道明尼資源 (D) 2022 Q4 法說會逐字稿

Good day, everyone, and welcome to the Dominion Energy Fourth Quarter 2022 Earnings Conference Call. (Operator Instructions)

大家好，歡迎來到 Dominion Energy 2022 年第四季度收益電話會議。 （操作員說明）

I would now like to turn the call over to David McFarland, Vice President, Investor Relations. Please go ahead.

我現在想把電話轉給投資者關係副總裁大衛麥克法蘭。請繼續。

Good morning, and thank you for joining today's call. Earnings materials, including today's prepared remarks contain forward-looking statements and estimates that are subject to various risks and uncertainties. Please refer to our SEC filings, including our most recent annual reports on Form 10-K and our quarterly reports on Form 10-Q for a discussion of factors that may cause results to differ from management's estimates and expectations. This morning, we will discuss some measures of our company's performance that differ from those recognized by GAAP. Reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measures, which we can calculate are contained in the earnings release kit. I encourage you to visit our Investor Relations website to review webcast slides as well as the earnings release kit.

早上好，感謝您參加今天的電話會議。收益材料，包括今天準備好的評論，包含受各種風險和不確定性影響的前瞻性陳述和估計。請參閱我們向美國證券交易委員會提交的文件，包括我們最近的 10-K 表格年度報告和我們的 10-Q 表格季度報告，以討論可能導致結果與管理層估計和預期不同的因素。今天上午，我們將討論一些與 GAAP 認可的不同的公司業績指標。我們的非 GAAP 措施與最直接可比的 GAAP 財務措施的對賬，我們可以計算這些措施包含在收益發布工具包中。我鼓勵您訪問我們的投資者關係網站，查看網絡廣播幻燈片和收益發布工具包。

Joining today's call are Bob Blue, Chair, President and Chief Executive Officer; Steven Ridge, Senior Vice President, Chief Financial Officer; and Diane Leopold, Executive Vice President, Chief Operating Officer.

加入今天電話會議的有主席、總裁兼首席執行官 Bob Blue； Steven Ridge，高級副總裁兼首席財務官；執行副總裁兼首席運營官黛安·利奧波德 (Diane Leopold)。

I will now turn the call over to Bob.

我現在將把電話轉給鮑勃。

Thank you, David, and good morning, everyone. During 2022, we delivered earnings and dividend growth in line with our guidance, provided safe, reliable and affordable energy while demonstrating careful environmental stewardship, served our customers and invested in our communities, and made meaningful progress on our regulated investment programs focused on decarbonization and resiliency.

謝謝你，大衛，大家早上好。在 2022 年期間，我們根據我們的指導實現了收益和股息增長，提供了安全、可靠和負擔得起的能源，同時展示了謹慎的環境管理，為我們的客戶提供服務並投資於我們的社區，並在我們專注於脫碳和彈性。

I'll begin by highlighting our annual safety performance. As shown on Slide 3, our employee OSHA injury recordable rate continues to compare favorably with the company's long-term historical results as well as national industry and regional electric utility averages. However, our ultimate goal has been and continues to be that none of our colleagues get hurt ever.

首先，我要強調我們的年度安全績效。如幻燈片 3 所示，我們的員工 OSHA 可記錄工傷率繼續優於公司的長期歷史業績以及全國行業和地區電力公司的平均水平。然而，我們的最終目標一直是並將繼續是我們的同事都不會受傷。

Next, on reliability, which our customers consistently indicate is their highest priority. In the past year, customers in our electric service areas in Virginia, South Carolina and North Carolina had power 99.9% of the time, excluding major storms. And it's worth noting that Virginia reached record summer peak demand in August, an all-time peak demand in December. As they do time and time again, our colleagues rose to the challenge and kept our system delivering without major or extended interruption during these demanding load conditions. The scale of our team and resiliency of our system were never more evident than during the December winter storm, when we also did not experience any major or extended service disruptions.

接下來是可靠性，我們的客戶一直表示這是他們的最高優先級。在過去的一年裡，我們位於弗吉尼亞州、南卡羅來納州和北卡羅來納州的電力服務區的客戶有 99.9% 的時間有電，大風暴除外。值得注意的是，弗吉尼亞州在 8 月份達到了創紀錄的夏季需求高峰，這是 12 月份的歷史最高需求。正如他們一次又一次所做的那樣，我們的同事們迎接挑戰，並在這些苛刻的負載條件下保持我們的系統在沒有重大或長時間中斷的情況下交付。我們團隊的規模和系統的彈性在 12 月的冬季風暴期間最為明顯，當時我們也沒有遇到任何重大或長期的服務中斷。

Finally, affordability. Our rates continue to be lower than national and regional averages. As we discussed later, we're very focused on ensuring that our customers are not priced out of the significant long-term benefits that will result from our decarbonization and resiliency investment programs. On that same theme, 2022 was a significant year in terms of advancing our regulated decarbonization and resiliency strategy. In Virginia, the State Corporation Commission approved several rider-eligible investment programs including our offshore wind project, subsequent license renewals of our 4 nuclear units, our second clean energy filing of new solar and energy storage projects and Phase 2 of our grid transformation program.

最後，負擔能力。我們的利率繼續低於國家和地區平均水平。正如我們稍後討論的那樣，我們非常注重確保我們的客戶不會因我們的脫碳和彈性投資計劃帶來的重大長期利益而被定價。在同一主題上，2022 年是推進我們受監管的脫碳和彈性戰略的重要一年。在弗吉尼亞州，國家公司委員會批准了幾個符合騎手資格的投資計劃，包括我們的海上風電項目、我們 4 個核電機組的後續許可證更新、我們對新太陽能和儲能項目的第二次清潔能源備案以及我們的電網改造計劃的第二階段。

Additional rider eligible investments currently under SEC review include new solar and energy storage projects and our third annual clean energy filing and high-voltage electric transmission necessary to continue to serve growing customer demand and data center load. In South Carolina, we achieved our second best year ever for service reliability. In December, Moody's upgraded Dominion Energy South Carolina's credit rating citing evidence of the company's improved regulatory and stakeholder relationships.

目前正在接受 SEC 審查的其他符合附加條件的投資包括新的太陽能和儲能項目以及我們的第三次年度清潔能源備案和高壓電力傳輸，這些項目是繼續滿足不斷增長的客戶需求和數據中心負載所必需的。在南卡羅來納州，我們在服務可靠性方面取得了有史以來第二好的成績。 12 月，穆迪上調了 Dominion Energy South Carolina 的信用評級，理由是該公司改善了監管和利益相關者關係。

In our Gas Distribution segment, we invested over $300 million, modernizing infrastructure that is safer, more reliable and better for the environment. We completed our LNG peaking supply facility in Utah, and we increased the number of our renewable natural gas projects in operation or under construction to '21. All told, our nuclear units produced about 50 million-megawatt hours of low-cost zero-carbon baseload power. That's roughly 40% of our total generation production as a company. Our fleet's performance continues to be exemplary, especially in periods of extreme weather, during which our stations provide vital stabilizing support to the grid and price stability in their respective regions.

在我們的天然氣分銷部門，我們投資了超過 3 億美元，對更安全、更可靠、更環保的基礎設施進行現代化改造。我們在猶他州完成了液化天然氣調峰供應設施，並將運營或在建的可再生天然氣項目數量增加到 21 個。總而言之，我們的核電站產生了大約 5000 萬兆瓦時的低成本零碳基本負荷電力。這大約占我們公司總發電量的 40%。我們車隊的表現繼續堪稱典範，尤其是在極端天氣時期，在此期間，我們的電站為各自地區的電網和價格穩定提供重要的穩定支持。

Our power purchase agreement in Connecticut saved customers nearly $300 million. In summary, the regulated decarbonization and resiliency investment opportunity that we've outlined on previous earnings calls will continue to play a key role in driving the long-term growth of the company for years to come. Before transitioning to comments on the business review, let me also highlight progress around our sustainability goals. I'm pleased to report that through 2021, we've reduced Scope 1 carbon emissions from our electric operations by 46% since 2005 and Scope 1 methane emissions from our gas operations by 38% since 2010.

我們在康涅狄格州的購電協議為客戶節省了近 3 億美元。總之，我們在之前的財報電話會議上概述的受監管的脫碳和彈性投資機會將繼續在未來幾年推動公司的長期增長方面發揮關鍵作用。在過渡到對業務審查的評論之前，讓我也強調圍繞我們的可持續發展目標取得的進展。我很高興地報告，到 2021 年，自 2005 年以來，我們的電力業務的範圍 1 碳排放量減少了 46%，自 2010 年以來，我們的天然氣業務的範圍 1 甲烷排放量減少了 38%。

Notwithstanding the strong performance, we recognize the need to look holistically at our company's footprint, which is why during 2022, we expanded our net 0 commitment to include all Scope 2 emissions and the material categories of Scope 3 emissions. These new commitments align with our focus on helping our customers and suppliers decarbonize.

儘管業績強勁，但我們認識到有必要全面審視我們公司的足跡，這就是為什麼在 2022 年期間，我們擴大了我們的淨零承諾，以包括所有範圍 2 排放和範圍 3 排放的材料類別。這些新承諾與我們幫助客戶和供應商脫碳的重點相一致。

Finally, we increased the diversity of our workforce to 37%, an increase of nearly 4 percentage points since 2019, while also increasing our procurement spend with diverse suppliers to over $1.3 billion, representing 17% of our supplier spend, an increase of 4 percentage points since 2019. Now let me turn to the top-to-bottom business review. I'm leading the effort with support from the full management team and in frequent consultation with our Board. We're devoting all necessary resources to ensure that we thoroughly and methodically review every aspect of our business. When we announced the review in November, I indicated that we would be guided by the following principles as shown on Slide 5.

最後，我們將員工隊伍的多元化程度提高到 37%，自 2019 年以來增長了近 4 個百分點，同時我們與多元化供應商的採購支出也增加到超過 13 億美元，占我們供應商支出的 17%，增長了 4 個百分點自 2019 年以來的積分。現在讓我轉向從上到下的業務回顧。我在整個管理團隊的支持下領導這項工作，並經常與我們的董事會協商。我們正在投入所有必要的資源，以確保我們徹底、有條不紊地審查我們業務的各個方面。當我們在 11 月宣布審查時，我表示我們將遵循幻燈片 5 中顯示的以下原則。

A commitment to our state-regulated utility profile with an industry-leading investment opportunity focused on decarbonization and resiliency, a commitment to our current dividend, a commitment to our current credit profile, and a commitment to shareholder value enhancement and to transparency. None of those principles have changed. We are proceeding with pace and purpose. And as a result, we're able to provide additional commentary on how we believe we should optimally position Dominion Energy at the conclusion of the review to create maximum long-term value for our shareholders. First, a focus on delivering durable, high-quality and predictable long-term earnings growth profile.

對我們國家監管的公用事業概況的承諾，以及專注於脫碳和彈性的行業領先投資機會，對我們當前股息的承諾，對我們當前信用狀況的承諾，以及對股東價值提升和透明度的承諾。這些原則都沒有改變。我們正在有條不紊地前進。因此，我們能夠就我們認為應該如何在審查結束時以最佳方式定位 Dominion Energy 為我們的股東創造最大的長期價值提供更多評論。首先，專注於提供持久、高質量和可預測的長期收益增長狀況。

We recognize the importance of executing consistently against any earnings guidance offered post review. Second, we believe it is critical to position our regulated utilities to earn a fair and competitive return on investment. We know that investors have choices about where they can confidently allocate long-term capital. Third, we know it is our responsibility to constantly look for ways to optimize the efficiency of our operations without losing sight of the absolute necessity of meeting high customer service standards. In recent years, we've driven down cost through improved processes, innovative use of technology and other best practice initiatives. We've included our O&M performance metrics in the appendix of today's materials.

我們認識到根據審查後提供的任何收益指導始終如一地執行的重要性。其次，我們認為將我們受監管的公用事業定位為獲得公平和有競爭力的投資回報至關重要。我們知道，投資者可以選擇可以自信地配置長期資本的領域。第三，我們知道我們有責任不斷尋找優化運營效率的方法，同時不忘滿足高客戶服務標準的絕對必要性。近年來，我們通過改進流程、創新使用技術和其他最佳實踐舉措降低了成本。我們在今天的材料附錄中包含了我們的 O&M 性能指標。

As part of the review, we are evaluating what we can additionally do on costs within the context of the significant operational and cost efficiency we have achieved over the years. Fourth, we believe that our financial credit metric performance needs strengthening. We want to emerge from the review with the ability over time to consistently meet and exceed our downgrade thresholds even during temporary periods of cost or regulatory pressure. As part of the review, we're analyzing the most efficient sources of capital to fund our growth programs while seeking to minimize any amount of ongoing external equity financing need. Finally, we believe it is important to affirm our commitment to the dividend. I'll note here our announcement this morning that the 2023 dividend subject to Board approval, will be equal to the 2022 dividend.

作為審查的一部分，我們正在評估在我們多年來取得的顯著運營和成本效率的背景下，我們還可以在成本方面做些什麼。第四，我們認為我們的金融信用指標表現需要加強。我們希望通過審查能夠隨著時間的推移始終如一地達到並超過我們的降級閾值，即使在臨時的成本或監管壓力期間也是如此。作為審查的一部分，我們正在分析為我們的增長計劃提供資金的最有效的資金來源，同時力求最大限度地減少任何持續的外部股權融資需求。最後，我們認為確認我們對股息的承諾很重要。我會在這裡指出，我們今天上午宣布，經董事會批准的 2023 年股息將等於 2022 年的股息。

We believe that it is important to achieve potentially over time and without reducing the dividend, a payout ratio consistent with our current 65% ratio. Since the announcement, we've spoken with hundreds of equity and fixed income investors and received valuable and direct feedback, much of which has affirmed our focus on these priorities.

我們認為，隨著時間的推移，在不減少股息的情況下，實現與我們目前 65% 的派息率一致的派息率是很重要的。自公告發布以來，我們已經與數百名股票和固定收益投資者進行了交談，並收到了有價值的直接反饋，其中大部分肯定了我們對這些優先事項的關注。

Investors have also understandably been focused on the go-forward earnings potential of the company. Given that the review is still underway, we have and will continue to refrain from providing that guidance until the review is complete. I will say that the outcome will be informed by the principles and priorities I just outlined.

投資者也一直關注公司的未來盈利潛力，這是可以理解的。鑑於審查仍在進行中，我們已經並將繼續避免在審查完成之前提供該指導。我要說的是，結果將以我剛才概述的原則和優先事項為依據。

We will continue to be deliberate in making ourselves available for input from the company's current and prospective capital providers. Let me now turn to address the Virginia legislative session. There is legislation pending that revises our regulatory model. In addition, there is legislation that would subject to commission approval provide for a passive equity partner in our offshore wind project. It is too early to predict the outcome of any legislation. We remain engaged with stakeholders in the process. In terms of timing, as shown on Slide 6, the Virginia General Assembly is scheduled to adjourn on February 25.

我們將繼續審慎地聽取公司當前和潛在資本提供者的意見。現在讓我談談弗吉尼亞立法會議。有待修改我們的監管模式的立法。此外，還有一項需要委員會批准的立法規定了我們海上風電項目的被動股權合作夥伴。現在預測任何立法的結果還為時過早。我們在此過程中與利益相關者保持接觸。在時間方面，如幻燈片 6 所示，弗吉尼亞大會定於 2 月 25 日休會。

The governor then has until March 27 to sign, amend or veto legislation that has passed both chambers. In the case of the Governor amends or veto's bill, the legislation returns to the general assembly for what is typically a 1-day reconvene session on April 12. At that time, the General Assembly may vote to override of veto or accept or reject amendments proposed by the Governor. The Governor then has approximately 30 days to act on legislation that has been addressed in the reconvened session. Having a clear and definitive understanding of the future Virginia regulatory contract is a key input for the business review. Therefore, legislation timing will influence the cadence at which we're able to share more details about the business review in the future.

然後，州長必須在 3 月 27 日之前簽署、修改或否決已通過兩院的立法。如果州長修改或否決法案，立法將返回大會，通常是在 4 月 12 日舉行為期 1 天的重新會議。屆時，大會可以投票否決否決權或接受或拒絕修正案州長提議的。然後，總督將有大約 30 天的時間對已在續會中討論的立法採取行動。對弗吉尼亞州未來的監管合同有一個清晰明確的了解是業務審查的關鍵輸入。因此，立法時機將影響我們能夠在未來分享有關業務審查的更多細節的節奏。

Steven will share some additional thoughts on investor communication in his prepared remarks. I know the business review is of paramount importance to our stakeholders. Let me reiterate my confidence that we're executing a thorough expeditious and comprehensive review with the goal of ensuring that Dominion Energy is best positioned to create significant long-term value for our shareholders, our customers and our employees.

史蒂文將在他準備好的發言中分享一些關於投資者溝通的額外想法。我知道業務審查對我們的利益相關者來說至關重要。讓我重申我的信心，我們正在執行徹底、迅速和全面的審查，目標是確保 Dominion Energy 處於最佳位置，為我們的股東、客戶和員工創造重要的長期價值。

With that, I'll turn it over to Steven to address financial matters before I provide further business updates on the execution of our plan.

有了這個，我會把它交給史蒂文來解決財務問題，然後再提供有關我們計劃執行的進一步業務更新。

Thank you, Bob, and good morning, everyone. Our fourth quarter 2022 operating earnings as shown on Slide 7 were $1.06 per share, which for this quarter, represented normal weather in our utility service areas. These results were at the midpoint of our quarterly guidance range.

謝謝鮑勃，大家早上好。如幻燈片 7 所示，我們 2022 年第四季度的營業收入為每股 1.06 美元，這在本季度代表了我們公用事業服務領域的正常天氣。這些結果處於我們季度指導範圍的中點。

Positive factors as compared to last year were weather, normal course regulated growth, the absence of a millstone planned outage, absence of last year's COVID deferred O&M and tax timing. Other factors as compared to last year were interest expense and share dilution. Full year 2022 operating earnings per share were $4.11 per share, slightly above the midpoint of our guidance range for the year.

與去年相比，積極因素包括天氣、正常過程調節增長、沒有磨石計劃停運、沒有去年的 COVID 延期 O&M 和稅收時間。與去年相比，其他因素包括利息支出和股份稀釋。 2022 年全年每股營業收益為 4.11 美元，略高於我們全年指導範圍的中點。

2022 GAAP results were $1.09 per share. Here, I'd highlight one adjustment, which is described in Schedule 2 of the earnings release kit. In connection with the business review, management has reviewed the unregulated solar portfolio that reports to our contracted assets segment.

2022 年 GAAP 結果為每股 1.09 美元。在這裡，我要強調一項調整，它在收益發布工具包的附表 2 中有所描述。關於業務審查，管理層審查了向我們的合同資產部門報告的不受監管的太陽能投資組合。

These approximately 30 solar facilities, representing around 1,000 megawatts operate primarily under long-term power purchase agreements with third parties. Consistent with prior commentary, the company no longer intends to invest in unregulated solar projects for purposes of generating investment tax credits or ITCs. As a result, the company impaired the portfolio in the fourth quarter and recognized a noncash charge of $1.5 billion.

這大約 30 個太陽能設施，代表約 1,000 兆瓦，主要根據與第三方的長期購電協議運營。與之前的評論一致，該公司不再打算投資不受監管的太陽能項目以產生投資稅收抵免或 ITC。因此，該公司在第四季度損害了投資組合，並確認了 15 億美元的非現金費用。

Moving now to guidance on Slide 8. Given the pending business review, we are not providing full year 2023 earnings guidance nor are we refreshing our long-term capital investment plans at this time. For the first quarter 2023, we expect operating earnings to be between $0.97 and $1.12 per share. Last year's first quarter operating earnings were $1.18 and included $0.01 of benefit from weather. Positive year-over-year changes include growth in regulated investment, higher sales and higher Millstone margins.

現在轉到幻燈片 8 的指導。鑑於待定的業務審查，我們目前不提供 2023 年全年收益指導，也不會更新我們的長期資本投資計劃。對於 2023 年第一季度，我們預計營業收入將在每股 0.97 美元至 1.12 美元之間。去年第一季度的營業收入為 1.18 美元，其中包括 0.01 美元的天氣收益。積極的同比變化包括受監管投資的增長、更高的銷售額和更高的 Millstone 利潤率。

Negative changes include higher interest expense as a result of higher rates, as I will touch on more in a moment, lower DEV margins for certain utility customer contracts with market-based rates are hurt from pension and OPEB as a result of 2022 asset performance, higher depreciation, the absence of solar investment tax credits and O&M and tax timing.

負面變化包括更高的利率導致更高的利息支出，我稍後會談到更多，由於 2022 年的資產表現，養老金和 OPEB 會損害某些具有市場利率的公用事業客戶合同的較低 DEV 利潤率，更高的折舊，沒有太陽能投資稅收抵免以及 O&M 和稅收時間。

And just briefly as it relates to pension, I'd note that our pension funded status at year-end was 108%. Turning to Slide 9. Let me address electric sales trends. Weather-normalized sales increased 3.4% in 2022 as compared to 2021, components of this growth include a slight decline for residential, as you would expect, with continued back to the office trend and higher growth for the Commercial segment driven by data center customers in Virginia.

簡單地說，就養老金而言，我會注意到我們年底的養老金資助狀況為 108%。轉到幻燈片 9。讓我談談電力銷售趨勢。與 2021 年相比，2022 年天氣標準化銷售額增長了 3.4%，這一增長的組成部分包括住宅的小幅下降，正如您所預期的那樣，辦公室趨勢繼續回歸，商業部門在數據中心客戶的推動下實現了更高的增長弗吉尼亞。

For 2023, we expect to remain above our long-term demand growth assumption of 1% to 1.5% per year, as Bob will touch on more in a moment. Briefly on financing. Since our last call, we've bolstered our liquidity at DEI with an opportunistic long-term debt issuance of $850 million late last year and a 364-day of term loan facility of $2.5 billion, which we closed last month. These financings provide incremental flexibility, including to address first quarter maturities, which are described in the appendix of today's materials. We'll refresh our financing plans pending the outcome of the business review. Let me share some color on 2 macro topics. First, higher interest rates.

對於 2023 年，我們預計仍將高於我們每年 1% 至 1.5% 的長期需求增長假設，因為 Bob 稍後會談到更多。簡要介紹融資。自我們上次通話以來，我們通過去年底機會主義的 8.5 億美元長期債券發行和上個月關閉的 25 億美元 364 天定期貸款安排來增強我們在 DEI 的流動性。這些融資提供了更多的靈活性，包括解決第一季度到期的問題，這在今天的材料的附錄中有所描述。在業務審查結果出來之前，我們將更新我們的融資計劃。讓我分享一些關於 2 個宏觀主題的顏色。第一，更高的利率。

We maintain a level of floating rate, typically short-term debt at our holding company and operating segments primarily to fund working capital as well as more permanent capital needs between long-term fixed rate issuances. This floating rate portfolio represents around 20% of our total debt or $8 billion. Since this time a year ago, we've seen our borrowing costs on this part of our capital structure increased by about 400 basis points. We will provide an update on rate assumptions, interest expense, hedging strategies and other mitigants when we conclude our business review.

我們維持一定水平的浮動利率，通常是我們控股公司和運營部門的短期債務，主要是為了滿足營運資金以及長期固定利率發行之間更永久的資本需求。這種浮動利率投資組合約占我們總債務的 20%，即 80 億美元。自一年前的這個時候以來，我們已經看到我們資本結構這一部分的借貸成本增加了約 400 個基點。當我們結束業務審查時，我們將提供有關利率假設、利息支出、對沖策略和其他緩解措施的最新信息。

Another macro headwind is fuel costs. We have very clearcut pass-through mechanisms for fuel costs across all our utilities. We employ prudent hedging and mitigation strategies to keep fuel costs low while ensuring security of supply. In aggregate, as of December 31, we have an under-collected balance of approximately $2.5 billion in fuel costs across the company. We've included a slide in the appendix with these details.

另一個宏觀不利因素是燃料成本。我們對所有公用事業的燃料成本都有非常明確的轉嫁機制。我們採用審慎的對沖和緩解策略來保持低燃料成本，同時確保供應安全。總的來說，截至 12 月 31 日，我們在整個公司的燃料成本中有大約 25 億美元的未收餘額。我們在附錄中包含了一張包含這些詳細信息的幻燈片。

As we've discussed previously, we don't want our customers to miss out on the significant long-term benefits of our decarbonization and resiliency investment programs as a result of temporary cost pressures such as fuel. We will continue proactively working with regulators to employ mitigation measures to keep any increase to customer bills as muted as possible. Turning now to credit, which Bob highlighted as one of our business review priorities. We continue to target high BBB range credit ratings for our parent company and single-A range ratings for our regulated operating companies.

正如我們之前所討論的那樣，我們不希望我們的客戶由於燃料等臨時成本壓力而錯過我們的脫碳和彈性投資計劃的重大長期利益。我們將繼續積極與監管機構合作，採取緩解措施，盡可能抑制客戶賬單的增加。現在轉向信貸，鮑勃強調這是我們業務審查的優先事項之一。我們繼續將我們母公司的高 BBB 範圍信用評級和我們受監管的運營公司的單一 A 範圍評級作為目標。

Over the last several years, we have taken steps to position Dominion Energy as an increasingly pure-play, state-regulated utility with a differentiated clean energy transition profile. And as a result, we've improved our business risk profile. Despite this meaningful qualitative improvement, our Moody's published CFO preworking capital debt, one of the primary quantitative metrics used to determine our credit rating has underperformed our downgrade threshold for the last several periods.

在過去的幾年裡，我們已採取措施將 Dominion Energy 定位為一家越來越純粹的、由國家監管的公用事業公司，具有差異化的清潔能源轉型模式。因此，我們改善了業務風險狀況。儘管有這種有意義的質量改進，但我們的穆迪公佈的 CFO 運營前資本債務是用於確定我們信用評級的主要定量指標之一，在過去幾個時期內表現低於我們的降級閾值。

Moody's has indicated publicly that under the status quo, they expect that underperformance to persist. Living consistently below our downgrade threshold is not a place we want to be. As Bob mentioned, we want to emerge from the review with the ability over time to consistently meet and exceed our downgrade threshold even during temporary periods of cost or regulatory pressure. Achieving and maintaining that will require a meaningful credit repair considering both the size of our balance sheet as well as the substantially elevated regulated capital investment over the next few years.

穆迪公開表示，在現狀下，他們預計業績不佳的情況會持續存在。一直生活在降級門檻以下不是我們想要的地方。正如 Bob 所提到的，我們希望能夠隨著時間的推移從審查中脫穎而出，即使在臨時的成本或監管壓力期間也能始終如一地達到並超過我們的降級閾值。考慮到我們資產負債表的規模以及未來幾年受監管的資本投資大幅增加，實現和維持這一目標將需要有意義的信用修復。

Finally, as shown on Slide 10, we intend to provide a business review update this spring with final timing to consider the status of the Virginia legislative process. We would expect to use that update to discuss any changes to the Virginia regulatory model as well as next steps as it relates to the business review. That meeting would be followed with an Investor Day in the third quarter that would include a comprehensive update of the business plan.

最後，如幻燈片 10 所示，我們打算在今年春天提供業務審查更新，並提供最終時間來考慮弗吉尼亞立法程序的狀態。我們希望使用該更新來討論對弗吉尼亞監管模式的任何更改以及與業務審查相關的後續步驟。該會議之後將在第三季度舉行投資者日，其中包括對商業計劃的全面更新。

I will now turn the call back over to Bob. Let me turn to other business updates and the execution of our growth program. As I've discussed in previous earnings calls, the strength of our Virginia service area economy supports our robust capital investment programs at DEV. Two recent announcements have confirmed Virginia's economic strength. First, PJM recently published its annual forecast of demand growth. The Dominion zone continues to be the highest growth rate among all zones within PJM, covering 13 states in the District of Columbia.

我現在將把電話轉回給鮑勃。讓我談談其他業務更新和我們增長計劃的執行。正如我在之前的財報電話會議上所討論的那樣，我們弗吉尼亞服務區經濟的實力支持我們在 DEV 的強大資本投資計劃。最近的兩項公告證實了弗吉尼亞州的經濟實力。首先，PJM 最近發布了年度需求增長預測。自治領地區仍然是 PJM 內所有地區中增長率最高的地區，覆蓋哥倫比亞特區的 13 個州。

PJM projects the 10-year summer peak load to grow at a 5% annual rate. This growth primarily driven by data center loads, which have been increasing at an unprecedented rate, will require significant new capital investment. Second, last month, Amazon announced its plans to invest $35 billion by 2040 to establish multiple data center campuses across Virginia. These new campuses will combine expandable capacity to position Amazon for long-term growth in Virginia and create an estimated 1,000 jobs.

PJM 預計 10 年夏季峰值負荷將以每年 5% 的速度增長。這種增長主要由數據中心負載驅動，數據中心負載一直以前所未有的速度增長，將需要大量新的資本投資。其次，上個月，亞馬遜宣布計劃到 2040 年投資 350 億美元，在弗吉尼亞州建立多個數據中心園區。這些新校區將結合可擴展的容量，使亞馬遜在弗吉尼亞州實現長期增長，並創造約 1,000 個工作崗位。

Data centers currently represent about 20% of our total sales in Virginia, and have provided strong sales growth to date. A trend supported by these 2 announcements, we certainly expect to continue. Our work continues to advance projects to bring both new and upgraded infrastructure to enable the continued connection and expansion of data center customers. For example, we filed for a new 500 kV transmission line with the SEC with an expected in-service date of late 2025. The submission included around $700 million of capital investment.

數據中心目前約占我們在弗吉尼亞州總銷售額的 20%，並且迄今為止實現了強勁的銷售增長。這兩個公告支持的趨勢，我們當然希望繼續下去。我們的工作繼續推進項目，以帶來新的和升級的基礎設施，以實現數據中心客戶的持續連接和擴展。例如，我們向美國證券交易委員會申請了一條新的 500 kV 輸電線路，預計投入使用日期為 2025 年底。該申請包括約 7 億美元的資本投資。

Turning to offshore wind on Slide 12. In December, the FCC approved the cost-sharing settlement agreement developed in collaboration with key stakeholders, including the Office of the Attorney General and other parties. We're very pleased to be extending our track record of constructive regulatory outcomes. As it relates to the project's execution, it's very much on track and on budget. We have continued to work closely with the Bureau of Ocean Energy Management and other stakeholders to support the project's time line.

轉向幻燈片 12 上的海上風電。12 月，FCC 批准了與主要利益相關者（包括總檢察長辦公室和其他各方）合作制定的成本分攤和解協議。我們很高興能夠擴大我們在建設性監管成果方面的記錄。因為它與項目的執行有關，所以它非常按計劃和預算進行。我們繼續與海洋能源管理局和其他利益相關者密切合作，以支持該項目的時間表。

In particular, we received the draft environmental impact statement, which started the 36-day public comment period that will close later this month. The draft EIS was thorough and contained no surprises. Public hearings have already taken place, and we continue to work collaboratively with BOM and all of the cooperating agencies. Advanced engineering and design work, which has allowed us to release major equipment for fabrication and advance procurement and other preconstruction activities for the onshore scope of work. Project costs, excluding contingency, are currently 80% fixed and we continue to expect about 90% of the project costs, excluding contingency, will be fixed by the end of the first quarter.

特別是，我們收到了環境影響報告書草案，該報告開始了將於本月晚些時候結束的為期 36 天的公眾意見徵詢期。 EIS 草案非常詳盡，沒有任何意外。公開聽證會已經舉行，我們將繼續與 BOM 和所有合作機構合作。先進的工程和設計工作，這使我們能夠發布用於陸上工作範圍的製造和提前採購以及其他施工前活動的主要設備。不包括應急費用的項目成本目前有 80% 是固定的，我們繼續預計大約 90% 的項目成本（不包括應急費用）將在第一季度末固定下來。

We remain on schedule to complete construction of the project by the end of 2026. We expect the EIS record of decision in late October of this year, slightly later than expected because of the DEIS timing, but still in support of our current project schedule. Next, our Jones Act-compliant turbine installation vessel is currently 65% complete. We continue to expect it to be in service for the 2024 turbine installation season.

我們仍按計劃在 2026 年底前完成該項目的建設。我們預計 EIS 決策記錄將在今年 10 月下旬發布，由於 DEIS 的時間安排略晚於預期，但仍支持我們當前的項目進度。接下來，我們符合瓊斯法案的渦輪機安裝船目前已完成 65%。我們繼續預計它會在 2024 年的渦輪機安裝季節投入使用。

Turning to other business updates on Slide 14. As part of our ongoing resource planning, Dominion Energy South Carolina is replacing several of our older generation peaking turbines with modern, more efficient units. These peaking units which often operate seasonally during certain times of day when the demand for energy is at its highest, play an important role in our generation fleet with their ability to go from idle to producing energy quickly.

轉到幻燈片 14 上的其他業務更新。作為我們正在進行的資源規劃的一部分，Dominion Energy South Carolina 正在用現代、更高效的裝置替換我們的幾台老一代調峰渦輪機。這些調峰裝置通常在一天中能源需求最高的特定時間季節性運行，它們在我們的發電車隊中發揮著重要作用，它們能夠快速從閒置狀態轉為產生能量。

Modernizing this equipment will lower fuel cost to customers, improve environmental performance and provide reliability and efficiency benefits. These important resources are also critical to support the grid as solar continues to be added to our system. Construction activities will begin later this year for 2 of the facilities and the all-source RFP for a third facility is on track.

對該設備進行現代化改造將降低客戶的燃料成本，改善環境績效並提供可靠性和效率優勢。隨著太陽能繼續添加到我們的系統中，這些重要資源對於支持電網也至關重要。其中兩個設施的建設活動將於今年晚些時候開始，第三個設施的全源 RFP 正在按計劃進行。

On the regulatory front, we filed our 2023 IRP last month. Our preferred plan continues to be indicative of the potential for accelerated decarbonization and assumes all coal-only units are retired by the end of the decade. We look forward to engaging with all stakeholders on this planning process. Next at our Gas Distribution business. We continue to see strong support for timely recovery on prudently incurred investment that provide safe, reliable, affordable and increasingly sustainable service including pipeline replacement efforts and expansion of service to rural communities. For example, in December, the Public Service Commission of Utah approved a general rate increase of $48 million and allowed ROE of 9.6%.

在監管方面，我們上個月提交了 2023 IRP。我們的首選計劃繼續表明加速脫碳的潛力，並假設所有純煤機組在本十年末退役。我們期待與所有利益相關者一起參與此規劃過程。接下來是我們的天然氣分銷業務。我們繼續看到大力支持及時收回審慎發生的投資，這些投資提供安全、可靠、負擔得起和日益可持續的服務，包括管道更換工作和擴大對農村社區的服務。例如，在 12 月，猶他州公共服務委員會批准了 4800 萬美元的一般稅率增加，並允許 ROE 為 9.6%。

In this constructive outcome, they also approved the continuation of the infrastructure replacement tracker programs and the costs related to our natural gas storage project in Utah, Magna LNG, which was placed in service at the end of last year and will be used to meet system reliability for customers' gas supply in the Salt Lake City area.

在這一建設性成果中，他們還批准了基礎設施更換跟踪器計劃的繼續以及與我們在猶他州 Magna LNG 的天然氣儲存項目相關的成本，該項目於去年年底投入使用，將用於滿足系統鹽湖城地區客戶供氣的可靠性。

On RNG, we remain one of the largest agriculture-based RNG developers in the country. We have 6 projects producing negative carbon renewable natural gas and 15 additional projects in various stages of development. We're also reviewing potential tax benefits available to RNG through the Inflation Reduction Act. When we launched this business, we did so on the strength of the underlying project economics and the very robust decarbonization benefit of agricultural renewable natural gas.

在 RNG 方面，我們仍然是該國最大的以農業為基礎的 RNG 開發商之一。我們有 6 個生產負碳可再生天然氣的項目和 15 個處於不同開發階段的其他項目。我們還在審查通過《降低通貨膨脹法案》為 RNG 提供的潛在稅收優惠。當我們開展這項業務時，我們是憑藉潛在的項目經濟性和農業可再生天然氣非常強大的脫碳效益而這樣做的。

Those investment criteria have not changed. If the projects are deemed eligible for tax incentives, we would expect to capture that value on behalf of our shareholders. With that, let me summarize our remarks on Slide 15. Safety remains our top priority as our first core value. We delivered 2022 financial results that were in line with our guidance range. We continue to aggressively execute on our decarbonization and resiliency investment programs to meet our customers' needs while creating jobs and spurring new business growth. Our offshore wind cost-sharing settlement agreement was approved, which allows the project to continue moving forward on schedule and on budget, and the top to bottom business review is proceeding with pace and purpose.

這些投資標準沒有改變。如果這些項目被認為有資格享受稅收優惠，我們希望代表我們的股東獲得該價值。至此，讓我總結一下我們對幻燈片 15 的評論。安全仍然是我們的首要任務，是我們的首要核心價值。我們交付了符合我們指導範圍的 2022 年財務業績。我們繼續積極執行我們的脫碳和彈性投資計劃，以滿足客戶的需求，同時創造就業機會並刺激新的業務增長。我們的海上風電成本分攤和解協議獲得批准，這使得該項目能夠按計劃和預算繼續推進，並且自上而下的業務審查正在按速度和目的進行。

I am focused on ensuring that Dominion Energy is best positioned to create significant long-term value for our shareholders. With that, we're ready to take your questions.

我專注於確保 Dominion Energy 處於最佳位置，能夠為我們的股東創造重要的長期價值。這樣，我們就可以回答您的問題了。

(Operator Instructions)

（操作員說明）

Our first question comes from Shahriar Pourreza with Guggenheim Partners.

我們的第一個問題來自 Guggenheim Partners 的 Shahriar Pourreza。

So just starting with the business review priorities you kind of discussed in the prepared remarks and you kind of laid out on Slide 5. Specifically, kind of on the dividend comment, could we maybe try to parse through the awards here a little more closely?

因此，從您在準備好的評論中討論的業務審查優先事項開始，您在幻燈片 5 上進行了佈局。具體來說，關於股息評論，我們能否嘗試更仔細地解析這裡的獎項？

I mean, obviously, we understand that you guys are holding the dividend at the current level for obvious reasons and that's obviously consistent with your support for the dividend. But I guess, what is the language around "potentially" over time mean as we think about the payout ratio bounds in the near term. I guess, what do you mean by potentially, could this mean a faster or slower trajectory to get to the 60% range? I mean, we've received a lot of inbounds on these 3 words. So any sort of visibility you could provide would probably be a helpful?

我的意思是，顯然，我們知道你們出於明顯的原因將股息維持在當前水平，這顯然與你們對股息的支持是一致的。但我想，當我們考慮近期的派息率界限時，隨著時間的推移“潛在”的語言是什麼意思。我想，您所說的潛在是什麼意思，這是否意味著達到 60% 範圍的軌跡更快或更慢？我的意思是，我們收到了很多關於這 3 個詞的訪問。那麼您可以提供的任何類型的可見性可能會有幫助嗎？

Yes. Sure, Shahriar. I appreciate that. As we said in our prepared remarks, slightly more detailed than on the slide. Our current payout ratio of 65% to the extent that, that were to go up, our expectation and plan would be to return to 65% without cutting the dividend. That's consistent with what we said when we announced the review. We're doing a business review right now. So I can't answer exactly what the payout ratio might end up. But if it is above 65%, our expectation is to get it back to 65% without cutting the dividend.

是的。當然，沙赫里亞爾。我很感激。正如我們在準備好的發言中所說的那樣，比幻燈片上的更詳細。我們目前的派息率為 65%，如果繼續上升，我們的預期和計劃是在不削減股息的情況下恢復到 65%。這與我們宣布審查時所說的一致。我們現在正在進行業務審查。所以我無法準確回答派息率最終會是多少。但如果高於 65%，我們的預期是在不削減股息的情況下將其恢復到 65%。

Got it. Okay. I guess we'll wait for additional color there. And then, Bob, you took a large impairment on the solar projects. I understand the test was triggered by the decision to not stay on the investment ITC recognition hamster wheel.

知道了。好的。我想我們會在那裡等待其他顏色。然後，鮑勃，你對太陽能項目造成了很大的損害。據我所知，測試是由不留在投資 ITC 認可倉鼠輪上的決定引發的。

But what part of the impairment test did you actually fail?

但是，您實際上沒有通過減值測試的哪一部分？

Shahriar, it's Steve. I can take that. So just to be specific, this has to do with our contracted assets solar portfolio. And there were really 2 primary purposes for the development of the portfolio.

Shahriar，是史蒂夫。我可以接受。因此，具體而言，這與我們的合同資產太陽能投資組合有關。投資組合的開發實際上有兩個主要目的。

The first was to develop expertise in developing solar so we could employ that expertise credibly across our regulated footprint, which is what we're doing right now. So in effect, that task has been completed. The second was to generate investment tax credits, we believe, given the attractiveness of our decarbonization and resiliency capital investment opportunity.

首先是發展太陽能開發方面的專業知識，這樣我們就可以在我們受監管的足跡中可靠地運用這些專業知識，這就是我們現在正在做的事情。所以實際上，該任務已經完成。第二個是產生投資稅收抵免，我們認為，鑑於我們的脫碳和彈性資本投資機會的吸引力。

The capital we've used in the past to generate those ITCs can be employed elsewhere to greater long-term shareholder benefit. So the first sort of gating decision was, are we going to continue to invest in that portfolio for purposes of generating ITC? And the answer we've said is no. That led to a subsequent impairment test where we looked at the carrying value or book value and we compared it to a series of discounted and non-discounted cash flows consistent with accounting guidance and ultimately determined that the fair market value was lower than the carrying value, and that led to the impairment.

我們過去用於產生這些 ITC 的資本可以用於其他地方，以提高股東的長期利益。所以第一種門控決定是，我們是否要繼續投資於該投資組合以產生 ITC？而我們所說的答案是否定的。這導致了隨後的減值測試，我們查看賬面價值或賬面價值，並將其與一系列符合會計準則的貼現和非貼現現金流進行比較，最終確定公允市場價值低於賬面價值，並導致減值。

Okay. Got it. Got it. That's helpful. And then just really quick lastly from me. Just from a legislative process standpoint, I guess, how should we think about the likelihood of slippage into a reconvened session? I mean, put differently, if you had firm clarity on March 27, could we see the schedule accelerate?

好的。知道了。知道了。這很有幫助。然後我很快就結束了。我想，僅從立法程序的角度來看，我們應該如何考慮重新召開會議的可能性？我的意思是，換句話說，如果您在 3 月 27 日明確表示，我們能否看到進度加快？

Shahriar, it's Bob. It's way too early to predict what the timing of Virginia General Assembly and any action on any particular bill, including ones that relate to us maybe. As we laid out in our prepared remarks, the general assembly is scheduled to adjourn on the 25th of February. And then the Governor -- bills go to the Governor at that point or earlier once they've passed and bills that arrive on the Governor's desk with fewer than 7 days left in the legislative session, the Governor has 30 days to act on those bills.

Shahriar，是鮑勃。現在預測弗吉尼亞大會的時間以及對任何特定法案（包括可能與我們相關的法案）採取的任何行動還為時過早。正如我們在準備好的發言稿中所述，大會定於 2 月 25 日休會。然後是州長——一旦法案通過，法案將在該點或更早時間提交給州長，並且在立法會議還剩不到 7 天的時間到達州長辦公桌的法案，州長有 30 天的時間對這些法案採取行動.

If he chooses to propose an amendment or veto a bill, then general assembly, as you noted, comes back for a 1-day reconvened session, and then they address those gubernatorial actions. So I can't give you any more clarity because we don't know what the timeframe on the general assembly may be. Once we do know something, that will allow us to address our own schedule.

如果他選擇提出修正案或否決法案，那麼正如您所指出的那樣，大會將回來召開為期 1 天的會議，然後他們將討論州長的這些行動。所以我不能給你任何更清楚的信息，因為我們不知道大會的時間表可能是什麼。一旦我們確實知道了一些事情，這將使我們能夠制定自己的時間表。

Our next question comes from Steve Fleishman with Wolfe Research.

我們的下一個問題來自 Wolfe Research 的 Steve Fleishman。

So just first on the credit comment. Could you -- you say you're kind of both targeting high BBB, but then also seem to imply kind of targeting above current thresholds, which I think your ratings are mid-BBB at the parent. So could you just clarify, are you targeting the mid-BBB and above that? Are you targeting high-BBB because that's a big difference?

所以首先在信用評論上。你能不能——你說你的目標是高 BBB，但似乎也暗示目標是高於當前閾值，我認為你的評級在母公司是中等 BBB。那麼，您能否澄清一下，您的目標是 BBB 中期及以上？您是否以高 BBB 為目標，因為那有很大的不同？

Yes. Steve, this is Steve. I'll take that one. So on an issuer rating, we're actually high-BBB and 2 of the 3 rating agencies at Moody were mid-BBB. Our objective is to maintain those targeted rating categories. And the downgrade thresholds, at least at Moody's associated with that is 14% on the down and 17% on the up.

是的。史蒂夫，這是史蒂夫。我會拿那個。因此，在發行人評級方面，我們實際上是高 BBB，穆迪的 3 家評級機構中有 2 家是中 BBB。我們的目標是維持那些有針對性的評級類別。降級閾值，至少在穆迪與之相關的是 14% 和 17%。

As we mentioned in the call script, we intend to meet and exceed that downgrade threshold even in times of temporary pressures from cost like fuel costs and regulatory adjustments. And that has been one of the drivers of our underperformance historically relative to our downgrade threshold. So we're still targeting high-BBB. It's where we are in 2 of the 3 agencies from an issuer rating perspective and the appropriate downgrade threshold, at least from the Moody's perspective is 14%.

正如我們在通話腳本中提到的那樣，即使在燃料成本和監管調整等成本暫時壓力時期，我們也打算達到並超過該降級閾值。相對於我們的降級閾值，這一直是我們歷史上表現不佳的驅動因素之一。所以我們仍然以高 BBB 為目標。從發行人評級的角度來看，我們在 3 家機構中的 2 家處於這個位置，適當的降級門檻至少從穆迪的角度來看是 14%。

Okay. So for the senior unsecured rating which we typically use, that would be mid- BBB?

好的。那麼對於我們通常使用的高級無抵押評級，這將是中 BBB？

Depending on the specific methodology, but yes.

取決於具體的方法，但是是的。

Okay. So you're basically targeting the ratings you're currently at, not a higher rating than your current rating?

好的。所以你基本上是針對你目前的評級，而不是比你目前的評級更高的評級？

That's right.

這是正確的。

Okay. And then just on the payout comment, just to maybe clarify that a little better, which I know at this point in the process is purposely probably -- purposely vague. Is it fair to say you're saying that in the likely outcome your payout ratio will be above the 65% for a period of time? And then you'll obviously get back in target to that?

好的。然後只是關於支付評論，只是為了澄清一點，我知道在這個過程中的這一點可能是故意的 - 故意含糊不清。您是說在可能的結果中您的派息率將在一段時間內高於 65% 是否公平？然後你顯然會回到目標？

Yes, Steve, it's -- I apologize for not giving you a specific answer. But what we're saying is, to the extent that the payout ratio changes as a result of the review that if they're -- an obvious point, if our EPS changes as a result of the review and the dividend remains constant as we have said it will, that changes the payout ratio.

是的，史蒂夫，我很抱歉沒有給你一個具體的答案。但我們要說的是，就派息率因審查而變化的程度而言，如果他們——一個明顯的觀點，如果我們的每股收益因審查而變化，並且股息保持不變，因為我們已經說過，這會改變支付率。

And what we're indicating is if there is a change in the payout ratio, we're going to get back to it. But without reducing the dividend, that's the point that we're attempting to make here.

我們的意思是，如果支付比率發生變化，我們將重新考慮。但在不減少股息的情況下，這就是我們試圖在這裡提出的觀點。

Okay. But that's more still kind of hypothetical or theoretical for now, it's not the likely outcome of...

好的。但這現在更像是一種假設或理論，這不是......的可能結果。

Correct. We're in a business review. And as we have indicated in prior calls and this call as well, we don't yet know what the outcome of that business review will be. So yes, it's hypothetical as a good way of describing it.

正確的。我們正在進行業務審查。正如我們在之前的電話和本次電話中所指出的那樣，我們還不知道該業務審查的結果是什麼。所以是的，它是假設的，是描述它的一種好方法。

And then just lastly, the time line, the over time, is there any like time line for the overtime?

最後，時間線，加班時間，是否有類似的加班時間線？

Again, we can't set that until we're finished with the review. So not yet.

同樣，在我們完成審核之前，我們無法設置它。所以還沒有。

Our next question comes from Jeremy Tonet with JPMorgan.

我們的下一個問題來自摩根大通的 Jeremy Tonet。

I just want to pivot a little bit, if I could, towards Millstone here, interesting backdrop here. Just wondering if you could provide us updated thoughts with what's the status of state regional discussions around Millstone? How you're thinking about locking in more of this market upside to the asset?

如果可以的話，我只想稍微轉向這裡的 Millstone，這裡有趣的背景。只是想知道您是否可以向我們提供有關 Millstone 各州區域討論現狀的最新想法？您如何考慮鎖定資產的更多市場上漲空間？

Yes. Jeremy, as we've talked about before, we believe Millstone is a great asset, and we believe the policymakers in New England are recognizing increasingly its value for them to meet reliability and any chance to meet the kinds of decarbonization targets that they may have. Our focus is thinking about ways that we can ensure the long-term viability of Millstone. And we're happy to have conversations with policymakers about opportunities to do that.

是的。傑里米，正如我們之前談到的，我們相信 Millstone 是一項偉大的資產，我們相信新英格蘭的政策制定者越來越認識到它對他們滿足可靠性和實現他們可能擁有的各種脫碳目標的任何機會的價值.我們的重點是思考如何確保 Millstone 的長期生存能力。我們很高興與政策制定者就這樣做的機會進行對話。

As we noted in our opening comments, the existing Millstone contract has been very good for customers in Connecticut in recent months and over the last year. We see the possibility of being able to take action with policymakers to give us the certainty we would need in order to extend the life of Millstone and have that valuable resource for New England for some time to come. We don't have as yet a specific approach to that. But we're certainly interested in engaging with policymakers on that.

正如我們在開場評論中指出的那樣，最近幾個月和去年，現有的 Millstone 合同對康涅狄格州的客戶來說非常有利。我們看到了能夠與政策制定者一起採取行動的可能性，從而為我們提供延長 Millstone 壽命所需的確定性，並在未來一段時間內為新英格蘭擁有寶貴的資源。我們還沒有具體的方法來解決這個問題。但我們當然有興趣與政策制定者就此進行接觸。

Got it. That's helpful. And then kind of switching gears and realize I'm at risk of putting the horse ahead of the cart here. But as it relates to potential asset sales, was just wondering, does the solar impairment kind of -- a tip that you might look to sell this asset as part of the business review. And I guess, we're at with news out of Black Hill this morning with regards to their thoughts on LDC sales. And so was just wondering if you had any thoughts on what could potentially be or what could be prioritized in the sale process if you chose to do that?

知道了。這很有幫助。然後有點換檔，意識到我有本末倒置的風險。但由於它與潛在的資產出售有關，我只是想知道，太陽能減值是否有點——您可能希望在業務審查中出售該資產的提示。而且我想，我們今天早上從 Black Hill 得知他們對 LDC 銷售的看法。所以只是想知道如果您選擇這樣做，您是否有任何想法可能是什麼，或者在銷售過程中可以優先考慮什麼？

Jeremy, I would say that as part of the review, we're looking at each and every one of our assets and consistent with the priorities and principles that we've laid out on today's call and supplement to what we provided on the third quarter call. That's what will inform our ultimate steps as it relates to the business review to the extent that there is changes to business mix, which is, again, something we're evaluating as part of review, but no decisions have been made. So we'll look at everything dispassionately to position the company to provide the greatest long-term value to shareholders.

傑里米，我想說的是，作為審查的一部分，我們正在審視我們的每一項資產，並與我們在今天的電話會議上製定的優先事項和原則保持一致，並對我們在第三季度提供的內容進行補充稱呼。這就是我們最終步驟的依據，因為它與業務審查相關，因為業務組合發生了變化，這同樣是我們作為審查的一部分進行評估的內容，但尚未做出任何決定。因此，我們將冷靜地看待一切，使公司能夠為股東提供最大的長期價值。

Got it. That's helpful. And just a real quick last one, if I could. If you might be able to kind of parse more finally what we might expect on 2Q business review update versus the 3Q Investor Day? Is the 2Q update really just an outcome of the Virginia legislation or potentially more updates on other elements of the plan?

知道了。這很有幫助。如果可以的話，最後一個真的很快。如果您最終能夠更詳細地解析我們對第二季度業務審查更新與第三季度投資者日的預期？第二季度的更新真的只是弗吉尼亞州立法的結果，還是可能對計劃的其他要素進行更多更新？

Let me do it from the reverse perspective, which is the Investor Day, we intend to provide a comprehensive business and financial update. It will effectively be at the conclusion of the review process. The spring update, which is going to coincide with timing around the Virginia legislative session, will give us an opportunity to comment on what, if any, changes occurred during the session that would impact Virginia, what are our perspective is on that and how that informs the appropriate next steps of the business review.

讓我從相反的角度來看，這是投資者日，我們打算提供全面的業務和財務更新。它實際上將在審查過程結束時進行。春季更新將與弗吉尼亞州立法會議前後的時間相吻合，這將使我們有機會評論會議期間發生的哪些變化（如果有的話）會影響弗吉尼亞州，我們對此有何看法以及如何影響告知業務審查的適當後續步驟。

Our next question comes from Durgesh Chopra with Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 Durgesh Chopra。

Just Steve, I think this may be in your wheelhouse. I just wanted some clarification on the impairment. And then how does it impact your base earnings? So I know like that could impact your future earnings if you decide not to invest, I guess, that's what you're suggesting. But when I look at the Q1 '23 to Q1 2022 bridge on Slide 8, there is a down arrow because of solar ITC. So I'm just -- is there -- does the impairment impact your ongoing base business earnings?

只是史蒂夫，我想這可能在你的操舵室裡。我只是想澄清一下減值問題。那麼它如何影響您的基本收入？所以我知道如果你決定不投資，這可能會影響你未來的收入，我猜，這就是你的建議。但是當我查看幻燈片 8 上的 Q1 '23 到 Q1 2022 橋時，由於太陽能 ITC，有一個向下的箭頭。所以我只是 - 是否存在 - 減值是否會影響您持續的基本業務收入？

No. So the impairment doesn't change the revenue we generate under those existing PPAs. The impairment does have a slight impact on the depreciable life or the depreciation rather than the depreciable life because the carrying value is now lower than previously assumed. The bridge is something different. The bridge, when we refer to that ITC, solar ITC, it's effectively the lack of solar ITCs consistent with the comments we've made on this call and previously with regard to pivoting that capital allocation elsewhere in our business. So it's effectively simply saying that a year ago, we would have had some solar ITC and earnings. This quarter this year, we do not have that. So the impairment is different. It doesn't have any impact on that bridge.

不會。因此，減值不會改變我們根據現有購電協議產生的收入。減值確實對折舊年限或折舊有輕微影響，而不是折舊年限，因為現在的賬面價值低於以前假設的。這座橋是不同的東西。這座橋，當我們提到 ITC、太陽能 ITC 時，實際上是太陽能 ITC 的缺乏，這與我們在本次電話會議上以及之前關於將資本分配轉向我們業務其他地方的評論一致。所以它實際上只是說一年前，我們會有一些太陽能 ITC 和收益。今年這個季度，我們沒有那個。所以減值是不同的。對那座橋沒有任何影響。

Got it. So basically, Q1 '23 over Q1 '22 is really lack of new solar ITCs, right?

知道了。所以基本上，23 年第一季度超過 22 年第一季度真的缺乏新的太陽能 ITC，對吧？

That's right. It's about $0.04.

這是正確的。大約是 0.04 美元。

And then just one quick bookkeeping question. The Q2 time line that you mentioned for the business review update, is that the Q1 call? Or like are you going to do another meeting or 8-K, just any thoughts around that?

然後只是一個快速的簿記問題。您提到的業務回顧更新的 Q2 時間線是 Q1 電話會議嗎？或者你打算再開一次會議或 8-K，對此有什麼想法嗎？

It will depend a little bit on the timing, Durgesh. We do typically have our first quarter call in early May. It may coincide, it may not. That won't keep us from sort of advancing the discussion around the business review when we have the information necessary to actually have that discussion.

Durgesh，這在一定程度上取決於時機。我們通常會在 5 月初召開第一季度電話會議。它可能重合，也可能不重合。當我們擁有實際進行該討論所需的信息時，這不會阻止我們推進圍繞業務審查的討論。

Our next question comes from Ross Fowler with UBS.

我們的下一個問題來自瑞銀的 Ross Fowler。

Just a couple of things to clean a couple of things up, and I apologize the call cut out, if this is already answered. But the cap -- the go-forward CapEx that you had associated with sort of that competitive solar adjustment. Can you sort of scale that for us and sort of the cash that you wouldn't be spending into that going forward?

只是一些事情來清理一些事情，如果已經有人接聽，我很抱歉電話被切斷了。但是上限——與那種有競爭力的太陽能調整相關的前瞻性資本支出。您能否為我們確定規模，並確定您不會在未來花費的現金？

Yes. Ross, that's on the order of about $800 million.

是的。羅斯，這大約是 8 億美元。

Okay. Okay. And then sort of a bigger picture question following on to Jeremy's question, and I appreciate the fact that you're in a strategic review at the moment. But just maybe even anecdotally, Bob, as you look at this, you -- I think Steve made some comments around the need for significant balance sheet repair if we're going to get above that 14% -- meaningfully above that 14% FFO to debt ratio. I think giving cut is clearly off the table, given your comments, but could you maybe prioritize other options, even just anecdotally in your mind at this point as to how you sort of get back to that level?

好的。好的。然後是 Jeremy 的問題之後的一個更大的問題，我很欣賞你目前正在進行戰略審查。但甚至可能是有趣的，鮑勃，當你看到這個時，你 - 我認為史蒂夫就需要對資產負債表進行重大修復發表了一些評論，如果我們要超過 14% - 有意義地高於 14% FFO與債務比率。考慮到您的意見，我認為減薪顯然不在考慮範圍之內，但您能否優先考慮其他選項，即使只是在您的腦海中暫時想到您如何回到那個水平？

Yes. The best priority I could give you is that our objective, as we have already described, is to strengthen the balance sheet with the goal of using the most efficient sources of capital without -- with the ability to minimize external equity needs.

是的。我可以給你的最佳優先事項是，正如我們已經描述的那樣，我們的目標是加強資產負債表，目標是使用最有效的資本來源，而沒有能力最大限度地減少外部股權需求。

Beyond that, Ross, we're doing a review of every line of business. And once we're finished with that, we'll be able to outline the ways that we will go about addressing the balance sheet.

除此之外，羅斯，我們正在審查每條業務線。一旦我們完成了這項工作，我們將能夠概述我們將如何處理資產負債表。

Okay. I appreciate that, Bob. And then 2023 guidance, I think your comments were that you're just -- you're not going to provide it sort of for the full year given the strategic review. So is that just -- should we expect sort of quarterly guidance going forward as we walk through the year? And can we kind of use Q1 guidance where we're at as sort of a starting point status quo guidepost, and then make our own assumptions around where the strategic review lands to sort of get ourselves to a 2023 or 2024 number? Or how should we think about that going forward?

好的。我很感激，鮑勃。然後是 2023 年指導，我認為你的評論是你只是 - 鑑於戰略審查，你不會提供全年的指導。那麼，在我們走過這一年的過程中，我們是否應該期待某種季度指導？我們是否可以使用 Q1 指導作為起點現狀路標，然後圍繞戰略審查的著陸點做出我們自己的假設，以使我們達到 2023 年或 2024 年的數字？或者我們應該如何考慮未來的發展？

Ross, I anticipate we'll be providing quarterly guidance as we go through the year. With regard to using our first quarter guidance as a guide, I would just say, there's a couple of things. On our third quarter call, we provided a pathway to our 6.5% growth in 2023, much of that's not changed. There's a couple of changes that you'll -- that have impacted the first quarter.

羅斯，我預計我們將在這一年中提供季度指導。關於使用我們的第一季度指導作為指導，我只想說，有幾件事。在我們第三季度的電話會議上，我們提供了一條實現 2023 年 6.5% 增長的途徑，其中大部分沒有改變。你會發生一些變化——影響了第一季度。

One is we walked through as much as $0.30 of ITCs. We've obviously made a comment about that. And it's the lack of -- the run rate as well as the lack of the incremental is reflected in the first quarter. The other major change -- really the only other big change besides a little bit of tax timing in the first quarter that we wouldn't -- we'd expect to balance out through the remainder of the year is interest rates, which effectively in the guide we gave on the third quarter call, suggested that interest rates up 2% to 3%.

一是我們經歷了多達 0.30 美元的 ITC。我們顯然已經對此發表了評論。它缺乏 - 運行率以及增量的缺乏反映在第一季度。另一個重大變化——實際上是除了第一季度的一點點稅收時間之外我們不會想到的唯一其他重大變化——我們預計將在今年剩餘時間內平衡的是利率，這實際上在我們在第三季度電話會議上給出的指南建議將利率上調 2% 至 3%。

That was a $0.13 to $0.19 hurt or about $0.15 at the midpoint. Those rates have now gone about 4%, which takes that sort of 15-ish midpoint to more like $0.30. So the combination of the lack of solar plus the incremental headwind with interest rate is what informs the first quarter. I would note that over time, we expect that interest rate headwind to ameliorate as I think most people do, unsure exactly what the timing of that will be. But that should be somewhat temporary.

那是 0.13 美元到 0.19 美元的損失，或者中點大約 0.15 美元。這些利率現在已經上升了大約 4%，這使得 15 左右的中點更接近 0.30 美元。因此，缺乏太陽能加上利率上升的逆風是第一季度的原因。我要指出的是，隨著時間的推移，我們預計利率逆風會像我認為大多數人所做的那樣有所改善，但不確定確切的時間會是什麼。但這應該是暫時的。

Thank you. That will conclude our question-and-answer session. I'll turn the call back over to management for any additional or closing remarks.

謝謝。我們的問答環節到此結束。我會把電話轉回給管理層，以徵求任何補充意見或結束意見。

Thanks very much. We appreciate it, and we'll talk to you at our next call.

非常感謝。非常感謝，我們將在下次通話時與您交談。

Thank you. This does conclude this morning's conference call. You may disconnect your lines, and have a great day.

謝謝。這確實結束了今天上午的電話會議。您可以斷開線路，祝您度過愉快的一天。