“given the high gas price environment, it certainly provides room for us to have a higher PPA price. And that gives us the ability to offset higher interest rate costs and still maintain our margins.”

In context

“on the transaction value of renewable projects, especially as you're kind of looking at the rising interest rate environment. Do sort of the rising rates present a challenge to monetize projects both through net or third parties? And how do you see the interest rates impacting sort of the economics of the project, the development margins, the IRRs? So is there sort of pricing flexibility to pass those costs without seeing sort of that elasticity in demand? John Ketchum: So Shar, let me start with, as we've often talked about, we have a number of competitive advantages when it comes to financing the projects. But I think you also need to consider the environment in which we are contracting renewable projects right now. And as John talked about, what the alternative is for the customer. So given the high gas price environment, it certainly provides room for us to have a higher PPA price. And that gives us the ability to offset higher interest rate costs and still maintain our margins. With respect to NextEra Energy Partners as we've shared before, again, a lot of financing options available at NextEra Energy Partners. We've demonstrated over the years, ways to finance the growth in a very cost-efficient way. And we continue to believe that we can utilize all the different financing options that we have to continue to support the growth at NextEra Energy Partners. Shar Pourreza: Terrific. Thanks, guys. I’ll pass it to someone else. Congrats, John and team. Appreciate it. Operator: Our next question comes from Durgesh Chopra from Evercore. Please go ahead with your question. Durgesh Chopra: Hey, good morning, team. Thank you for taking my question. All my other questions have been answered. I wanted to go to sort of your water and wastewater strategy, and I appreciate it”