David Arcaro: Excellent. Thanks for that. Very helpful. And then maybe secondarily, just it sounds like the backdrop has gotten more challenging for small developers in the renewable space, wondering if you’re seeing opportunities for market share gain as a result, and potentially any development pipelines to pick up from developers that might be struggling right now.
Rebecca Kujawa : Sure. We always are out in the development right acquisition market. In the recent couple of years, we’ve really prioritized our greenfield portfolio, in part because of our ability to work so closely with our customers and make sure that we’re building the projects over the long term where they need them. But we will always be opportunistic in the development project market to be selective and create opportunities where it may be particularly attractive. The dynamic from a couple of years ago where a number of the development portfolios were acquired by folks looking to, I would say, compete with us, but certainly have a bigger presence on the development side. We haven’t seen those holistically come back to market.
I think that may change over time. I know the private equity cycle of wanting to be able to turn over capital quickly and realize isn’t necessarily completely aligned with the development cycle where sometimes things are a little bit faster or a little bit slower than you anticipated, and you need to be patient. So I’m optimistic there’ll be opportunities. But most importantly, and this is one of the things that we’ll focus on in March, is we want to keep our fate, our development opportunities in our own hands. And I am super excited about what our team is working on from a greenfield development standpoint and the competitive advantages that we’re investing in to make sure that we can serve our customers well, not just in the next two or three years as we often talk about with you all, but the next five, seven, 10 years plus down the road.
Operator: The next question comes from Carly Davenport of Goldman Sachs.
Carly Davenport: Hey, good morning. Thanks so much for taking the questions. I wanted to just ask about transmission. You highlighted the $1.9 billion of capital through ‘27 at NEER. And as we look at the EBITDA contributions at NEER for 2024 that piece is moving higher as well. So could you just talk a bit about what sort of growth you could see at NEER over the next several years and what that EBITDA contribution could be over time?
Rebecca Kujawa : Good morning, Carly. So from the pipeline perspective, is no doubt you appreciate transmission opportunities take a couple of years to come to fruition. So we’re thrilled with the awards that the team has been able to secure in the last year on one part of it, building on investments that we already have, so expansion opportunities that are significantly enabling new renewables development headed into the California market. And then other parts of the US competitive opportunities that we won through competitive processes. In terms of timing, as we highlighted in the prepared remarks, the in -service dates are out to 2027. So as we invest capital, obviously that’ll start to become more of a material contribution over time.
And we’ll give more color as we get into the investor conference as we typically do to give more of a breakdown by business and what those contributions will look like over time. But the momentum is terrific. And as we’ve highlighted, everybody understands, maybe not to the extent that we think it’s going to happen, but in order to unlock the renewables opportunity that we and others see across the United States, transmission needs to be built. And we stand ready to be a part of the solution wherever we can be and bring cost effective solutions to customers.
Carly Davenport: Great, thank you for that. And then maybe just one more on the financing side for this year, just based on what you’ve seen so far in the markets, how are you thinking about the mix of the different avenues that you can use to monetize tax credits, whether through tax equity or transferability? How do we think about the sort of magnitude of each of those in your financing plans for ‘24?
Kirk Crews : Yes, Carly, this Kirk, the financing plan as we shared in our prepared remarks is consistent with the information, we shared on the third quarter call. And as we approach those options, we will use the historical approaches, project finance and tax equity. But we’re also very encouraged by what we’re seeing with the transferability market. We are having really good progress with, in those conversations, we’re seeing really good demand for the NextEra Energy tax credit. And ultimately, we look at all those as options and will optimize between project finance and transferability and tax equity. And we’ll use those within the ranges that we shared and the ‘24 to ‘26 funding plan that we provided between those — between the disclosure that we provided. But we are seeing really good demand for the credits and expect to continue to utilize transferability as an option going forward.
Operator: The next question comes from Jeremy Tonet of JPMorgan.
Jeremy Tonet: Hi. Good morning. Just wanted to build off that a little bit as what you talked about before. How do you balance, I guess, looking forward the wealth of growth opportunities and associate funding needs relative to dividend growth? Do you look at industry trends for dividend growth at all and how that might change as utility CapEx increases and just a final point there, just wondering how the EMP business competes for capital against everything else that you have in a lower gas price environment.
Kirk Crews : Sure. So we, when we look at capital allocation and you look at, we shared on the third quarter call the returns that we see within the renewable business and as we shared then at Energy Resources within for when we see returns in the low 20s on a levered ROE basis. In solar, we see returns in the mid-teens and then storage is also in the low 20s. And so it’s great returns and we look to get capital allocated to the renewable business. And that as John discussed in the prepared remarks, we are allocating capital across both businesses in renewables and transmission. And so that is the priority with the way that we allocate capital. And then in terms of the funding of that, again, it’s the way that we’ve traditionally funded the business, it’s tax equity, it’s project finance, and then we also use the transferability provisions.
Jeremy Tonet: Got it. Thank you for that. And then maybe just pivoting a little bit towards the backlog. A lot of additions in the quarter, but there was a little bit of fell out, I think, 350 and there was a little bit more in the post 2026 timeframe that’s in the backlog. So just wondering if you could talk a bit more on kind of some of the drivers, the puts and takes within the portfolio addition composition over time.
Rebecca Kujawa : Sure, I’ll take that. In terms of the, obviously the backlog additions are quite strong and we’re thrilled about that. And for this quarter, in terms of the removal that we had, it’s really project specific items and one part is really related to higher interconnection costs for a particular project where we need to go back and do a little bit more work, very likely these project megawatts will come back into the backlog. They’re good projects, but in near term we’re removing them while we work through the issues. We, I think it’s important to keep in mind that as we add something to the backlog, it’s tremendous visibility and we’re really excited about moving forward with the projects based on what we know at the time.
