WEBVTT - National Grid New York President Sally Librera Talks Energy Demand and Costs

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>It was a report in the Albany Times Union and

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<v Speaker 2>they set over the weekend. National Grid and other utilities

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<v Speaker 2>are spending billions of dollars to prep New York's electric

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<v Speaker 2>grid for a generational shift. And it includes things like

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<v Speaker 2>all those AI data centers that are being built in

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<v Speaker 2>the state and across the country.

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<v Speaker 3>Really yeah.

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<v Speaker 1>The paper went on to note that New York utilities

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<v Speaker 1>are spending that much money to modernize the grid for

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<v Speaker 1>those facility facilities, their investments for New Yorkers, many of

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<v Speaker 1>them are already struggling with utility costs, are gonna have

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<v Speaker 1>to pay for that in the coming years.

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<v Speaker 4>But the idea is that we're prepping it for the future.

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<v Speaker 2>Exactly exactly, But so how uncomfortable as the buildout happens

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<v Speaker 2>and the stress on the grid continues.

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<v Speaker 3>Let's see what our next guest has to say. We've

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<v Speaker 3>been looking forward to this.

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<v Speaker 2>Sally Librera is President National Grid New York. It's a

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<v Speaker 2>subsidiary that publicly held electricity, net gas and clean energy

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<v Speaker 2>utility National Grid PLC, serving millions in New York and

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<v Speaker 2>mass to choose its National Grid ADRs trade in the US,

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<v Speaker 2>they've got about a seventy five billion dollar market cap.

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<v Speaker 2>They're up more than twenty seven percent year to date.

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<v Speaker 2>So nice to have you here.

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<v Speaker 3>How are you great to be here?

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<v Speaker 5>Thanks Carol and Tim for having me.

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<v Speaker 3>Well, it's great to have you here.

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<v Speaker 2>How would you describe power demand today and how that

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<v Speaker 2>demand is growing surging? Use whatever word makes sense so

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<v Speaker 2>that we understand what's the current situation.

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<v Speaker 5>Sure so, at National Good in New York, we serve

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<v Speaker 5>more than four million customers and we deliver natural gas

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<v Speaker 5>and electricity to those customers, and our focus is on

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<v Speaker 5>doing it safely, reliably and affordably. But the reality is

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<v Speaker 5>there is increasing demand for energy across the entire state,

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<v Speaker 5>and we serve through Upstate, we serve in Long Island,

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<v Speaker 5>and we also serve in New York City. And it's

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<v Speaker 5>our job to deliver that energy to meet that energy

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<v Speaker 5>demand where, when and how folks need it.

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<v Speaker 3>How would you quantify that demand? Though?

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<v Speaker 2>Give us some idea, because we're talking NonStop about deals

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<v Speaker 2>of AI data centers, whether it's New York or elsewhere.

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<v Speaker 3>Give us an idea. How stressed is the situation?

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<v Speaker 5>So we work with our New York Independent System operator

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<v Speaker 5>the NISO, and NISO manages a what we call the

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<v Speaker 5>large load Q. So it's essentially the companies that have

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<v Speaker 5>indicated wanting to hook into the New York grid that

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<v Speaker 5>have large power needs, and they estimate that the cumulative

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<v Speaker 5>power need across those companies that are essentially in line

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<v Speaker 5>to connect sometime over the next five or so years

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<v Speaker 5>is about ten gigawatts of energy. And so just to

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<v Speaker 5>give you some context, at our peak in New York,

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<v Speaker 5>we demand about three times that across the entire state.

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<v Speaker 5>And another really important point is that one year ago

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<v Speaker 5>that Q was one third the size.

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<v Speaker 3>It literally tripled.

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<v Speaker 5>In just one year.

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<v Speaker 1>All data centers, no, not all data what it's done,

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<v Speaker 1>because it does seem like for many years we thought

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<v Speaker 1>that power demand across the country would actually stay relatively glad,

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<v Speaker 1>and it did stay relatively flat, But just in recent

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<v Speaker 1>years we've seen so much of an uptick in demand.

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<v Speaker 1>What are you seeing on your grids?

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<v Speaker 5>Well, there's definitely there, definitely is the impact of data centers.

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<v Speaker 5>But New York is also very attractive to manufacturing and

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<v Speaker 5>large scale manufacturing, particularly some of the modern manufacturing we

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<v Speaker 5>see around semiconductors and computer components, it's very energy intensive,

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<v Speaker 5>and companies with big power needs are drawn to New

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<v Speaker 5>York and we are working to make sure that they

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<v Speaker 5>have the power that they need, not just today, but

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<v Speaker 5>well into the future.

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<v Speaker 2>So it's interesting, right, because we think about this White House,

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<v Speaker 2>right and encouraging investment from foreign companies to build here.

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<v Speaker 2>I mean, I guess you know that's the good thing, right,

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<v Speaker 2>We want to see other companies investing into the United States.

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<v Speaker 2>But there's a power grab on that too, right, as

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<v Speaker 2>a result of that, in order to meet that well,

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<v Speaker 2>I think potentially, I.

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<v Speaker 5>Think it is important to note that even if we

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<v Speaker 5>weren't at this unique moment in time with rapidly increase

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<v Speaker 5>demand for power, we still have a grid in New

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<v Speaker 5>York and this is true across many places in the country.

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<v Speaker 5>We have a grid that needs investment. We have assets

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<v Speaker 5>that are close to one hundred years old.

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<v Speaker 3>Why right, right?

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<v Speaker 4>Tim?

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<v Speaker 1>Like?

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<v Speaker 2>How many people like, why if it's one hundred years old,

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<v Speaker 2>why are you twenty years ago?

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<v Speaker 4>Right? Why didn't we make the investment? Then?

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<v Speaker 5>Yeah, we've been politics.

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<v Speaker 3>I've part that that was a lot.

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<v Speaker 4>Please you answer the question so I not.

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<v Speaker 3>Understand, because it's important.

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<v Speaker 5>We have been very careful about balancing the bill impacts

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<v Speaker 5>which customers bear with the investments that we make in

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<v Speaker 5>our infrastructure. And even today where we look at assets

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<v Speaker 5>that are seventy eighty one hundred years old, we're very

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<v Speaker 5>strategic and pinpointed about which of those assets, which of

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<v Speaker 5>those parts of infrastructure we replace, because we want to

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<v Speaker 5>keep customer bills low, So we look for those opportunities

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<v Speaker 5>where we can do multiple things with an investment, where

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<v Speaker 5>we can replace an aging asset with something that's more

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<v Speaker 5>modern and something that can carry more energy, something that

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<v Speaker 5>can unlock more energy that our generators have to connect

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<v Speaker 5>into the grid, and something that's going to be more

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<v Speaker 5>resilient to storms and better leverage technology so it's cheaper

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<v Speaker 5>to maintain.

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<v Speaker 1>Does more resilient too, storms mean bearing power lines?

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<v Speaker 4>Is that the way to do it?

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<v Speaker 5>In some cases we do that, but it's also the

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<v Speaker 5>type of infrastructure that we put up. We are replacing

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<v Speaker 5>in places sometimes wooden poles with steel poles, just much

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<v Speaker 5>stronger infrastructure.

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<v Speaker 3>Well, you know, and I think about how do you

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<v Speaker 3>balance all of that?

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<v Speaker 2>Like affordability, as you know, has become quite the word

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<v Speaker 2>that we are hearing a lot, certainly in the political environment.

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<v Speaker 2>So how do you keep your investors happy and the

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<v Speaker 2>grid reliable without rising bills that make your customers furious

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<v Speaker 2>and invite regulatory and political pushback.

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<v Speaker 3>I mean, that is a hard mandate.

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<v Speaker 5>It is It is a difficult balance, and it's one

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<v Speaker 5>that we navigate every single day. We do it through

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<v Speaker 5>a number of avenues. We certainly work closely with our

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<v Speaker 5>customers to help them manage costs, and we do that

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<v Speaker 5>through a variety of bill assistance programs and energy efficiency

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<v Speaker 5>programs and rebates, and we work We have consumer advocates

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<v Speaker 5>whose job it is to specifically work with folks in

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<v Speaker 5>communities to help them manage their costs. We also, as

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<v Speaker 5>I mentioned before, are very careful about where and how

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<v Speaker 5>we invest in assets, and we make sure that if

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<v Speaker 5>we're investing in an asset, that we're going to get

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<v Speaker 5>more power from investing in that asset, that we're going

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<v Speaker 5>to get more resiliency, and then we're going to get

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<v Speaker 5>more efficiency from investing in that asset.

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<v Speaker 1>The President has been outspoken about his disdain for certain renewables,

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<v Speaker 1>especially wind power. Your investment in renewables, are sourcing energy

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<v Speaker 1>from renewables? Has that changed under this administration.

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<v Speaker 5>Well, we certainly support the all of the above energy

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<v Speaker 5>approach and are pleased with the most recent version of

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<v Speaker 5>the State Energy Report that's just come out today that

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<v Speaker 5>leans into an all of the above approach. Given the

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<v Speaker 5>rate at which demand for energy is increasing, we need

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<v Speaker 5>to we need to be utilizing all of those opportunities,

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<v Speaker 5>from renewables to natural gas to nuclear to make sure.

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<v Speaker 1>Is that more difficult if the federal government is not

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<v Speaker 1>supportive of certain renewables.

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<v Speaker 5>We are working on the infrastructure to move power from

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<v Speaker 5>point A to point B. So while we support projects

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<v Speaker 5>like say the Nesti pipeline, that's a supply project. It's

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<v Speaker 5>not our project, but we support it because we know

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<v Speaker 5>how critical it is to the downstate community, and how

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<v Speaker 5>reliant New York City and Long Island are on natural

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<v Speaker 5>gas and how thin that reserve margin is and their

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<v Speaker 5>energy demand for energy is growing as well. So we

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<v Speaker 5>support NeSSI for those reasons. The other side of our

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<v Speaker 5>business is about building transmission. It's about building the highway

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<v Speaker 5>over which the power moves. So the sourcing as to

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<v Speaker 5>where it's coming from isn't a national grid decision. We

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<v Speaker 5>work with generators of all kinds.

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<v Speaker 2>Bottom line, though, does this potentially as you guys are

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<v Speaker 2>very careful about when you invest so that power prices

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<v Speaker 2>don't go up, but are there going to be moments

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<v Speaker 2>where prices are just going to go up just because

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<v Speaker 2>of the environment. And it's hard to kind of predict everything.

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<v Speaker 2>And forgive me just got about thirty seconds.

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<v Speaker 5>There are moments, and now is one of those moments

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<v Speaker 5>where customers are seeing increases on their bills. And that's

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<v Speaker 5>for a number of reasons, but primarily it's to be

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<v Speaker 5>investing in infrastructure that is necessary. Those investments are necessary

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<v Speaker 5>to make sure that folks continue to have the safe

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<v Speaker 5>and reliable energy that they need.

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<v Speaker 2>And those investments include renewables, green all of it.

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<v Speaker 5>Well, we're investing in the ability to unlock those energy

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<v Speaker 5>sources and be able to bring them onto the grid

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<v Speaker 5>and move them at a greater frequency.