Good morning to everyone. My name is Alvaro Ortega, Vice President of Investor Relations and Treasury at Avangrid. Thank you for joining us today to discuss Avangrid's Investor Day and our 2022-2025 long-term outlook. Presented today are Pedro Azagra, our Chief Executive Officer, Patricia Cosgel, our Chief Financial Officer, Catherine Stempien, President and Chief Executive Officer of Avangrid Networks, José Antonio Miranda, President and Chief Executive Officer of Avangrid Renewables, and Sy Oytan, Senior Vice President, Offshore Projects. If you do not have a copy of our press release or presentation for today's call, they're available at our website, 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. 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, in 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 Securities and Exchange Commission, each of which can be found on our website, avangrid.com. 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 definition information and reconciliations of non-GAAP financial measures to the closest GAAP financial measures. I will now turn the stage over to Pedro. Okay, good morning to everybody here. I'd like to thank Chairman Galán for being here as the main shareholder of our company. Congratulations for the great speech yesterday in the Macquarie event. Again, you know, a benchmark speech. A pleasure to have been 23 years, you know, in the group with you. I think welcome to all of you. I have many former colleagues, many friends, many former bosses here as well. A pleasure for me to be here in this new roll w ith some of you and all of you here. Thank you very much for coming to the stock exchange here in New York. I think last week it was my first 100 days being CEO of Avangrid, and more than 22 years in the Iberdrola group, that we are very proud of being part of. I think over those, you know, 100 days, I've met, you know, probably more than 1,000 employees. I have been, you know, with many, you know, legislators, many governors, many attorney generals, many public commissions, you know, both commissioners, senior staff people. From that point of view, I think, you know, I've been trying to meet everybody that I could in the first, you know, three months being in this new position that I have now. I think I'm comfortable to say that we have achieved certain things what I'm very proud of in this short period of time, and some good news. We have the NECEC ruling, which I think is something we were expecting, but finally there. Something that is fair, very important for the U.S. energy policy and for some states' energy policy. I think we have filed, you know, as you know, several rate cases in New York, in Connecticut and Maine, and we have had a track record of efficiency, reliability that we will comment later. Finally, you know, we have continued our progress, especially in the Vineyard Wind, you know, park that we are developing, the first, you know, high-scale project of offshore wind in the U.S. I'm very happy about the things, you know, we have accomplished in the period of time and in the many last years, you know, that we've been together in Avangrid and Iberdrola USA before. I think our plan 2022-2025 or 2023-2025 is basically something to incorporate the feedback we have got from many of you know, what we think are the real challenges that we have, and try to address something very simple, our history is to deliver. I think we're here to work hard, you know, to make sure that everything we say, we deliver. That's gonna be our simple and clear purpose. I think you all know Avangrid, so I'm not gonna spend a lot of time on this. You know, we are mainly a regulated utility networks company. You know, we have, you know, as you know, you know, over seven million of people being served across the Northeast. We are right now also working on closing a transaction in New Mexico with PNM. We have right now presence in more than 22 states in renewables, you know, 8.5 gigawatt of installed capacity. I think I'm very proud of, you know, the first movers into the offshore wind arena in the U.S. with, you know, 2.4 gigawatt contracted right now, and being the first company with a large-scale project in offshore wind. I think we're very proud, as I mentioned before, being part of the Iberdrola group that brings, you know, synergies, efficiencies, and best practices, and that's something we have, you know, to lever on. I think when I refer to our more than, you know, 7,300 employees, I would like to highlight the team. I think we have put a team together, you know, for this new stage ahead of us. I'm very proud of the team. The first comment I will make is trust us, you know, succession is there. It doesn't matter who of us may not be here in the future, we have a plan, and there is an immediate reaction, you know, putting, you know, a new person in charge. We're very comfortable we have the right team at the first, second, third level, and therefore, succession is guaranteed going forward, and we have a great team all over. Just to mention, you know, the skilled team that we have, I'm gonna try to mention some examples and background of all of us to give you the comfort that the team right now is the right team, as we did in 2008. You know, we have almost the same team for 15 years. I think we're trying to put a team also, you know, for a lot of years ahead of us. Patricia Cosgel, she has more than 20 years, you know, with experience in utility, investor relations, and other finance-related areas. Kyra Patterson, you know, she's our chief human resources officer, 20 years. You know, she's also a Navy veteran and more than five years, you know, specifically in the utility industry. Catherine Stempien, our Networks CEO. You know, as you know, she was president and CEO before of Utilities. She has legal, regulatory, M&A background in the utility, more than 25 years of experience. José Antonio Miranda, you know, we met him in Siemens Gamesa. You know, he has a long-term background also in the offshore, onshore and, you know, turbine, you know, world, and he's been with us now for some time, you know, also taking care of the solar and onshore wind business. We thought he was appropriate at this time, as we have in the rest of the world, one head to take care of all the renewable business, both onshore and offshore. Kim Harriman, you know, she takes care of our government affairs. She's, you know, more than 20 years experience, you know, in the public commission, in the administration in New York. Very proud of, you know, having her with us in the team. Scott Mahoney, our General Counsel, again, another U.S. Army former, you know, veteran. I think he's our General Counsel and Secretary, more than 30 years of legal expertise. You know, unfortunately, we have many litigations going on. You know, this is the reality we have in our business. I think we are not shy of that. You know, we have the right resources, and I think you've seen certain recent decisions going in the right direction. Ignacio Estella, we have corporate development. He's more than 25 years, you know, doing M&A transactions, also very comfortable on that front. Franklyn Reynolds, you know, our CEO for Connecticut. You know, very proud of having, you know, Franklyn as CEO of our Connecticut and business. Very good relationships with the AG, with the governor, you know, with the commission. From that point of view also, an honor to have Frank, you know, who has been for so long and is also a former Army veteran. Patricia Nilsen, we just appointed her, first woman ever to become our CEO in New York after more than 175 years. I think she has a very strong track record in operations, very successful in storm management. As you know, it's a big issue in New York. From that point of view, also, congratulations and very proud of having you here. Joseph Purington, I'm very happy he came back, you know, with us, you know, to CMP after more than 35 years of experience and most of those also at CMP. Also, I think we have the right person to take care of, you know, our main operations. Basically, as you can see together, probably more than 300 years of experience in the sector. You know, one-third of the leaders have been probably a couple of decades or more in the group. That's why internal succession, internal promotion is key. We intend to do so because most of the times the best options are internally, you know. Therefore, you know, we're gonna show that to you as we have done recently with a couple of decisions we have taken. Finally, just to give you how much we care about gender, you know, ethnicity, you know, how much we care about nationality, veteran statuses, the different backgrounds. You know, we have right now 30% of my, you know, of my team are women compared to 20% a year ago. 17% are, you know, people of color compared to 10% a year ago, and four are veterans, you know, from that served in the Army or Navy, including me. In addition, you know, our board, you know, has right now 27% women representation, which is, you know, well above, you know, the U.S. energy, you know, average of 19%. Okay. I think sometimes, you know, here you have not delivered or there is a track record. You know, when we look, you know, at our, you know, creation of Avangrid, you know, when we merged Iberdrola USA and UIL, basically, we believe it has been a story of growth and evolution. Okay, the growth in networks, we have grown our rate base since then by, you know, 36% to almost $12 billion, you know. I think, you know, PNM will add additional, you know, presence in a couple of states, in New Mexico and Texas. I think we have increased our, you know, capacity in renewables by 60%, and we have passed 80 gigawatts of installed capacity. We have, you know, a widespread, you know, presence in the US. That's something we're gonna focus and optimize to make sure we are not distracting resources and probably focus in the appropriate areas going forward. I think, you know, we're emissions-free. We know we're serving right now more than two million homes across the U.S., okay, which is, you know, beautiful. We have this 45-gigawatt pipeline that gives us comfort, you know, for creation, new opportunities, growth and value creation. I think we have led the U.S. offshore wind sector, as we have done in Europe as well. From that point of view, thanks, you know, to investments we did at the right time, you know, paying very little money. I think we are now developing those assets with, you know, almost no entry cost. That's why we are very comfortable on the Vineyard Wind project. It will be disclosed today in detail. You are comfortable everything is on track, and that's how we do these projects here and in the rest of the group as well. I think our market cap has grown by 60%, you know, since 2015. Net income has grown by 85%, you know, over, you know, $400 million increase compared to our 2015 pro forma midpoint, you know, comparing that with our midpoint this year. This translates, you know, to a very compound annual growth of, you know, more than 9% in this figure, you know, which is especially in the last two years, you know, with a material growth. On an adjusted basis, I think we have a compound rate approximately since 2015 of 7%. EPS, you know, we are right now more or less around 66% growth in those years, you know, to now. I think, you know, from the first half of 2020, we focus on the last, you know, two years. We have increased our EPS by 54%, which is a compound growth rate of 24%. I think these are some examples of the achievements we have done in the recent years to give you the comfort that, you know, that's what we try and that's what we are intending to do going forward as well. I think we're gonna give you just a feeling, you know, of what we are contributing from a GDP and value creation to the states and the country that we serve here in the U.S. I think what we have invested approximately $40 billion, you know, in the last 15 years in the U.S. I think our impacts in the U.S. economy are simple. We have more than 7,000 direct jobs. I think we have a PwC report that each of those jobs translates more or less, you know, roughly into 70,000 indirect and additional jobs created in the US, you know, through us. This includes induced jobs, direct and indirect jobs. Most of these jobs are in the states where we're doing businesses. We estimate in New York around 18,000, 10,000 in Maine, and 8,000. Sorry, 10,000 in Connecticut and 8,000 in Maine. I think these investments are gonna continue and therefore, the current rate case is being proposed. Our estimate that it will be around 8,000 jobs additional being created in these states according to these parameters used by PwC. I think our investment in offshore, just to give you some guidance, how when we hear, you know, the President of the U.S., when we hear other officials and people speaking about offshore and the contribution, you know, to worth and to wealth and job creation, et cetera, we estimate more or less around 38,000 job-related, you know, jobs created during the years of construction and more than 2,000, you know, permanent long-term jobs. I think in addition, our activities have contributed around $10 billion to the country GDP according to the PwC report. We also support the local economies, so our purchases of goods, I think this is an important message. It's the approach we have followed in the group, you know, for more than 20 years. We need to be local, you know, where we can be local in purchasing. We have, you know, made, for example, last year, more than $3.4 billion in purchasing and around 96% of this has been with, you know, from U.S. suppliers. We are very proud of this, that now you see all this American. I think some of us were already delivering for some time, you know, with this approach being local. I think we go to the business mix. I think unfortunately, I like to compare with our peers. I mean, you need to take decisions when you invest, and probably this is the time also to compare ourselves. I think we're very proud for being part of the energy transition that the U.S. has. We have the opinion that it doesn't have any comeback. Of course, we have power people, you know, people making a lot of money in gas, people trying to delay transition. It doesn't matter. We're gonna continue, and we think, you know, there is no comeback and the road to continue. We need support from politicians in permitting. We need support from politicians to make sure that they have a stable and predictable frameworks, but, you know, the story is simple. It will continue, and the world needs that. I think, you know, as I mentioned, you know, more than 80% of our earnings right now are networks driven, okay? I think just to give you a feeling, you know, 80% plus of our investments will be networks. So I think that's very consistent what we have done and what we're doing. I think, you know, we're one of the top three renewable companies, as you know, in the U.S. by installed capacity, and as you know, we are investing in offshore and becoming, you know, clearly, you know, ahead of people. When you compare us, you know, with other people, I think comparing ourselves, you know, with those six peers, you know, over 2 GW of, you know, contracted, you know, offshore capacity, you know, we are the only ones, you know, right now moving into offshore. I think, you know, when you compare us, you know, to, you know, those people, we are the only one with no coal activities and probably we are with another, you know, player there, the only one with a real, you know, coal-free and almost no emissions, you know, generation capacity in place. I have the feeling that to say that we have a zero coal and, you know, we are the only company over, you know, 90% emissions free full capacity is important. I think let's focus on what we have now, what we have next year, and what we have the following year. Let's not focus on what we promise for 15 or 20 years from now. I think as investors, as banks, more and more restrictions, if you own coal, if you are, you know, not, you know, approaching the right approach into emissions free, you know, net zero, et cetera, et cetera, we'll comment on the ESG goals. Very important to know that we are there right now. We believe we are a unique investment opportunity if the drivers are, you know, green investments. Networks is, you know, as I said, you know, the core part of our business. We're mainly a networks company. I think we serve over seven million customers as people, as I mentioned. You know, we are, as you know, you know, with 40% of Upstate. We are in, you know, all but 16, you know, counties in New York. We serve 80% of the customer base in Maine. We have a very strong presence. Some highlights, and I think I will have, you know, both, you know, as Catherine and Patricia later to comment in more detail, but, you know, we have right now, you know, 1.5 million of smart meters, you know, which is 40% of our total meters, and we expect by 2025 to have 90%. I think in the last four months, you know, we have provided, as you know, you know, rate cases in three states. You know, we are very comfortable there, you know, that we are proposing very technical what those states need. If what they need is us to continue in the modernization of those grids, we're putting the right things on the table. Of course, you know, we will have PNM as a good addition, you know, if we close, you know, that transaction. Modernization and digitalization are critical. That's why, you know, enhancements in our reliability is one of our main focuses. Cleaner portfolio. I mentioned that before, 90% plus, you know, emissions free portfolio for us. That's twice as much, you know, as the two other leading renewable operators, and this is probably six or more times than any of all those other six peers, you know, that I mentioned. That's why I believe, you know, we are a very, very unique, you know, investment opportunity. I think when you look at, you know, those two renewable operators, fossil resources account roughly for 50% of their mix, not for us. So that's why we believe, you know, we are a unique opportunity in terms of that. Our CO2 emissions intensity, as I said, you know, six times less than our peers that we mention in this page, which are these six peers that we would like to compare, you know, with. We are, you know, very committed to ESG goals. We will comment on that later. Therefore, you know, I think, you know, we should continue the path that we have had of leadership, but again, focusing on what we have right now and in the near future. No nice goals that basically you don't know how they're gonna deliver. Let's move now probably to what you're expecting, which is what are we gonna do going forward, you know, for the next three years, 2023 to 2025. I think the first thing is, you know, we are not doing something strange. I think when you look at the U.S., the U.S. is very committed on a couple of three or four actions. We really match them. I think, you know, we're supporting the federal government at these levels, you know, in their transition energy policy, we are there. You know, you see us supporting offshore wind, you see us supporting, you know, electrification of the networks. I think we're next to all of them and in a position to deliver. Just to give you a feeling, the Biden administration, you know, they are targeting right now to decarbonize the U.S., you know, power sector by 2035. We are committed to that. Today we will make announcement about, you know, committing Scope one and Scope two by 2030. We're again, you know, moving ahead, you know, of other targets. Our targets, you know, include a plan how to get there with the things that we can control, you know. So from that point of view, that will be nice for us, you know, to make that announcement today. I think we have had Infrastructure Investment and Jobs Act, and we have had the Inflation Reduction Act. Seems to me that those are also two important, you know, pieces of legislation that have been passed. You know, hundreds of billions of committed financings, again, helping on the predictability and stability of, you know, regulation, of cash flows, of funding. That's something that we need in the U.S. and globally. We will discuss our strong presence, as you know, in networks mainly, and of course we have also renewables, but again, you know, 88%, you will see of our investments are in networks, which is, you know, where we are very comfortable, you know, with. Therefore, you know, our driver is gonna be networks and very objectively, very well analyzed, you know, case by case in renewables to make sure that it's only when they contribute, you know, value. Again, I wanna mention here as always in this, you know, hydrogen opportunities that we're gonna have, very good support, you know, by the federal government of the $3. It seems to me that, you know, again, we're in a unique position to benefit and seek of opportunities as we are already doing in the group. We're gonna benefit from that. We're gonna lever on our, you know, synergies, best practices and efficiencies, you know, with the group. Just to make sure we're ready also to benefit from the green hydrogen dynamics that we have ahead of us. I think you all know this very well, the infrastructure bill, and then you have the Inflation Reduction Act. For infrastructure, is mainly focused on networks. I think it allows us to help support the grid resiliency and modernization, transmission, EV charging, supplemental funding for low-income customers, funding also for H2Hubs programs in terms of hydrogen. I think a good package. That's what you expect in the current dynamics, and we are happy about that. I think when you go to IRA, some highlights. First of all, 10 years of predictability. That's important. Second, transferability. You know that some of you are banks and you make nice money with the tax equity, but it's very nice now to have a new market to be able to transfer, you know, our tax credits. I think you have, you know, options right now to choose PTCs and ITCs. I think you have, you know, support also if you go to the local purchasing, you know, for additional 10% in offshore. I think overall, you know, I think positive things. We expect to have some, you know, positive impact that we are still analyzing in the P&L. I think we're expecting also some, you know, net positive in cash every year going forward. We spent probably $100 million a year or around those numbers of, you know, cash proceeds by selling our tax credits. It seems to me positive news that we have, you know, around, you know, this Inflation Reduction Act. Hydrogen, you know, the $3 per kilogram, that's exactly what you need to make sure that that's a business that can be developed. Also happy. The minimum tax, it has some additional tax payments, but because some duplications that we have in the other, you know, decisions that are in this legislation, the net is positive. We believe that every year there will be a net positive impact in cash, which is also helping right now. As you know, cash is important and we're very focused always on cash and credit ratios. Positive that overall will be a cash positive conclusion. What are we working right now? We'll work the next three years to make sure we deliver as we have almost always done at the group level in the last 22 years. As we have shown, I think we have a good track record in Avangrid since it was created in 2016. The first one is, you know, we're gonna confirm our guidance, you know, for 2022. It stays $2.20-$2.38, you know, dollars, you know, per share. We believe, you know, that, you know, always, you know, we want to make sure we deliver, so we're not changing the guidance right now. You know, we may have challenges as always in the last quarter. You know, it's a quarter that we need to monitor networks, you know, storm management, potential penalties. We're working very hard in the rate cases, proposing ideas. Catherine will comment on that. Just to be prudent, we wanna make sure we deliver. We prefer to maintain right now the guidance as it was. I think, you know, from 2023 to 2025, we're gonna invest in $14.6 billion, mainly in our regulated business. More than $4 billion of that is the equity purchase of PNM, and almost $2 billion of that is the CapEx that PNM will, you know, incur in the years 2023, 2024, and 2025, depending on when we were to close, you know, that. I think with, you know, this base case, you know, that includes PNM and the transmission line in Maine. I think we're thinking, you know, that we will expect a 6%-7% EPS growth, compound growth rate, you know, on an adjusted, you know, earnings per share through 2025, okay? Starting, you know, with 2022 as a base. I think our long-term look, you know, basically maintains right now, you know, what was announced in November 2020, you know, with one additional capital increase of $1.9 billion, a little bit less than we said at that time, you know, and this will be expected right now to be done in 2024. If the transaction of PNM was not to close, this capital increase will not be needed, and even we will have excess capital from the previous capital increase that we did. From that point of view, this will be subject, you know, to that happening. I think it's important to mention that in addition, I think we're gonna consider no less than $2 billion of asset rotation. I think as I mentioned before, we have a very big asset portfolio, you know, more than $40 billion of assets. I think we have been in the group for 20 years, you know, as you know, rotating assets probably more than $50 billion or $20 billion already asset rotations at the group level. We think it's the right thing to do. We have many assets, you know, dispersed asset base in renewables. We're gonna analyze one by one. We're gonna analyze every single, you know, asset we have in the portfolio. If we conclude some of those assets add more value selling them than keeping them, we're gonna do that. From that point of view, this is in addition, okay? That's something that is still no specific decisions have been taken, but the history proves I think we're very comfortable also to focus on this. I think just to give you some additional, you know, headlines, I think we're gonna focus on looking for partners in our existing offshore projects, as we have done in the U.K., in East Anglia, as we have just announced in Germany with Wikinger. These are very big projects. I think it's important for us. We don't have enough, you know, financial muscle to do everything on ourselves. We are gonna look for partners. You know, we already are, as you know, in Vineyard, you know, partnering. I think both in the other two offshore projects we are developing right now, we're gonna look, you know, probably up to 50% partnership as well, you know, to get, you know, other people to come with us and share, you know, those projects with us as we are doing in other parts of the group. I think in terms of onshore business, you know, which is onshore wind and solar, I think just for the period 2023, 2025, we're seeing also, you know, very important prices paid for those assets. Our idea right now, in order not to use many of the resources that we need for other purposes in the group, in Avangrid in this case, I think we're gonna look probably for a 40/60 partnership. You know, Avangrid having 40% of that pipeline to be developed in that period. I think sometimes we'll keep 100%. You know, sometimes we'll sell 100%. But for modeling purposes, I'd probably assume we own 40% and 60%. This is around 700 megawatts. It will be explained later. I think that's probably the base case that we should use. Additionally, we will comment on this later. I think we have, for example, the case of Kitty Hawk. You know, as you know, more than 2,000 megawatts of leases of offshore wind in the Carolinas. I think because of the turbines expansion and becoming larger and larger, you know, it's unbelievable now. You are all invited when we have, you know, next year, the first electricity production of the Vineyard project in Massachusetts to come and see them in person. I think many of you will be impressed when you see that for the first time. I think, you know, we're gonna consider also some partial sale of some of those leases, because just with increase in the turbine size, we're actually selling a little bit and keeping the same amount of megawatts we had before. We're gonna be opportunistic there and sell some of those because you know there is a good market right now, you know, for leases. Seems to me that that's, you know, something is making our, you know, strategic plan realistic with different options, being prudent from a financial point of view. Again, this is a value-driven plan. Most of it is networks investments, and again, we're being prudent. We'll comment later, you know, Patricia will comment on the networks. I think we're estimating just in the base case a projection of our current, you know, investments in networks, which is different from the rate cases we have filed. We have, you know, room there if we were to get additional CapEx recognized, et cetera. We are prudent even in the base case we are putting, but we believe this is the right thing. 2023-2025 investments. I think, you know, I mentioned this before, but just roughly it's $14.6 billion investments, $4.6 billion is the purchase equity of PNM. And then we have almost, you know, $2 billion also, which is the CapEx we are assuming for PNM in those years. From that point of view, I think the rest is $8.1 billion. As you can see, 88% is networks, and the rest is the Vineyard, 50% of the project, and then those 700 MW that we assumed only 40% affecting us. In terms, I would say, of describing investments, a steady, secure, and a stable growth. I think that's something we wanna focus. I wanted to show the next page just to show that, you know, last three years have been, you know, a top-up and increase in our capital expenditure in networks. The next three years, without PNM, as you can see, basically we maintain that, those numbers. Very consistent with the past, which I think for the base case is a very prudent of presenting this. You know, growth rate that we're gonna have in the rate base is gonna be material. You know, we're gonna have, you know, probably, you know, 70% increase, you know, from the $13 billion we have right now to $22 billion if we were to close PNM. But if we were not, you know, to close PNM, it will be a 23% increase, which is a very material amount as well. From that point of view, I think we are very focused on networks that you know is the main portion of our business. Although you will have a workshop later, which is gonna focus on ESG goals, I thought it was just important to mention two or three or four examples. I think, as you know, we have committed, as I mentioned before. Now we're making an announcement which wanna be, you know, aligned, you know, with what we can get and aligned, you know, with the group as well. We're very comfortable to say scope one and scope two, we're gonna target, you know, 2023. That's the objective we have right now. Again, we're making just a comment on everything that is controlled by us, okay? We cannot control the states, their energy policies. We trust what they say, but, you know, in the things that depends on us, it's important. Just to give you a feeling, our direct emissions is 7% in scope one, you know, which is, you know, basically one asset mainly. I think scope two is 1% of our emissions, and scope three is, you know, what basically is the electricity we're putting into the networks, you know, which does not depend on us. That's why I think Scope one and Scope two, good announcement today. We're moving to 2030. We want short-term decisions, short-term, you know, proposals, and short-term objectives. No nice things 2024, 2030, and beyond that nobody knows where they're gonna come from. As you know, SEC potential new rules will come. We will have to look at them. We're trying to anticipate these objectives based on what we think may be those rules. But again, it will be subject also to confirm, you know, what exactly those rules say, and if we need to to change something. But right now, seems to me we're very comfortable. The second comment I'd like to make is, you know, the emissions. I think, as you know, we are reducing very materially our emissions, so I'm very comfortable about that, you know, that we're gonna get, you know, what we need. Next, you know, we are targeting right now 35% of our executive positions held by women, you know. You know, I think the women that we have in the company, they're working very hard. They're making their way up. Very pleased about that. You can take a look at our team. You know, I'm very proud of the promotions we have done and the appointments. From that point of view, just, you know, to remind you, Avangrid, again, has been named as one of the most, you know, World's Most Ethical Companies, and in 2022 was also one of the just nine honorees in the global energy and utility sector. I think we have been, you know, one of the top companies, you know, which managed to get the America's Most Just Companies, and again, one of the top five utilities there, so we're very happy. We're a member, as you know, of the S&P Global Clean Energy Index and the FTSE for Good Index, so compliance leadership is in Ethisphere since 2019. Very happy about all these recognitions that we have done. Again, we're targeting also $300 million by 2025 of diverse suppliers, okay? As you can see, we're trying to put things here, and 100% of the fleet with zero emissions a target by 2030. Very aggressive goals. No, I think it is realistic. You know, we wanna get this done, and usually, the sooner the better. Okay. Management focus. Probably a page you've seen me before when I met with all of you know, in the last, you know, two, three months. I think we're gonna be focused in many things, but mainly, you know, we're gonna have Avangrid, one culture, one company, very proud of being part of the Iberdrola group. I think we need to look for efficiencies all the time, and I think we need to be prudent from a financing point of view and make sure the ratios are okay. I think we have huge, you know, legal matters that we're dealing with, so we're gonna be focused, you know, on closing both the transmission line and the, you know, PNM transaction. Networks, we have rate cases. I think we have, you know, operational excellence targets. We have challenges, but I always say, you know, the way I see right now New York, the way I see Maine, the way I see Connecticut, I'm very pleased, you know, where we were in 2008, where we are right now. You know, when we arrived there, you know, the chairman and I, we had, you know, less than 5% actual ROE. I don't think we're there right now, so I think probably the teams have done things very well. Again, we have good relationships. I think we have probably 20, 30 litigations in Albany. When we arrived, I think we probably have, I don't know, we have one, but you know, we don't have 20 or 30. You know, so from that point of view, I think the dynamic is different. I think, you know, we're very comfortable dealing with those regulators, where we have good connections. Again, trade unions, relationships, legislatures, we're just focused on that, you know? This is where we need to be. I can tell you, the team and I, you know, 100% all the time in Albany, Hartford, and Augusta because that's, you know, where the decisions are taking. You know, we're also downtown in Manhattan because, you know, that's where the new regulator is. You know, we're not here hanging around in other places that we have to be, and I can tell you we're gonna be there as often as needed. I think with that, I will pass, you know, to Catherine so she can explain to you know, the next, you know, three years in the networks business. Thank you, Pedro, and good morning, everyone. It is great to be with you here today. As you've just heard, we have a lot of exciting things and a focus on networks that I'd like to discuss with you. Just to level set, our business in networks spans across four states, New York and New England, and includes eight utilities with a total average rate base of $11.7 billion as of the end of 2021. On the electric side, it makes up three-quarters of our total networks rate base. In 2021, we delivered close to 37,000 gigawatts over our system of 71,000 miles of distribution lines and another 9,000 miles of transmission lines. Moving to the gas business, we delivered 193 million decatherms last year through our 23,000 miles of distribution pipeline and another 125 miles of transmission pipeline. While our presentation focuses mostly on the future, I wanna highlight a few of our recent successes, and these successes bolster my confidence in our ability to execute on our plan. First, in operational excellence, we invested $2.2 billion last year with a focus on improving the reliability and resiliency of our system. These investments, along with improved operations, have resulted in a 12% improvement since 2020 in our SAIDI metrics. We've received multiple recognitions from EEI on our storm response across all of our jurisdictions, and the AGA has recently recognized NYSEG and RG&E for their outstanding best-in-class leak repair performance. Next, our focus on customers has resulted in financial benefit for our customers and for the company. We provided over $100 million in government assistance directly to our customers who have been economically impacted by COVID, thereby reducing our arrearages. Our strong customer performance in Maine resulted in the lifting of the 100 basis point ROE reduction at CMP. We continue to meet or exceed all of these metrics. Finally, we continue to invest in our communities, whether it's piloting our first renewable natural gas supply in New York system, or providing $10 million of economic development funds in New York that have supported over $500 million in customer investments. These investments create economic value in our local communities and are aligned with our ESG and DE&I commitments. Our success relies on four strategic pillars to enable the clean energy transition. Operational excellence, customer service, stakeholder engagement, and financial strength, with our employees being the foundation of everything we do. We focus on these areas to continue to deliver on our mission of providing safe, reliable, and affordable energy. On the operational excellence side, we're driven by the continuous improvement and modernization of our grid. We've established three main areas of focus to become effective and more efficient, improving our field productivity, modernizing and standardizing work practices, and unlocking the power of advanced data analytics. We are already seeing the benefits of a number of these initiatives that we began implementing in 2020 and 2021. As examples, we have achieved a 20% increase in on-site time for our electric field activities, and we have realized a 6% reduction in our non-storm overtime. Looking to the future, we have a plan to deploy 3,200 mobile devices to our field workforce by 2025 and able to further improve our productivity and our efficiency. From a modernization perspective, since 2020, we've installed over 800 automation field devices to improve the reliability and service to our customers. We have centralized our control centers in each jurisdiction to improve remote operations capability. By 2025, we plan to have 75% of our substations automated and 95% smart meters installed across our network. As far as standardization goes, we're gaining efficiencies by standardizing our material specifications and consolidating contracts across our jurisdictions. Of course, being a part of the larger Iberdrola family and leveraging our global purchasing power, we've achieved an additional 10% savings in materials and products than we would otherwise have achieved on our own. Those savings directly benefit our customers. In the gas business, we are accelerating our cast iron bare steel replacement program in Connecticut with a 25% increase this year over 2021. We also have a hydrogen use case study in progress as we explore opportunities to take advantage of Southern Connecticut Gas's strategic location along the I-95 corridor with access to the seaport in Bridgeport. Lastly, and perhaps most exciting, we're leveraging the power of advanced data analytics to better inform our decision-making, investment prioritization, and system planning. We're using this approach to identify and prioritize where our investments will have the biggest impact on improving reliability and reducing operating costs. Such prioritizations are the driving focus behind our plan to improve our overall quality of service by 5% by 2025, and will set the stage for accelerating improvements by 2030 to improve our customer service and enable a clean energy transition. Moving on to customers. Customers are at the center of what we do in networks, and their expectations are changing. They want even more reliable energy, but they still want it at a low price. Our strategy as we redesign the customer experience is to increase customer satisfaction and lower our costs. We're gonna do this by focusing on three main areas, digitalization and transformation, innovative solutions and technology, and clean energy pilots to accelerate adoption and provide options for our customers. Using a combination of design thinking methodology, new digital and customer experience talent, and an end-to-end operational focus, we're transforming our core customer touchpoints. We've identified five customer journeys, and we'll be redesigning each of them by 2025. We're focused on things like proactive communications regarding outages, paying bills, and the move-in move-out experience. Speaking of improving the customer bill paying journey, we're targeting to almost double our e-bill penetration by 50% by 2025. As with operational excellence, the use of technology and enhanced data analytics will continue to play a key role in improving the customer experience and lowering our costs. We've recently upgraded our web and mobile app platforms, bringing new capabilities and easier interactions for our customers. We've also just completed an upgrade to the customer relationship management and billing system in New York. It's a significant accomplishment for the team, and it lays the foundation for the full realization of AMI benefits to our customers that they will enjoy once that rollout is complete in 2025. Additionally, we're using enhanced data analytics to continue to improve self-service adoption with the goal of increasing this to 70% by 2025. Finally, we're advancing a number of clean energy pilots and programs throughout our rate case proposals to make it easier for our customers to transition to clean energy and realize the benefits of electrification while guarding against the risks of constantly changing technologies. For example, we're proposing web-based assessment tools for school bus and fleet electrification that will allow our school districts and our commercial customers to assess the feasibility, benefits, and costs of electrifying their fleets. Similarly, for residential customers, we're piloting managed EV charging programs that provide customer incentives for allowing utility control of their EV charging to reduce impacts on system peaks and improve system efficiencies. Finally, we're examining federal legislative options like the IRA to help our customers access funding to accelerate the adoption of heat pumps throughout our service territories. Pedro mentioned earlier our focus on a number of key strategic elements and networks, including stakeholder engagement and strengthening our relationships with regulators, government legislators, and communities in which we live and serve. This is our third strategic pillar. Our stakeholder engagement approach is centered in three key areas. The first is enhancing the overall stakeholder engagement from a business and regulatory perspective. Last year, we established listening councils in each of our jurisdictions. These councils involve members of the local business, customers, academic communities in which we serve. Our operating company presidents meet at least quarterly with each of these councils, gaining valuable insight to enhance our connection with our local communities. It's not just the listening councils to which we share information. We have put a priority on sharing information about what we're doing with all of our stakeholders. As an example, we have had over 160 touchpoints with state and local officials, regulators, customer groups, and other key stakeholders ahead of filing our recent rate cases. We've also broadened our local outreach and collaboration efforts. We've expanded our local community relations organizations to increase our presence and support across our service territories. For example, in Maine, we're collaborating with Spectrum Generations and AARP to better serve our aging community. In New York, we continue to partner with the city of Ithaca to help support them in achieving their goal of carbon neutrality by 2030. We're also proposing municipal EV charging pilots in our New York and Connecticut rate cases to make charging available to those who don't have access through home charging. Finally, our engagement in strategic partnerships. We've partnered with a number of top-tier universities across our service territory, including MIT, Yale, Cornell, Binghamton University, Rochester Institute of Technology, University of Maine, and the University of Connecticut. We've also developed strong talent pipeline for technical jobs such as line workers through our partnership with local community colleges. Our local labor groups have been partners with us on these initiatives and on developing job-specific training. We've seen great results already from these strategic partnerships. I want to spend some time on our rate cases now. We'll be having some time in the breakout sessions after our main presentation to focus on the rate cases, but because they're so important to our fourth pillar of financial strength, I'm going to spend some time setting the stage for you here. Please note I'm going to focus on what we have requested in our rate cases, not what we're building into our financial plan. Patricia will speak more to the forecast. Rate case results, as you all know, are often the product of significant negotiations, balancing priorities, and compromise. We have filed rate cases in each of our jurisdictions that we believe support the needs of our system and the various legislative and regulatory mandates that our states have put in place while keeping customer affordability front of mind. We look forward to discussions with our various stakeholders and regulators to see if we can reach productive resolutions in these cases, such as what we have already done in Massachusetts rate case. We're prepared to litigate these cases fully if necessary. First, in New York, we made our four rate case filings at the end of May with an overall total bill increase of approximately 13%. Approximately 40% of this requested increase is driven by the residual rate pressure from our 2019 rate case and joint proposal agreement settlement. This includes items like expiring amortizations associated with the Tax Cut Act of 2017, other expiring amortizations, and rate levelization shaping mutually agreed to in our existing rate plans. The regulatory requirement in New York is the filing of a one-year rate request. However, we strongly support a multiyear rate plan and have included an $8.6 billion investment plan covering 2023 to 2026 in our filing. This includes $2.9 billion investment plan to support the Climate Leadership and Community Protection Act, or CLCPA. As the CLCPA Phase One and Phase Two investment proposals are currently being considered by the commission under a separate proceeding with no specific date provided at this point for a decision. For those who are not aware of the CLCPA, Phase One investments are those that have both a local reliability and renewables capacity benefit associated with them. They are investments that are included in our long-term system plan to address reliability needs. However, they were not included in our near-term five-year investment plan. The Phase One investments were identified as needing to be accelerated for New York to meet its ambitious climate goals of 70% renewable generation by 2030. Phase Two investments are those that have a renewables capacity benefit, and as such, are intended to be recovered across the entire state if approved, not just recovered by our NYSEG and RG&E customers. In addition to these CLCPA projects, our investment plan is focused on improving the reliability and resiliency of our system through asset renewal, automation, and modernization through the use of technology. We've also included some unique proposals in light of the current economic conditions. For example, the filing includes a symmetrical inflation tracker proposal that includes a voluntary 2% reduction in the escalation rate as part of our overall 5% distribution rate mitigation for our customers. From a process standpoint, we're currently in the middle of the discovery process, with staff and intervener testimony expected in just a few days on September 26th. We will file our rebuttal testimony on October 18th and hope to start voluntary settlement negotiations shortly thereafter. We expect to have new rates effective in May of next year, just as our existing rate plan is expiring. It's part of our overall strategy to realize our allowed ROEs as we minimize lag time between rate cases. Looking to Connecticut. We just filed our UI rate case a few weeks ago. This will be the first distribution rate increase for our customers since 2019. We've been able to deliver significant rate stability to our customers while managing our strong operational and financial performance. We know customers, asking them for an increase is always a challenge. That's why prior to the filing, we completed our stakeholder outreach efforts with more than 40 touchpoints, which started back in June. We explained to stakeholders that our levelized approach across the three years results in an overall 5% total bill increase per year, which is lower than the current rate of inflation. Speaking of inflation, our proposal again includes a symmetrical inflation tracker. Our filing includes a capital plan of almost $600 million for 2023 through 2026, prioritized to address asset condition replacements, reliability needs, and resiliency improvements in the system. UI currently has top quartile reliability in the country, and we would like to maintain that level of service for our customers. From a process standpoint, we expect to see staff and intervener testimony in early December, and file our rebuttal testimony is expected before the end of the year. New rates are expected to be in place in September of next year, as PURA now has a 350-day procedural schedule in place. Finally, in Maine, we filed our rate case proposal for a three-year rate plan last month with a 4% total bill increase in the first rate year. Again, we know asking our customers for an increase is always a challenge, but even with this proposed rate increase, CMP will still have among the lowest rates for any investor utility across all of New England. The investment need in Maine is significant. As in New York and Connecticut, our proposal strikes a balance between the need and customer affordability. The proposal includes a capital plan from 2023 through 2026 of almost $800 million, with an additional $25 million-$30 million per year in capital trackers, predominantly for broadband make-ready and CCI telecom pole replacements that we are required to make. Like New York and Connecticut, our capital plan is focused on addressing asset condition replacements and improving the reliability and resiliency of our system. We have already begun introducing more automated devices on our system, such as reclosers, and to minimize the amount of time our customers are without power during an outage. From a process standpoint, we expect to receive staff bench analysis and intervener testimony in December, followed by our rebuttal, and new rates are expected to be effective in August of next year. Moving on to my last slide. I'm excited to say our NECEC project to bring 1,200 megawatts of clean hydropower from Quebec to New England continues to move forward. Recapping briefly, the clean energy project brings significant benefits to the area, including a reduction in regional CO2 emissions from electricity generation of three-3.6 million metric tons annually. Other environmental benefits include establishing 50,000 acres of Maine land conservation. Financially, the project drives increased employment and provides significant local property tax revenues across the route and $200 million in transmission network upgrades. Additional socioeconomic benefits to Maine residents include expanded fiber optic, broadband availability, heat pump support, rate relief, and low-income programs. Three weeks ago, we received a positive Maine Supreme Court decision as the retroactive application of the Maine referendum against the project was declared unconstitutional. The case is now remanded to the trial court. Central to the proceedings will be a determination of how much we have invested in good faith since receiving all permits to start construction. Next step is a court conference next Monday on September 26th. We are also awaiting a decision regarding the Bureau of Parks and Lands litigation involving a 0.9-mile land lease. Construction has been on hold since November 2021 and continues to be as we await the final court rulings. Importantly, all permits and approvals are still valid, and the Maine DEP permit suspension is expected to be lifted upon court action. Our next presenter is Jose Antonio Miranda, President and CEO of our renewables business. Thank you, Catherine. Good morning, everyone. Thank you all for being here in this event today with us. Let's now have a closer look on our onshore renewable business, meaning onshore wind, solar PV, and battery storage. Before getting into detailed plans, please, for the future, please allow me to spend a moment to share with you the foundations it is based on. We are the third-largest renewable operator in the U.S., with a track record of around 20 years of operations. During this time, we have built a fleet of 8 gigawatts of wind, which clearly make us the reference in the sector. In the last years, we have entered also the solar space as the technology on the We are becoming a relevant player, and we will be reaching 800 MW of operational capacity by 2023, which currently have three projects under construction, each of the projects over 200 MW with all PPAs secured. We have one of the largest development pipelines in the U.S., with 19 GW of onshore projects located over 27 states. Our experience provides us with a deep understanding of the U.S. market and the local communities we operate in, allowing us to develop in the most competitive sites. Out of the 19 G W, 5 GW are very mature and ready to support our growth plans. Our internal capabilities and expertise in energy management and operations allow us to extract the most from our operating fleet that, as I said before, is the third-largest in With presence in eight markets, we have a very well-diversified risk-balanced portfolio with 85% of the production price covered, 70% via long-term PPAs, and the remaining 15% with hedges. In this regard, our internal trading desk experience team makes possible for us to structure most of the market opportunities, always based on a prudent approach and focus on helping to the system reliability as the main principle, as we demonstrated during the problem with the Storm Uri All the above is supported by being part of Iberdrola Group, the pioneer company in renewables and a worldwide leader in the electricity sector. We are a growth company by nature. We are 100% committed to profitable growth, with a disciplined approach focused on value creation and committed to deliver to our customers. In the middle of a difficult supply chain environment, we have updated our growth plans in the 2020-2025 period to accommodate to this reality. The various unexpected market constraints caused by pandemic, new geopolitical environment, in addition to a quite restricting importing rule, made challenging for the industry the delivery of the projects without facing some extra costs and delays. We are glad to remind and to highlight that despite of this macro environment, we announced recently a COD of 201 megawatts project, Golden Hills, in Oregon State. We are in final construction and commissioning state in another 2 solar projects in Washington State and Oregon State, totaling another 405 MW. For the upcoming years, as we are a company driven by value creation, in order to maximize the value of our growth, we think that the momentum is right to plan for possible partnership structures where a partner could own up to 60% of the new assets to be incorporated in our fleet. This is nothing different to what we have done in the past, always very attentive and actively looking to create additional value by incorporating strategic partners. We've seen our positive momentum due to the important appetite for growth and the limited availability of solid projects in a later state of development. Based on this, our plan for 2023-2025 is to install 1.3 gigawatts of new capacity, which under the partnership structure will equate to 700 megawatts of own capacity. The projects planned for 2023 are already fully contracted and in advanced construction. For 2024 and 2025, with 1 gigawatt of expected growth, we are already in advanced negotiations for 700 megawatts with different off-takers, and we see a lot of traction and appetite for PPAs. We also see the market internalizing the new PPA prices needed to cover the increase in costs and interest rate hikes experienced by this industry and by many other industries. We are prepared to keep growing at even an accelerated path beyond 2025. As I mentioned before, we have a very strong pipeline in development with competitiveness and value is now solidified by the support and the stability that IRA brings to renewables, which is unparalleled in our recent history, as we never enjoyed a ten-year tax credit stable horizon in the past. The bigger portion of the pipeline is made of solar, in line with the higher growth projections for solar in the market and the high demand we see from our customers. The increase in the tax credits levels as well as the ability to select the best option between ITC or PTC provides excellent conditions to convert our solar pipeline into projects. We are also incorporating storage in our pipeline. We can confirm that we have already developed 1.5 gigawatts of pipeline of batteries, and will keep doing so in every single new development, bringing optionality and being ready to respond to our customers' needs. Regarding wind, we are experts in operations as well as development, and we are excited to see the support that the IRA brings to wind by introducing tax credits when they were to expire before by 2025. We have a three gigawatt pipeline which we are already growing as a clear priority, and we are confident that no one else is better positioned than ourselves to do so. With the PTC extension for wind, repowering opportunities are also becoming more attractive again, and we have a very large fleet to possibly execute on the best ones. We are currently examining in detail the best options within our fleet to boost this value. Again, being part of the Iberdrola Group position us to enjoy access to all the best technologies available and to continue ensuring that our pipeline is developed under the best-in-class standards. To finalize this presentation, please allow me to share some long-term vision pillars that reinforce our positioning to maximize our value proposition and further accelerated growth beyond 2025. As I said earlier, we are always looking for strategic partnerships to maximize the value of our business, and we believe that in the current environment, there are a lot of opportunities for it, and we will be attentive to them. Also, I share that at the beginning of this presentation, some important improvements have been obtained into the operation of our fleet in the last years. This is a continuous improvement effort. We work every day with a focus on cost efficiency, and our operations keep investing in innovation and digitalization to solidify our world-class competitiveness in this field. The development of the domestic supply chain is a great opportunity to cement the solid growth in the future. IRA is granting an environment where we should see the domestic content grow, for the benefit not only of this country, but the benefit of all the industry. In a volatile environment with gas and energy prices at unprecedented levels in the last decade, our trading desk is always balancing the risks and looking to monetize all the opportunities that the market would offer. We will be attentive to that. Finally, I'm also happy to announce that we are working very closely with CAISO to join the energy imbalance market in WECC in the next year. This will consolidate even more our leadership in the Northwest region and will allow us to continue reducing our costs and optimizing the integration of our assets, in particular, for the whole system as well. Last but not least, being part of the Iberdrola Group will surely allow us to tap into many different opportunities. It is difficult to foresee all new technologies and opportunities that the future will bring to us, but it's easy to understand that being part of Iberdrola Group will grant us a privileged access to them by leveraging on Iberdrola knowledge and capabilities. Okay, let me now go for offshore. Let's go now to devote some time to the offshore business. As Pedro discussed, Avangrid aspires to become a leading sustainable energy company in the United States. As part of that effort, we are proud to pioneer the U.S. offshore wind industry with our first in the nation Vineyard Wind 1 project. Avangrid has been at the forefront of the U.S. offshore wind industry from the start, having the vision of the untapped potential long before the U.S. market took its current shape. Guided by that first mover strategy, we acquired our entire portfolio of six gigawatts before the U.S. offshore wind matured, securing these areas of exceptional quality with high wind speeds and access to premium markets at a fraction of the cost that you can see now in our current federal auctions. Lease Area 541, totaling more than 166,000 acres, was acquired in 2015 for just over $150,000. As a point of comparison, in the recent New York Bight auction, Lease Area 539, 25% smaller, sold for $1.1 billion. While we advance the construction of Vineyard Wind 1 with our joint venture partner, CIP, Avangrid is capitalizing on this strategic advantage with the development of our two other New England projects, Commonwealth Wind and Park City Wind, as a single two-gigawatt project, the largest in the New England region. As a proud part of Iberdrola Group, a leading offshore wind company with a global pipeline of 38.5 gigawatts, we are leveraging on their experience, synergies, and supply chain network to drive efficiencies in our portfolio in U.S. With that, I will hand you over to Sy Oytan, our Senior VP, Offshore Project Management. Thank you. Thank you, José Antonio. Good morning, everyone. My name is Sy Oytan. I'm the Senior Vice President for Offshore Projects. Let's dive into the offshore projects in our portfolio. The 806-megawatt Vineyard Wind 1 project is located 15 miles south of Martha's Vineyard, and it will utilize 62 units of GE Haliade-X wind turbines, and the project has 20-year PPAs with Massachusetts electric distribution companies. Each turbine has 13-megawatt capacity, and the project has received all federal, state, and local permits. The project also achieved financial close in 2021, and its CapEx remains the same as planned at the moment. Leveraging some of the strongest wind resources in the United States, we project short-term payback with levered IRR in the low teens for this project. Vineyard Wind 1 levelized PPA price exceeds the levelized cost of energy, which is a basic indicator of financial viability. Additionally, the project closed supply chain contracts with market-leading partners last year, insulating the project from the current volatility in the global market. Notice the proceeds have been issued to contractors and suppliers, and as of now, the components are being produced. Onshore construction began last year, and towards the end of the year, we will begin the offshore cable installation as well. Looking ahead to the next year, we will begin installation of the foundations, which consists of the monopiles, which will be piled into the seabed, and on top of those, the transition pieces, then the wind turbines, offshore substation and array cables. We're projecting delivering first power to the grid, late 2023, achieving commercial operation in 2024. Last month, we announced that Avangrid will lead the operations and maintenance of the project, tapping into Iberdrola's global expertise to become the first offshore O&M operator in the U.S. Vineyard Wind one is turning point moment for the U.S. and launches a brand-new American clean energy industry that will create thousands of jobs, improve our energy security, and help address climate emergency. Moving on to Park City Wind and Commonwealth Wind projects. The experience we have gained through the development of Vineyard Wind one has informed our approach as we move forward with the development of these two projects. Commonwealth Wind will provide 1,232 megawatts to Massachusetts, while Park City Wind will deliver 804 megawatts to Connecticut. However, we will build both projects as a single two-gigawatt project. This will allow us to benefit from significant synergies by having a single project team to design, permit, and manage a single procurement that can leverage the benefits of economies of scale, and a single construction and installation campaign that will minimize the number of mobilizations and ensure efficiency in installation. While we have the team, experience, and global network in place to build these projects successfully, we're not insulated from the significant challenges facing all infrastructure projects in the U.S. and globally. These include inflation and higher interest rates, supply chain shortages, problems with resources and escalation of the commodity prices, unfortunately. As both Park City Wind and Commonwealth Wind were bid at a time of 40 years of inflation stability, we're working hard to examine every opportunity to improve the business case of both projects. One key step we're announcing today is a one-year extension of the commercial operation dates of Park City Wind and Commonwealth Wind to 2027 and 2028 respectively. This extension, which is provided for in our contracts, positions Avangrid to take advantage of critical advancements in wind turbine technology, including turbines capable of producing between 17-20 MW. When you compare this with Vineyard Wind one, which is at the cutting edge today, the turbines that will go into the water are 13-MW capacity. Additionally, we're exploring whether the project can benefit from an additional tax credit for domestic content contained in the Inflation Reduction Act. Preparing to request a modest PPA adjustment with Massachusetts and Connecticut officials to reflect the current economic realities, assessing the potential for hedging to lock in the most favorable exchange rate possible, and exploring the establishment of partnerships on the projects to share the investment requirements. We're confident that we can create additional project value and improve economics as we move forward with the development of these transformational projects. Looking further south of New England, our Kitty Hawk Wind project offers tremendous opportunity for Virginia, North Carolina, and the rest of the Mid-Atlantic region. With continued advancements in wind turbine technology, we are now projecting the Kitty Hawk Wind lease area has the potential to produce not 2.5, but 3.5 gigawatts of clean, reliable power to the region. The project is in advanced stages of permitting, with our federal permit for Kitty Hawk North submitted in December 2020, and Kitty Hawk South submitted this past April. I would like to also elaborate on the high quality of this lease area. The project represents the best value of any offshore lease in the region, much like the Lease Area 541, where Vineyard Wind 1 is located. Avangrid had the vision to enter this market before the U.S. offshore wind boom, and we secured the Kitty Hawk lease area totaling more than 122,000 acres for only $9 million in 2017. In comparison, recently, the two lease areas auctioned by BOEM this past May, each being approximately 55,000 acres, were leased for $155 million and $160 million respectively. With greater wind speeds, significantly greater capacity, and a lower cost of lease acquisition, Kitty Hawk Wind offers the most compelling offshore wind project deal in the region, and the project is currently exploring various pathways to markets in the region. With that, I will hand over to Patricia Cosgel, our Chief Financial Officer. Good morning, everyone. Thank you for joining us today. The strategies that we've developed for our businesses form the basis of our long-term financial outlook and our funding strategies, which we'll be presenting to you today. Starting in 2022, we are affirming our guidance today for 2022 of $2.20-$2.38 a share, and we're using the midpoint of this guidance range of $2.29 to serve as the basis of our long-term compound annual growth rate or CAGR through 2025 of 6%-7%. At the midpoint of that CAGR, that's about a $1.2 billion in 2025. The core of this growth, as we have discussed today, is our networks business, where we have conservatively not updated our CapEx and ROE assumptions compared to what we made in the recent filings in the various states that we operate in. That, you know, we do believe that those are well supported and necessary filings, but those rate proceedings are still in the very early stage, and they have not been finalized. In our outlook, we assumed capital spending at our historical levels as Pedro had discussed before. We also assumed ROEs on average across the plan around our current levels of ROEs, except for New York, where there's a recent regulatory decision for another utility. We are committed to our PNM and NECEC transactions, and they are included in our plan. PNM starting in mid-2023, and NECEC, which is expected to start construction in 2023. Since we are commonly asked for contributions for certain of our key projects, we wanted to provide you today with some highlights. Our NECEC transmission project, we expect net income of approximately $25 million in its first year of operations in 2025. That's at the project level, but it's also important to know at the Avangrid level, it's offset in the first year by the debt that we are acquiring to fund the capital contribution into that project. But that project has an escalating PPA with a 2% annual adjustment, and we have amortizing debt costs, so the trajectory of earnings is positive as we go year to year. For our Vineyard Wind joint venture project, we are expected to generate earnings attributable to Avangrid of about $70 million in its first year of operations in 2025, which is largely impacted by the investment tax credit that it receives in the early years. Our long-term outlook assumes onshore renewables partnerships of 40%-60%, as we've discussed today. We have assumed pre-tax net income of approximately $15 million in 2024 and 2025, each for those project partnerships. The other assumption in our model includes the sale of our portion of our Kitty Hawk lease area in 2023. As Sy noted, because of the recent Carolina lease auctions and the superior quality of our lease area, we expect a pre-tax earnings benefit of in the range of $100 million+ for that lease, that sale in 2023. Finally, we've extended the timelines for our Park City Wind and Commonwealth Wind projects by one year. The capital spending and the economics of those projects are actually beyond the 2025 period that's in our long-term outlook. Importantly, while not included in the outlook, we are seeking partnerships for these projects as a key strategic initiative. We are also assuming, importantly, that we will be issuing $1.9 billion of equity in 2024 in this project, which compares to the $2 billion of equity that we announced with our 2020 long-term outlook. It's also not necessary with or only necessary with the closing of the PNM transaction. Finally, we've also identified, but are not including in the outlook, opportunities for additional partnerships and sale opportunities, and these are what we talked about, Pedro mentioned earlier, of over $2 billion that could defray our funding needs entirely, the $1.9 billion, but balanced with maintaining our strong credit metrics. Moving to the next slide, we wanted to highlight the high percentage of networks adjusted net income in our overall business mix. By the time we reach 2025, that mix will increase to over 80% on networks. We also wanted to identify some of the key sensitivities in our business mix, which, as you would expect, include distribution and transmission, ROEs, and changes in rate base. Because we've been conservative, there are some potentials if we are able to get additional allowed ROEs or additional investments approved in our rate cases. In renewables, we have sensitivities for merchant prices and net capacity factor, and we also included an interest rate assumption sensitivity. Over the next three years in our long-term outlook, our growth will reflect a disciplined capital investment plan of about $10 billion. Networks CapEx explains about 80% of our CapEx in 2023 through 2025, where we will spend $8 billion, including our estimates of ongoing CapEx for PNM, advancing their infrastructure, grid resiliency, and other distribution and transmission capital spending to support reliability, resiliency, and the delivery of renewable energy. We've also assumed approximately $675 million of CapEx for our NECEC project. As I noted, our networks CapEx assumptions are conservative. On average, our CapEx assumptions are approximately in line with our historical spend. An additional approved capital from the rate cases that we file will provide incremental investment opportunities while addressing important customer needs and state policy objectives. In onshore renewables, we will spend approximately $200 million per year with our planned partnership growth initiatives. In offshore renewables, we'll spend over $1.2 billion for our portion of the CapEx for the Vineyard Wind 1 project after removing transaction costs and other fees and approximately $1.4 billion of tax equity. An important part of our capital plan and our financial performance is related to our networks business, where our investments and our acquisition of PNM Resources will increase our rate base from 2022 to 2025 by $9 billion - $22 billion, a 19% CAGR. For a breakdown, the Avangrid investments will increase rate base by $3 billion or 22% from 2022, which is a 7% CAGR, and PNM will add approximately $6 billion. NECEC, a separate subsidiary of Networks and not part of any of our regulated utilities rate base, will add $1.4 billion of assets representing the $1.2 billion of CapEx that we had previously announced, plus capitalized AFUDC. Turning to our renewables business. Over the next three years, we expect to grow in a disciplined manner, further diversifying by making investments in onshore wind, solar, and offshore wind. We expect to increase installed capacity by 1.1 gigawatts from 2023 to 2025, which include 100% of a solar project with approximately 240 megawatts of installed capacity in 2023, and that's where we have an existing PPA. It also includes 403 megawatts of offshore wind in 2024, which is our 50% ownership of the 806-megawatt Vineyard Wind project. An additional 418 MW, which is our 40% of the approximately 1 GW of onshore wind and solar projects we are developing with the 40-60 partnership structure in 2024 and 2025. Next, we look at our key risks and mitigations. As part of the process of developing our long-term outlook and our funding strategies, and as you've heard today from our businesses, execution is a priority for us. This requires ongoing management of our risks by monitoring our environment, planning and preparing, engaging our stakeholders and communicating, and doing this continuously as key risks continue to evolve over time. Some of the key risk mitigations that we highlight on this page include rate cases, which we need to address via capital needs and the cost of running our businesses and providing safe and reliable services. PPAs that reimburse for curtailment impacts that we have seen increasingly impact our businesses. PPA contracts and hedges on our renewable projects. Supply chain risk mitigation by locking in contracts at the time of negotiation. Renegotiating an existing contracts to address current market pressures. The procurement of our onshore supply for our 2022 and 2023 projects. The cost mitigation with price escalators in contracts and regulatory adjustment mechanisms in our utilities. Our next slide is our strategy for financing in the long-term outlook period. We're focused on balancing our expected earnings and our cash flow, along with the various financing options that we have, our access to liquidity, and our focus on our investment-grade credit ratings. We will continue to finance cost effectively with our access to diverse funding sources, including green financing. In fact, we are currently ranked the third-largest green social and sustainability bond issuer among utilities in the US and ninth overall across all sectors. That's with our $2.9 billion of green bonds as we've already placed. Our diverse funding resources also include tax equity and some project financing in our plan for our renewables projects, including offshore. Last year, we closed on $2.3 billion construction and term loan financings for our Vineyard Wind one project, and we recently executed final terms and conditions on $1.4 billion of tax equity financing for that project. We also have opportunities in the long-term outlook to generate value through renewable asset sales and project partnerships, which we have mentioned today. These will raise approximately $150 million-$160 million during the long-term outlook period that will strengthen our balance sheet and/or reduce or eliminate equity needs. As we have announced, in our outlook, we expect to issue $1.9 billion of equity in 2024, and we are evaluating other funding opportunities outside of the outlook, such as additional divestitures and partnerships. Finally, we also, with the Inflation Reduction Act, and as Pedro mentioned, we have the opportunity to look at the benefits of the transferability options, because we have some existing tax credits that are not part of any tax equity structures. That's approximately about $100 million of tax credits right at this moment. Moving on to the next slide, which is our sources and uses of funds. We wanted to start with the 2021 and 2022 because we had a big capital raise there and show you how what we did with those funds. We basically used. We had cash on hand at the beginning of the period, we had cash from operations, and we had the equity raise of $4 billion. That was used to repay the intercompany bridge loan from our parent company of $3 billion, $3.3 billion, and also to fund the CapEx during that period and our dividends. Moving on to 2023 to 2025, we expect to raise approximately $17 billion from a combination of cash from operations predominantly, as well as debt and the $1.9 billion of equity that I mentioned. Which will fund the PNM acquisition, our $10 billion capital investment program, and our dividends. Our credit ratings are very important to us. With our predominantly regulated business mix, access to multiple sources of funding, strong liquidity profile, and the backing of our parent, we are committed to maintaining solid investment-grade ratings both at Avangrid and each of the utilities. In our long-term outlook, we plan to continue to maintain metrics within our current rating thresholds. We show on this slide where we expect to be around in 2025, which is consistent to what our historical ratios were then prior to our equity raise, and also to point out without the PNM transactions, those ratios are actually even stronger at about an 18% threshold in the cash flow metrics. We also again highlight that with these additional incremental opportunities that exceed $2 billion for asset sales and divestitures, these could be used to help to strengthen our balance sheet and improve our credit metrics. Finally, we have strong liquidity to help provide financing flexibility to our plan. We currently have liquidity facilities totaling $4.5 billion, plus we have a $4.3 billion dollar EBITDA commitment lever for the funding of our PNM Resources transaction. We have executed agreements for $575 million of utility debt financing that we'll fund later in the year. We will also consider additional liquidity once the PNM transaction closes. Our financing outlook assumes that we maintain our existing dividend of $1.76 per share through 2025 and a targeted payout ratio of 65%-75%, payout over time, subject to our board's approval. In summary, we'll remain focused on efficiently funding our disciplined growth strategy, managing risks, especially keeping in mind the challenging macro environment for us and for our customers, maintaining access to liquidity, and focusing on our investment-grade credit ratings. With that, I'm gonna turn it over to Pedro for closing remarks. Okay. Thank you very much, you know, all of you for presenting to the team. Just three or four messages. The first one is, we think we're presenting a prudent growth. I think when you see our filed rate cases, it will be beyond, you know, what we have in the base case. We need to make sure that, you know, we go beyond, you know, what we're presenting right now, but I think we wanna be prudent and present a growth that we are comfortable to deliver. The second question or comment that I'd like to make is, you know, you've seen our prudent financial approach. I think we are commenting on this $2 billion-plus asset rotation. I think if that happens, clearly then the capital increase will materially, you know, be reduced or even, you know, will not happen. I think I'm also comfortable we need to work there. Finally, you know, quarter by quarter, as you know, our objective is to deliver, so we're gonna go quarter by quarter, year by year to make sure you know that that's what you believe in us. One last comment for me is, you know, the sum of the parts. I think when I see transactions going on right now in renewable front, I think when I see some multiples, you know, in network companies, when I see valuations for the pipelines in offshore and onshore and solar, I have the feeling that we're very comfortable right now with a big gap That's why some of the transactions are gonna be to make sure that that value that we're missing in the sum of the parts, you know, is there. You know, because I think we have a material room to improve, you know, the value we have right now. Thank you to the team. Thank you to all for coming. We're gonna do a small break now, and then we'll move into Q&A. Thank you very much.. Now we're gonna begin with the Q&A. There are a couple of microphones around the room, so just raise your hand if you wanna ask a question, and we will hand it over. Hi, Insoo Kim, Goldman Sachs. Just first question, trying to you know, thank you for all the details, and it definitely gives us a good sense. I was trying to, I guess, dissect it a little bit on the growth side of things for EPS and rate base. Just, you know, without PNM, because it is still pending or, you know, we will see what happens with that. Please. You know, just based on the contributions from the networks business as it is and, you know, the renewable portfolio, you know, how do you see that EPS growth trajectory? What I mean by that is, I guess, 7% rate base growth at networks, with some upside, because that does include the rate, New York rate base filings. Seems like the 6%-7% includes everything kinda going as planned. Trying to reconcile that difference and if you have more color on what the base case growth would be, without PNM. I think if I can answer that question. I think if we were not to do PNM, I think probably we're at the bottom of the range. I think, you know, what we should, you know, think about as well is, you know, our expectation on the rate cases. Okay, you know, let me give you an example. You have CLCPA, you know, those are the climate-related investments in New York. We are assuming 0, okay? That's an obligation. I think something should come from there. Second comment is if we go to that, you know, worst-case scenario, PNM isn't happening, I think we have a track record of doing probably more than 120 transactions in the last 20 years in the group. I have the feeling we'll find projects and potentially, you know, opportunities to be put on the table. I think we're a group probably with a track record of putting, you know, projects on the table. I think our base case right now is that, you know, we have a change in the public commission, as you know, as of January first. I think we are working very well, and I would recommend to all of you to read the Supreme Court's filings. I think if you read them, probably you will realize that we have a, I believe, a very strong legal position. In New Mexico, again, we don't comment on, you know, some opponents we have, you know, comments. I think we just focus on the legal procedure, and we feel we have a very strong case. Our base case is that it should happen. Remember, we have a track record of, you know, doing many, many deals in the U.S., probably more than any other utility. Again, we reach an agreement with 23 out of 24 parties in New Mexico, which is not easy. We still didn't get it through the first time. You've seen many other decisions in the public commission in New Mexico in a certain direction. Again, it's not our, you know, problem. I think we just wanna make sure that, you know, we get it approved. We think we have a strong legal case, so our base case is, you know, we should keep PNM. Just to clarify, when you say bottom end of the range without PNM, that means? Yes. like the 6%? You will go to 6%. 6% off of the I think, yeah. I think you will go there. Again, then we will not need the capital increase that we have put into the model. Probably we will have $1 billion excess capacity from the previous capital increase we did last year. I think that will be the moment then to put other projects on the table. I'm assuming that without doing anything else, I have the feeling that between now and 2025 we'll be able to do other things as well. Just my second question on offshore wind. You know, I know you've had partnerships before with Vineyard Wind. It seems like now with the Kitty Hawk potential lease sale and, you know, looking for partnerships in Park City Wind and Commonwealth Wind, you know, I guess to me, it seems like a little bit of a shift in strategy, just given offshore wind was more of the core renewable driver for Avangrid over the past few years. What factors led to maybe making these potential moves in the future? I'm gonna answer that one as well. I think we're very consistent with the last 20 years and that we have done at the group level. I think I mentioned East Anglia, I mentioned Wikinger, and those are two of our three existing operational assets, and we already have partners in two of them. The first one, we already had it since the beginning with DONG in London Array. In the case of the US, you know us, you know, we have so many opportunities. There is a moment we need to have financial discipline. This is about sharing the amount of investments we have on the table. I think we're very comfortable with the projects. I think as I mentioned, in the case of Vineyard, everything on track, so we're very happy there. We already have a partner with CIP. I think when we look at the other two projects, you know, you see the world, commodity prices going up 50%, 100%. As you can imagine, we need to put on the table some changes because otherwise the numbers do not work. Those changes are very modest, you know, as opposed, you know, to going ahead now with those projects again. We feel comfortable that, you know, in the turbine negotiations we're doing, in the interconnections optimization, putting the two projects together in order to get synergies and discussing, you know, with the public commissions and the distribution companies, you know, some additional help. I think we should be able, you know, to put it on the right track. Again, I think we are now moving 1 year later, the COD. Again, why? Because we wanna pass this mess that we have in the world right now, so this is not the moment to contract certain things and delay some certain decisions. I think the up to 50% partnership, we have done it all over the group. It's a financial discipline. We don't have enough resources to do everything, you know, we have on the table, but it doesn't change anything. We're not exiting any business. You know, we're very comfortable there. We think, you know, we were first movers, which is what we have done most of the times in many things. I think when we used to see PNM transactions, not many people say it was a very low multiple paid, you know. You know, it's years of, you know, relationships and years of seeing a future together with many other utilities. Same thing in our agreement with CIP, you know, that I negotiated. You know, as you know, it was almost no money being paid, you know, compared, you know, to other transactions. Same thing in Europe with Vattenfall. I think the partnership approach with these so big projects, I think is needed from a financial point of view. Nothing that we haven't done in the group. Thank you. All right. Good morning, team. Thank you, Pedro. Well done. Maybe if I can just come back in the vein of thank you for everything thus far, and perhaps asking for more as we are out to do. Why not provide a longer-term outlook vis-à-vis some of the offshore dynamics here, right? Thinking about 2027, 2028. How do you think about the earnings contributions eventually from offshore as they step up here, and how that would impact the longer-term outlook, right? I know you just gave a little bit of a sensitivity about some of the puts and takes here, but how do you think about some of the offshore upside eventually? Maybe to that point, if I can, if I look, if I flip to slide 59, there's a five-year ITC contribution from Vineyard. Can you talk a little bit more quantitatively about what the offshore contribution you're disclosing there is and especially post ITC? I'll answer the first one. I think Patricia or Cy, if you wanna comment on the second one. I think the first one, I agree with you. I think, you know, when we decided what percent, you know, we had the doubt of whether going to 2030 and then show the full thing. Our experience has been in recent years that, you know, I remember doing a five-year plan, and then people saying, "Well, you're announcing five years because you're not gonna deliver the first year, you know. So we'll sell you and come back to you know, two years later." Oh, no, we didn't say that, you know. I think in this case, you see the world right now, very few companies are even going beyond one year. I think we thought, you know, giving three years is to give comfort, that we are very comfortable on where we are. I think when we start moving into 26- 30, then with existing rate cases, we will have to put their new rate cases, which are not there. It would, we think it will be challenging to put it there. I think in offshore, I agree. You know, we have moved especially to projects 1 year. Basically, you know, to avoid, you know, this. Why? Because we have to put on the table some things now get it done, you know. I think for me, the 2026 and beyond, I think that shows the terminal value, okay? When you see the sum of the parts, I would love to use the Clearway Energy multiples for our onshore business. I think you have now probably, you know, many, many dollars ahead in our valuation. That's why we wanna show, you know, value creation. Some of our utilities, this feeling about, you know, we are in the wrong place. No, we're doing very well in those jurisdictions, you know. You know, let's get, you know, recognition for that. I think that's what my terminal value is also, you know, an additional value there because, you know, we're going in the right direction. It was more prudence of saying, "Let's put three years than very few people dare to go three years." But again, very comfortable go to 2030. Yeah, just on the Vineyard Wind trajectory that we kind of have in the back, and we know, as I mentioned today, you know, the first full operations is contribution to Avangrid is about $70 million on a net income basis. You can see from the graph, it's around that amount for about the first five years, and that's heavily influenced by the investment tax credit because we are doing it tax equity there, and that's the five-year recapture period. So you know, we wanted to highlight that because there is that big step up with the ITC. We haven't provided, and we're not gonna do one-off information that goes out like beyond five years in our long-term outlook. We'll continue to update you know, as it becomes closer to those time periods, it becomes more and more relevant. I think in terms of looking at the other offshore projects, you know, not necessarily gonna look exactly the same because now we have some things to consider with the Inflation Reduction Act. There's some evaluation of maybe the transferability of credits, and comparing that to, you know, the ITC. Even onshore, we have some of those comparisons to make ITC versus PTC and, you know, what's the most economically viable. As we're looking for partners, kind of what works for the partnership structure as well. You need more to be determined there, especially as we wait for and we get more guidance from the IRS, on that. Got it. Actually, just did you just allude to transferability and domestic content or just the transferability as being part of it? I didn't mention domestic content, but domestic content is another thing that we need to look at, including for offshore wind, as well, because, you know, that's something we're definitely taking a look at for both the Park City Wind and Commonwealth Wind projects. Again, you know, the details will need to be provided with the guidance. Sorry, Patricia, super quick on asset sales. You talked about it at length. What's assumed in the outlook versus what's the incremental? Clearly, you guys are looking to offset a good chunk of this equity, but the question is how much is already there? What's in the outlook through 2025 are the 40%-60% partnerships for our onshore renewables assets, and that's about in 2024 and 2025, pre-tax, about $15 million in each year. It's not significant, but the other thing would be the Kitty Hawk Sale Kitty Hawk Sale Sale, that's pre-tax about $100 million in 2023. Right. Both of those are in there, and then. Yes. The $2 billion plus is over and above and the opportunity. Excellent. Thank you for that. Mm-hmm. The local content, which is important for offshore, let's keep in mind, local content means more expensive. That's why there are things we are analyzing because it's good news, but, you know, if you move to local content, maybe more expensive. That's why you need to trade it off. I think we have some time to work on that. Thank you very much. Paul Fremont with Mizuho. It looks like Vineyard is $49.50 per kW. Is there sort of any update that you can give us on Park City and Commonwealth in terms of cost to construct? I don't know, Sy Oytan, if you wanna comment, but I think in terms of, you know, Park City and Commonwealth, we're negotiating the turbines. Great news of additional capacity, bigger turbines. One of the things we are working on, but we still haven't finished, you know. We don't have right now, but if you wanna comment. Sure. $49.50, you mean dollar per watt, right? Per kW of capacity. Yeah. Okay. Per kW. We project those two projects would be lower due to economies of scale. It's, I mean, we can't pronounce any figures right now, but when you think about the economies of scale, one project is 800 megawatts, Vineyard Wind one, and the others, the other two projects, two gigawatts. There's significant economies of scale and synergies that we're trying to tap into. Logically, it should be lower. Maybe also I should add that as Pedro commented before, it will depend also on the domestic content finally, if we go for it or not, and that could add some additional cost into the figure. Depending on the domestic content as well. Yes, exactly. I compared basically like the same supply chain as Vineyard Wind 1. If we go to a U.S.-based supply chain, it will be higher, but we need to quantify the ITC benefits in the Inflation Reduction Act based on that. In terms of CapEx, how much CapEx for the two other for Park City and Commonwealth is included through 2025? Is most of the CapEx that you would do because you're pushing out the commercial operation date most of that CapEx? Most of the CapEx is beyond 25. Sorry, what? There's almost no CapEx between now and 2025. It's beyond 25. It's beyond, yes. Okay. That makes a lot of sense. Also, you're including, I think, any NECEC in your 2023-2026 earnings. Is it also included in your CapEx numbers? Yeah. for the $8.6 billion for Avangrid standalone? Yeah, it's about $675 million. Okay. CapEx in that period. Of incremental CapEx, right? Right. Correct. Over the almost $ half a billion invested already. Yeah. Great. That's it. I think that's it. Carlota? Right next to you. Thank you. Steve Fleishman at Wolfe Research. Couple questions. Just first, on the asset sale assumptions. One of the other things that's in the plan is the partnerships for the offshore wind, in terms of. Is there any gain or benefit assumed in the numbers from that or too unknown at this point? Right. Okay. Correct. You know, we're assuming we're looking at it and we'll be done, but we don't have anything in the plan. No. Okay. Then one thing you mentioned on Park City Wind and Commonwealth Wind, among the things you're reviewing for the economics is contract renegotiation. How could you talk about that, and how critical is that to move forward with those projects? I think, three months ago, you know, we reached the conclusion there are some, you know, changes in commodity prices, et cetera. We put a team together, and I think, Sy, why don't you comment on some of the examples of the work, you know, streams that we have right now so you see how we do these projects. Yes, happy to. PPA renegotiation or modest negotiation is not the only tool that we're working on. There are synergies, economies of scale, grid improvements, basically using the same team for permitting and developing the project. All kinds of like engineering optimizations are being worked on at the moment, and also the impacts of Inflation Reduction Act. PPA related negotiations with the authorities is just one of the six or seven tools that we have. We already kicked this off. Honestly, in my personal opinion, every offshore wind developers will try to do that in the U.S. because, like, it's at the time of, like, bidding, the conditions were extremely different compared to now. I think if you compare the projects in the U.S. with other projects, in the U.S. when you win a PPA, you don't have everything approved. All right? Now you need to move into the permitting processes, which is one of the things I think we've been working with at least with BOEM, DOE, you know, Secretary of Commerce. You know, basically the permitting process in the U.S. is a little bit the other way around. I think in Europe, when you win an auction, you have all the permits. You start building the following day. I think that's why, you know, you get these PPAs. You have an agreement, but if the world changes and you have the steel prices going up 100%, you need to say, "Hey, you know, it's not gonna work, you know, based on my assumption." It's not the case for us like that. But I'm gonna give you one example, you know, not just the revenues that potentially we may need in addition, you know, which is the turbines. You know, if we are moving now to turbines of probably even 20 megawatts, okay, that basically means we're gonna have additional space, you know, in the current leases for an additional project. So that's a huge value creation. That's exactly what we're looking into it, you know, right now. This is not just about going and say, "Hey, I need the room that we have in the little PPA, you know, I need that." No, that would be a portion of that, but there are many other things we're doing. I think we're getting probably synergies and efficiencies in three or four or five items already, but there's still many more to come. It's a full renegotiation and optimization of everything. Just to close the loop on that, Vineyard Wind is not subject to these pressures just because everything was locked up. It was already locked up. Is there any risk that also? We always have contingency, you know, cushion. I think right now we have enough cushion, you know, for anything that may happen because these are, you know, projects, you know, with, you know, billions and billions. I think right now we are very comfortable. We are on track with everything we've done. Okay. One last question, different topic. Just could you go through on the PNM merger, kind of where things stand? What are the key things to watch from here? If you don't win in the courts, how does that progress? Okay. PNM, I think is quite simple. You know, we filed, as you know, and three or four other parties in support as well in the Supreme Court. You know, basically being in disagreement with the decision of the Public Commission on many things that, you know, happened during the process. We thought it was not in accordance with law. I think we filed briefs. I think there were reply briefs. Maybe I'm not using the right legal word, but you know, those filings that you do and answer. I think the next step is gonna be, you know, the oral hearing that, you know, we don't know when it will happen. You know that the Supreme Court, you know, it's not like a schedule established, but we hope it is, you know, in the upcoming months. I think in those oral hearings, we expect to get questions to see, you know, how we are asked and the other parties are asked. I think based on that, just wait for a decision, you know. I think you've seen several decisions already in Supreme Court, you know, in relation to Public Regulation Commission decisions in New Mexico. I think the next step will be there is a new Public Regulation Commission, you know, being appointed on January first. There is a committee right now created. They will have to propose to the governor a list of commissioners, and there will be three new commissioners, and they will join on January first. I think that that's probably the summary. I think our expectation will be to wait to see in the oral hearing, where do we see the judges, you know, questions going. Based on that, you know, next year when the Maine Public Utilities Commission comes, let's analyze, you know, potential settlement, potential renegotiation. I think that will be. We need to be subject to how the oral hearings go with the Maine Supreme Judicial Court. Thank you. Hi, David Frank with Walleye Capital. I had two questions, one on the equity and the asset sales, because you have $2 billion that you've potentially earmarked of additional sales. Is the thought that those sales would be, if they take place, used to reduce required equity? What role, if any, do you envision your two largest shareholders playing if they're in an equity issuance if that is to come to fruition? I had a question on PNM. Sorry. The answer is, in the first one, yes. I think, you know, we don't wanna say that there will be no capital increase. I think we're gonna focus in the base case, assuming the already announced capital increase. This is not a new capital increase. It was already announced before. I think we have taken the decision to review our portfolio, as we have done in the group many times, almost every strategic plan. I think we are identifying at least no less than $2 billion of potential sales. I think when those happen, if those happen, then, you know, the impact will be less capital increase or not at all. The two shareholders, I mean, I think we have, you know, the Qatar Investment Authority here present. You know, I think they invested, as you know, last year. I think Iberdrola, they also invested, you know, more than $3 billion last year, you know, when we did the first capital increase. I think when the time comes, you know, we will see, you know, who comes. Probably the most important thing is the first comment. I think we're gonna be very committed to that asset review and then try to put on the table $2 billion-plus asset sale. Great. Just my other question on PNM. You're not assuming any renewable conversion CapEx, are you, in your forecast of growth? In other words, PNM has to convert their fossil fleet and they have to. There's gonna be a lot of renewables constructed in New Mexico. Do you have any assumption for that? Mm-hmm. If not, could you talk about what the potential could be for renewables in New Mexico in terms of megawatts of investment or something? I think in the CapEx that we are assuming for PNM is the one that they gave us. As you know, they have, you know, the two coal power plants being shut down, and basically they have to replace that. Probably the most important thing for PNM is they have to spend, I don't know how much, it's probably $2 billion, I'm speaking by heart right now, but in infrastructure. Probably the rate case, you know, to get that back that was delayed because of the merger is probably the most important thing. I think we're very committed to New Mexico. I think we're working, you know, with, you know, the Navajo Nation. We're working, you know, with, you know, another company. You know, we're analyzing hydrogen opportunities and renewable opportunities. It seems to me that probably more than PNM is, you know, the new company that, you know, we are very keen on that transition that you mentioned in New Mexico. Remember, we already have invested almost half a billion dollars in renewables in New Mexico, so it's not out of our radar to analyze that. Nothing like that is put into the model right now, okay? That would be in addition. David Arcaro from Morgan Stanley. I was wondering if you could talk about the repowering opportunity. We've got a long-term now visibility into the tax credits for wind, and you've got a big installed base of wind, with some of which that have PTCs that have expired. How do you think about the repowering opportunity for the existing fleet? Yes. Thank you for the question. If we look back in the previous years, you see that many repowerings were done when a 60% PTC was up. Now with a 100% PTC, and after some years they went by and the fleet is more depreciated, logically the opportunities for repowering are increasing, as you say. We have a very large fleet, eight GW, and we will check for every opportunity we see that is right in order to maximize the value, and I think it's fair to say in general terms that the opportunities for repowering are increasing. I think I can add repowering, hydrogen and battery storage. From that point of view, it's being reviewed everything right now, and in networks as well, so not only in renewables. Got it. That makes sense. Just following up on the partnerships in offshore wind projects, wondering what timing might make sense strategically. Would that be before the projects come online, bring in somebody before construction and to help finance? Or would this be after they're de-risked, and bring somebody in on the back end? Because we're moving the projects, you know, in the model and the base case beyond 2025, it really doesn't affect at all. It's probably more from an optimization point of view. I think if we were to get a partner right now, you know, we will get probably lease payments, as you see happening right now. I think if we wait to have everything tied up, probably it's a different premium because you already know everything that is gonna happen. It's gonna be probably an optionality. Let's see, you know, the partners, when they wanna join and what is the most interesting, valuable position. We have time to take that decision. Thank you. Hi. Excuse me. Rich Sunderland on JPMorgan. On NECEC, could you speak a little bit more to the path forward in terms of what you need to evaluate from a construction standpoint, where those stand and, you know, permanent financing, all those considerations, both to, you know, restarting construction and then putting the project in service? Sure. As Pedro already said, we've already spent about $500 million on the project, so there's a significant amount of work that's already been done. We're projecting another over $600-$700 million to complete the project. We have contracts in place already for all of the major items as well as for work to complete those items. Those contracts were put on hold when the referendum was passed last November. We're now in the process with the Supreme Court ruling to start gearing back up again and touching base with all of those vendors and contractors to restart construction. We would anticipate that construction would restart in 2023. Again, we're waiting for that final kind of court process to go through, where we have a hearing with the trial court judge on Monday, and then the additional Supreme Court decision on the lease component, which we're anticipating at any point. We're just at this point, as I said, restarting the conversations with our vendors and the contracts we have in place, and to start that construction again. Our construction right now with the contracts that we have with the electric distribution companies have a contractual completion date by August 2025. We've got that date out there, but we're continuing conversations with both the EDCs on our construction schedule, as well as with our partners in Hydro-Québec, as well as with all the vendors. Thank you. Then circling to the onshore portfolio, I'm curious how you think about the interplay between the capital going to PNM, and if PNM doesn't come to fruition versus the backlog and the ability to deploy more capital on the onshore portfolio. Would you know, look to advance more of those projects on a faster basis, revisit the 40/60 partnership, or would nothing change at all? Yes. Well, first of all, we have to say that in New Mexico, specifically New Mexico, we have an important offshore pipeline to develop in the future, right? The growth in the onshore will be, of course, determined for the value creation as well as the partnerships. It's gonna be our guiding star. Depending on how we see that, the value is going to be created by either having a partner at a different rate or not, we will select the right choice. I think in terms of accelerating, we don't make it subject to PNM. You know, we always accelerate as much as we can everything, so. Effectively, there's no capital constraint as you see the ability to execute on the onshore side. I guess, really what I'm getting at is, you know, what's changed in your thinking in terms of the partnership structure versus, you know, 100% ownership previously? I think exactly, you know, the 40%-60% we're proposing is because we feel we cannot do everything. That's why. For this period, okay, you know that we have the huge offshore investment, huge rate cases, capital expenditure coming. We needed to say where we're. That doesn't mean we're not gonna develop. You know, we'll continue to develop. I'm sure you know we'll come back with some assets being sold beyond the 40/60, you know, we're proposing. I have the feeling we're going to sell, you know, you know, as soon as possible. If we continue developing, you know, then we'll continue selling or we will continue getting partnerships. This will not stop. I think it's prudent to tell you the 700 MW that I think we're putting in the model is to be prudent. Beyond that, you know, more to come. Thank you. One final one for me. The $2 billion of potential incremental sales, do you envision that as one formal process and a final figure coming out of that or separate discrete processes over time? I'm just thinking of the timing there versus a more defined time on the equity and you know when you might have a final financing plan there. I think I would be open to any option. I think we're gonna review the whole portfolio. I think we have ESG goals. I think we have asset value hidden in our company that we believe should be put on the table. Some of the parts for all of you becomes obvious that we have, you know, that value creation there, helps you with the price targets, you know, that, you know, we can sell assets at the right price. I think we're gonna go in different, you know, you know, paths and just be, you know, as value creation, you know, as much value creation as we can. Thank you. All right. Thank you. Paul Zimbardo, Bank of America. Just hoping you could comment on what merchant power assumptions are in the 2023, 2024, 2025 outlook. Just, I know it's a relatively small piece, but there's been a step function change increase in power prices since you gave the last outlook. I think we'll have more detail in the fact book. As we typically put, you see in the early years, we have more of it hedged, but it's typically we have up to 85% between contracted and hedged assets. Then if we look out the further years, it looks like it's getting smaller, but the hedges are usually 12 months or short-term period, and we'll continue to target the 80%-85% range for PPAs plus hedges. Okay. How about like a $1 per megawatt hour basis? Just power prices raw have increased pretty significantly. Yeah. Maybe, as you know, 70% of all our prices covered by PPAs, and then there is a 30% that is exposed. Normally, we have felt very comfortable with a kind of 15% hedge and a 15% floating. There are some areas where hedging probably is not a good solution because there could be basis or curtailments. At the end, hedging is also a commitment to deliver. Of course, we are very prudent in the way that we manage our portfolio, as we said before. But yes, it's true that in the part that is merchant in the last year, we've seen prices going up, and that is something that always in a very prudent manner we are picking up. Yes. Okay, great. Then just with the six to seven percent CAGR, should we think about that as fairly linear? I know there are some more lumpy pieces like New England Clean Energy Connect, some of the offshore. Just, is that kind of linear or more lumpy? I think that, you know, it's probably. It's not necessarily linear. I think that in the first year, we're, you know, looking at, we recall that in 2022, this year, we have the big $181 million from our offshore wind restructuring gain. The transition between the first two years, I think, you know, preliminarily we're looking at 2023 to be more aligned with what we're seeing in 2022, more on the $2.20-$2.40 range. But then beyond that, we'll get up to the 6%-7% CAGR. Without the offshore wind lease, there is an increase. But given the fact that we have that gain in 2022, it's not really. You can't really look linear from 2022 to 2023, et cetera. Thank you. Mm-hmm. Excuse me. Thanks. Steve Fleishman again. Just on the regulatory, the network side and the financial plan. Could you give a little color, more color on what's in the financial plan versus what is not? Is it all? Is it mainly this CLCPA, or is it other things too? If it's mainly the CLCPA, can you give us some sense of when we're gonna know more about that and whether that could end up in the plan? Do you want me to start, and then I'll give it to Catherine? In the plan, in our long-term outlook, we don't have the CLCPA. The CapEx in our networks business is really aligned with what our historical spend levels are. Really supporting the ongoing resiliency, reliability, AMI infrastructure, grid resilience, grid improvements. That extra amount, which includes CLCPA and some additional enhancements to our transmission spending that we have filed in our rate cases are not included. That was really again to be conservative to align to our current capital spending levels. We will get more color on the rate cases as we proceed through the process. Yeah. I'll just add on. I think there's a tremendous amount of opportunity to invest in our networks, but as Patricia said, we wanted to be conservative in the plan. Our rate case filings are asking for significantly more CapEx that's needed for that asset renewal and modernization of the plan. The plan has more traditional spending that we've been having. It's really the balance with the regulator, kind of what we believe needs to be done on the system, how to meet their clean energy goals, always balanced with the affordability for our customers. That's the challenge that we have moving forward because the needs on the system are great. Now when we think about the CLCPA and the timing of that, it is on the one hand it's uncertain. There's no particular timeline that has been set forth by the commission. A couple of data points. The commission has already ruled on a National Grid, phase one CLCPA plan. That's an indication that the commission is certainly acting and reviewing those petitions. We know that, through conversations it may very well be that they do the phase two planning ahead of our phase one plan. The phase two is the part that's gonna be socialized across the entire state. We're just working with the commission as well as with our filings as we move on. We included all of those in our rate case filing so that the commission just continues to know that those are the options as they really determine for New York what its path is and how aggressive it's gonna be in hitting its targeted goals. I think that's it. Okay. I think we have now workshops, as you know, you know, on three different topics. Thank you very much for your coming. Thank you for the team for the work you have done. A pleasure to meet all of you today, and thank you. We have lunch coming now. I don't know, 11, maybe 10 minutes, and then we can start the workshops a little bit earlier. You hold for a minute. They will be provided in the main entrance. Thank you. Thank you. Expecting more questions Hello everyone again. Hope you enjoyed your lunch. We will continue now with our breakout sessions. We have planned workshops for today, ESG plus F, regulated utilities rate case management, and offshore wind case studies. They will be led by our management team. We will make various forward-looking statements with 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 risk and uncertainties. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect or because of other factors to be discussed in Avangrid's earnings news release, in the comments made during this conference call, in the risk factor section of the company presentation or in our latest reports and filings with the Securities and Exchange Commission. Each of which can be found on our website, avangrid.com. We do not undertake any duty to update any forward-looking statements. The first workshop is ESG plus F, presented by Lainey Brown VP of Sustainability, Kyra Patterson, our Chief HR Officer, Environment, Health and Safety, and Scott Mahoney, Avangrid's General Counsel and Corporate Secretary. Thank you. Good afternoon, everyone. We understand the important role we play in delivering meaningful clean energy solutions for our customers and our communities that will help advance progress on climate, economic and social issues. That's why we've established a sustainable business model and strategy that is centered on ESG and financial goals. Stewardship around the environment, society, and our own governance and financial strength. Our vision and plan is to be the leading sustainable energy company in the United States. Avangrid's sustainability strategy is organized in five key areas of focus, reducing the company's carbon footprint, conscious actions on social investment, creating a more sustainable and diverse supply chain, investing in our people and our communities, and operating with the highest ethical and governance standards. We are demonstrating that clean energy is not just a beneficial outcome for the environment and society, but an opportunity to help people and communities participate in the clean energy transition through new jobs and for leading companies like ours to make critical and strategic investments. Avangrid has and continues to demonstrate leadership in all aspects of ESG. Our ESG position is not new. For over six years, we've have maintained emissions intensity levels six times lower than the U.S. average, and over 90% of our generation is emission-free. We have led in the carbon neutral commitments with our first goal in 2017. As Pedro referenced today, we continue to expand our carbon neutral commitments with a new net zero ambition. As an anchor institute in our communities, we believe we have a key role to play in society to improve opportunities for our employees, contribute to the economic development of our communities, and to ensure our customers always have access to safe, reliable and affordable energy for their energy needs. Our social compact is reflected in our strong social policies, and our ESG goals reflect our commitments. The foundation of that work and our company is our best-in-class governance and sustainability system. Our governance and compliance work has been recognized consistently with Ethisphere's World's Most Ethical Company for the last four years. Like all of our work, we continually look for areas of improvement on an annual basis. We engage a third party to assess our governance system and provide recommendations for improvements to the operations of our board and its committees. Since our first annual shareholder meeting in 2016, we have received overwhelming shareholder support. In 2022, we had almost 99% shareholder participation in the meeting, and all proposals were approved by shareholders, indicating strong support for Avangrid's strategic direction and our governance system. Avangrid's sustainable business model puts us in the right place at the right time. Our existing footprint of businesses and assets help address the need for more clean energy and demand for green electrification. We are aggressively moving forward with carbon reduction and have committed to our new net zero strategy. We are committed to achieving Scope 1 and 2 carbon neutrality by 2030, and we'll continue to develop our Scope 3 strategy. We have a goal of increasing our renewable installed capacity by more than 190% by 2030, supported by our plan to invest $1.8 billion in our renewables business through 2025. These investments also support our commitment to decreasing greenhouse gas emissions intensity from generation sources by 35% by 2025, and 70% by 2030. In addition, we've committed to investing over $160 million in EV infrastructure to install more than 15,000 chargers and make ready work for light, medium, and heavy-duty vehicles across our grid by 2030. These ESG commitments are aligned with our long-term outlook. We've also made commitments to greening our facilities by committing to 100% renewable energy in our corporate buildings by 2030, and in our own fleet by converting 100% of our light-duty vehicles to cleaner energy by 2030. Our net zero strategy incorporates our strong position and support for the energy transition, but it's not just a commitment. We have a plan with many initiatives already underway to achieve across all emission scopes this goal. Significant increase in our generation capacity includes adding new technology solutions like green hydrogen and storage. Every year, we replace an average of 100 miles of leak-prone pipeline, gas pipeline, and we're on target, as we talked about earlier, with the increase in investments in pipeline replacement to have 100% of the pipelines replaced. Our clean vehicle and renewable electricity goals help support our reductions in our Scope 2 emissions. To achieve carbon neutrality, we'll continue to develop our plans to reduce carbon emissions for our one gas generation unit. This facility currently helps balance our Northwest renewable portfolio. We continue to evaluate all options, including exploring technologies to reduce our gas generation emissions while using the highly efficient unit for managing our growing renewable fleet. The path to decarbonization will require investments in new technologies. By 2030, we'll have 48 kilotons of green hydrogen capacity and over 1,000 megawatt-hours of storage deployed across our business. We're taking a strategic approach to green hydrogen development, including engaging with the Department of Energy and building coalitions for its H2Hubs program, as well as identifying opportunities to leverage our existing assets to enable hydrogen use cases. Now I'll pass the clicker to Kyra to talk about our social goals. Thank you. Today, we put forward goals that reflect Avangrid's social commitments to safety, equity, supplier diversity, community engagement, and a workplace community that reflects the diversity of our customer communities. We are expanding our commitment to include gender diversity. Building from our existing relationship with Paradigm for Parity Coalition, which is focused on addressing the corporate leadership gender gap, we have set a goal for women in senior leadership positions by 2030 to have representation at 35%. We are maintaining the existing third-party pay equity analysis that is performed annually. This helps to ensure that employees are compensated equitably, irrespective of gender identity, race, or other personal characteristics. We've included new goals demonstrating our commitment to the health and safety of our workforce, targeting a 40% improvement in our accident rate and a sustained commitment to our existing ISO 45001 certification. Our training goal describes our priority to support development for all employees in areas like leadership, safety, and unconscious bias. We are also highly focused on cybersecurity and are increasing training across the company in this space. In the area of supplier diversity, we launched our supplier diversity program earlier this year with a goal of increasing our annual spend to $300 million by 2025. This program is a key example of the broad social reach and economic development opportunity that we have in our communities. We are targeting a substantial increase in our corporate volunteering efforts. In 2021, we reached a little bit over 3,000 hours of community volunteering. We're on target at this point in the year to double that number by the end of the year, with a target of reaching 35,000 volunteer hours by 2025. At Avangrid, we believe that a better business can build a better society. We are proud to say that in-community investment has been part of our culture for more than a century, and we intend to continue that. Since 2002, the Avangrid Foundation has invested more than $32 million in philanthropic giving, grant-making, and partnerships. Our individual companies give back millions of dollars each year to our customer communities through corporate investment, economic development funds, and volunteer time of both our employees and their families. Throughout COVID-19 pandemic, we continued steadfast in our commitment to protect our workforce, our customers, and our communities. We're proud to share that safety, which is an absolute characteristic of our organization, continues to be rated as the greatest strength by our employees in our annual engagement survey. When it comes to diversity, equity, and inclusion, our goal for our workplace community is to reflect the diversity of our communities that we serve. That's why we continue to drive progress in our goals for the diversity of our leadership team. Our Diversity, Equity and Inclusion Council is made up of leaders across our business that reflect the geographies and diversity of our workforce. The council provides stewardship of our DE&I roadmap and leads in efforts to embed DE&I into our operating norms. Each year, we conduct an employee engagement survey, and leaders across Avangrid execute action plans in response to the feedback we receive from our employees on the surveys in topics ranging from inclusion and belonging, workplace safety, process technology, and team orientation. We create community at Avangrid by providing avenues for employees to build connections both inside and outside the company, from and with colleagues to organizations receiving our volunteer efforts. Building community includes support of a network of employee resource groups. These seven employee-led and executive-sponsored groups lead awareness campaigns, provide opportunities for professional networking, and are active in volunteer efforts across Avangrid. Each year, we invest in a variety of strategic partnerships with organizations working to advance professional and leadership diversity in our workplace, from talent pipeline programs to scholarship for students identifying as members of historically underrepresented groups. We believe that a workplace community full of diverse perspective, equitable treatment, and inclusive leaders directly benefits our communities, our customers, and our investors. With that, I'll pass to Scott. Thank you. Thanks. Avangrid's success demonstrates our unrelenting commitment to the highest ethical and governance standards to ensure we provide equitable access to clean energy. We strive for continuous improvement in our governance and compliance areas. For example, we engage an independent third party to assess our governance and sustainability system and the operations of our board and its committees, and make recommendations to ensure we implement best governance practices. We will maintain this practice of robust annual assessment. Our governance and compliance goals reinforce our commitment to holding ourselves to the highest ethical standards. Avangrid's compliance program has received the prestigious Compliance Leader Verification certification awarded to companies with best-in-industry compliance programs since 2019, and we are committed to maintain this certification. Avangrid is a leader in the U.S. in sustainable finance. We believe that it plays a critical role in expanding our ability to provide affordable, clean energy and take action to reduce climate impacts. We have set new goals to expand on our leadership position in sustainable financing, with 65% of our debt associated with sustainable criteria by 2025. At Avangrid, ours is a strong ethics-driven continuous improvement culture that builds on our purpose and values. We are committed to accountability and our success is evaluated by corporate leaders, our board of directors, and our external stakeholders. While a controlled company is qualified to take certain exemptions from governance requirements, Avangrid has a majority independent board and has formed robust committees to assist the board with its oversight responsibility. To continue to build on our culture of accountability and continuous improvement, we have adopted a new diversity, equity and inclusion policy and updated Avangrid's climate change policy to incorporate new emissions goals. Our board diversity and independence are also areas where we continue to improve. Today, our board is 29% ethnically and gender diverse, and 57% of our board is independent of our majority shareholder, Iberdrola. Our efforts to be good corporate leader have also been recognized by third parties. For example, for the second consecutive year, we were recognized by CNBC and JUST Capital as one of the JUST 100 companies, and Avangrid was ranked number 5 among utilities for its commitment to its customers. Avangrid was also named among the top 100 companies on JUST Capital's 2022 Workforce, Equity and Mobility ranking, demonstrating our continuous commitment to hiring, training, and promoting a diverse workforce. For the fourth consecutive year, Avangrid earned the World's Most Ethical Companies Award from the Ethisphere Institute. Avangrid's commitment to sustainability is demonstrated by its use of sustainable financing. We consider sustainable financing a critical in supporting funding for our investments. Avangrid is among the top 10 US green bond issuers with more than $2.7 billion in green bonds issued and outstandings. I'll now turn it back to Lainey for some closing remarks. Thanks, Matt. At Avangrid, we believe that our goals demonstrate our strong commitment to E, the S, and the G. We've analyzed a select number of our ESG goals against our peers. The breadth and depth of our ESG commitments, especially when compared with peers, demonstrates our ESG leadership and reflects our unique ESG position. We don't think you should take just our word for it. Across the board, Avangrid is one of a short list of energy companies that has received recognition not only in environmental sustainability, but also on our ethics, governance, and workforce equity. Similarly, we're in the top tier of energy companies for commitments to ESG-focused initiatives such as the US Department of Energy's Better Climate Challenge, the UN Energy Compact, and Paradigm for Parity. From our initial carbon neutral commitments in 2017 to our new net zero strategy today, we've committed to leading the way in the energy transition. We believe that our strong track record of ESG commitments and execution, coupled with our comprehensive and expanded goals, ensures that we are a key company to lead this important work. Thank you for the opportunity to present our ESG goals and plans in more detail, and we're open for questions. I think hearing none. We'll now take a five-minute break prior to the next workshop for the Regulated Utilities case management.Thank you. Thank you You want me to start it? Yeah. Good afternoon, everybody. This is workshop two on regulated utilities rate case management. Welcome. My name is Kimberly Harriman. I am Senior Vice President of State Government Affairs and Corporate Communications at Avangrid. With me today are our three operating company presidents, Patricia Nilsen from New York, Joseph Purington from Maine, and Franklyn Reynolds for Connecticut and Massachusetts. I will provide you with a brief overview and then hand it off to each of them to present more fully on the rate case activity in their respective states. The focus of this breakout session is to provide additional detail on our pending rate cases. As you heard, we have seven rate cases pending for our operating companies, NYSEG Electric and Gas, Rochester Gas and Electric, Central Maine Power, United Illuminating, and Berkshire Gas. We filed in each company's respective jurisdictions this year, and we expect new rates for each company in 2023. We have requested multi-year investment plans for each company and proposed more than $10 billion in new capital investments through 2026. As you will hear in more detail by company in just a moment, each rate case is tailored to the unique circumstances of its jurisdiction, customer needs, political and regulatory conditions. That said, there are common themes of clean energy transformation and reliability and resiliency-enabling investments that flow through every case. We have also continued to strengthen our stakeholder outreach, meeting with more than 160 stakeholders across our jurisdictions before and during the pendency of each case. These meetings provide valuable insight as to where we can bring value to individual stakeholders in each case and gives us the opportunity to demonstrate the value of our proposed investments for them. With that said, I will turn it over to Trish Nilsen to present on the New York rate case. Thank you, Kimberly Harriman. Hello, my name is Patricia Nilsen. I'm the President and CEO of NYSEG and RG&E. As Pedro Azagra mentioned in his leadership introduction, I've been with the company for 30 years and recently have taken on my current role. Prior to becoming the President and CEO, I held various leadership positions in customer service, communications, and most recently emergency response, where I established strong relationships with our state and local elected officials and regulators. I'm excited to be in my new role, and I'm pleased to be with you here this afternoon. In New York, we made our 4 rate case filings at the end of May with an overall total bill increase of approximately 13%. As Catherine Stempien mentioned earlier, approximately 40% of this requested increase is driven by the residual rate pressure from our 2019 rate case and joint proposal agreement settlement. To recap, this includes items like the expiring amortizations associated with the Tax Cuts and Jobs Act of 2017, other expiring amortizations, and rate levelization shaping mutually agreed to in our existing rate plan. Beyond that, however, our filing is about establishing the path forward to continue to improve our service to our customers. Our investment plan lays the foundation for the future with three areas of focus, improving our reliability, our resiliency, and enabling the clean energy transition. We made our one-year rate plan filing as required in New York, and we look forward to working with staff and the other intervenors to pursue a multi-year rate settlement if possible. We expect to enter into those settlement negotiations after submitting our rebuttal testimony in about a month. Our filings enable grid modernization, reliability, and resiliency investments. They also reflect innovative partnerships with various stakeholders to advance local and state clean energy goals. For example, a geothermal pilot with the city of Ithaca. As Catherine mentioned, the Climate Leadership and Community Protection Act, or CLCPA, phase one and phase two investments have been included in our five-year capital plan for completeness as part of the rate case filing. However, they're not included in the financial plan, as Patricia outlined. We have put our customers first in this filing. We're mindful of the impacts of inflation on their pocketbooks and have taken measures to responsibly reduce the rate need for customers in a manner that will neither unduly burden the company's financial health nor push a substantial rate pressure into future years. We further note that the magnitude of the rate filing, along with its proposed 10.2% ROE, 50% equity ratio, and $8.6 billion capital plan, including CLCPA, covering 2023 through 2026, are also consistent with a peer New York Utilities pending rate filing. For reference, our current allowed ROE is 8.8% with a 48% equity ratio. Some additional important detail on our 4 pending New York rate filings. We've proposed new rates effective for 1 year, starting in May 2023, and we've expressed a strong interest in a 3-year plan that would go through April 2026. We are using a historic test year of calendar year 2021, with changes forecasted in rate year for both capital and expense. We are open to an earnings sharing mechanism and have proposed a carry-forward of our current storm mechanism. We've increased the test year for inflation with proposed symmetrical reconciliation at the end of the rate year, meaning any variance in actual inflation rates is fully trued up, and we are proposing to bring NYSEG Electric up to a five-year vegetation trim cycle, which is consistent with other New York peer utilities. In terms of capital investment, we have included an $8.6 billion investment plan covering 2023 through 2026 in the rate filing. This includes $2.9 billion to support the CLCPA state clean energy goals that we filed as part of our phase one and phase two investment proposals. Again, these proposals are currently being considered by the commission under a separate proceeding with no specific date provided at this point for a decision. As we mentioned earlier, our filing also includes various proposals to continue our leadership in clean energy transformation. It includes green hydrogen, geothermal, heat pumps, EVs, battery storage, microgrids, and low-income solar generation assets. We seek to do all of this while balancing the cost impact to customers via voluntary rate mitigation measures that do not significantly impair the company's financial health nor stack substantial future rate pressure for customers. This slide lays out additional detail on the drivers of the New York company's rate need. As you can see, more than 70% of the overall rate need on a net basis is driven by residual rate pressure mutually agreed to by the parties and the commission in the company's last rate case, and by the need to replace aging infrastructure and flow through the inflation impacts and property tax increases. Timeline. As Kim said earlier, we have done extremely robust stakeholder outreach in connection with this rate filing, engaging in advance and on an ongoing basis with more than 80 stakeholders. They include local and state politicians, regulators, customers, and other interest groups. From a process standpoint, we are currently in the middle of the discovery process with staff and intervener testimonies expected in a few days, approximately on the 26th. Reiterating Catherine's comments from earlier, we'll file our rebuttal testimony on October 18th, and hope to start voluntary settlement negotiations shortly thereafter. We expect to have new rates in May of next year just as our existing rate plan expires. This is part of our strategy to realize our allowed ROE as we minimize regulatory lag between rate plans. With that, I will hand it over to Joe Purington to present on CMP. Good afternoon. My name is Joseph Purington. I am the President and CEO of CMP. I've been in the industry for over 35 years, and in my current role as the President and CEO of CMP for a year. I have a long history with CMP, having worked in the company for over 28 years in various operational roles. I'm a native Mainer with deep roots in the state, where I have the ability to build strong relationships with our state and local elected officials and regulators. We have been working hard over the last few years to improve our service to our customers. This has resulted in the lifting of the 100 basis point ROE reduction back in February that had been in place since coming out of our last rate case. We continue to meet or exceed those customer service metrics. We have continued to see improvement in our quality of service and reliability. As Catherine mentioned, we are focused on building a stronger, smarter, and more resilient grid for our customers. This focus and strategy brings us to our rate case filing. We filed our rate case proposal for a three-year plan last month with a 4% total bill increase in the first rate year. Notably, this is below the rate of current inflation and is anticipated to be below the magnitude of a rate increase requested, which will be filed by a peer utility in Maine. The fundamental drivers of our rate case are to improve our reliability and resiliency, which lay the foundation for enabling the clean energy transition. As Catherine also mentioned, even with this proposed rate increase, CMP will still have among the lowest rates for any investor-owned utility in New England. The investment needed in Maine is significant. Our proposal strikes a balance between the need to build a stronger, smarter, and more resilient grid and customer affordability. Specifically, we are proposing $778 million in capital investments through 2026, a 10.2% ROE and a 50% equity ratio as compared to our current allowed 9.25% ROE with the same 50% equity ratio. Our filing also reflects partnership opportunities with other Maine stakeholders, especially in the area of clean energy transformation. Some additional detail on our pending CMP filing. We are also relying on 2021 as a historic test year, adjusted for forecasted capital and expense changes in the rate years. We have proposed an earnings-sharing mechanism and an updated storm mechanism with a lower minus storm threshold for 50-50 sharing. We have increased the test year for inflation with proposed symmetrical reconciliation at the end of the rate year, meaning any variance in actual inflation rates is truly is fully trued up. We are also proposing to include service quality standards ultimately approved by the Maine Public Utilities Commission in a comparison, in a companion proceeding. Our proposal includes a capital plan from 2023 to 2026 of almost $800 million, with an additional $25 million-$30 million per year in capital trackers, predominantly for broadband make-ready work and CCI telecom pole replacements we are required to make. Again, our capital plan is focused on addressing asset condition replacements and improving the reliability and resiliency of our system. As Kim said earlier, we have done an extremely robust stakeholder outreach program in connection with this rate filing, engaging in advance and on an ongoing basis with more than 40 stakeholders, like local and state politicians, regulators, customers, and other special interest groups like Efficiency Maine Trust, AARP, and the Industrial Energy Consumer Group. From a process standpoint, we expect to receive staff bench analysis and intervener testimony in December, followed by a rebuttal. New rates are expected to go into effect August of next year. With that, I'll pass it off to Frank Reynolds, President and CEO of UIL. Thank you, Joe. Good afternoon, everyone. I'm Frank Reynolds, President and CEO of UIL Holdings, which includes our Connecticut and Massachusetts operating companies. I've been with the company for 28 years, and in my current role as president and CEO for over 3 years now. Prior to taking over as president and CEO, I held numerous senior leadership roles in both gas and electric operations, progressing through the ranks of our company after serving our country for 20 years. I started my career in Connecticut in our gas business and established strong relationships with our local elected officials as well as state and our regulators as well. In Connecticut, we just filed our UI rate case a few weeks ago. As Catherine mentioned, this will be the first distribution rate increase for our customers since 2019 and first rate case since 2016. Since then, we've been able to deliver significant rate stability to our customers while maintaining our strong operational and financial performance. We know asking customers for an increase is always a challenge. That is why prior to the filing, we completed our stakeholder outreach efforts with more than 40 stakeholders starting back in June. We explained to our stakeholders that our levelized approach across the three years will result in an overall 5% total bill increase per year, which is significantly lower than the current rate of inflation. Our plan entails important foundational investments in our electric distribution system, which will enable UI to continue to provide safe, reliable service while maintaining our top quartile reliability and increasing the resiliency of our system to meet our customers' evolving expectations. Our plan also includes additional investments in clean energy innovation and grid modernization to serve customers and to help the state reach its clean energy goals. Finally, we are asking for a 10.2% ROE and a 52% equity ratio, up from our current allowed of 9.1% and 50% equity ratio. Our filing includes investments of almost $600 million for 2023 through 2026, prioritized to address asset condition replacements, reliability needs, and resiliency improvements on the system. Our plan includes important policy leadership positions that provide support for disadvantaged communities through proposed low-income rates and the state through proposed economic development rate. We have proposed enhanced electric vehicle and battery storage programs coupled with innovative rate design to support those programs as well. Our case includes forecasted O&M and capital spends, which escalate over the next three years of the rate plan. We have addressed inflation risk by proposing a symmetrical inflation reconciliation mechanism with an embedded escalation rate of over 8% that we have voluntarily reduced by approximately 2% as a rate mitigator for our customers. Our rate case filing maintains important regulatory mechanisms such as revenue decoupling and earnings sharing mechanism and seeks to increase the company's major storm reserve by 50%. We completed our stakeholder outreach efforts with more than 40 touch points over the past several months, started back in June, as I mentioned previously. I attended these meetings, and they were well-received by all the participants. In each case, we addressed the need for key investments over the next three years to maintain our commitment to provide safe and reliable service to our customers. We discussed that we have submitted a balanced case, which will provide customers with additional resources and services and allow for system investments, all at a bill impact that is lower than the current rate of inflation. As mentioned earlier, from a process standpoint, we expect to see staff and intervener testimony in early December and file our rebuttal testimony before the end of the year. New rates are expected to be in place in September of next year, as PURA now has a 350-day procedural schedule in place. With that, we'll open it up for questions. Thank you for your attention. It's a quiet group. No questions at all? Oh, geez. I don't know if I'm supposed to have a microphone. Here we go. Thanks. First question just on, with interest rates continuing to go up, how we should think about the extent you can reflect that in your filings, whether it be the interest cost side or just ROE, things like that. Each of our rate. Each of our rate cases has a proposed symmetrical reconciliation at the end of it. I think we've considered that and the effects. Certainly when we were preparing our cases, I think we were all at a different point in terms of interest rates. I think it was a good overarching methodology for us to use. Right. Each case has been updated to forecast what the current inflation was at the time of the filing, with it projected for each rate case after. The symmetrical inflation tracker is intended to be a true-up mechanism at the end of each rate case year, which will either go up or down depending on what actual interest rates are. What we would anticipate, the way that it would work is that we would have rates set based on what our forecast is, and at the end of the rate year, we'd have this true up, and if interest rates were higher, that would then be recovered through rates. If interest rates were lower than forecasted, that would be refunded to customers in the next year. Okay. What about on the capital structure side? That would be for, like, the overall rate increase, but like these ROEs that you're filing for, there's a formula to it. Like, could you reflect it in there as well? Is that part of it? We chose to address it through the inflation tracker. Okay. I think that would capture the risk regardless of how somebody dealt with it. You could do it in ROE. We proposed the tracker. Okay. My second question was, this is kind of outside of the rate cases, but, are any or all of you able to just give a sense of where your overall customer bills are expected to be this winter, relative to last year? Well, starting in New York, we do anticipate, and we're sharing with our customers, the supply price impacts that are forecast are going to have impacts for our customers on the electricity and natural gas side. That communication should be forthcoming, I believe, very soon. It affects really both electric and gas because of the generation sources that are our electric generation resources use often is natural gas. We're anticipating that our customers are going to continue to see supply price bill impacts like they have in prior winter heating seasons. On top of that, we've started significant outreach to our customers just to make sure that they're aware of the various programs that we have available to help them with any challenges that they may be having in terms of bill payment. In Maine, in July, we did our annual compliance filing, and the distribution component of the bill went down by 2.5% for our customers. The Maine PUC right now is out for bid for the supply, the procurement process. We do expect, just as Trish and Frank have alluded to, that the current supply rate is $0.12 per kilowatt. We expect to see that go up as we've seen in other New England states recently. We do have an outreach plan similar to what we did last year that we'll continue to do this year and through the winter months when our customers get hit with those bills. Okay. For the other states, like, any sense of timing on when we'll get specifics of what the bill is gonna look like? I would say in the first quarter of 2023. Okay. You're not gonna give any sense ahead of time. Like, for example, here in New York City, like Con Edison, I'm a customer, they send something out saying where to expect the bill to be. You're not doing that in your states? We'll be doing some of that in our communications. Okay. Yes. Okay. Got it. Thank you. Excuse me. In New York, I'm curious about the rate case and, really the gas side in particular. Been a lot of discussions in the state around the gas system. Are you proposing anything different versus the past case, or are there any separate discussions that may impact, capital on that side of the system? There are proceedings and activities going on a regulatory basis and really on a statewide basis on what is the future of gas in New York, certainly. For us, our focus is ensuring that we're continuing to serve the over 500,000 gas customers that we have in our service area at NYSEG and RG&E, which means ensuring that we're meeting our compliance measures on leak-prone safety customer inspections. You know, we've done, I think, a really industry-leading job in terms of our cast iron replacements that have happened in New York. I think it's, for us, it's ensuring that gas system is running efficiently, that we're investigating and removing any potential gas losses, fuel losses. Certainly we are, as a team, looking at how we can move and migrate to more of a greener gas delivery for our customers. I think the state. You're gonna see a plan that's gonna come out from New York at the end of the year through the Climate Action Council, and we anticipate we could see it as early as December, or they may take it right up to the wire. That plan will have an outline to how to reach the state's emissions goals, or I should say law under CLCPA, and that will have further work, as Trish mentioned, in regulatory proceedings that the commission has to how to implement the plan. Okay. Just to be clear, that's all outside of the rate case, right? That's correct. Okay, great. One more on the New York front. Just curious, you spoke about some of the legacy impacts that are now carrying through to this current case. I'm curious if, sort of outside of the formal application, if there are any tools you're focused on that could potentially be offered in a settlement to mitigate some of the impacts this time around. Certainly, going through a rate case during COVID presented some very particular challenges for us. We've considered those in our new filing. Certainly, we're trying to create an environment where we can have a multi-year settlement. We'll see where that takes us. I'll just add in that in the filing, there was a 5% mitigation for customers that was included, that included things like amortizations or excess depreciation reserves. You know, those are the things that I would anticipate will be discussed extensively. I would anticipate you would see something from staff when they come out with their testimony next week. Mm-hmm. To follow up. That 5%-10%, would that be one year in? Yeah, first I wanna be clear. I was talking about inflation tracker, not an interest tracker. On the inflation side, what we've done is, as we forecasted our test years, we looked at kind of the blue-chip fund. Projection forecasts for inflation. I think, you know, it depends on each utility and the timing of when that filing was made. Roughly, that forecast was a higher interest rate for 2023 than what is anticipated in 2024 and 2025. Okay. Thank you very much. Thank you. Thank you. Thank you. Thank you, Alvaro. Good afternoon, everyone. My name is Sy Oytan. I'm the Senior Vice President for Offshore Projects at Avangrid. I've been with the company a little over two years, and I have a track record of developing and building about 6.5 gigawatts of onshore and offshore winds in three continents. Let's start with the question, why offshore wind? As you heard Pedro and Jose Antonio explain earlier today, Avangrid aspires to become the leading sustainable energy company in the U.S. As part of that effort, we are proud to pioneer the U.S. offshore wind industry here with our Vineyard Wind 1 project and our 6-gigawatt portfolio of offshore projects. Avangrid has been at the forefront of the U.S. offshore wind industry from the start, having the vision and foresight to see the untapped potential long before the U.S. market took its current shape. Avangrid and Iberdrola are making these investments and leading the way because of this massive opportunity in front of us. As you see, in these graphs, aggressive global offshore wind policy targets are set to multiply the offshore wind capacity 6 times by 2030 and 30 times by 2050. Offshore wind has high capacity factor, and its seasonal profile is complementary to solar PV and onshore winds in Europe, Asia and the United States. Basically, in this map you see Iberdrola's offshore wind pipeline. Iberdrola is a leading offshore wind development company with a global pipeline of 38.5 gigawatts capacity in offshore, and we are leveraging their experience, synergies and supply chain network to drive efficiencies in our portfolio and the U.S. industry at large. Today, Iberdrola is the second-largest offshore wind player in the world with about 12% overall market share. As part of Iberdrola, Avangrid has the benefit of tapping into a network that has demonstrated an ability to deliver offshore wind projects with significant risk management experience. Our company is a global leader in wind operations and asset management. Today, we have over 11,400 wind turbines deployed both onshore and offshore, and about 20 gigawatts of wind farm assets in operation. Basically, we have deep knowledge of how to build and operate wind farms, both onshore and offshore. Again, as a member of the Iberdrola Group, we are also able to draw on the experience of a company with a demonstrated record of success in building mega projects that have come in on time, on budget, and with exemplary health and safety records. The business leverages expertise from global offshore projects with over 600 full-time employees dedicated to offshore wind, and over 150 of these employees are located here in the U.S. Boston is our headquarters for the offshore wind team, and this whole 600 folks in the offshore means that we have a very deep bench. If we have any issues that we're seeing in Europe, for example, we can tap into the teams, global teams, that we have offices for operational and engineering excellence in London, Madrid, and among other places. Now I'll provide a basic overview of what goes into building an offshore wind project. An offshore wind project consists of seven major packages. Wind turbine generators, foundations have monopiles and transition pieces built into them. Array cables, basically the cables connecting the wind turbines under the seabed. Electrical service platform, which is sometimes called as offshore substation. That's where the power is stepped up and exported to the land via offshore export cable. Once you make the landfall, power is transported by the onshore export cable to the onshore substation, where you basically export the power to the grid. Each package, as you see here, is worth $hundreds of millions for an average 800-MW project, and they're considered as sub-projects under the umbrella of the entire program. Close coordination across packages is essential for every stage of project development and execution. Let's switch to offshore development cycle. Offshore wind projects have a long development life. Key investment decisions are taken 3-5 years in advance of the commercial operation, requiring experience and expertise to successfully execute and construct. Especially in the U.S., development and offtake happen concurrently. Here you can see the stages of our projects in the development cycle. As we move towards the right of this graphic, the value of a project naturally goes up and the risk goes down. Vineyard Wind 1 project has received all federal, state, and local permits. I'll touch base on that shortly. It achieved financial close in 2021, secured tax equity, and also started construction. Other projects such as Park City Wind and Commonwealth Wind are in the permitting and development process, and we're also working on the engineering optimization, as mentioned in the morning. Kitty Hawk is also in the permitting process, but it does not have a PPA yet. With multiple projects in different stages, we have a pipeline of work to support the business and retain great talent in the U.S. Let's move to the specifics of our Vineyard Wind 1 project. Vineyard Wind 1 is a joint venture between Copenhagen Infrastructure Partners and Avangrid, and it has 806-megawatt capacity, which is being constructed at the moment. We always start with health and safety to any meeting or activity during the execution phase of the project. Our goal for Vineyard Wind 1 is no harm should come to any employees, contractors, visitors, vendors, any other third parties or the environment at any Vineyard Wind facilities or sites, during execution. Execution of a complicated project can only be achieved by a capable and well-working senior management team. This organization chart depicts the senior management team, and half of this team is seconded from Avangrid Iberdrola, based in Boston, and the other half from our joint venture partner, Copenhagen Infrastructure Partners. They all sit in the same office in Boston, and it is a diverse team with a long-working relationship in the joint venture. A key factor for successful delivery is the EPC team responsible for engineering, procurement, and construction. For each major package I've shown the photos of, there's a package manager, and each package manager have their own team consisting of subject matter experts. Projects developed and constructed directly by the Vineyard Wind 1 package managers and EPC management include the largest offshore wind farms in the world, such as Race Bank, East Anglia ONE, Wikinger, Beatrice, and London Array. Vineyard Wind 1 achieved the first record of decision, which is basically the federal permitting for a utility-scale offshore wind project in the U.S. After that, there is several other federal permitting processes. They were also completed successfully, and it has also amassed the required state and local permits. The permitting process for offshore wind projects in the U.S. is a long process and requires close collaboration with agencies to get projects through approval. We continue to leverage the experience and lessons learned on Vineyard Wind 1 and apply to the development of our entire U.S. offshore wind portfolio. In this graphic, you see the breakdown of the vessel information by package. The transportation and installation is the heart of an offshore wind project during construction. Vineyard Wind 1 will use a diverse fleet of specialized vessels for the transportation and installation campaign with experienced contractors. All of these contractors have finished more than you know tens of like offshore wind projects around the world. All of the support vessels supporting these specialized vessels are U.S. flagged. I'd like to go into the bit of the storyboard for installation of the WTGs. This graphic illustrates the wind turbine loading process being planned at the port in New Bedford, Massachusetts, to the feeder barge. Once ready for transfer, the blades are loaded first. There are three blades. Next, the tower sections are loaded. There are four tower sections. Then finally, the nacelle is loaded onto the feeder barge. Then the feeder barge leaves the port, it goes to the offshore site, and the jackup vessel arrives on site at the installation location. It sets up, basically jacks up on the platform and, basically, the components are transferred from the feeder barge to the deck of the jackup vessel, or sometimes it's called installation vessel. Then the crane will lift the tower sections into the place. Next, the nacelle is installed on top of the tower, then the cable is pulled through the tower. All these tower sections are sitting on the monopile and the transition piece through flanges. Next, the three blades are installed, and finally, the vessel jacks down and moves to the next location. All right. Another case study I'd like to touch upon is the East Anglia ONE project located in United Kingdom. Iberdrola has put into operation one of the largest offshore wind projects, the East Anglia ONE offshore wind farm in British waters in the North Sea, with an installed capacity of 714 MW. The project consists of 102 wind turbines. If you compare this, it's similar total capacity with Vineyard Wind 1, which is 806. This is 714. Vineyard Wind 1 has only 62 turbines because of the capacity of the WTGs being used. This wind farm produces clean energy for 630,000 British homes. For the timeline, the project, we saw a three-year schedule for construction, with construction beginning in the spring of 2017, offshore construction beginning in 2018, and the first wind turbines installed and first power to the grid in 2019, and full commercial operations achieved in 2020. Very similar to the cycle we are going through with Vineyard Wind 1. As you can see here, the project supported well over 1,600 jobs during construction and sourced its supply chain throughout the United Kingdom and also continental Europe. To date, East Anglia One has directly facilitated direct investment locally in East Anglia region of the UK of over GBP 145 million. Overall, the project delivered a significant economic impact on the local community. Moving on to health and safety performance, which is very critical other than executing and delivering the project. East Anglia ONE has an exemplary record. The project was held to the highest standard and delivered, and this is the same culture and standard for health and safety we're bringing to the Vineyard Wind 1 project and all projects within Avangrid and Iberdrola portfolio. This concludes my presentation, and now it's time to answer your questions if you have. Thank you for your presentation. I'm David Park from Mizuho Bank. I'm just curious how, just in your own mind, how you think about floating offshore wind. Maybe not in terms of whether Avangrid, you know, is into that, but I'd be curious how you view it in terms of feasibility, timelines. You know, is it something that will be developed quickly? Just curious on that. I mean, in my personal opinion, floating wind is the future. In the past, I mean, I started my career, I'm a mechanical engineer, and I started my career with onshore wind. The turbines were very small, like started with 800 kilowatts. At that time, I'm talking about the early 2000s, offshore wind was seen as like, you know, rocket science or witchcraft. Okay. Everyone thought it's very expensive, very risky. But when you look at right now, its cost of production is basically less than some conventional methods because of the economies of scale, because of industrialization, because how many people from oil and gas or, you know, from onshore renewables moved into the space. It became a very conventional technology to produce clean energy. Floating wind will also, you know, come to that point. Right now, I mean, as Iberdrola, we are investing into floating wind as well. We have a large portfolio off of like Scotland and some other places. Right now, in terms of economies of scale, it is time to build the fixed bottom projects first. Once all these like, you know, shallow waters are filled, you know, it's not going to stop basically, and the industrialization will come, and in my opinion, beyond 2030, the bigger wind farms will be all floating. Just some general questions, if I may. Sure. Can you just talk generally about sort of the capacity factors that you're seeing in your, you know, existing offshore facilities? Then maybe talk about, have you experienced any natural disasters or damage to the offshore wind that would require, you know, significant repair? If so, do you contract the repair in Iberdrola or Avangrid, or do you have an outside party that will help you repair? Then generally speaking, are you able to insure these facilities at a reasonable cost? In one sentence, you just asked five different questions. Sorry about that. I can speak the rest of the afternoon. Who knows? The first one, insurance, all offshore wind farms are insured. I mean, they are insured for erection all risk or construction risk insurance during the construction, and during operation, they are also insured. Vineyard Wind 1, during the financial closure, we've secured it. It's an established market, basically started from Europe, but there are insurers, very large insurance companies doing that. Okay? There's that. Just like an onshore wind farm, solar PV or any method of like power generation, it's a typical insurance against all hazards. Natural disasters, I don't recall any. I mean, don't quote me on that, but I don't recall in my whole career any natural disaster impacting any offshore wind farm. Maybe one turbine, you know, just broken down or accident, something like that, but it is not a big concern for the industry. The reason for that is, before you start doing engineering, there is so much time, energy, and money spent on site characteristics. You spend basically $hundreds of millions on surveys, on wave measurement, on you know, wind measurement and so on, so that everything is designed to cope with the marine environment and also, you know, all kinds of like hurricanes or like, you know, problems and or so on. Offshore wind turbines are manufactured and designed at the cutting edge of the technology. They're not like larger scale onshore wind turbines. The materials are different. They are built to withstand the marine environment, the salt, the winds, you know, everything that goes with it. Because in an onshore wind farm, you could have like personnel, but on site. In an offshore wind farm, there are months that you do not go to the wind turbines during the, you know, winter months and so on, right? Everything is like monitored remotely, basically. There are times when the weather window is good, people go there, do the preventative maintenance and so on. You also asked about the capacity factors. The advancement of the wind turbine technologies, bigger blades, bigger wind turbines. We're seeing capacity factors being pushed to the limits, and it is right now. Of course, this depends on the wind characteristics. It's possible to see net capacity factors of 50% or higher with the new projects. Okay? In the offshore locations on sea, the wind blows more and there's like less amount of you know distractions to the wind flow basically. It's a naturally high capacity factor asset. Does that answer all your questions? Thank you. All right. Thank you. Raul Carmona, CaixaBank. Currently or in the near future, where do you see, where do you expect or where are you currently seeing, bottlenecks, potential frictions in the value chain of developing the offshore wind? It might come from a manufacturing capacity from the wind turbine manufacturers. It may come from shipping industry because it's been a lot said about the capacity in terms of serving the installing vessels or maintenance vessels. It may come from other sources, raw materials. Where are the critical points? Are you asking U.S. specific or globally in general? Well, I'm more interested on the US, but I think that given the global nature of the supply chain, whatever may happen with Yeah. Manufacturing capacity may affect globally, right? Exactly. That's a challenge. I mean, there are more projects in the pipeline by developers than the supply chain can supply the components, vessels, and also manpower. Okay? That's a known fact. Therefore, for our projects, in order to be prudent, we do long-term planning. We have very close relationship with the supply chain, and we also support, and we would like to tap into domestic supply chain, especially in the US. That's why the Inflation Reduction Act is a very important tool to attract more supply chain into the US. However, supply chain is a bottleneck for every offshore wind project in any market. Okay? That's one. The second one, in the US and globally, as you see in my first slide, this growth is huge, the growth rate. Okay? The capacity or the aspirations, can the grid take this into, is always on the minds of the policymakers, developers, financiers, and so on. Because typically, no one thought about in the past while building these like, you know, grids and backbones about offshore wind, okay? Typically, the backbones and the grid is inland, and the grid is kind of weak in the coastal places everywhere, like in Europe or Asia or over here in the US. Therefore, one of the biggest challenges or the success factor will be how soon these you know capacities could be connected to the grid. The people who have interconnection or planned the grid upgrades or grid requirements you know soon enough are the ones that are going to be the you know realized projects, basically. Because you can have a wind farm but not connected to the grid. There are examples of those, you know, in different parts of the world. Yeah. Does it answer your question? Thank you. Yes. Yeah. Okay. All right. No more questions? Oh, one more. Thanks. Thanks for all the information. Can you just talk a little bit about any of the restrictions you might have during the construction process, whether it be weather-related or marine life, and just how that compares to what you've experienced in Europe? I mean, the restrictions are very similar. Basically, when you're planning for offshore wind farm and applying for the permitting and going through the environmental review process, basically there are endangered species such as marine mammals and so on, that you have limited window in some of the a little bit like dangerous activities such as hammering the monopiles and so on. You have windows of time between, for example, from November till May, when the whales are coming, you're not supposed to be doing any of that work. Okay? You plan all of your campaign by knowing that. Also even during the construction phase, for example, you can do piling only from 9 A.M. till 5 P.M. Okay? In some markets, that's like from 7 A.M. till 7 P.M., and so on. Those are like little differences. In the Western Europe and also in the U.S., with the environmental regulations and restrictions, there are things that we need to comply due to the federal and state permits that we have received. We have a construction team and a compliance team as well. Basically, we will be building what we have been permitted to. Okay? Great. The last one was just kind of looking longer term. You've got up there, I mean, tremendous growth opportunity. Just how do you think about scaling the business, in terms of future lease areas? Obviously, the price has changed dramatically, for you were an early mover. With some of these recent prices, how do you scale beyond, you know, Commonwealth, Park City? I mean, we have the Kitty Hawk, which is 3.5 gigawatt as well, so we have enough work for us. We are looking into and evaluating all the new lease areas. However, we are basically a reasonable investor. If the prices are out of the business case, we believe that we have enough work in front of us, and we're not going to be basically, you know, non-disciplined investor and paying those like skyrocketed lease prices anywhere in the world. So that's the founding principles of Iberdrola and Avangrid. It has to have reasonable cost and also returns, because we have responsibility to our investors, to the shareholders, and you know, we need to be able to deliver those projects as well. Thanks. Yeah. I just wanted to ask about GE and the Haliade-X. Yes. I think that's not able to be sold, but Vineyard Wind 1 can still use them. Going forward, does that have an impact on future projects, whether it's cost or timing? Anything else you can talk to about that? Yes. It's public information that Siemens Gamesa and GE has like a court case, and the judge basically carved out Vineyard Wind 1 from that patent infringement case. I think both parties will like appeal and continue the legal battle. Basically, whatever happening between those two OEMs is not impacting Vineyard Wind 1. As we are going through the wind turbine selection for Park City Wind and Commonwealth Wind projects, GE assured us that the new generation uncertain they have doesn't have this patent infringement issue. Thanks. Sure. All right. Thank you very much.