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 年第四季及全年財報電話會議。現在，我想將電話會議交給投資者關係副總裁 Charlotte Ancel。請發言。

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.

謝謝埃里克，大家早安！感謝您今天加入我們，共同討論 Avangrid 2023 年第四季及全年業績。今天出席電話會議的嘉賓包括我們的執行長佩德羅·阿扎格拉 (Pedro Azagra) 和財務長兼財務總監賈斯汀·拉加斯 (Justin Lagasse)。 Avangrid Networks 總裁兼首席執行官凱瑟琳·斯坦皮恩 (Catherine Stempien) 以及 Avangrid Renewables 總裁兼首席執行官何塞·安東尼奧·米蘭達 (Jose Antonio Miranda) 也將參加今天的問答環節。其他高階主管團隊成員也將出席今天的電話會議，並可能受邀參與問答環節。

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.

如果您尚未收到我們今天電話會議的新聞稿或演示文稿，請訪問我們的網站 avangrid.com 獲取。在今天的電話會議中，我們將根據目前的預期和假設，根據美國1995年《私人證券訴訟改革法》安全港條款做出多項前瞻性陳述，這些陳述可能受到風險和不確定性的影響。

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，或由於 Avangrid 盈利新聞稿中討論的其他因素、本次電話會議中隨附演示文稿的「風險因素」部分或我們向美國證券交易委員會 (SEC) 提交的最新報告和文件中所作的評論（均可在我們的網站上查閱），導致我們無法準確預測未來結果。

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義務。今天的簡報中還包含對非公認會計準則 (non-GAAP) 財務指標的引用。請您參閱今天簡報隨附的幻燈片中的信息，以獲取非公認會計準則 (non-GAAP) 財務指標與最接近的公認會計準則 (GAAP) 財務指標的定義資訊及對帳表。現在，我將電話轉給佩德羅。

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。我很高興與大家分享公司2023年第四季和全年的業績，這反映了我們致力於為股東、客戶和社區創造永續價值的堅定承諾。在整個2023年，Avangrid在美國清潔能源轉型的前沿項目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始終堅定不移。

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.

讓我們從第4張投影片開始。 2023年，儘管面臨挑戰，我們仍然實現了財務和營運目標。我們的每股盈餘達到2.03美元，調整後每股盈餘達到2.09美元，高於我們的預期區間。與去年同期相比，我們的調整後收益成長了19%，這不包括2022年22個離岸風電項目收益中的1.81億美元和《通膨削減法案》預付稅優惠中的3,700萬美元。我們也兌現了股息承諾，2023年每股股息1.76美元。

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.

翻到第5張投影片。 2023年是轉型之年，將為公司的未來奠定基礎。我們執行了核心業務，消除了遺留問題和不確定性。首先，儘管通膨環境創近代歷史新高，我們仍獲得了90億美元投資的批准，其中包括紐約州和緬因州的多年期利率方案，這使得我們能夠進行超過70億美元的受監管投資，並額外獲得23億美元的增量投資，用於紐約公共委員會授權的《氣候領導力與社區保護法案》（CLCPA第二階段）。

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 年期費率方案於 10 月 12 日獲得公共服務委員會的一致批准。新的費率方案將在 2023 年第四季產生 1.36 億美元的正稅後影響，即每股 0.35 美元。這其中包括 6,600 萬美元的正補償影響，這使公司處於與 5 月 1 日生效的聯合提案和解方案相同的境地，以及 7000 萬美元用於緩解無法收回的款項。

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方案的批准。緬因州公用事業委員會批准了超過3.8億美元的投資，用於提高安全性、可靠性和彈性。 5月份，關於政府控制權的公投也取得了積極成果，反映出該州的治理格局有所改善。選民以70%的投票率否決了緬因州部分公用事業的國有化提案。約40萬人參加了投票，98%的緬因州城鎮否決了這項提案。

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步實現。 2023年，我們改善了大部分客戶服務指標，在31項指標中，有25項達到了這個水準。我們也達成了自2019年以來最佳的可靠性表現，超額完成了8項監理目標中的7項。在再生能源領域，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減損損失。這使我們能夠透過這些租賃保留未來的獲利機會。我們退出這些項目的稅後成本僅為2900萬美元，而我們的同行則高達數十億美元，並且還在持續增加。

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.

我們也正在嚴格執行陸上再生能源選擇性獲利成長的計劃，2023年裝置容量將超過300兆瓦，今年已獲得728兆瓦的新最終投資決定。我們重新談判了三份總計470兆瓦的購電協議（PPA），提高了價格，並避免了超過3000萬美元的罰款。此外，我們還有998兆瓦的新項目正在建設中，所有項目都已簽署購電協議（PPA）。值得注意的是，其中約700兆瓦的項目將利用陸上風電和太陽能等清潔能源為資料中心提供支援。今年，我們也宣布了未來幾年對現有投資組合中超過4,600兆瓦的發電量進行改造的計劃，這將體現在我們長期的展望更新中。

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風機。此外，我們在2023年完成了美國首筆12億美元的稅收股權融資，這項具有里程碑意義的交易的首筆資金已經發放。我們也做出了策略決策，由於我們無法在2023年12月31日之前獲得最終監管部門的批准，我們將暫停與PNM Resources的合併。由於這項決定，我們先前宣布的2024年股權發行計畫也已取消。

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.

在合併待決期間，我們已獲得超過90億美元的額外有機投資，超過了我們在2022年資本市場日宣布的投資金額。這主要包括發電廠改造、紐約和緬因州的增量受監管投資以及CLCPA等輸電項目。

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，我們透過發展 Avangrid 團隊，不斷在網路安全領域取得成功。無論我們的安全如何，Avangrid 在安全評分卡（一家網路評級機構，負責評估超過 25,000 家公司的威脅、漏洞和風險緩解措施）中獲得了 97 分（滿分 100 分）。這一分數高於網路和應用安全領域的行業平均。

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顯著進展，包括實現了女性主管比例超過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.

翻到第6張投影片，我們2023年的費率案件以及另一項監管程序確保了90億美元的新資本支出。我們已就紐約公司的費率案件獲得最終裁決，其中包括超過60億美元的投資。此外，我們也獲得授權，在紐約CLCPA二期計畫中投資超過20億美元。這些是紐約州實現其氣候行動目標所需的關鍵輸電升級。此外，緬因州公共事業委員會批准了超過約4億美元的投資，用於提高安全性、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.

這些多年期電價計劃提供了可預測的長期有機成長。請移至第7張投影片。我們正在執行關於陸上再生能源業務成長機會和選擇性投資的策略計劃。過去一年，我們已投產311兆瓦，營運容量從去年的8.3吉瓦提升至目前的8.6吉瓦。此外，目前共有990兆瓦的在建項目，其中包括472兆瓦的重新談判購電協議和526兆瓦的2023年新簽署的購電協議。

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 再生能源與科技公司之間日益增長的合作夥伴關係的一部分，這其中包括近 700 兆瓦的電力用於支援資料中心。現在翻到投影片 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，在總體排名中排名第 12 位。 Just 100 的評估是基於當今定義公正商業行為最重要的問題，包括支付公平工資、創造就業機會以及支持員工保留和培訓。我們非常榮幸能夠連續第四年入選這項享有盛譽的榜單，這一里程碑也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，在美國國家公用事業委員會 (National Public Utilities Council) 2023 年脫碳報告中，Avangrid 名列全美前兩名公用事業公司。該報告分析了美國最大的投資者所有權公用事業公司的脫碳努力。 Avangrid 在燃料結構、碳排放總量、客戶碳排放和低碳投資方面均獲得了最高分，較 2022 年的排名有所提升。

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，中央緬因電力公司被「最佳公司集團」評為緬因州最佳工作場所之一。中央緬因電力公司在緬因州擁有超過1100個項目，團隊孜孜不倦地工作，確保我們的客戶每天都能獲得安全、可靠和清潔的能源，正如我們在我們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，我們所做的一切都體現了我們引領清潔能源轉型的願景，並堅定地致力於永續發展、社區治理和員工。現在，我將把工作交給賈斯汀，讓他回顧業績並討論未來展望。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。接下來是投影片9上的獲利表現。 2023年第四季，我們的每股盈餘為1.03美元，而2022年第四季為0.38美元。調整後每股收益為0.97美元，而2022年第四季為0.39美元。網路業務的獲利為0.94美元，季增0.53美元。主要驅動因素包括0.22美元的費率調整，這主要是由於我們在紐約實施了新的費率計劃。這包括了2023年5月1日的補償性調整。

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，壞帳損失為0.19美元，這得益於我們成功獲得新的監管處理，將壞帳遞延至壞帳準備金中，以匹配計入壞帳準備金的金額。隨著NECEC計畫於2023年8月重啟建設，AFUDC的收益較上季增加了0.04美元。此外，我們實施投資計畫和營運業務的成本（包括維運成本和利息成本）較上季有所增加，但這些成本與我們對本季的預期一致。

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0.09美元，主要原因是優化了稅收抵免，這與我們先前分享的本季預測一致。 2023年第四季，再生能源部門的利潤為-0.02美元，季減0.23美元。我們的熱電營運和資產管理收益增加了0.07美元，這反映了太平洋西北地區寒冷天氣和能源短缺導致的供需利差環比擴大。風能和太陽能營運績效（包括定價、生產和稅收優惠的影響）為-0.07美元，這實際上是由於風力發電量下降和商業價格下降造成的。同樣，稅收抵免和新項目投入運營也部分彌補了這一損失。

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.

本季我們的風力資源較低，導致淨容量係數較低。然而，需要注意的是，當電價高、氣價低時，熱電和資產管理業務能夠捕捉到這一價值。當天氣等事件導致需求旺盛時，風力資源較低，我們的熱電和資產管理業務就能把握這個機會。由於優化了運維、成本節約和效率，運維成本為正0.01美元，但新資產的折舊抵消了這一影響。稅收主要反映了本季與2022年相比，由於州稅率調整提高而有所減少，而這又被州企業統一稅調整所抵消。

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.

請翻到第 10 張投影片，了解我們的融資、流動性、股利和信用評級的最新情況。 2023 年，我們實現了融資多元化，以支持業務成長的投資。在再生能源領域，我們簽署了一項價值 12 億美元的 Vineyard Wind 稅收股權交易，以將專案投資稅收抵免 (ITC) 和加速折舊貨幣化。此外，我們還簽署了一項稅收抵免轉移協議，將現有風電資產中高達 1 億美元的稅收抵免貨幣化，而非透過稅收股權融資結構。這項稅收可轉移交易對我們來說非常成功，我們期待在 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.

對於公用事業，我們發行了13億美元的綠色債券，並在公用事業子公司發行了1.15億美元的票據。此外，我們也與伊比利亞電力公司（Iberdrola）合作發行了8億美元的10年綠色定期貸款。我們的綠色融資彰顯了我們對長期穩定性和韌性的策略承諾。現金和流動性是我們關注的重點，這得益於我們持續的營運現金流和成功的利率基準。截至2023年底，我們擁有可覆蓋15個月的30億美元流動性。保持穩健的信用評級是我們的關鍵目標。在營運集團層面，我們所有評等的展望均為穩定。基於2023年主要利率案例的成功結果，以及我們在再生能源業務方面持續的紀律性和選擇性成長，我們預計2024年信用指標將保持穩定，無需發行股票。

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。我們的目標是派息率達65%至75%。正如Pedro所提到的，我們兌現了股息承諾，2023年每股派息1.76美元，董事會最近宣布季度股息為每股0.44美元，將於2024年4月1日支付。現在進入下一張投影片。我們在此介紹2024年每股盈餘和調整後每股盈餘的預期區間，分別為2.17美元至2.32美元。以調整後每股盈餘計算，我們對2024年預期的中位數比2023年成長8%。我們將繼續致力於實現這些目標，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.

我們對2024年的展望涵蓋了我們電價計畫帶來的增量收入，主要集中在緬因州和紐約州。我們的目標是使股權比率和淨資產收益率接近目前授權的水平。此外，我們還將從2023年投入營運的311兆瓦風電和太陽能專案（包括相關的發電量控制協議 (PTC)）中獲得額外發電量。對於我們其餘的風電項目，我們假設其風電容量係數為正常值。此外，我們的2024年展望也涵蓋了基於火力發電營運和資產管理歷史平均值的收益。請記住，正如我之前所述，火力發電營運和資產管理能夠獲取價值，而風電發電量較低，這實際上可以作為補充我們專案群的自然對沖。

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，我們獲得了優惠的監管待遇，允許我們遞延準備金餘額，從而消除了壞帳帶來的收益風險。具體來說，在紐約，因此，我們的預測中包含了這個假設。我們的NECEC輸電項目在建期間也有望為AFUDC帶來額外收益，考慮到這一點，我們預計2024年將額外支出超過6億美元的資本支出。

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.

我們也預期營運和維護成本將有所最佳化，折舊和利息成本也將上升。最後，我們假設2024年不會發行股票，也不會像之前承諾的那樣，從可再生合作夥伴關係或資產剝離中獲得額外收益。我們對2024年的展望假設我們維持目前每股1.76美元的年度股息，但需經董事會批准。

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.

影響我們2024年業績的機會和風險通常包括再生能源的生產和定價。我們的費率案例和其他監管措施、風暴和天氣相關事件、熱力和資產管理績效、利息和業務成本。正如我們之前提到的，考慮到2023年許多不確定因素已經消除，我們非常專注於在2024年實現業績。

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

感謝您今天收聽我們的財務更新。現在我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.

謝謝賈斯汀。我們翻到第12頁，現在我想先稍微思考一下2024年，好嗎？今年我們的重點是什麼？首先，我們將專注於持續取得成果，在核心獲利和核心業務上展現強勁的財務表現。其次，我們將履行多年期費率計畫中的承諾，這些承諾推動了我們在2023年取得成功，包括實現賈斯汀提到的淨資產收益率。

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，我們將繼續選擇性地、獲利性地實現陸上成長。接下來，我們將轉向重大專案。我們將繼續穩步推進Vineyard Wind 1和NECEC的建設。我們將繼續關注資產負債表，以確保公司的財務健康和長期穩定，並努力完成康乃狄克州的現有專案。

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，還要感謝整個 Iberdrola 集團，沒有他們我們就不會在這裡，他們成功地幫助我們完成了今年能夠實現的許多事情。

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.

我們期待繼續履行承諾，專注於資產負債表，並在2024年取得成果。我們很高興地宣布，Avangrid將於3月21日（星期四）透過網路直播進行長期展望更新。屆時，執行團隊成員將介紹我們的多年策略計畫和財務展望。現在，我將把電話轉回給接線員，以便您進一步提問。

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

（操作員指示）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?

讓我想想，我想知道，您能否談談您對資產出售的看法？您之前提到過這種融資方式，但我認為，進入2024年，融資前景顯然已經發生了很大變化。那麼您在資產出售方面會採取什麼樣的策略或機會主義策略呢？

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合作關係。我的意思是，自2001年以來，我們一直在Iberdrola集團層級持續不斷地這樣做。您可以看到，過去兩年我們完成了多少合作和資產剝離。就我們而言，如果我們有超越3月份宣布的長期發展目標的進一步成長機會——在3月份的長期報告中——我們將繼續尋找合作夥伴關係，以稀釋我們的財務風險，並能夠做更多的事情。

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.

所以這並非不可能，但我們希望專注於2024年的預算和我們之前提供的指引，不考慮任何收益或任何資產剝離。這就是為什麼我認為我們應該回歸到我們一直以來公佈指引的方式，即專注於核心業務，不考慮收益。但我們將繼續分析合作關係，繼續分析在適當的價格和時機進行資產剝離的機會，即使從策略角度來看，我們認為這是我們應該做的。所以這也不會阻止我們繼續採用這種做法。

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。明白了。這很有道理，也很有幫助。也許我也可以問一個類似的問題，只是現在回顧一下PNM，你們過去一直積極收購。展望未來，你們對併購有什麼看法？未來是否有興趣繼續考慮併購機會？

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，正如我們多年來對伊比德羅拉所做的那樣，在周期的某些時刻，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，我認為這筆90億美元的投資比我們一年半前告訴你的要多，這已經很多了，對吧？這相當於幾家市值40億美元的股票公司收購案的兩倍。所以從這個角度來看，當你已經有了70億美元的投資時，現在又多了90億美元。在我看來，我們應該專注於有機成長。

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，我認為世界許多地方，包括美國的許多地方，都不會有太大的成長。我認為，到2023年，在能源轉型方面，它們還有巨大的機會。所以我們還有8年的時間可以從中受益。在我看來，如果未來3到5到6年，我們可以獲得數十億美元的投資，而這些投資在一年半前我們還沒有考慮過，那麼我們應該把重點放在這上面，好嗎？所以，讓我們先把這方面做好，然後再去尋找其他機會。

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.

你們有些人問到一些州的消費成長等等，大家都知道，我們開展業務的州絕對需要升級基礎設施。所以消費是其次的。消費可能是10年後、15年後的問題。但現在需要升級這些網絡，這就是為什麼紐約和緬因州需要基礎設施的原因。在我看來，再加上電力改造，我認為在未來幾年裡，這些需求將是巨大的，令人難以置信。

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，我只是想跟進新聞稿中的幾個項目以及您的評論。首先是關於短期的。您如何看待2024年的一些項目，特別是Vineyard Wind項目，特別是投資稅收抵免（ITC），或大概是2024年反映的一些投資稅收抵免。您能否評論一下2023年年末的利率基數比最初的指導高出6億美元？這似乎是在紐約州和緬因州之間分配的。您能否就這些因素與2024年的關係發表一些評論？最後，說到2024年的正面驅動力，您認為運維（O&M）佔多少比例？

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，但我還是會盡力回答這個問題。就葡萄園風電1號項目而言，我認為——想想葡萄園風電1號項目，我們在過去12個月裡學到的是，我們有時會關注具體的截止日期，但這些截止日期其實並不那麼重要。在做這些大型專案時，NECEC就是另一個例子。如果你打算在當年11月或隔年2月完成專案交付，那麼這完全是相關的。

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.

重要的是完成專案。我認為，在葡萄園風電1號項目，截至今天，我們已經安裝了62台渦輪機，這已經很不錯了，其中5台目前已全面投入運行，總功率達62兆瓦。所以，今天所取得的成果也相當可觀。你們會看到——你們可能已經在馬薩諸塞州州長的新聞稿中看到了——他對我們目前項目進展感到非常自豪。

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.

我記得我們已經安裝了48到47個單樁。現在，我們正按計畫安裝更多過渡件。我認為我們擁有合適的合同，可以完成所有必要的部件，包括容器、基礎、單樁、過渡件以及渦輪葉片。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，無論是在今年11月或明年2月完成都無關緊要。重要的是完成。正如您所說，投資、成本和成本（ITC）非常重要。這就是我們目前正在努力確定最終ITC數量的關鍵。一旦我們完成這項工作，我們將盡快與您聯繫。

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.

就稅率案件而言，我認為具體來說，一年半前您就擔心過，這是正確的；一年前，我們擔心通貨膨脹，擔心稅率案件的潛在影響，而且幾乎沒有人——沒有人認為我們的稅率會超過一個非常低的個位數增長。我對緬因州的領導階層感到非常滿意，包括行政部門、公共委員會和工作人員，包括領導階層、委員會以及公共委員會的工作人員。我對紐約州的領導層以及公共委員會的行政部門（包括高級職員、工作人員和委員）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.

因為正如你現在所看到的，他們有一個願景，那就是基礎設施是必要的，但你也需要為基礎設施付費。這是一個需要共同努力的問題。有時候，政策變成了，好吧，你現在不想付錢，但你最終還是會付錢，你不知道什麼時候會付，但仍然只是一項投資，這是行不通的，明白嗎？所以，現在美國有正確的領導，因為這些基礎建設是必要的。

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.

想要資料中心，就需要基礎設施。想要額外的容量，就需要對基礎設施進行投資。所以我認為，尤其是在紐約州，以及緬因州，未來幾年的路線圖方向顯然是正確的，能夠將這些網路升級到合適的水平。正因為如此，我們對這些州的有機成長和持續所需的投資感到非常有信心。

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.

我想您上次提到的關於2024年發生的幾件事，我們會在3月的報告中更具體地說明。但我認為關鍵的亮點，正如我們剛才提到的，是我們需要達到或非常接近授權的淨資產收益率。這是多年來遺留下來的問題。我認為有時你的利潤過高，有時你會有理由。但我認為目前，就利率案例而言，尤其是在紐約、緬因州，以及那些被提及的受監管資產方面，我們的利率基數已經超過80%。

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.

以我們目前在紐約未來幾年的投資為例，這類資產將占我們業務的90%以上。因此，康乃狄克州在我們的業務中所佔比例將非常小。所以我認為，當你專注於這些專案時，ROE 的實現至關重要。我認為我們絕對走在正軌上。如果我轉到您提到的兩個項目，您提到了 Vineyard，但我想補充一點，NECEC 對我們來說是確保這些項目盈利的必要條件。

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.

我認為我們正在與NECEC合作，在交易結束時實現低成本轉型，但您知道，我們在購電協議（PPA）中擁有權利。我認為在Vineyard計畫上，我們剛才提到了投資稅收抵免（ITC），完成這項工作是我們今年剩餘時間的首要任務。我認為在再生能源領域，我們只能說是重點。兩年來，我們一直能夠完成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，連續兩年，在沒有收益或類似情況的情況下，實現基本盈利的可預測性和交付量將成為我們的首要任務。而且我認為我們這兩年的基本成長都達到了兩位數。因此，繼續完成我們的內部預算是我們的首要任務。

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.

所以我認為重點就在於此，專注。我還想提醒大家，我們之前提到的其他事項，我們非常自豪能夠成為一家非常環保的公司。我們對我們的ESG承諾也感到非常自豪。即使在ESG承諾似乎不再是首要任務的時候，我們也相信它不會回頭。正因如此，我們對我們的多元化、包容性、平等以及正在實現的目標感到非常自豪，並將繼續保持這種自豪，以確保我們的團隊能夠反映我們曾經所在的社會。

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，我們非常重視股東利益。我想，你知道我們有規避風險。我們不敢做艱難的決定。就像我們提出那些很少人認為我們會成功的案例。我們也決定不啟動一些項目，否則，我們就會陷入巨大的困境。為了避免因為困境而增加資本，例如我們的情況，因為一筆交易而增加了資本，我們避免了這種情況。

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，我們避免了現在擺在你們面前的，否則就會發生的巨大一次性損失。所以我認為團隊正在做出艱難的決定，但這些決定是正確的，不僅對我們自己，對我們自己，對股東、對銀行、對貸款方、對債券持有人、對社會、對州領導層，都是正確的。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?

非常好。您考慮的這些投資稅收抵免（ITC）有一個特定的範圍嗎？回到Vineyard的問題。另外，當您考慮下個月要提供的長期收益時，您考慮的是未來多少年？作為更長遠的長期規劃的一部分，是否有可能最終提高股息，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，就第一個問題而言，我們感到很安心。我們已經獲得了30%的ITC。我認為我們目前正在努力利用IRA（個人退休帳戶）的機會，爭取獲得一些額外的ITC。這就是為什麼我們需要完成這項工作。至於股息，我想說，我們一直保持著非常強勁的股息。

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，以及如此豐厚的股息與如此可觀的盈利增長之間的互補性時，我認為這是正確的故事，對吧？尤其是如果現在利率處於下降趨勢，而不是上升趨勢，我認為這應該能夠創造價值。所以我認為我們希望保持這種狀態。但同樣，這取決於董事會的決定。

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

您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?

希望以上資訊能幫助大家理清思緒。我想知道您能否透露一下，您假設 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，我們可以披露。也就是說，利率是 8.5%，這又是一份公開提交的文件，也是 NECEC 協議的一部分，所以這是一份公開文件，但這也是我們為 AFUDC 使用的利率。

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?

太好了。我很欣賞幻燈片6，您對各個司法管轄區的劃分很清晰，我知道康乃狄克州只佔19%。所以對您來說，這是一個較小的司法管轄區。但我認為康乃狄克州目前有兩個非常小的利率案例。工作人員最近建議降低利率。我只是好奇，您能否評論一下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. .

我想我們已經表達清楚了。康乃狄克州的利率案例非常令人失望。你知道，我們目前正在不同方面進行上訴訴訟。我認為我們對州領導層非常滿意，州長指示大家共同努力。我認為現在甚至一些立法機構實際上也在要求大家共同努力。我們已經這麼說很久了。

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.

再說一次，即使這只是我們業務的一小部分，我們也聽說過。這就是為什麼我們要捍衛我們的員工，捍衛我們的工會，捍衛我們的投資。我認為我們唯一能做的就是繼續保持領先。我認為，您提到的利率案，我們認為我們已經提出了非常有力的論據，我認為我們會堅持到底。所以從這個角度來看，我認為我們只需要一如既往地保持專業和透明。這不是針對個人的。我們從不針對任何特定的人發表任何評論，但我們捍衛公司的績效和投資，因為否則，公司的中期可靠性就會受到威脅。因此，我們在許多其他採取類似做法的地方，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，我們唯一能做的就是繼續以非常合法的方式提出我們的訴求，並要求人們遵守法律。這是投資、投資者、銀行和債券持有人投資時的一個基本關鍵標準，那就是遵守法律。如果法律要修改，這或許可以接受，這就是為什麼會有擱淺成本，而且有很多方法可以做到這一點。但不可接受的是在利率案件審理過程中突然改變既定的規則以及多年來依法行事的方式。這就是為什麼我們會根據需要繼續提起訴訟。但我們認為，州長最近要求合作，甚至在兩天前就與立法機構進行對話。在我看來，這是正確的方向，因為這沒什麼好隱瞞的，懂嗎？

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.

你可以看到，供給率的上漲已經失控了。我想你也看到了立法機構的決定如何影響失業保險費率。就我們而言，失業保險費率已經七年沒有漲了。所以我認為我們有充分的理由去捍衛它，而我們正在這樣做。我們是本州非常重要的雇主。我們正在進行大量的經濟發展。最重要的是遵守法律，履行我們的職責。

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.

太好了。我還能再問最後一個問題嗎？我記得朱利安有提到。我可能沒注意到他的回覆。您在三月的電話會議上提供了長期指引範圍或每股盈餘成長率，現在能透露一下具體期限嗎？是2026年還是2027年？還是您現在不願意透露？

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。我想至少我們會提到25年，我們現在考慮的是是否也提到26年，好嗎？所以…

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

您的下一個問題來自沃爾夫的邁克爾·沙利文。

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?

只是想跟進一下投資者日如何思考財務前景的時間線。是否可以將這份24年指南視為指導長期成長的清晰基礎？

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。我記得我們去年7月就開始這麼做了。我們聽過很多次，為什麼要在財報指引中包含收益等等，所以早在7月份，我們就已經決定要包含收益，也要不包含收益。那是我們第一次溝通，也是在10月。現在，正如你所看到的，我們延續了這種趨勢。所以，我們希望每年都保持非常簡潔的風格。

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.

就今年的情況而言，我們沒有——就那份營運提案而言，我們沒有考慮任何收益。本來應該要有收益，因為一定會有交易，所以就這樣吧。但我認為指引裡沒有收益。所以我認為答案是肯定的。我認為我們現在提出的指引，也就是我們從7月開始提出的指引，就是那樣的。

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

好的。太好了。那麼，您能否評論一下2023年FFO與債務比率的最終結果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，您能解釋一下嗎？您問的是債務狀況的結束時間嗎？您問的是這個嗎？

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。所以，從融資角度來看，FFO 到債務的轉換顯然是我們的首要任務。請記住，正如我們所說，2023 年對我們來說是一個相當過渡的一年，利率案件的結案，尤其是紐約的案件，於 10 月最終敲定。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，這些項目資本支出較高，但尚未產生現金流。

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年起，從營運現金流（FFO）到債務，如果進行形式調整，預計會達到14%左右。不過，請記住我們提出的這些限制條件。因此，我認為我們希望以此為起點，繼續前進。我認為，我們有一些非常成功的利率案例，這些案例都專注於現金，這將改善我們的FFO。因此，我們真正期待的是在未來幾年內改善這些指標，使這些指標回到我們預期的水平，並展現出我們預期的成長。

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。非常有幫助。最後再問一個簡短的問題。我想有人問過，但我不確定我是否聽懂了。 2024年的維運優化，您能量化一下嗎？您是否認為還有更多改進的潛力？

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。關於維運，我想有兩點需要說明。第一，正如Pedro所提到的，為了達到我們授權的ROE，我們必須實現我們現有的效率。例如，我們正在考慮紐約的AMI，以及我們現有的其他技術進步，無論是在IT領域或其他領域。所以，我認為我們在考慮維運時，首要任務是努力使維運成本低於通貨膨脹率。這就是我們提高維運效率的目標，我們正在研究所有能夠實現這一目標的途徑。

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.

在再生能源方面，我們更基於流程和任務優先級，例如，從這個角度來看，我們著眼於真正能夠提升產量或盈利的營運和維護工作，從而保持這一優先級。我認為這才是我們真正關注的。我想，我們會在一個月後的投資者日上與您更詳細地討論這個問題以及我們的目標。但這些只是我們正在關注的一些整體主題，尤其是在2024年及以後。

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

下一個問題來自 Seaport Research Partners 的 Angie Storozynski。

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，關於風電改造，我知道您將在分析師日期間詳細討論這個問題。但我只是想知道，您提到了顯然很有吸引力的回報，但我們也聽說，由於營運支出和資本支出增加，老舊風電資產的現金盈利能力開始下降。我想知道，這項改造計劃，本質上是為了保持這些資產目前的獲利能力，還是為了獲得真正的現金收益？

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.

答案都是肯定的。我認為，當你看到美國再生能源資產的會計路徑——由於製造商加速折舊（ITC）——時，有很多很多解釋。我認為在去年下半年，這些收益是負的。這並不是說它們貶值了，而是情況就是這樣。所以從收益和現金流的角度來看，是的，100% 的減免。這就是為什麼更新發電非常重要的主要原因之一，我們很幸運，現在我們擁有自己的車隊，可以進行如此大規模的更新發電。

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。但是，出售稅收抵免也會帶來收益收益，這基本上會逐漸轉化為收益。我只是想知道，這是否是這些改造專案的主要動力？或者說，這些改造項目真的會帶來現金流或價值創造收益嗎？

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.

我認為你這麼做既有經濟原因，也有產業原因。我的意思是，產業原因是我們不斷有一些客戶希望延長購電協議。如你所見，他們正在重新談判購電協議。對於我們即將考慮進行改造的大多數資產，我們收到的回饋是，他們希望擴大並簽訂新的購電協議等等。所以從這個角度來看，客戶方面有需求，我們也有機會獲得新的資產。

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，當你擁有這類資產15到18年後，你的損益表就會出現問題。因此，現金流會有所不同，因為你已經因為其他原因收回了現金流。但我認為，當你有機會創造一項新資產時，從資本支出的角度來看，你可以投資這項資產，這比投資新資產要少得多。你的產量會增加。與舊資產相比，這至少可能增加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.

而且，你可以提升所有產量的營運維護（O&M）和發電成本（PTC），而不僅僅是增量產量。在我看來，這顯而易見，對吧？所以，所有這些因素綜合起來，才決定我們需要繼續進行改造。再說一次，這是一個非常漫長的過程，我們會非常珍惜機會。想想從現金流、損益表、投資和債務的角度來看，什麼時候才是合適的時機，但計畫已經制定好了。

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。接下來我們來談談離岸風電。之前我們談到了 Kitty Hawk，之後我們收到了 Eversource 和 Dominion 關於其離岸風電交易的兩條最新消息。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？再說一次，如果您根據這些數據點對美國離岸風電有什麼看法？

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在於，如果你們還記得的話，很多人經常問，嗯，沒有人對離岸業務感興趣。我們常說，我確信沒有──你們兩年前、三年前簽訂的長期租約，但興趣依然存在。我認為人們對離岸業務感興趣是件好事。我們不知道所有其他交易的細節。我認為Dominion交易是我們受監管的資產。所以那是另一回事。我認為，就Eversource而言，根據公開訊息，我認為收購方會獲得某種回報的保證，對吧？但我們的情況並非如此。

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？至於租賃市場，如你所知，他們在加州的拍賣會上，在烏克蘭中部等等地區也非常成功。所以，這就是為什麼——這實際上無法比較。在其他情況下，實際上是正在建造、開發的資產，而且是價值數十億美元的資產。我認為這種情況是租賃。我認為我們會繼續尋找機會出售租賃，並在租賃領域建立合作關係，就像我們在許多其他資產方面所做的那樣。

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幾項資產。有些項目我們不想做，覺得賣掉更好。所以我們一直沒有停止。但我認為出售租約與那些交易無法相比。再說一次，這筆資產不是我們資本支出偏離、需要核銷或需要採取措施的資產，它與那些完全不同。

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。最後關於 NECEC。能否介紹一下施工進度？考慮到 NextEra 繼續挑戰 Seabrook 的斷路器升級項目，您對這筆資金的使用感覺如何？

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?

關於施工進度，我將讓凱瑟琳來回答。我認為我們在這方面的重點很簡單。首先，法律變更是我們今年的首要任務，以確保最終完成。其次，關於NextEra項目，在我看來，NextEra的領導階層發生了變化。我認為他們在緬因州的做法最終是正確的。我想你已經看到了一些關於其他事項的新聞，關於緬因州正在發生的事情。至於西布魯克項目，我認為我們正在與他們合作。我認為我們很快就能就斷路器問題（他們必須解決的問題）制定時間表。我相信他們會完成的，好嗎？那麼——凱瑟琳，你想對施工發表一下看法嗎？

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。 NECEC 的建設進展順利。我們已經完成了 25% 的地基和 20% 的電線桿。我們已經開始在走廊上架設導線。我們也正在進行大量的施工，為我們的高壓直流換流站和煙囪組件奠定基礎。我們受益於 Iberdrola 在供應鏈中的優勢，能夠與大多數供應商達成非常有利的合同，包括與日立就靜止同步補償器 (STATCOM) 和高壓直流換流站簽訂的合同，以及我們的許多土木工程和其他需要在現場完成的工作。我們對目前的進展非常滿意，並將繼續全速前進。

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

現在我將把電話轉回給佩德羅·阿薩格拉。請講。

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。謝謝大家。很高興和大家交談。我想我們現在會和你們每個人進行一對一的後續溝通，期待在接下來的幾天和幾週內再次見到你們。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。感謝各位的參與，現在您可以掛斷電話了。