Julien Dumoulin-Smith: Got it, guys. Thank you very much. I appreciate that. Maybe just pivoting a little bit back here. I mean, obviously, very nicely done on 2024, nicely done on the comments on keeping it sticky. And then, Mauricio, next piece of this is, you have talked up this virtual Power Plant distributed opportunity on the call today in prior remarks, how do you see that feeding into, A, what you are talking about in 2024? I presume that’s not really necessarily reflected in size. But at the same time, you talk up an opportunity there, I presume that there’s a certain degree of customer election and choice in that. But how do you see that scaling here? When does that really meaningfully impacting and how meaningful are we talking here? I mean, I have heard some of your comments earlier, if you could elaborate.
Mauricio Gutierrez: Yeah. So, well, the first thing that I will say is that, this opportunity is not included in the investor — in the plan that we provided at Investor Day. The second thing I will say is, just given the focus and the availability of technologies today, we are accelerating the scale-up of this opportunity. I initially thought that this was going to be a five-plus year opportunity. What we are experiencing is that this is going to be able to be implemented and scaled up faster than that. I would say it’s probably a three-plus year. And I provided some initial numbers that I think are very realistic on what we can accomplish. So if you look at a 1 gigawatt VI [ph] position in Texas this past summer, it represented close to $200 million of gross margin.
And 1 gigawatt for our portfolio is basically less than 10% of the load — of the peak load that we currently serve. So it’s very achievable and that gives you just some indication that you are not talking here about a small opportunity, you are talking here about a very large opportunity. The other thing that I will say is that, this product that we are talking about is really leveraging the devices that we use to protect homes plus the distributed technologies available today to help consumers optimize demand. Don’t think of this as a conservation effort — opt-in conservation effort. This is about optimizing and about convenience for our customers. So it is a very different product from the traditional VI. That’s why we are calling it more as an optimization of the energy demand behind the meter as opposed to a traditional demand response.
That’s why we are so excited because this is something that consumers want and this is something that NRG is uniquely positioned not only to provide to consumers, but to be able to monetize that value in the wholesale market. There is no other entity with the scale of NRG that can do that today. That’s why we are an early mover on this.
Julien Dumoulin-Smith: Awesome. Excellent. Thank you. Just a quick clarification from the last question from Shar. When he asked you about acquisitions or divestments on gas, I presume that what we saw with Gregory here is perhaps an indication of the margin of continued divestment on the margin of your portfolio as you move over time, right? We should set the expectation that more of these kinds of transactions are in the wings. Again, I get that Gregory was a very specific pattern here we assume.
Mauricio Gutierrez: I think we are, for the most part, done on the optimization front. I mean remember, the optimization of our portfolio is driven by what we need to serve our load in the best possible way. STP, I already talked at great length, it’s block power, it is not necessarily, it is not flexible, it doesn’t move. We can replace that in the market. Gregory was also very specific. This is basically a plan that was built to provide steam to our host. So they really didn’t do provided the attributes of characteristics that we wanted from a flexible asset. I think after Gregory and STP I would say our optimization efforts are largely done.
Julien Dumoulin-Smith: Thanks guys.
Mauricio Gutierrez: Thank you. Julien.
Operator: Thank you. And one moment for our next question. Our next question comes from the line of Angie Storozynski of Seaport. Your line is now open.
Angie Storozynski: Good morning, guys.
Mauricio Gutierrez: Good morning, Angie.
Angie Storozynski: Good morning. So first on Vivint. So one I was just wondering if you have heard any feedback from your activist investor about how holding onto Vivint is working out for you in the stock, so that’s one. And number two is, so you mentioned a number of positive updates on Vivint. One of the main ones, at least that’s stuck-up with me is the, basically lower attrition. So is it fair to say that the higher interest rates and thus lower migration is actually what’s benefiting your platform. Again not something that would everything to link higher interest rates as a benefit for a business like yours, but it’s deals that way.
Mauricio Gutierrez: Yes, Angie. So let me take the first one and then I am going to ask Rasesh to answer your second question. The focus of the management team and the company is to execute on our consumer strategy. And I think what you are seeing in the last two quarters is that, we basically delivering on the commitments that we provided to all of you on Investor Day. That’s our focus. I have been in — on the road talking to investors to help them better understand the strategy, to help them better understand the value proposition that this consumer strategy represents and not just to the activist, but to all shareholders. And that has been our focus, that’s what we can do as a company, as a management team and I am very pleased with the results that we are delivering and I think shareholders in general are appreciating the value of our consumer strategy.
And what I will say that also market participants as a whole, whether it’s ISOs or whether it is the regulators, they are starting to see the benefit and the opportunity that demand represents to better manage the entire power grid given the greater electrification that we are going to see in the years to come. So I think thus finally happening. But Rasesh the second question can you address?
Rasesh Patel: You bet. Angie, good morning. I think the results reflect the strong value proposition that we provide to consumers. If you think about 7% subscriber growth. We are also seeing an increase in the number of products each subscriber is actually taking into 5% growth in recurring revenue, simultaneously the cost-to-serve customers is down 19% on a unit basis year-over-year. And as you mentioned, one of the most powerful aspects of the value proposition is the near — I think that a record-low attrition rate for us and this economy to have a nine-year customer life. When you bring these things together, combined with the fact that the average consumer is engaging with our products, 33% more than they were this time last year. It’s a really robust flywheel that results in just improving customer lifetime value and so we feel really good about the business and we think there’s a long runway ahead forward.
Angie Storozynski: Okay. Just one follow-up on Vivint. So, Rasesh, you remember, as you said yourself, you are bringing forward this DR [ph] driven this growth on the Vivint side, I thought that the reason why we had expected the growth to materialize on the 2025 and beyond was because you actually needed some software upgrades, some sort of investment to facilitate that growth. So have you put those forward, hence the growth is materializing earlier?
