We check with some of those agencies that basically validate and certificate the compliance units later. And we got a very positive reaction. They loved what we were proposing. I think probably we’re the first company in the U.S. that is making this action. Maybe there are others, but at least in our analysis, we believe we’re on the first ones to make this move. So the whole rationale about that is very simple, to increase and enhance the compliance around the company, because for diversity reasons, for contractual reasons, for ESG reasons, is a must. And if we got ideas that our legal and compliance departments put on the table that we enhance our compliance, we put it on the table as soon as they are finished. And in this case, we’re moving from one compliance to at least three, because we’re going to put one in renewables and other one in networks, I think it’s beautiful to show how much commitment we have to that.
We are announcing that right now because we finished the work some weeks ago as simple as that. And again, Patricia, sad for me to be speaking about you on this topic and relating these things to you. But if you want to comment anything I’ll leave it you.
Patricia Cosgel: No, I’m only just going to add that it is really extremely disappointing to hear that. I think it’s offensive. I had 0 basis. I’ve had a long career and throughout always in every [indiscernible] I defended law, defended regulation without hesitation. I just — I feel like it’s a personal character assassination and is completely [indiscernible].
Julien Dumoulin-Smith: Got it. Excellent. Well, thank you guys for clarifying that. It’s good to get the clarity on that front. I appreciate it. I know people at times confound things. Look, maybe just to talk about the third quarter call — third quarter results, rather, can you just elaborate a little bit about what you’re seeing in terms of West Power dynamics going on out there? Obviously, it’s been a volatile and again, elevated market backdrop, seems like that’s a fairly meaningful contributor here in terms of what’s driving the year-over-year results. Can you perhaps clarify more precisely how much of that was West Power? And it seems like over $100 a megawatt hour realized in the quarter here, but if you don’t mind.
Pedro Blazquez: Sorry, Julien, we didn’t understand very well the question. Do you mind to repeat?
Julien Dumoulin-Smith: Yes. Sorry. So to ask it more precisely, it seems like West Power and specifically, your asset out there drove a very meaningful benefit in the quarter here to the tune of over $100 a megawatt hour implied. Obviously, West has seen elevated results in recent years. I just want to confirm that, that is indeed what’s really contributing to the segment results this quarter?
Pedro Blazquez: Sorry, because we were not hearing the word West, so it was Antonio, so you can speak also in the [indiscernible] answer.
Jose Antonio Miranda: Good morning, Julien. So first, yes, when you compare year versus year and also quarter versus quarter, the West has been performing very well and this is one important or the most important contributor among the different regions. But also I would like to highlight climate and also our trading team that we’re able also to win results way above our expectations. So all in all, this is the composition of the main contributors today in results.
Pedro Blazquez: And Julien keep in mind, we had planned not to stop because of a review that is mandatory. And that’s why the results we’re having right now, which were very good last year, very good this year. Keep in mind, it has not been working the whole year, okay? So going forward, I think please keep that in mind because unfortunately, you have to stop, and we take your [indiscernible] and CapEx very strongly. But I think it’s back to full speed right now and again delivering us as it was.
Jose Antonio Miranda: And also, I’d like to highlight that this year is the first year that we are also performing as a new member of the CAISO Imbalance Market, and this is helping also a lot our costs in the West and driving also the good results.
Patricia Cosgel: And just kind of to finalize, I think what we’ve always highlighted about the business and one of the benefits of our company in the renewable sector that we’re diversified, and we have assets all over the country in multiple regions. So you will see period-to-period, one region does better than another and then that could change over time.
Pedro Blazquez: I think Julien on renewables, again, we’ll comment on this at the end of the year. But I think since sometimes people go back to six years ago or seven years ago, things like that, when we are here since last year. So we can explain what we are doing. But I think in the case of renewables, there was a long history for El Nino and La Nina, many reasons why in a specific year was materially deviated. I think I’m very pleased that the planning we’re doing right now, last year. That’s why it took us six months. We stopped a lot of things for six months to put everything in the right direction. So I’m very pleased that last year and this year, we are almost exactly where we thought we were going to be. I think that’s something to take the credit of the renewable team that I’m very pleased.
Also, I think just to make a comment, last year, we really think we were going to be probably around 300 megawatts a year. And I think all of people ask us, well, what are you doing solid, other people are doing 2,000. I think we made clear that we didn’t believe in [indiscernible] when we were asked also that question. We said that four years ago at the [indiscernible] level, but we said that last year in November. We also said we’re not going to be in the race of growth per megawatts. We’re in the race of making money. And from that point of view, I think we’re going to put projects that deliver the right return. I think in this year, we already have 500 megawatts. So we have done 200 more than we said what we’re going to do. And those ones, I think, have supply chain fix.
We have very nice return. We have renegotiated PPAs, existing PPAs, I think at least two or three with material increases. And in other two or three, we have been able basically to renegotiate the penalties, which also is — you can call it, we negotiate the penalties or increase the price, okay? Both things have the same impact. and its material impact that we have been able to do. And the new PPAs, perhaps making a comment, Alvaro, related to the debt. When you look at us, I think we have networks, which is a pass-through from interest rates. I think the existing PPAs and new PPAs are reflecting the new interest expense. And maybe we have a little bit of debt at the holding level that it still is floating, where basically interest rates may be affecting, but we don’t have 100% of the business.
It’s a very small amount there. So I think for us, interest rates it’s something we’re dealing with very nicely, because of past three [indiscernible] and adjustment — adjusted — revised PPAs for new assets. So I think I’m comfortable that we have less risk than otherwise the people. And we don’t have acquisition that, that you bought something that has assets with flat fixed revenues. And then you have this acquisition that now turning around from 1% cost of debt to 5%, that’s not us, okay? So from that point of view, it’s also — that’s an item that helps in those results that you were mentioning in renewables. Sorry to expand, but I thought it was an opportunity to comment as well.
