New Jersey Resources Corp (NJR) 2024 Q3 法說會逐字稿

Hello. My name is Ali, and I will be your operator for today. I would like to welcome everyone to New Jersey Resources fiscal 2024 third-quarter conference call. (Operator Instructions)

你好。我叫阿里，今天我是你們的接線生。我歡迎大家參加新澤西資源公司 2024 財年第三季電話會議。 （操作員說明）

I'd now like to hand over to Adam Prior, Head of Investor Relations. You may now begin.

現在我想將工作交給投資人關係主管 Adam Prior。你現在可以開始了。

Thank you. Welcome to New Jersey Resources fiscal 2024 third-quarter conference call and webcast. I'm joined here today by Steve Westhoven, our President and CEO; Roberto Bell, our Senior Vice President and Chief Financial Officer; as well as other members of our senior management team.

謝謝。歡迎參加新澤西資源公司 2024 財年第三季電話會議和網路廣播。今天我們的總裁兼執行長 Steve Westhoven 也來到這裡。 Roberto Bell，我們的資深副總裁兼財務長；以及我們高階管理團隊的其他成員。

Certain statements in today's call contain estimates and other forward-looking statements within the meaning of the securities laws. We wish to caution listeners of this call that the current expectations, assumptions and beliefs forming the basis of our forward-looking statements include many factors that are beyond our ability to control or estimate precisely. This could cause results to materially differ from our expectations as found on slide 1.

今天電話會議中的某些陳述包含證券法含義內的估計和其他前瞻性陳述。我們希望提醒本次電話會議的聽眾，構成我們前瞻性陳述基礎的當前預期、假設和信念包括許多超出我們精確控製或估計能力的因素。這可能會導致結果與投影片 1 中我們的預期有重大差異。

These items can also be found in the forward-looking statements section of today's earnings release furnished on Form 8-K and in our most recent Forms 10-K and 10-Q as filed with the SEC. We do not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events.

這些項目也可以在今天的收益發布的 8-K 表格中的前瞻性陳述部分以及我們向 SEC 提交的最新 10-K 和 10-Q 表格中找到。透過包含本聲明，我們不承擔根據未來事件審查或修改本文引用的任何特定前瞻性聲明的義務。

We will also be referring to certain non-GAAP financial measures such as net financial earnings or NFE. We believe that NFE, net financial loss, utility gross margin, financial margin, adjusted funds from operations, and adjusted debt provide a more complete understanding of our financial performance. However, these non-GAAP financial measures are not intended to be a substitute for GAAP. Our non-GAAP financial measures are discussed more fully in Item 7 of our 10-K. The slides accompanying today's presentation are available on our website and were furnished on our Form 8-K filed this morning.

我們也將提及某些非 GAAP 財務指標，例如淨財務收益或 NFE。我們相信，NFE、淨財務損失、公用事業毛利率、財務利潤率、調整後的營運資金和調整後的債務可以讓我們更全面地了解我們的財務表現。然而，這些非公認會計準則財務指標並非要取代公認會計準則。我們的非 GAAP 財務指標在 10-K 的第 7 項中進行了更全面的討論。今天簡報附帶的幻燈片可在我們的網站上獲取，並包含在我們今天早上提交的 8-K 表格中。

Our agenda for today is found on slide 4. Steve will begin with this year's highlights, followed by Roberto, who will review our financial results, and we will open up for your questions.

我們今天的議程可在幻燈片 4 中找到。

With that said, I will turn the call over to our President and CEO, Steve Westhoven. Please go ahead, Steve.

話雖如此，我會將電話轉給我們的總裁兼執行長 Steve Westhoven。請繼續，史蒂夫。

Thanks, Adam, and good morning, everyone. We had a solid quarter at NJR as our complementary portfolio of businesses performed in line with our expectations, and we remain on track to achieve our fiscal 2024 NFEPS guidance of $2.85 to $3 per share. I'll take you through the highlights as shown on slide 5.

謝謝亞當，大家早安。新日本無線 (NJR) 的季度業績表現強勁，因為我們的互補業務組合的表現符合我們的預期，並且我們仍有望實現 2024 財年 NFEPS 每股 2.85 美元至 3 美元的指導目標。我將帶您瀏覽投影片 5 中所示的亮點。

At New Jersey Natural Gas, our rate case is proceeding as expected, and we anticipate a resolution before the end of 2024. Clean Energy Ventures reported a solid year-over-year revenue growth while continuing to expand our robust project pipeline. This provides a long runway of investment options that deliver a minimum of high single-digit unlevered returns for each project along with upside potential from increases in power demand. This quarter, we also saw solid contributions from S&T and performance from Energy Services that was in line with expectations.

在新澤西天然氣公司，我們的費率案例正在按預期進行，我們預計將在 2024 年底之前解決。這提供了一條漫長的投資選擇道路，為每個項目帶來最低個位數的高無槓桿回報，以及電力需求增加帶來的上行潛力。本季度，我們也看到科技的強勁貢獻和能源服務的業績符合預期。

Moving to slide 6, in November, we provided an initial NFEPS guidance range of $2.70 to $2.85 per share. In February, due to our outperformance at Energy Services, we increased this guidance by $0.15 per share to $2.85 to $3 per share. As discussed in prior calls, we expect our fiscal 2024 to exceed our long-term growth rate of 7% to 9%.

轉到幻燈片 6，11 月份，我們提供了每股 2.70 美元至 2.85 美元的初始 NFEPS 指導範圍。 2 月份，由於我們在能源服務領域的出色表現，我們將這一指導方針上調了每股 0.15 美元，至每股 2.85 至 3 美元。如同先前電話會議所討論的，我們預計 2024 財年的成長率將超過 7% 至 9% 的長期成長率。

Slide 7 outlines the expected NFEPS percentage contribution by business segment for fiscal 2024 and beyond. This year, Energy Services will represent a higher percentage than prior years due to the AMAs and recent outperformance. However, in future years, we expect to return to a more normalized segment breakout with over 60% of our NFEPS coming from our utility business.

投影片 7 概述了 2024 財年及以後各業務部門對 NFEPS 的預期貢獻百分比。由於 AMA 和最近的優異表現，今年能源服務的比例將高於往年。然而，在未來幾年，我們預計將恢復更正常化的細分市場突破，超過 60% 的 NFEPS 來自我們的公用事業業務。

Now, let's discuss our business units, starting with New Jersey Natural Gas on slide 8. We have invested $345 million year to date at New Jersey Natural Gas in fiscal 2024 with 43% of that CapEx providing near, real-time returns. This includes the SAVEGREEN program, which helps customers lower their energy usage. In June, SAVEGREEN reached a milestone, serving our 100,000th customer since its inception in 2009. Over the lifetime of this program, participating customers have significantly cut their energy bills and reduced their carbon emissions by over 312 million tons equal to the energy use of over 18,000 homes.

現在，讓我們從幻燈片8 上的新澤西天然氣公司開始討論我們的業務部門。 。其中包括 SAVEGREEN 計劃，該計劃可幫助客戶降低能源使用。 6 月，SAVEGREEN 達到了一個里程碑，為我們自2009 年啟動以來的第100,000 個客戶提供服務。碳排放，相當於10 萬噸的能源使用量。

Congrats to the entire SAVEGREEN team on this accomplishment, customer growth has remained steady all year, driven by a combination of both new construction and conversions. We also see unique business opportunities. This should help drive growth well into the future, such as the redevelopment project in Monmouth County to transform a mall into multifamily units, along with retail, commercial and medical spaces.

恭喜整個 SAVEGREEN 團隊的這項成就，在新建和改造的共同推動下，客戶成長全年保持穩定。我們也看到了獨特的商機。這應該有助於推動未來的成長，例如蒙茅斯縣的重建項目，將購物中心改造成多戶單元，以及零售、商業和醫療空間。

Turning to slide 9, our base rate case is progressing as planned. In May, we adjusted our filing to include nine months of actual results and aim to reach a resolution that balances our customers and company's interest by the end of 2024.

轉向投影片 9，我們的基本費率案例正在按計劃進行。 5 月份，我們調整了備案文件，納入了 9 個月的實際結果，並計劃在 2024 年底之前達成平衡客戶和公司利益的解決方案。

Moving to slide 10, clean Energy Ventures continue to add new solar capacity during this fiscal year. We are also growing our solar pipeline, which now includes over 870 megawatts of potential investment options with an additional 51 megawatts under construction.

轉向投影片 10，clean Energy Ventures 在本財年繼續增加新的太陽能產能。我們也正在擴大太陽能管道，目前包括超過 870 兆瓦的潛在投資選項，另有 51 兆瓦正在建造。

Finally, on slide 11, our S&T business met expectations this period. Last quarter, we announced the start of a capital investment project at Leaf River to expand working capacity within our caverns. We completed an open season and contracted a portion of that capacity at terms that will pay back the full cost of that investment in less than four years.

最後，在投影片 11 中，我們的科技業務在此期間達到了預期。上季度，我們宣佈在葉河啟動一項資本投資項目，以擴大我們洞穴內的工作能力。我們完成了一個開放季節，並簽訂了部分產能合同，合約條款將在不到四年的時間內收回投資的全部成本。

And with that, I'll turn the call over to Roberto to review our financial results. Roberto?

接下來，我會將電話轉給羅伯托，以審查我們的財務表現。羅伯托？

Thank you, Steve, and good morning, everyone.

謝謝你，史蒂夫，大家早安。

Slide 13 highlights the main drivers of our NFE for fiscal 2024 third quarter and year to date. We reported a net financial loss of $8.9 million or $0.09 per share compared with NFE of $9.7 million or $0.10 per share last year. The quarterly results of our business segment were consistent with our expectations, with steady margin contribution at NJNG and Energy Services and higher revenues at CEV and S&T compared to the prior period, offset by increased depreciation and interest expenses.

投影片 13 重點介紹了 2024 財年第三季和年初至今 NFE 的主要驅動因素。我們報告的淨財務虧損為 890 萬美元或每股 0.09 美元，而去年 NFE 為 970 萬美元或每股 0.10 美元。我們業務部門的季度業績與我們的預期一致，NJNG 和能源服務的利潤貢獻穩定，CEV 和 S&T 的收入較上一期有所增加，但被折舊和利息支出的增加所抵消。

Clean Energy Ventures reported a net financial loss for the period of $6.7 million. The difference from the prior year period was due to the resolution of an income tax valuation allowance last year that did not reoccur. Looking ahead, we expect a significant year-over-year increase in NFE for the upcoming fourth quarter as Energy Services will recognize a substantial portion of the asset management agreements total revenue during the period.

Clean Energy Ventures 報告期間淨財務虧損為 670 萬美元。與上年期間的差異是由於去年所得稅估價津貼的解決而沒有再次發生。展望未來，我們預計即將到來的第四季度 NFE​​ 將同比大幅增長，因為能源服務將在此期間確認資產管理協議總收入的很大一部分。

Turning to our capital plan on slide 14, over the next two years, we expect to invest between $1.2 billion and $1.5 billion across the company. For fiscal 2024, we have tightened our overall CapEx range with slight increases at NJNG and S&T, offset by a reduction in the top end at CEV.

轉向幻燈片 14 中的資本計劃，未來兩年，我們預計在整個公司投資 12 億至 15 億美元。對於 2024 財年，我們收緊了整體資本支出範圍，NJNG 和 S&T 略有增加，但被 CEV 上限的減少所抵消。

For NJR FFO, the midpoint of our total CapEx remained largely the same for the year. In November, we'll update our CapEx expectations for fiscal year 2025 and provide fiscal 2026. Our capital projections are anchored by strong cash flow from operations.

對於 NJR FFO，我們今年總資本支出的中點基本上保持不變。 11 月，我們將更新 2025 財年的資本支出預期，並提供 2026 財年的資本支出預期。

On slide 15, we expect cash flow from operations to range between $420 million and $450 million in fiscal 2024.

在投影片 15 中，我們預計 2024 財年營運現金流將在 4.2 億美元至 4.5 億美元之間。

Slide 16 displays NJR credit metrics. We project NJR's adjusted FFO to adjusted debt to be between 17% and 18% this year. And while we have no plans to issue block equity, our existing zero reinvestment program includes a waiver discount feature that allows us to raise equity on an opportunistic basis.

幻燈片 16 顯示 NJR 信用指標。我們預計新日本無線今年調整後的 FFO 與調整後債務之間的比例將在 17% 至 18% 之間。雖然我們沒有計劃發行整體股權，但我們現有的零再投資計劃包括豁免折扣功能，使我們能夠在機會主義的基礎上籌集股權。

Slide 17 provides a breakdown of our long-term debt, which is fixed rate with no significant maturities in any particular year. We don't have any debt maturities for the rest of fiscal 2024 and maintain substantial liquidity at both NJR and NJNG.

第 17 張投影片提供了我們長期債務的細目，該債務是固定利率的，在任何特定年份都沒有重大到期日。我們在 2024 財年剩餘時間內沒有任何債務到期，且 NJR 和 NJNG 均保持大量流動性。

With that, I'll turn it back to Steve for concluding remarks on slide 18.

接下來，我將把它轉回給 Steve，讓他對投影片 18 進行總結發言。

Thanks, Roberto.

謝謝，羅伯托。

In conclusion, NJR continues to deliver long-term value for its shareholders, anchored by our regulated utility and the infrastructure investment opportunities provided by the other business segments. Our rate case is progressing on schedule, and we look forward to a resolution later this year.

總之，以我們受監管的公用事業和其他業務部門提供的基礎設施投資機會為基礎，新日本無線繼續為其股東創造長期價值。我們的費率案例正在按計劃進行，我們期待在今年稍後達成解決方案。

To summarize, we offer investors an attractive 11% to 13% expected total return based on our long-term NFEPS growth rate of 7% to 9% and current dividend yield of approximately 4%. We expect to grow our dividend to our shareholders in line with our earnings as NJR has raised the dividend every year for the last 28 years. Our next dividend announcement will come in September.

總而言之，基於我們 7% 至 9% 的長期 NFEPS 成長率和約 4% 的當前股息殖利率，我們為投資者提供了 11% 至 13% 的有吸引力的預期總回報。我們預計向股東支付的股息將與我們的收益保持一致，因為新日本無線在過去 28 年裡每年都會提高股息。我們的下一次股息公告將於九月發布。

We appreciate that you took the time to join us today, and I'd like to recognize and thank our employees for all their hard work and dedication that drives our performance. So let's now open up the call for questions.

我們感謝您今天抽出時間加入我們，我要表彰並感謝我們的員工為推動我們的業績而付出的辛勤工作和奉獻精神。現在讓我們開始提問。

(Operator Instructions) Richard Sunderland, JPMorgan.

（操作員指令）Richard Sunderland，摩根大通。

Starting with the rate case, is everything still progressing as expected towards the settlement? I'm just looking at the slide language here on settlement discussions. I'm curious if we should expect an announcement, I guess, either this month or next under that timeline.

從利率案件開始，一切是否仍如預期朝和解方向進展？我只是看這裡關於和解討論的幻燈片語言。我很好奇我們是否應該期待在這個時間表下的本月或下個月發佈公告。

Rich, this is Steve. I'm going to ask Pat Migliaccio to take that question.

里奇，這是史蒂夫。我將請 Pat Migliaccio 回答這個問題。

Hey, Rich. Just as a reminder, this is a plain millery case investments around safety, reliability and some IT investments, with the filing of our 10-Q today, that will pave the way for us to file a 12-0 with the Board of Public Utilities in the next couple of days. But as far as some of the discussions, they're progressing as we would expect them to and no change to our previously communicated timing guidance, which is we expect to finalize the rate case with rates effective sometime in our first fiscal quarter of '25.

嘿，里奇。提醒一下，這是一個圍繞安全性、可靠性和一些 IT 投資的普通工廠案例投資，今天提交了我們的 10-Q，這將為我們向公用事業委員會提交 12-0 鋪平道路在接下來的幾天裡。但就一些討論而言，它們正在按照我們的預期取得進展，並且我們之前傳達的時間指導沒有變化，我們預計將在 25 年第一個財政季度的某個時候敲定利率方案並生效。

And then turning to CEV. Can you quantify your open megawatts and if power prices could be a tailwind to 4Q or even put 2025 earnings above the 7% to 9% outlook range.

然後轉向CEV。您能否量化您的未完成兆瓦容量以及電價是否可能成為第四季度的推動因素，甚至將 2025 年收益置於 7% 至 9% 的前景區間之上。

So we've got a little bit of this fiscal year left and little bit of, I guess, megawatt pricing due for the rest of the season. You can, I guess, look to years past to determine how that could impact our earnings going forward. But I would expect to characterize it, it should be relatively minor contribution for this year depending on where power prices go.

因此，本財年我們還剩下一點時間，我想，本季剩餘時間的兆瓦定價也還剩一點時間。我想，你可以回顧過去幾年來確定這將如何影響我們未來的收入。但我希望對其進行描述，今年的貢獻應該相對較小，這取決於電價走勢。

(Operator Instructions) Travis Miller, Morningstar.

（操作員說明）Travis Miller，晨星公司。

I guess I was going to ask Richard's question, but I'll ask it kind of a different way or clarify if I didn't hear you correctly. The open megawatts and then the high level, what are you seeing in terms of pricing? Is it stronger or weaker than you expected? Not necessarily for earnings, but just in general in the market, how are you seeing solar pricing?

我想我本來要問理查德的問題，但如果我沒聽清楚，我會用不同的方式問或澄清。開放兆瓦，然後是高水平，您在定價方面看到了什麼？它比你預期的強還是弱？不一定是為了收益，但只是在市場上，您如何看待太陽能定價？

So I mean, you can see the pricing as well as we can if you look at PJM daily liquidation where pricing is occurring on a daily basis, again, it's been remarkable for the summer in comparison to previous summers. But like I just said to Rich, if you're looking at an indication on how it may impact us, you can look at years past. But I think all in all, not much of the fiscal year left for us, and you have to see some extreme pricing to make a significant change in earnings this year.

所以我的意思是，如果您查看 PJM 每日清算，您可以像我們一樣看到定價，其中定價每天都會發生，再次，與之前的夏天相比，今年夏天的情況非常出色。但就像我剛才對里奇說的那樣，如果你正在尋找它可能會如何影響我們的跡象，你可以看看過去的幾年。但我認為總而言之，本財年留給我們的時間不多了，你必須看到一些極端的定價才能讓今年的收益發生重大變化。

And about how much do you still have to price?

您還需要定價多少？

I don't have that number off the top of my head. But if you look at our portfolio and the ratings, I'm sure you can calculate it out on how much that price on a daily basis, especially considering big portions of our portfolio are grid connected.

我腦子裡沒有這個數字。但如果你看看我們的投資組合和評級，我相信你可以計算出每天的價格是多少，特別是考慮到我們投資組合的很大一部分是與電網連接的。

Okay. Okay. Very good. And then staying on that subject cost side, what are you seeing in terms of your growth, not necessarily CapEx but just growth in solar costs. What are you seeing on the cost side, any new projects?

好的。好的。非常好。然後留在主題成本方面，您在成長方面看到了什麼，不一定是資本支出，而只是太陽能成本的成長。您對成本方面有何看法，有什麼新項目嗎？

I think they've been pretty steady characterized. If you're talking about our cost and cost development, just our normal construction. I think things have been steady for the, I guess, recent past, nothing remarkable there either. The only thing I'd add there is that the states are still have a very robust in support of the renewable portfolio standard. So we're still able to make investments, and you can see the size of our portfolio continues to grow as well.

我認為他們的特徵相當穩定。如果你說的是我們的成本和開發成本，只是我們正常的建設。我認為最近一段時間以來情況一直很穩定，也沒有什麼值得注意的地方。我唯一要補充的是，各州仍然非常有力地支持再生能源投資組合標準。因此，我們仍然能夠進行投資，而且您可以看到我們的投資組合規模也在持續成長。

And then different subjects, high level, everybody is asking the electric utilities about data centers. From your perspective, I've understood that a lot of gas utilities are seeing demand or have had demand for a while from data centers in terms of either primary or backup generation. What does it look like in your service territory, have you had data center customers for a while? Or are you seeing demand for that either backup or primary on-site gas generation or service?

然後是不同的主題，高層次的，每個人都在向電力公司詢問有關資料中心的問題。從您的角度來看，我了解到許多天然氣公用事業公司正在看到資料中心在主要或備用發電方面的需求或已經有一段時間的需求。您的服務區域狀況如何？或者您是否看到了對備用或主要現場天然氣生成或服務的需求？

So we don't have -- I don't believe we have any data centers within our service territory at this point. But I'd add to that, that the increase in electric use, the increase in need for reliability matches up nicely with our portfolio across really all of our companies. That reliability, the need for constant electricity in order to run those facilities, whether it's our utility and the infrastructure there, our S&T assets, supportive of power prices for our CEV portfolio, volatility that gets introduced for our Energy Services segment, all those business units should participate in this market as it becomes tighter and there's a greater demand for power and reliability.

因此，我認為目前我們的服務區域內沒有任何資料中心。但我想補充一點，電力使用的增加，對可靠性需求的增加，與我們所有公司的產品組合很好地匹配。這種可靠性，需要持續電力來運行這些設施，無論是我們的公用事業和基礎設施，我們的科技資產，支持我們的 CEV 投資組合的電價，我們的能源服務部門引入的波動性，所有這些業務隨著市場變得更加緊張並且對功率和可靠性的需求更大，機組應該參與這個市場。

Michael Gaugler, Janney Montgomery Scott.

麥可高格勒，珍妮蒙哥馬利史考特。

Steve, I had one more power price question for you. So as you're looking forward, future planning for CapEx, does it make you want to invest more in the sector given where power prices are going, given what you're seeing, particularly like you referenced the high prices we're seeing in PJM.

史蒂夫，我還有一個電價問題想問你。因此，當您展望未來時，考慮到電力價格的走向，考慮到您所看到的情況，特別是像您提到的我們所看到的高價格，它是否會讓您想要在該行業進行更多投資PJM。

Yes. I think like I said to Travis, it supports all our infrastructure and infrastructure investment, and it really supports our general strategy in growing that infrastructure going forward. You saw the recent PJM capacity auction that was 10x where it was previous year. That's a real market signal that's been put out there and certainly, there is lot of anecdotal market signals that have been supported as well.

是的。我認為就像我對特拉維斯說的那樣，它支持我們所有的基礎設施和基礎設施投資，並且它確實支持我們未來發展基礎設施的整體策略。您看到最近的 PJM 產能拍賣是去年的 10 倍。這是一個真實的市場訊號，當然，還有很多軼事市場訊號也得到了支持。

So answer, yes. It certainly supports our business and really the strategy that we've been talking about for quite some time.

所以回答，是的。它當然支持我們的業務，也確實支持我們已經討論了一段時間的策略。

Does it make sense to look at projects that are actually -- that are already -- sorry, already operating?

看看那些實際上——已經——抱歉，已經在運營的項目有意義嗎？

Yes. I mean we've done that as a course of the business in the past, whether that's a portfolio at CEV or operating assets and S&T, we've looked at those in the past. So yes, I'd say, yes, to that.

是的。我的意思是，我們過去已經將其作為業務流程來完成，無論是 CEV 的投資組合還是營運資產和科技，我們過去都研究過這些。所以，是的，我會說，是的，對此。

Okay. And then one last one. For the S&T segment. Beyond what you're doing at Leaf River to expand capacity, what areas you're focused on in terms of future expansion in that business?

好的。然後是最後一張。對於科技領域。除了您在 Leaf River 所做的擴大產能的工作之外，您在該業務的未來擴張方面還重點關注哪些領域？

Anywhere that we can get a contract that's long term that can support the expansion, whether it's Adelphia Gateway or whether it's at Leaf River, and we could essentially grow organically, making it easy to get permits, you're connecting to an existing asset, everything that's supportive, we'll look at -- we don't have anything to announce beyond what we've talked about already with several of our organic expansions but know that we are pursuing that.

在任何地方，只要我們能獲得支持擴張的長期合同，無論是在 Adelphia Gateway 還是在 Leaf River，我們基本上都可以實現有機增長，從而很容易獲得許可，您可以連接到現有資產，我們會關注所有支持性的內容——除了我們已經討論過的幾個有機擴展之外，我們沒有任何要宣布的內容，但我們知道我們正在追求這一目標。

Robert Mosca, Mizuho.

羅伯特‧莫斯卡，瑞穗。

Just wondering, if you guys could talk about some of the business opportunities you referenced in your customer growth commentary. Just wondering, how significant that is. And is this something that's already captured in your 7% to 9% growth outlook?

只是想知道，你們是否可以談談你們在客戶成長評論中提到的一些商業機會。只是想知道，這有多重要。您的 7% 到 9% 的成長前景中是否已經包含了這一點？

I'm going to ask Pat Migliaccio to take that question.

我將請 Pat Migliaccio 回答這個問題。

So look, as we think about the customer growth, we're still in that 1.7% marker, really included that just to illustrate that as you think about New Jersey strategic, but more specifically our service territory. This is a growing environment service territory.

因此，當我們考慮客戶成長時，我們仍然處於 1.7% 的標記，實際上將其納入只是為了說明，當您考慮新澤西州的策略時，更具體地說是我們的服務領域。這是一個不斷發展的環境服務領域。

So we've got a lot of tailwinds both from the new construction market because you continue to see people coming into Monmouth Ocean -- County specifically, but then also a very healthy conversion market because there are a number of customers that are still on oil, propane and the like converting over. So I would characterize it as something that's generally supportive of the utilities growth rate.

因此，我們從新建築市場獲得了很多順風，因為你繼續看到人們進入蒙茅斯海洋——特別是縣，但同時也是一個非常健康的轉換市場，因為有許多客戶仍在使用石油、丙烷等轉化完畢。因此，我將其描述為總體上支持公用事業成長率的因素。

Appreciate it, Pat. And maybe turning to Leaf River looking at that request for authorization to use some of those leasing facilities for hydrogen stores. Just wondering what the latest on that is? And how does that -- what's that interplay with this working capacity expansion that you seem to have ID'd on the gas side?

欣賞它，帕特。也許可以向葉河公司尋求授權，將其中一些租賃設施用於氫氣儲存。只是想知道最新的情況是什麼？這與天然氣的工作能力擴張有何交互作用？

So we're keeping all our options open at Leaf River and certainly exploring, like I said to Mike before, every option that is available to us in order to expand our S&T assets. There's been a lot of market pull in that area. You've seen that in the contracts that have been executed out there, certainly elevating in price.

因此，我們在葉河保留所有選擇，並且肯定會探索，就像我之前對麥克說的那樣，為了擴大我們的科技資產，我們可以使用每一個選擇。該地區有很大的市場吸引力。您已經在已經執行的合約中看到了這一點，價格肯定在上漲。

So I think the view on that at this point is a marker that basically preserves our position in order to expand in that fashion. We don't really have anything to announce just yet. But you can see how we're thinking about that asset and many uses that it might be able to be applied into this market.

因此，我認為目前的觀點是一個標記，基本上保留了我們的立場，以便以這種方式擴張。我們還沒有什麼要宣布的。但您可以看到我們如何考慮該資產以及它可能應用於這個市場的許多用途。

Got it. That's helpful. And maybe just a quick last one for me on the subject of power. Just wondering, does electricity sales become more of a factor in where you decide to locate some of these solar projects? Or are the economics still really be focused on what the solar credits look like in the space that you do construct?

知道了。這很有幫助。也許這只是我關於權力主題的最後一個簡短的話題。只是想知道，電力銷售是否成為您決定在何處部署某些太陽能專案的更多因素？或者經濟學仍然真正關注您所建造的空間中的太陽能信用是什麼樣的？

Yeah. I think power prices and power movement of areas that we need to clear in order to build a solar project -- having the land, having the interconnectability, having the right transaction with the developer, and so on and so forth -- I think those would take more of a precedent. I believe that power, for the most part, as it increases, will increase, maybe not uniformly, but generally speaking, that rising tide will lift all boats in that way.

是的。我認為為了建造太陽能項目，我們需要清理的地區的電力價格和電力流動——擁有土地、具有互連性、與開發商進行正確的交易等等——我認為這些會採取更多的先例。我相信，在很大程度上，隨著力量的增加，力量也會增加，也許不是均勻的，但一般來說，上漲的潮水會以這種方式抬起所有的船。

I mean, maybe just one thing to add there, Rob, to this report, though, is just keep in mind when you look at our assets that this type of revenues, the fees that come from power is very minor. On a regular year, it's about 10% to 15% only. So we look at it in that lens.

我的意思是，羅布，在這份報告中，也許需要補充一件事，那就是，當你查看我們的資產時，請記住，這種類型的收入、來自電力的費用非常小。正常情況下，這一比例僅為 10% 至 15%。所以我們從這個角度來看它。

(Operator Instructions) I'd now like to hand back over to Adam Prior for their remarks.

（操作員指示）我現在想將發言交還給 Adam Prior。

Thank you, Ali, and I'd like to thank everyone on the call here today for joining us. And as always, we appreciate your interest and investment in NJR. Thank you so much, and have a good rest of your morning.

謝謝你，阿里，我要感謝今天參加電話會議的所有人。一如既往，我們感謝您對新日本無線的興趣和投資。非常感謝您，祝您早上好好休息。

Thank you, everyone, for attending today's call. You may now disconnect. Have a wonderful day.

謝謝大家參加今天的電話會議。您現在可以斷開連線。祝你有美好的一天。