Kirk Crews : Yes, Carly, this Kirk, the financing plan as we shared in our prepared remarks is consistent with the information, we shared on the third quarter call. And as we approach those options, we will use the historical approaches, project finance and tax equity. But we’re also very encouraged by what we’re seeing with the transferability market. We are having really good progress with, in those conversations, we’re seeing really good demand for the NextEra Energy tax credit. And ultimately, we look at all those as options and will optimize between project finance and transferability and tax equity. And we’ll use those within the ranges that we shared and the ‘24 to ‘26 funding plan that we provided between those — between the disclosure that we provided. But we are seeing really good demand for the credits and expect to continue to utilize transferability as an option going forward.
Operator: The next question comes from Jeremy Tonet of JPMorgan.
Jeremy Tonet: Hi. Good morning. Just wanted to build off that a little bit as what you talked about before. How do you balance, I guess, looking forward the wealth of growth opportunities and associate funding needs relative to dividend growth? Do you look at industry trends for dividend growth at all and how that might change as utility CapEx increases and just a final point there, just wondering how the EMP business competes for capital against everything else that you have in a lower gas price environment.
Kirk Crews : Sure. So we, when we look at capital allocation and you look at, we shared on the third quarter call the returns that we see within the renewable business and as we shared then at Energy Resources within for when we see returns in the low 20s on a levered ROE basis. In solar, we see returns in the mid-teens and then storage is also in the low 20s. And so it’s great returns and we look to get capital allocated to the renewable business. And that as John discussed in the prepared remarks, we are allocating capital across both businesses in renewables and transmission. And so that is the priority with the way that we allocate capital. And then in terms of the funding of that, again, it’s the way that we’ve traditionally funded the business, it’s tax equity, it’s project finance, and then we also use the transferability provisions.
Jeremy Tonet: Got it. Thank you for that. And then maybe just pivoting a little bit towards the backlog. A lot of additions in the quarter, but there was a little bit of fell out, I think, 350 and there was a little bit more in the post 2026 timeframe that’s in the backlog. So just wondering if you could talk a bit more on kind of some of the drivers, the puts and takes within the portfolio addition composition over time.
Rebecca Kujawa : Sure, I’ll take that. In terms of the, obviously the backlog additions are quite strong and we’re thrilled about that. And for this quarter, in terms of the removal that we had, it’s really project specific items and one part is really related to higher interconnection costs for a particular project where we need to go back and do a little bit more work, very likely these project megawatts will come back into the backlog. They’re good projects, but in near term we’re removing them while we work through the issues. We, I think it’s important to keep in mind that as we add something to the backlog, it’s tremendous visibility and we’re really excited about moving forward with the projects based on what we know at the time.
But this is still a development business and there are things that you have to work through before you commit significant capital to a project and occasionally some of those things that we work through are better. Sometimes they’re a little bit worse and we need to make the decisions that are ultimately right for our shareholders at the time that we need to make them. So in context of a 20 plus gigawatt portfolio, I think it’s de minimis for what is kind of the normal run rate for development type issues. And fortunately we’ve worked through the issues that we had talked about over the last two years around anti -dumping, countervailing duties and the significant changes in the marketplace related to the inflationary pressures and changes in the interest rates.
So at this point I think we’re in kind of like normal development, every once in a while, there’s something that changes our view on a specific project and we’re going to do the right thing from a shareholder perspective and only commit capital where it makes sense.
Operator: This concludes our question and answer session. The conference has now also concluded. Thank you for attending today’s presentation and you may now disconnect.
