常滿意，州長指示每個人共同努力。我認為現在甚至一些立法機關實際上也在要求每個人共同努力。我們已經這麼說了很久了。 。

And again, even if it's a small part of our business, we hear about that. That's why we are defending our employees, so we are defending our unions, we're defending our investment. And I think the only thing we can do here is to continue being on top of it. I think those -- that rate case that you mentioned the case, we believe we have presented a very strong case and I think we're going to argue that until the very end. So from that point of view, I think we just need to continue, as always, to be very professional, very transparent. This is not personal. We never make any comments about any person in particular, but we defend the results of the company, the investments because otherwise, what is in danger is reliability in the medium term of the company. So we've seen this many, many times in our experience in many other places where a similar approach was taken.

再說一遍，即使這只是我們業務的一小部分，我們也會聽到。這就是為什麼我們要保護我們的員工，我們要保護我們的工會，我們要保護我們的投資。我認為我們在這裡唯一能做的就是繼續保持領先。我認為，您提到的那個案例，我們相信我們已經提出了一個非常有力的案例，我認為我們將爭論到最後。因此，從這個角度來看，我認為我們只需要一如既往地保持非常專業、非常透明。這不是個人的。我們從不對任何人發表任何評論，但我們捍衛公司的績效和投資，因為否則，公司中期的可靠性就會受到威脅。因此，我們在許多其他採取類似方法的地方的經驗中已經多次看到這種情況。

So from that point of view, the only thing we can continue to put our case very legally and to request that people comply with law. And that's a fundamental key criteria when you do investments and when investors and banks and bondholders invest, which is compliance with law. And if law is going to be changed, which may be okay, that's why you have a stranded cost, and you have many ways to do that. But what is not acceptable is to change in the middle of rate cases or suddenly, what has been already the case and the way things have been done for many years in accordance with law. That's why we will continue to litigate as needed. But we think that the words recently by the governor requesting to work together and to have conversations even with the legislature as soon as 2 days ago. That seems to me the right direction because there is nothing to hide here, okay?

因此，從這個角度來看，我們唯一可以繼續以非常合法的方式處理我們的案件並要求人們遵守法律。當你進行投資以及投資者、銀行和債券持有人投資時，這是一個基本的關鍵標準，即遵守法律。如果法律要改變，這可能沒問題，這就是為什麼你有擱淺成本，而且你有很多方法可以做到這一點。但不能接受的是，在案件中途或突然改變已經發生的案件以及多年來依法行事的方式。這就是為什麼我們將根據需要繼續提起訴訟。但我們認為，州長最近的言論要求合作，甚至最快兩天前與立法機關進行對話。在我看來，這是正確的方向，因為這裡沒有什麼好隱藏的，好嗎？

And you see how supply rate increases are out of control. I think you see how decisions by legislature affects also the rates. And in our case, the UI rates were not increased for 7 years. So I think we have a very strong case that we can defend and we are doing so. And we are a very important employer in the state. We are doing a lot of economic development. And the most important thing here is to comply with law and to deliver what we have to do.

你會看到供給率的成長是如何失控的。我認為您已經看到立法機關的決定如何影響費率。在我們的案例中，失業保險費率已連續 7 年沒有增加。所以我認為我們有一個非常有力的理由可以辯護，而我們正在這樣做。我們是州內非常重要的雇主。我們正在做大量的經濟發展工作。這裡最重要的是遵守法律並履行我們必須做的事情。

Great. And just if I could squeeze one last one. I think Julien touched on it. I may have missed the response. Just when you provide a longer-term guidance range or an EPS growth rate on the call on -- in March, are you able to disclose now how far out you're going to go to? Is it '26, 2027 or you're not willing to state that right now.

偉大的。如果我能擠出最後一根就好了。我想朱利安也談過這一點。我可能錯過了回覆。當你在三月的電話會議上提供長期指引範圍或每股盈餘成長率時，你現在能透露你會走多遠嗎？是 2027 年 26 日還是您現在不願意說明這一點？

No. I think at least we will go to '25, what we're considering right now is whether we will also mention '26, okay? So that is what...

不，我想至少我們會到'25，我們現在考慮的是我們是否也會提到'26，好嗎？所以這就是...

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

你的下一個問題來自邁克爾·沙利文和沃爾夫的對話。

Just following up on how to think about the time line of the financial outlook at the Investor Day. Is it fair to think of this '24 guide as a clean base to guide long-term growth off of?

只是跟進如何在投資者日思考財務前景的時間線。將這份 24 世紀指南視為指導長期成長的乾淨基礎是否公平？

Yes. I think that we started July last year. I think we heard so many times that why to give guidance with including gains, et cetera, that back in July, we already decided that we were going with and without the gain. So that was the first time we communicated, also in October. And now as you can see, we continue that trend. So we want to be very simple year-to-year.

是的。我想我們是從去年七月開始的。我想我們已經多次聽到為什麼要提供包括收益在內的指導，等等，早在七月份，我們就已經決定我們要考慮或不考慮收益。那是我們第一次溝通，也是在十月。現在如您所見，我們繼續這一趨勢。所以我們希望每年都變得非常簡單。

And in this case, this year, we're not -- for that proposal of operating, we're not considering any gains. There was to be any gains because there was to be any transactions, so be it. But I think the guidance is without any gains. So I think the answer is yes. I think the guidance we're proposing right now, we started back in July is that way.

在這種情況下，今年，我們不會——對於該營運提議，我們不會考慮任何收益。因為有交易，所以才會有收益，就這樣吧。但我認為這種指導是沒有任何收穫的。所以我認為答案是肯定的。我認為我們現在提出的指導方針（我們從七月開始）就是這樣的。

Okay. Great. And then can you just comment on where FFO to debt finished for 2023 and what you target on that?

好的。偉大的。然後您能否評論一下 2023 年 FFO 債務完成情況以及您的目標是什麼？

Sorry, can you clarify, are you asking where the debt position ended? Is that what you asked?

抱歉，您能澄清一下嗎？您是在問債務部位在哪裡結束嗎？這是你問的嗎？

FFO to debt.

FFO 到債務。

Yes. So FFO to debt, obviously, this is a key priority for us from a financing point of view. Keep in mind, as we said, 2023 was quite a transition year for us with the closing of the rate cases, in particular, New York finalized in October. And ultimately, we saw the results from there. So from -- and in addition to that, we also have the NECEC project and the Vineyard Wind 1 project with high CapEx that we have that do not have cash flow yet. .

是的。因此，從融資的角度來看，從 FFO 到債務，顯然這是我們的首要任務。請記住，正如我們所說，隨著利率案件的結束，2023 年對我們來說是一個過渡的一年，特別是紐約於 10 月完成的案件。最終，我們看到了結果。除此之外，我們還有 NECEC 項目和 Vineyard Wind 1 項目，這些項目的資本支出很高，但還沒有現金流。 。

So from an FFO to debt from 2023, if you pro forma those adjustments, you're looking somewhere around 14%. However, keeping in mind these caveats that we have. So I think from there, we want to build from that point forward. I think we have had very successful rate cases that have been focused on cash, which will improve our FFO. And so really looking towards the next couple of years of improving those and getting the metrics back to the levels that we would expect and are showing the growth that we are anticipating here.

因此，從 2023 年開始，從 FFO 到債務，如果你預計這些調整，你會看到大約 14% 左右。但是，請記住我們的這些警告。所以我認為從那時起，我們希望從那時起繼續前進。我認為我們有非常成功的利率案例，這些案例一直專注於現金，這將改善我們的 FFO。因此，我們真的希望在未來幾年內改善這些指標，使指標回到我們預期的水平，並顯示出我們預期的成長。

Okay. Very helpful. And then one last quick one. I think someone asked, but I'm not sure I caught the answer. The O&M optimization in '24, can you quantify what that is? And whether you see potential to do even more beyond that?

好的。很有幫助。然後是最後一個快速的。我想有人問過，但我不確定我是否得到了答案。 24年的維運優化，你能量化一下是什麼嗎？您是否認為有潛力做更多的事情？

Yes. So for O&M, I think 2 comments to make there. One, as Pedro mentioned, for our -- reaching our authorized ROEs that embeds in it achieving certain efficiencies that we have. For example, we have AMI in New York that we're looking at as well as other technology advancements that we have, whether it be in our IT space or otherwise. So again, I think the key priority for us when we consider O&M is trying to be at a rate lower than inflation. So that's what we target for our O&M efficiencies and just looking at all avenues that we're able to do that.

是的。所以對於運維，我想有兩點評論。一，正如佩德羅所提到的，為了我們——達到我們授權的交戰規則，其中嵌入實現了我們所擁有的某些效率。例如，我們正在關注紐約的 AMI，以及我們擁有的其他技術進步，無論是在我們的 IT 領域還是其他領域。所以，我再次認為，當我們考慮營運和維護時，我們的首要任務是努力使利率低於通貨膨脹率。這就是我們的營運和維護效率目標，並且只是考慮我們能夠做到這一點的所有途徑。

On the renewables side, it's more based off of process and prioritization of tasks, for example, so looking at really doing O&M that provide a production uplift or an earnings uplift from that point of view, so keeping that priority. So I think that's really what we look at. I think we'll come back to you with more detail at our Investor Day in a month from now with more specificity around that and what we target. But these are some of the general themes that we're looking at, particularly in '24 and beyond.

例如，在再生能源方面，它更基於任務的流程和優先級，因此從這個角度來看，真正進行能夠提高產量或收益的營運和維護，因此保持優先順序。所以我認為這才是我們所關注的。我想我們會在一個月後的投資者日向您提供更多詳細信息，並更具體地介紹這一點和我們的目標。但這些是我們正在關注的一些一般主題，特別是 24 世紀及以後的主題。

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

下一個問題來自 Angie Storozynski 與 Seaport Research Partners 的對話。

So first, on the wind repowering, I understand that you're going to talk about it at length during the Analyst Day. But I'm just wondering, so you mentioned obviously attractive returns, but we're also hearing that older wind assets are starting to see some diminished profitability from a cash perspective because of higher OpEx and CapEx. And I'm just wondering if this plan, the repowering is driven by basically an attempt to retain the current earnings power of these assets or if there's a true cash benefit associated with that?

首先，關於風力發電，我知道您將在分析師日期間詳細討論它。但我只是想知道，所以你提到了明顯有吸引力的回報，但我們也聽說，由於營運支出和資本支出較高，從現金角度來看，較舊的風電資產的盈利能力開始下降。我只是想知道這個計劃，重新供電基本上是為了保留這些資產當前的盈利能力，或者是否有真正的現金利益與之相關？

The answer is yes to both. I think when you see the accounting path of assets in -- of renewable assets in the U.S. because of makers accelerated depreciation, ITC, there are many, many explanations. I think in the last part of the year, those earnings are negative. It's not that you lose value. It's just the way it is. So from an earnings point of view and cash flow point of view, the allays 100%, yes. That's one of the main reasons why repowering is very, very important, and we are lucky that we have now an own fleet that allow us to do such a material amount of repowering.

兩者的答案都是肯定的。我認為，當你看到美國可再生資產由於製造商加速折舊而導致的資產會計路徑時，ITC，有很多很多的解釋。我認為在今年下半年，這些收入是負數。這並不是說你失去了價值。事情就是這樣。因此，從獲利角度和現金流角度來看，100% 緩解，是的。這就是為什麼重新供電非常非常重要的主要原因之一，我們很幸運，我們現在擁有一支自己的艦隊，使我們能夠進行如此大量的重新供電。

Okay. But there's also this earnings benefit, right, associated with the sale of the tax credits and how that basically trickles into earnings. And I'm just wondering if -- again, that's the main driver of those repowering? Or is it that -- again, there's like a true cash or value creation benefit associated with those repowering?

好的。但也有這種收益收益，對吧，與稅收抵免的銷售以及它基本上如何流入收益有關。我只是想知道，這是否是那些重新啟動的主要動力？還是說，與這些重新供電相關的真正的現金或價值創造效益？

I think you have a financial reason and an industrial reason. I mean the industrial reason is we continue to have customers that they want to have extended PPAs. As you can see, they are renegotiating PPAs. And the feedback we have for most of the assets, we're going to consider repowering is that they would love to expand and have new PPAs, et cetera. So from that point of view, there is a need from the customer side and there is an opportunity for us to have new assets.

我認為你有財務原因和工業原因。我的意思是，工業原因是我們繼續有客戶希望延長購電協議。如您所見，他們正在重新談判購電協議。我們對大多數資產的回饋是，我們將考慮重新供電，他們願意擴張並擁有新的購電協議等。所以從這個角度來看，客戶方面有需求，我們有機會擁有新資產。

From a financial point of view, it's clear that when you have these type of assets after 15, 18 years, you have an issue in the P&L. And therefore, cash flow is different because you have already got the cash flow back because of other reasons. But I think when you have the opportunity to create a new asset and that asset you can invest from a CapEx point of view, much less than a new asset. You're going to have an increase on production. That probably is going to be 30% increase at least versus the old asset.

從財務角度來看，很明顯，當你在 15、18 年後擁有這些類型的資產時，你的損益表就會出現問題。因此，現金流是不同的，因為你已經因為其他原因收回了現金流。但我認為，當你有機會創建一種新資產時，你可以從資本支出的角度來投資該資產，這比新資產要少得多。你的產量將會增加。與舊資產相比，這可能至少會增加 30%。

And you can have an enhancement in O&M and PTCs for 100% of the production, not just from the incremental production seems to me that, that's a no-brainer, okay? So that's why the combination of all those things is why we need to go ahead with the repowering. Again, it's a very long period of time, and we're going to be very opportunistic. Think about when is the right moment from a cash flow point of view, from a P&L point of view, from an investments point of view, debt point of view, but the plan is there.

您可以增強 100% 生產的 O&M 和 PTC，而不僅僅是增量生產，在我看來，這是理所當然的，好嗎？因此，這就是為什麼所有這些因素結合起來就是我們需要繼續重新供電的原因。再說一次，這是一個很長的時期，我們將非常機會主義。從現金流的角度、從損益的角度、從投資的角度、債務的角度考慮什麼時候是合適的時機，但計劃就在那裡。

Okay. And then just moving on to offshore wind. So the Kitty Hawk and then we had these 2 updates from Eversource and Dominion about their offshore wind transactions. So we have some price points, I guess, for these assets. I mean, do you think that, that impacts the probability of the sale of your stake on Kitty Hawk, and how again, if there's like a viewpoint based on these data points that you have on offshore wind in the U.S.

好的。然後轉向離岸風電。因此，Kitty Hawk 和我們從 Eversource 和 Dominion 收到了有關其離岸風電交易的 2 條最新消息。所以我想，我們對這些資產有一些價格點。我的意思是，您認為這會影響您出售 Kitty Hawk 股份的可能性嗎？如果您對美國離岸風電的這些數據點有類似的觀點，那麼又會如何影響？

I think the good thing about those data points is that if you remember, many of you asked quite often, well, there is no body interested in offshore. And we told very often I'm sure there is not -- the long lease you had 2 years ago, 3 years ago, but the interest continues to be there. I think it's good to have people interested in offshore. I -- we do not know the details of all those other transactions. I think Dominion transaction, that's our regulated asset. So that's a different animal. And I think in the case of the Eversource based on public information, I think the acquirer is being guaranteed some type of return, okay? That's not our case.

我認為這些數據點的好處是，如果你還記得，你們中的許多人經常問，好吧，沒有人對離岸感興趣。我們常說，我確信沒有──兩年前、三年前的長租約，但利息仍然存在。我認為人們對離岸業務感興趣是件好事。我——我們不知道所有其他交易的細節。我認為 Dominion 交易是我們的受監管資產。所以這是一種不同的動物。我認為，就基於公開資訊的 Eversource 而言，我認為收購方得到了某種形式的回報保證，好嗎？那不是我們的情況。

I mean why speaking about the lease, okay? And the lease market, as you know, they were in an auction in California and very successfully in the middle of all the Ukraine, et cetera, et cetera. So that's why you're -- it's not really comparable. In the other cases, it's really assets that are being built right now, developed and is multibillion type of approach. I think the case is a lease. I think we will continue to seek opportunities to sell the lease to do a partnership in the lease as we do in many other assets.

我的意思是為什麼要談租賃，好嗎？租賃市場，如您所知，他們在加利福尼亞州進行了一次拍賣，並且在整個烏克蘭等地區非常成功。所以這就是為什麼你——它實際上沒有可比性。在其他情況下，它實際上是現在正在建造、開發的資產，並且是一種價值數十億美元的方法。我認為這個案例是租賃。我認為我們將繼續尋找機會出售租賃，以在租賃中建立合作夥伴關係，就像我們在許多其他資產中所做的那樣。

Last year, we sold several assets in the onshore renewable business. Some projects we didn't want to do and we thought it was better to sell them. So we never stopped. But I don't think to sell a lease is comparable to those deals. And again, this is not an asset that we have a CapEx deviation or we have a write-off or we have to do something, it's a different animal compared to those.

去年，我們出售了陸上再生能源業務的多項資產。有些項目我們不想做，我們認為賣掉它們更好。所以我們從未停止過。但我不認為出售租約與這些交易具有可比性。再說一次，這不是我們有資本支出偏差或我們有沖銷或我們必須做某事的資產，與這些相比，它是一種不同的動物。

Okay. And then lastly on NECEC. So if you could provide an update on the construction process and also how comfortable you feel spending the money given that NextEra continues to challenge the circuit breaker upgrade at Seabrook?

好的。最後是 NECEC。那麼，您是否可以提供施工流程的最新信息，以及考慮到 NextEra 繼續挑戰 Seabrook 的斷路器升級，您對花錢的感覺如何？

I will let Catherine to answer on the construction progress. I think our focus there is very simple. It's first, on the change of law, that's a priority for us this year to make sure that we get that finalized. And second on NextEra, seems to me that NextEra, there is a change of leadership. I think the way they behaved in Maine in my opinion, at the end is the right one. And I think you've seen some news there on other matters, things that were happening in Maine. So the Seabrook, I think we're working with them. I think we're very close to having a schedule on the breaker, the issue that you have -- they have to solve. And I'm sure they will get that done, okay? So -- but I think, Catherine, if you want to comment on the construction?

我將讓凱瑟琳回答施工進度。我認為我們的重點非常簡單。首先，關於法律的變更，這是我們今年的首要任務，以確保我們最終確定這一點。第二個是 NextEra，在我看來，NextEra 領導層發生了變化。我認為他們在緬因州的表現最終是正確的。我想你已經看到了一些關於緬因州發生的其他事情的新聞。所以 Seabrook，我認為我們正在與他們合作。我認為我們已經非常接近制定一個關於斷路器的時間表，這是他們必須解決的問題。我相信他們會完成這件事，好嗎？所以——但我想，凱瑟琳，你想對這建築發表評論嗎？

Yes, sure. Thanks, Pedro. So we're doing really well on construction on NECEC. We have 25% of our foundations have been set and 20% of our poles. We've already started stringing conductor actually on the corridor. We've also been doing substantial construction laying the foundation for our HVDC converter station and for the stack comp. And we've really been able to benefit from the power of Iberdrola in the supply chain by being able to negotiate really good contracts for most of our vendors, including with Hitachi for the STATCOM and HVDC converter as well as a lot of our civil engineering works and the other work that needs to be done on the site. So we're really pleased with the progress right now, and we continue full speed ahead.

是的，當然。謝謝，佩德羅。所以我們在 NECEC 的建設上做得非常好。我們已完成 25% 的地基和 20% 的桿子。我們實際上已經開始在走廊上安排指揮了。我們也進行了大量的建設工作，為我們的 HVDC 換流站和堆疊組件奠定了基礎。我們確實能夠從 Iberdrola 在供應鏈中的力量中受益，能夠為我們的大多數供應商談判非常好的合同，包括與 Hitachi 的 STATCOM 和 HVDC 轉換器以及我們的許多土木工程作品以及需要在現場完成的其他工作。因此，我們對目前的進展感到非常滿意，並將繼續全速前進。

I will now turn the call back over to Pedro Azagra. Please go ahead.

我現在將把電話轉回給佩德羅·阿扎格拉。請繼續。

Okay. So thank you to everybody. A pleasure to have spoken with all of you. I think we're going to follow up on one-on-ones now with each of you and looking forward to seeing you in the upcoming days and weeks. Thank you very much.

好的。所以謝謝大家。很高興與大家交談。我想我們現在將與你們每個人進行一對一的跟進，並期待在接下來的幾天和幾週內見到你們。非常感謝。

Ladies and gentlemen, that concludes today's call. Thank you all for joining, and you may now disconnect your lines.

女士們、先生們，今天的電話會議到此結束。感謝大家的加入，現在您可以斷開線路了。