Investors have been waiting for renewable energy stocks to live up to their potential. After being beaten down in 2023, many investors are hopeful that 2024 will be a better year. No matter where you stand on the viability of renewable energy sources, they will be part of the mix going forward. And with the world fighting to go green, it’s a good long-term bet that renewable energy stocks will be some of the biggest winners. NextEra Energy (NEE) Source: IgorGolovniov/Shutterstock.comNextEra Energy (NYSE:NEE ...

OAKVILLE, ON, Feb. 20, 2024 /PRNewswire/ - Algonquin Power & Utilities Corp. ("AQN" or the "Company") (TSX: AQN) (NYSE: AQN) announced today that it does not intend to exercise its right to redeem all or part of the currently outstanding 4,000,000 Cumulative Rate Reset Preferred Shares, Series D (the "Series D Preferred Shares") on April 1, 2024. As a result, subject to certain conditions, the holders of the Series D Preferred Shares have the right to convert all or part of their Series D Preferred Shares, ...

Core Points - Algonquin Power & Utilities Corp. has appointed David Levenson to its Board of Directors, effective immediately, increasing the Board to nine members, with eight being independent [1][2] - The appointment aligns with the company's strategic transformation into a pure play regulated utility, aimed at simplifying the business and enhancing shareholder value [2] - David Levenson has extensive experience in private equity and infrastructure, having previously served as Managing Partner at Brookfield Asset Management and Chief Investment Officer of its infrastructure business [3] Company Overview - Algonquin Power & Utilities Corp. is a diversified international utility with approximately $18 billion in total assets, providing energy and water solutions to over one million customer connections primarily in the U.S. and Canada [4] - The company operates and has net interests in over 4 GW of installed renewable energy capacity [4] - Algonquin's shares are listed on both the Toronto Stock Exchange and the New York Stock Exchange under various symbols [4]

LITTLE DINOSAUR/Moment via Getty Images Algonquin Power & Utilities Corp. (NYSE:AQN) has lost roughly 17% of its value over the last year with total returns still poor at 12% following a $0.07 per share dividend reduction. The utility company last paid a quarterly cash dividend of $0.1085 per share, left unchanged sequentially and $0.434 per share annualized for a 7.12% dividend yield. I've owned a small position in the equity units of (NYSE:AQNU) for a while now, recommending them over the commons when I l ...

z1b The recent rise of the 10-year Treasury yield above 4% and the concurrent sell-off in utilities (XLU), banks (KRE), and precious metals (GLD)(SLV)(GDX) stem from a blend of hawkish comments from Federal Reserve officials and robust economic data that indicates that inflation may be proving more sticky than previously expected. As a result, many quality dividend stocks in these sectors are now on sale. We are taking advantage of this by purchasing more of these stocks as prices continue to drop. In this ...

Chip Somodevilla Berkshire Hathaway's (BRK.A, BRK.B) Warren Buffett once opined: There's only three ways that a smart person can go broke…liquor, ladies, and leverage. In this article, we will discuss the third of these three paths to failure that can on occasion ensnare even the highest IQs and then share how Buffett's wisdom applies to dividend investing. Why Leverage Destroys Even The Smartest Investors Leverage can be very seductive to even the most intelligent investors due to its promise of amplified ...

Core Points - Algonquin Power & Utilities Corp. (APUC) announced the pricing of $500 million of 5.577% senior notes due January 31, 2029, and $350 million of 5.869% senior notes due January 31, 2034 [1][2] - The net proceeds from the sale of the notes will be used to repay indebtedness and for other general corporate purposes [1] - The offering is expected to close on January 12, 2024, subject to customary closing conditions [2] Financial Details - The 2029 Notes were priced at 99.996% of their face value, while the 2034 Notes were priced at 99.995% of their face value [2] - The notes are unsecured and rank equally with existing and future unsecured indebtedness of Liberty Utilities [2] Company Overview - APUC is a diversified international utility with approximately $18 billion in total assets, providing energy and water solutions to over one million customer connections [5] - The company operates over 4 GW of installed renewable energy capacity [5]

[Unaudited Interim Consolidated Financial Statements](index=1&type=section&id=Unaudited%20Interim%20Consolidated%20Financial%20Statements) [Interim Consolidated Statements of Operations](index=2&type=section&id=Interim%20Consolidated%20Statements%20of%20Operations) For the nine months ended September 30, 2023, Algonquin Power & Utilities Corp. reported a net loss attributable to common shareholders of $163.9 million, or ($0.24) per share, compared to a net loss of $144.2 million, or ($0.21) per share, in the prior year period, driven by higher interest expenses and significant other net losses despite a slight increase in total revenue Consolidated Statement of Operations Highlights (Nine Months Ended Sep 30) | Metric (in thousands of U.S. dollars) | 2023 | 2022 | | :--- | :--- | :--- | | **Total Revenue** | **$2,031,236** | **$2,017,063** | | Operating Income | $369,547 | $379,182 | | Loss Before Income Taxes | ($285,103) | ($249,942) | | Net Loss | ($200,037) | ($217,059) | | Net Loss Attributable to Common Shareholders | ($163,930) | ($144,227) | | **Basic and Diluted Net Loss Per Share** | **($0.24)** | **($0.21)** | - For the third quarter of 2023, the company reported a net loss per share of **($0.26)**, an improvement from the **($0.29)** loss per share in Q3 2022, primarily due to a smaller loss from long-term investments compared to the prior-year quarter[2](index=2&type=chunk) [Unaudited Interim Consolidated Statements of Comprehensive Income (Loss)](index=3&type=section&id=Unaudited%20Interim%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) The company recorded a comprehensive loss attributable to shareholders of $107.3 million for the nine months ended September 30, 2023, a significant improvement from the $261.0 million comprehensive loss in the same period of 2022, primarily due to a positive change in the fair value of cash flow hedges Comprehensive Income (Loss) (Nine Months Ended Sep 30) | Metric (in thousands of U.S. dollars) | 2023 | 2022 | | :--- | :--- | :--- | | Net Loss | ($200,037) | ($217,059) | | Other Comprehensive Income (Loss), net of tax | $50,577 | ($125,889) | | **Comprehensive Loss** | **($149,460)** | **($342,948)** | | Comprehensive Loss Attributable to Shareholders | ($107,267) | ($261,031) | [Unaudited Interim Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Interim%20Consolidated%20Balance%20Sheets) As of September 30, 2023, total assets increased slightly to $18.0 billion from $17.6 billion at year-end 2022, driven by an increase in property, plant, and equipment, while total liabilities also grew to $11.4 billion from $10.8 billion, primarily due to a rise in long-term debt, resulting in a decrease in total equity from $6.8 billion to $6.5 billion Balance Sheet Summary (as of Sep 30, 2023 vs Dec 31, 2022) | Metric (in thousands of U.S. dollars) | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$17,982,766** | **$17,627,613** | | Property, plant and equipment, net | $12,449,278 | $11,944,885 | | Long-term investments | $1,573,368 | $1,806,532 | | **Total Liabilities** | **$11,440,163** | **$10,791,174** | | Long-term debt (including current portion) | $8,367,096 | $7,512,017 | | **Total Equity** | **$6,542,603** | **$6,836,439** | [Unaudited Interim Consolidated Statement of Equity](index=6&type=section&id=Unaudited%20Interim%20Consolidated%20Statement%20of%20Equity) For the nine months ended September 30, 2023, total equity decreased by approximately $294 million to $6.54 billion, primarily driven by a net loss of $200 million and dividends declared of $243 million, partially offset by contributions from non-controlling interests and positive other comprehensive income Changes in Total Equity (Nine Months Ended Sep 30, 2023) | Item (in thousands of U.S. dollars) | Amount | | :--- | :--- | | Balance, December 31, 2022 | $6,836,439 | | Net loss | ($200,037) | | Dividends declared and distributions | ($243,340) | | Other comprehensive income (OCI) | $50,577 | | Contributions from non-controlling interests | $107,933 | | **Balance, September 30, 2023** | **$6,542,603** | [Unaudited Interim Consolidated Statements of Cash Flows](index=10&type=section&id=Unaudited%20Interim%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2023, cash from operating activities was $427.3 million, a slight increase from $404.5 million in the prior year, while investing activities used $839.2 million, significantly less than the $1.64 billion used in 2022, and financing activities provided $438.4 million, a sharp decrease from $1.23 billion in 2022 Cash Flow Summary (Nine Months Ended Sep 30) | Cash Flow Activity (in thousands of U.S. dollars) | 2023 | 2022 | | :--- | :--- | :--- | | **Net cash from operating activities** | **$427,304** | **$404,463** | | **Net cash used in investing activities** | **($839,227)** | **($1,637,195)** | | Additions to PP&E and intangibles | ($694,047) | ($897,193) | | Acquisitions of operating entities | $0 | ($632,797) | | **Net cash from financing activities** | **$438,422** | **$1,231,843** | | Increase in long-term debt | $1,787,190 | $2,815,506 | | Repayments of long-term debt | ($1,047,263) | ($1,308,345) | | Cash dividends on common shares | ($247,005) | ($281,922) | [Notes to the Unaudited Interim Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Consolidated%20Financial%20Statements) [Note 1: Significant accounting policies](index=12&type=section&id=1.%20Significant%20accounting%20policies) The financial statements are prepared in accordance with U.S. GAAP, with accounting policies consistent with those from the year-ended December 31, 2022, and the company's operating results are subject to seasonal fluctuations across its electric, gas, and water utilities, as well as its renewable energy assets, with the U.S. dollar as the reporting currency - The company's operations are organized into two primary business units: the Regulated Services Group and the Renewable Energy Group[18](index=18&type=chunk) - Operating results experience seasonal fluctuations, with natural gas demand higher in winter and solar energy generation greater in summer[19](index=19&type=chunk) [Note 3: Business acquisitions](index=13&type=section&id=3.%20Business%20acquisitions) The company terminated its agreement to acquire Kentucky Power Company, resulting in a $46.5 million write-off of related costs in the first nine months of 2023, while completing the acquisition of the remaining 50% of the Deerfield II wind farm for $23.1 million - On April 17, 2023, the agreement to acquire Kentucky Power Company from AEP was mutually terminated[23](index=23&type=chunk) - The company recognized a loss of **$46.5 million** in the nine months ended September 30, 2023, related to the write-off of costs from the terminated Kentucky Power Transaction[23](index=23&type=chunk) - On June 15, 2023, the company acquired the remaining 50% of the Deerfield II wind farm for **$23.1 million**[23](index=23&type=chunk) [Note 5: Regulatory matters](index=14&type=section&id=5.%20Regulatory%20matters) The company's regulated utilities operate under cost-of-service regulation, with recently completed proceedings including a revenue increase for CalPeco Electric System and St. Lawrence Gas, and a significant MPSC order for Empire Electric that authorized securitization of costs from a 2021 winter storm and the Asbury plant retirement, but resulted in a one-time net loss of $63.5 million due to disallowed costs - Empire Electric received an order to securitize approximately **$290.4 million** in costs related to the Midwest Extreme Weather Event and the Asbury plant retirement, but the exclusion of certain costs resulted in a one-time net loss of **$63.5 million** (**$48.5 million** net of tax)[29](index=29&type=chunk) Regulatory Assets and Liabilities (as of Sep 30, 2023) | Category (in thousands of U.S. dollars) | Amount | | :--- | :--- | | **Total regulatory assets** | **$1,284,878** | | *Key Asset: Fuel and commodity cost adjustments* | *$333,813* | | **Total regulatory liabilities** | **$682,272** | | *Key Liability: Income taxes* | *$297,549* | [Note 6: Long-term investments](index=16&type=section&id=6.%20Long-term%20investments) The company's long-term investments are dominated by its holding in Atlantica, carried at fair value, and for the nine months ended September 30, 2023, the company recognized a total loss of $258.7 million from long-term investments, primarily driven by a $352.8 million fair value loss on these investments, with the Atlantica holding being the main contributor, and the company also has significant commitments and maximum exposure of over $1 billion related to its Variable Interest Entities (VIEs) Loss from Long-Term Investments (Nine Months Ended Sep 30) | Category (in thousands of U.S. dollars) | 2023 | 2022 | | :--- | :--- | :--- | | Fair value loss on investments | ($352,824) | ($484,387) | | Dividend and interest income | $76,565 | $80,597 | | Equity method loss & other | $17,606 | ($52) | | **Total Loss from Long-Term Investments** | **($258,653)** | **($403,842)** | - The fair value of the investment in Atlantica decreased from **$1.27 billion** at year-end 2022 to **$935.2 million** as of September 30, 2023[34](index=34&type=chunk) - The company's maximum exposure related to its Variable Interest Entities (VIEs), including carrying amount, loans, and guarantees, was approximately **$1.0 billion** as of September 30, 2023[42](index=42&type=chunk) [Note 7: Long-term debt](index=19&type=section&id=7.%20Long-term%20debt) Total long-term debt increased to $8.37 billion as of September 30, 2023, from $7.51 billion at the end of 2022, primarily due to higher drawings on senior unsecured revolving credit facilities, while total liquidity and capital reserves decreased significantly from $2.35 billion to $1.45 billion over the same period, and subsequent to the quarter, the company extended maturities on certain credit facilities and redeemed $287.5 million of subordinated notes Long-Term Debt Composition (as of Sep 30, 2023) | Borrowing Type (in thousands of U.S. dollars) | Amount | | :--- | :--- | | Senior unsecured revolving credit facilities | $1,334,516 | | Senior unsecured notes (Green Equity Units) | $1,144,376 | | Senior unsecured notes | $1,406,963 | | Subordinated unsecured notes | $1,657,196 | | Other Debt | $2,824,045 | | **Total Long-Term Debt** | **$8,367,096** | - Total liquidity and capital reserves stood at **$1.45 billion** as of September 30, 2023, a decrease from **$2.35 billion** at December 31, 2022[47](index=47&type=chunk) - Subsequent to quarter-end, the company redeemed all **$287.5 million** of its 6.875% fixed-to-floating subordinated notes[48](index=48&type=chunk) [Note 10: Shareholders' capital](index=22&type=section&id=10.%20Shareholders%27%20capital) The company's common shares outstanding increased to 689.0 million as of September 30, 2023, with the Dividend Reinvestment Plan (DRIP) suspended effective March 16, 2023, and participating shareholders now receiving cash dividends, while share-based compensation expense for the first nine months of 2023 was $7.8 million - The company suspended its dividend reinvestment plan (DRIP) effective March 16, 2023, with shareholders previously enrolled beginning to receive cash dividends starting with the Q1 2023 dividend[58](index=58&type=chunk) - No common shares were issued under the at-the-market (ATM) equity program during the nine months ended September 30, 2023[57](index=57&type=chunk) - Total share-based compensation expense was **$7.8 million** for the nine months ended September 30, 2023, up from **$6.6 million** in the prior-year period[58](index=58&type=chunk) [Note 12: Dividends](index=25&type=section&id=12.%20Dividends) The company declared a common share dividend of $0.1085 per share for the third quarter of 2023, and for the first nine months of 2023, total common dividends were $0.3255 per share, a significant reduction from $0.5322 per share in the same period of 2022, reflecting the company's previously announced dividend cut Dividends Declared Per Common Share | Period | 2023 | 2022 | | :--- | :--- | :--- | | Three months ended Sep 30 | $0.1085 | $0.1808 | | Nine months ended Sep 30 | $0.3255 | $0.5322 | [Note 16: Other net losses](index=28&type=section&id=16.%20Other%20net%20losses) The company recorded significant other net losses of $119.0 million for the nine months ended September 30, 2023, a substantial increase from $19.3 million in the prior year, with key drivers including a $63.5 million securitization write-off for Empire Electric, $46.5 million in costs from the terminated Kentucky Power acquisition, and $7.6 million in costs related to the planned sale of the renewable energy business Other Net Losses (Nine Months Ended Sep 30, 2023) | Item (in thousands of U.S. dollars) | Amount | | :--- | :--- | | Securitization write-off | $63,495 | | Kentucky termination costs | $46,527 | | Renewable energy business sale costs | $7,557 | | Other | $13,419 | | Acquisition-related settlement payment (Gain) | ($11,983) | | **Total Other Net Losses** | **$119,015** | - The company announced it is pursuing a sale of its renewable energy business and incurred **$7.6 million** in related costs during the first nine months of 2023[81](index=81&type=chunk) [Note 18: Segmented information](index=29&type=section&id=18.%20Segmented%20information) The company operates through two segments: Regulated Services Group and Renewable Energy Group, with the Regulated Services Group generating operating income of $358.2 million and the Renewable Energy Group generating $19.2 million for the nine months ended September 30, 2023, and the company has announced its intention to sell the Renewable Energy Group, though it does not yet meet the criteria for 'held for sale' accounting, with the United States remaining the largest source of revenue - The company is pursuing a sale of its Renewable Energy Group business segment[86](index=86&type=chunk) Segment Performance (Nine Months Ended Sep 30, 2023) | Segment (in thousands of U.S. dollars) | Revenue | Operating Income | Property, Plant & Equipment | | :--- | :--- | :--- | :--- | | Regulated Services Group | $1,745,687 | $358,206 | $8,797,756 | | Renewable Energy Group | $214,209 | $19,190 | $3,623,020 | Revenue by Geographic Area (Nine Months Ended Sep 30) | Region (in thousands of U.S. dollars) | 2023 | 2022 | | :--- | :--- | :--- | | United States | $1,635,892 | $1,621,194 | | Canada | $118,474 | $125,986 | | Other regions | $276,870 | $269,883 | | **Total** | **$2,031,236** | **$2,017,063** | [Note 19: Commitments and contingencies](index=34&type=section&id=19.%20Commitments%20and%20contingencies) The company is involved in 18 active lawsuits related to the 2020 Mountain View Fire in its CalPeco Electric territory, the outcome of which cannot be reasonably predicted, and the company has wildfire liability insurance, with total future commitments of approximately $1.85 billion as of September 30, 2023, primarily for power purchases, natural gas supply, and service agreements - The company faces **18 active lawsuits** and one non-litigation claim concerning the Mountain View Fire of November 2020, and intends to vigorously defend these claims with liability insurance[100](index=100&type=chunk) Future Commitments (as of Sep 30, 2023) | Category (in thousands of U.S. dollars) | Total Commitment | | :--- | :--- | | Power purchase | $250,729 | | Natural gas supply and service agreements | $450,121 | | Service agreements | $561,649 | | Land easements and others | $569,115 | | Capital projects | $21,819 | | **Total** | **$1,853,433** | [Note 21: Financial instruments](index=36&type=section&id=21.%20Financial%20instruments) The company uses a variety of derivative financial instruments to manage exposure to interest rate, foreign currency, and commodity price risks, holding derivative assets with a fair value of $112.3 million and derivative liabilities of $127.4 million as of September 30, 2023, and utilizing cash flow hedges, net investment hedges, and other derivatives not designated as hedges, with a significant portion of derivative fair values classified as Level 2 and Level 3, and a supplier financing program with $87.5 million in confirmed invoices outstanding Fair Value of Financial Instruments (as of Sep 30, 2023) | Category (in thousands of U.S. dollars) | Carrying Amount | Fair Value | | :--- | :--- | :--- | | **Financial Assets** | | | | Long-term investments at fair value | $991,593 | $991,593 | | Derivative instruments | $112,328 | $112,328 | | **Financial Liabilities** | | | | Long-term debt | $8,367,096 | $7,425,499 | | Derivative instruments | $127,420 | $127,420 | - The company expects **$25.2 million** of unrealized losses currently in Accumulated Other Comprehensive Income (AOCI) to be reclassified into earnings within the next 12 months as underlying hedged transactions settle[117](index=117&type=chunk) - The company has a supplier financing program where suppliers can sell their receivables, and as of September 30, 2023, accounts payable included **$87.5 million** of confirmed invoices under this program, up from **$16.8 million** at year-end 2022[126](index=126&type=chunk)

Financial Data and Key Metrics Changes - Adjusted net earnings for Q3 2023 increased by 7.9% year-over-year, while adjusted net earnings per share remained flat at $0.11 [11][13] - Regulated Services Group's operating profit was $246.4 million, up 7.5% from the previous year, driven by rate increases [11][12] - Renewable Energy Group's operating profit decreased by 7.3% to $66.2 million, primarily due to unfavorable weather conditions [11][12] - Interest expense rose to $94.2 million, an increase of $19.2 million year-over-year, largely due to higher interest rates on variable rate borrowings [12] Business Line Data and Key Metrics Changes - Regulated Services Group experienced growth from rate increases at various utilities, contributing to a total operating profit increase [11][12] - Renewable Energy Group's performance was negatively impacted by weather, which reduced production from wind and solar assets [11][12] Market Data and Key Metrics Changes - The company reported a pending rate review totaling $90 million across four utilities, reflecting ongoing investment in utility systems [8] - The company secured two DOE grants to modernize infrastructure, covering 50% of the costs, which is expected to accelerate investment [7] Company Strategy and Development Direction - The company is pursuing a strategic shift to become a pure-play regulated utility, believing this will create focus and long-term value [5][6] - The formal sale process for the renewable energy business has commenced, with significant inbound interest from prospective buyers [6][18] - The company aims to maintain its BBB investment grade credit rating while supporting dividends during the transition [6][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a mixed quarter due to weather impacts and higher interest costs but remains optimistic about underlying business growth [10][14] - The company expects to meet or fall below the low end of its previously disclosed adjusted net earnings per share range for 2023 due to unfavorable weather [14][33] Other Important Information - The company is actively searching for a new CEO, with a timeline of 6 to 12 months for the process [22] - The company is focused on capital discipline and is evaluating growth versus maintenance capital expenditures during the renewable sale process [30][31] Q&A Session Summary Question: Insights on the renewable business sale process - Management believes the renewable platform is valuable and has received significant interest, expecting to complete the sale in 2024 [18] Question: Timeline for reclassifying operations as assets held for sale - Reclassification will depend on the sale process and could occur once attractive bids are received [20] Question: Update on the CEO search process - The search is ongoing with a positive outlook, expected to conclude within 6 to 12 months [22] Question: Expectations for renewables CapEx next year - No specific guidance was provided, but flexibility in financing is being considered [26] Question: Availability of tax equity financing for projects - Strong interest in projects continues, with new structures opening up additional market participants [53] Question: Impact of higher interest costs on floating rate exposure - The company is currently at 86% fixed to variable rate, above the internal target of 85% [50]

Financial Data and Key Metrics Changes - The second quarter revenue increased by 1% year-on-year to $627.9 million, primarily due to the implementation of new rates, offset by unfavorable weather [20][22] - Consolidated adjusted EBITDA for the second quarter was $277.7 million, a decline of approximately 4% from the same period last year [20] - Adjusted net earnings were $56.2 million, and adjusted earnings per share were $0.08, both representing a year-over-year decline of approximately 50% [22] Business Line Data and Key Metrics Changes - The Regulated Services Group delivered $214.4 million in divisional operating profit in the second quarter, a year-on-year increase of 15% [20][21] - The Renewable Energy Group's divisional operating profit was $90.6 million, a year-on-year reduction of 26%, primarily due to lower wind production and decreased HLBV income [21][22] Market Data and Key Metrics Changes - The regulated utility business serves over 1.2 million customer connections with a $7 billion rate base, concentrated in four U.S. states [10][11] - The renewable portfolio has approximately 2.7 gigawatts of gross generating capacity across 46 facilities, operating in 11 states and six provinces [13][14] Company Strategy and Development Direction - The company plans to pursue a sale of its Renewable Energy Group to focus on its regulated utility business, which is expected to create more long-term value [7][9] - The strategy includes investing approximately $1 billion of capital per year in the regulated business, focusing on standardizing infrastructure to improve reliability and customer affordability [12][15] - The company aims to maintain its investment-grade BBB credit rating while supporting its current dividend through the remaining regulated business [9][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging quarter due to unfavorable weather and higher interest rates impacting financial results [15][20] - The company expects annual adjusted net EPS growth over time to be in the 4% to 7% range, consistent with industry standards [13][22] Other Important Information - The company has engaged JPMorgan as a financial advisor for the sale of the renewable business, with the timing of the sale dependent on achieving appropriate value [9][38] - The development pipeline for the renewable business includes over six gigawatts of solar and wind projects, with significant portions already in interconnection queues [14][43] Q&A Session Summary Question: Can you comment on the planned renewable sale and valuations? - Management indicated that they have analyzed market conditions and believe their portfolio has strong value, with proceeds aimed at reducing debt and buying back shares [25][27] Question: What is the target FFO-to-debt ratio? - Management stated that the FFO-to-debt ratio would decrease as a pure play regulated business, allowing for more liquidity to invest approximately $1 billion annually [31][32] Question: What are the implications for the dividend payout ratio? - Management expects a high payout ratio in the near term but aims to align it with industry standards in the long term [40] Question: How important is the development platform in the sale process? - Management believes the development platform will be attractive to potential buyers, with significant projects already under construction [42][43] Question: What will be the use of proceeds from the sale of the renewable business? - Proceeds will primarily be used to strengthen the balance sheet, focusing on maintaining a BBB credit rating and supporting growth in the regulated business [79][80]