11May2021

EquityResearch

Americas|UnitedStates

ElectricUtilities&Renewables

CSRenewables&UtilitiesConference-QuestionBank-May13-14,2021

AlternativeEnergy|Comment

InadvanceofourannualCreditSuisseRenewables&UtilitiesConference(virtual)2021,wehaveupdatedourmostrecentquestionbankforattendingrenewableandutilitycompaniesforyourconvenience.

Attendingcompanies:Renewablesandenergytransition(AY,AZRE,BLDP,Bayotech,BLNK,BE,ENPH,FSLR,HASI,NEP,SOL,RenewPower,SEDG,NOVA,SPWR,RUN,VoltaCharging).Utilities(AES,AGR,BKH,CMS,ED,DTE,DUK,ES,NEE,NI,NWE,PEG,SO).Pleaseseeourconferencewebsitefordetailedlistofparticipatingcompaniesacrossothersub-sectors,latestagenda,andregistrationdetails.PleasereachouttoyourCSrepresentativeorusforanyquestionsregardingtheevent.

Utilities–beyondthestorm,Q1earningsseasongenerallyresultedinhigherlossesforelectricandgasmarketers(e.g.,VST,EXC)thanoriginallyanticipated,whilegasmidstreamassetstendedtocomeoutahead(e.g.,SR).Inthewakeofthestorm,weintendtouseourconferencetosurveyattendeesonthestorm’simpactoninvestmentopportunitiesforgridmodernizationandgastransmissionandstorageupgrades.Wealsoseethisasagoodtimetodiscussopportunitiesthatarisefromincreasedfederalsupportforrenewables,storage,andevennuclearpowerintheforthcomingstimulusbilllaterthissummer.Willmanagementteamsandstateregulatorsreinvestfederalfundsincapitalinvestmentortaketheopportunitytoreducecustomerbillgrowth,particularlywiththeprospectofhighertaxrates?Additionaltopicsofgeneralinterestacrosstheindustryinclude:(1)DoyouexpectRNGandrenewablefuelblendingtoincreasethisyear?(2)Doyouexpectchangestoratebaseacrossthesectorin2Hor2022?(3)Doestheprospectofinflationconcernyou?(4)Howwouldahighertaxrateand/orextendedrenewabletaxcreditsaffectthecompany’scashflows,creditratings,deferredtaxstatus,andinvestmentgrowthpotential,particularlyforinvestmentinrenewables?

Renewables–timingsupplyconstraintsandBidenpolicies:Q1earningsfocusedonsupplychainchallenges,delays/highercostsduetologisticsconstraints,semiconductorshortagesimpactinginvertersupplies,inlineorstrongdemandguidanceformostdevelopers,andrisingcommoditycostsforsolarmoduleandtrackermanufacturers.Weexpectinvestorstoprimarilyfocusonadditionalcoloronthesupplychainpressurebeyondthenext2-3quarters,visibilityonskilledlaboravailability,expectationsontimingforthenextUSinfrastructurebill,visibilityforrenewableelectricityandrenewablefuels,California’snetmeteringrulesforresidentialsolar,andmanufacturingexpansionplanstosupportgrowingdemand.Expecttoalsofocusoncatalystsafterrenewablesector’sunderperformanceYTD,asmostofthestocksdonotembedanyupsidefromtaxcreditextensions.Conferencesurveyques:(1)Areyouconcernedabouttheriseinrenewableequipmentcostsin2Hvs1H(2)Areyouconcernedaboutrisingcostofdebt?(3)Whendoexpectthecongresstopasstheinfrastructurebill?(4)Howwouldahighertaxrateimpactcashflows?

ResearchAnalysts

MichaelWeinstein,ERP

2123250897

w.weinstein@

MaheepMandloi

2123252345

maheep.mandloi@

AndresSheppard

2123252306

andres.sheppard@

DISCLOSUREAPPENDIXATTHEBACKOFTHISREPORTCONTAINSIMPORTANTDISCLOSURES,ANALYSTCERTIFICATIONS,LEGALENTITYDISCLOSUREANDTHESTATUSOFNON-USANALYSTS.USDisclosure:CreditSuissedoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethattheFirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.

CreditSuisse–2021Renewables&UtilitiesFiresideAgenda

Figure1:CS2021Renewables&UtilitiesFiresideChats–Day1–May13,2021

Source:Companydata,CreditSuisseestimates

Figure2:CS2021Renewables&UtilitiesFiresideMeetingSchedule:FRIDAY,May14,2021

Source:Companydata,CreditSuisseestimates

11May2021

TableofContents

CreditSuisse–2021Renewables&UtilitiesFiresideAgenda

2

AtlanticaSustainableInfrastructurePlc(AY)–NotCovered

7

Avangrid,Inc.(AGR)–NotCovered

8

AzurePowerGlobalLtd(AZRE)–Outperform,TP$37

9

BallardPowerSystems,Inc.(BLDP)–NotCovered

10

Bayotech–Private

11

BlackHillsCorporation(BKH)–Outperform,TP$78

12

BlinkChargingCo.(BLNK)–NotCovered

14

BloomEnergy(BE)–Outperform,TP$35

15

CMSEnergy(CMS)–Outperform,TP$70

16

ConsolidatedEdison,Inc.(ED)–Underperform,TP$74

18

DTEEnergy(DTE)–Neutral,TP$133

19

DukeEnergy(DUK)–Neutral,TP$104

20

EnphaseEnergy(ENPH)–Neutral,TP$177

21

EversourceEnergy(ES)–Underperform,TP$85

22

FirstSolarInc.(FSLR)–Neutral,TP$73

23

HannonArmstrongSustainableInfrastructureCapitalInc.(HASI)–NotCovered

24

NextEraEnergyInc.(NEE)–Outperform,TP$85;NextEraEnergyPartners–Outperform,TP$8725

NiSourceInc.(NI)–Outperform,TP$29

27

NorthWesternCorporation(NWE)–Neutral,TP$67

28

PublicServiceEnterpriseGroup(PEG)–NotCovered

30

ReneSolaLtd.(SOL)–NotCovered

31

ReNewPower–Private

32

SolarEdgeTechnologies,Inc.(SEDG)–Neutral,TP$322

33

SouthernCompany(SO)–Outperform,TP$74

34

SunnovaEnergyInternationalInc.(NOVA)–Outperform,TP$56

36

ElectricUtilities&Renewables

4

11May2021

SunPowerCorp.(SPWR)–Underperform,TP$22

37

SunrunInc.(RUN),Outperform,TP$82

38

VoltaCharging–Private

39

ElectricUtilities&Renewables

5

11May2021

RecentCompanyNotes

AZRE:4/6RooftopSale

BE:5/6Q1Beat,NewPartnershipsandNewFacilities

BKH:5/6GrowthPlansonTrackaftertheStorm

CMS:4/30GreenPlansRemaininFocus

ED:4/301Q21EarningsPreview

DTE:4/28MidstreamSpinonTrack,andSoistheRest

DUK:4/141Q21EarningsPreview

ENPH:4/28Q1Beat,butComponentShortagesandhigherOpexinQ2

ES:4/201Q21EarningsPreview

FSLR:4/30PlanningforCapacityExpansionandNextGenModules

NEE:4/22RenewableBacklogGrows;ReiterateOutperform

NEP:4/22OrganicGrowthontheMenu;1Q21EarningsReview

NI:5/6RenewableBuildoutPushesForward

NWE:4/23PlansforMontanaGenerationAdvance

SEDG:5/4Q1Beat,NoSupplyShortagesbutLogisticsExpensive

SO:4/30NuclearDelayswereExpected,withGrowthPlanonTrack

NOVA:4/30StrongQ1,NoComponentShortages

SPWR:5/6BenefitingfromExclusiveSolarSupplyChain

RUN:5/6ResidentialSolarServesupaBeatandaRaise

RecentSectorNotes

4/26AlternativeEnergy:KeytopicsforQ1-SupplyshortagesandaBidenPlan

4/5HydrogenEconomy:Part4:APrimerontheAmericasValueChain4/27DirectCurrents-RisingRenewablePPAs

ElectricUtilities&Renewables

6

11May2021

AtlanticaSustainableInfrastructurePlc(AY)

–NotCovered

SantiagoSeage,CEO;FranciscoMartinez-Davis,CFO;LeirePerez,Dir.IR;MariaHervas,IR

Canyoutalkaboutwheredoyouseethebestinvestmentopportunitiestoday?EspeciallyasweseerenewablevaluationscomedownfromtheirpeaksinFebruary.

Withregardstotherecentacquisitions,canyoutalktowhatEBITDAmultiplesorIRRsdo

theyembed?Doesthewindportfolioacquisitionembedanyrepoweringassumptions?

Youhavereachedyourtargetequitygrowthinvestmentof$200-300M/yr.DoyouexpectanyfurtherM&Aorinvestmentplansfor2021?

Doyouseeanyorganicgrowthopportunitiesbeyondthird-partyacquisition?

Asyouthinkaboutthefuturepipeline,whichmarketsprovidethemostopportunity?

WithratesrisingintheUSandglobally,canyouremindushowmuchofyoudebtisatfixedrates?Doyouseemoreopportunitiestorecyclecapitalbyrefinancingexistingprojectdebt?

GiventhetaxcreditextensionintheUSandfallingequipmentcostsglobally,doyouexpectanyorganicrepoweringopportunityforwindorsolarassets?

Canyoutalkaboutyourbatterystorageplan?Whenwouldyouseeopportunityinaddingbatteriestoyourexistingsites?

Doyouexpecttoinvestindistributedsolar?EspeciallyasresidentialandcommercialsolarisgrowingatfastpaceinSpainandtheUS,bothyourcoremarkets.

Howmuchwouldyoupayforaresidentialassetvsutilityscalerenewableasset?

Howdoyouthinkaboutvalueoftherenewableassetsbeyondthecontractedlife?

Onthepolicyfront,whatdoyouexpectforrenewableprojectsintheUS,Spain,orotherregions?

ElectricUtilities&Renewables

7

11May2021

Avangrid,Inc.(AGR)–NotCovered

DennisArriola,CEO

Onapotentialhighertaxrateandinflation

Howwouldahighertaxrateand/orextendedrenewabletaxcreditsaffectthecompany’scashflows,creditratings,deferredtaxstatus,andinvestmentgrowthpotential,particularlyforinvestmentinrenewables?

ArePresidentBiden'spolicyproposalsandspendingplansforrenewableenergy,batteries,nuclear,andrenewablenaturalgasadequatetohelpalleviatecustomercoststoachieveyourgoalsontime?

Doestheprospectofinflationconcernyou?

Howcanthisbemitigatedifinflationprovestobeamorepersistentproblembeyondthecurrentperiodofpandemiceconomicrecovery?

Yourecentlyraised2021guidanceby$0.10to$2.25-$2.45

Whatassumptionsareembeddedinthisguidance?

Whatconditionsdrivethehighvs.lowendofyourtargetedlong-termratebaseandEPSgrowthranges?

OffshoreWind

OffshoreWind:WhatisthelatestonyourVineyardWind(800MW)andParkCityWind(800MW),andKittyHawkprojects?

OffshoreWind:Howmuchhasbeencurrentlyinstalledorisunderconstruction,andhowmuchisonthepipeline?

WithCODsplannedforVineyardWindandParkcityin2024and2025respectively,doyouanticipateanydelayswithBOEM?

NewManagement

WhatshouldinvestorsexpectfromtheappointmentofCatherineStempienasthenewPresidentandCEOofAvangridNetworks?

PNMMerger

Areyoustillon-tracktoclosetransactionin2H21?

Whatarethenextsteps?

Whatcaninvestorsexpectgoingforwardintermsofbusinessperformance?

Other

Canyouexpandonyoureffortsrelatedtodecarbonization,inparticularasitrelatedtogreenhydrogenandtheuseofelectrolyzers?

HowcanIberdrola’sexperienceinEuropeleverageAvangrid’slongtermhydrogenstrategy?

O&M:WhatisyourstrategytomanageO&Mspendinginthenearandlongterm?

ElectricUtilities&Renewables

8

11May2021

AzurePowerGlobalLtd(AZRE)–Outperform,TP$37

RanjitGupta,CEO;PawanAgrawal,CFO;NathanJudge,IR

Whatisthestatusofthe4GWauctionwinwithSECI?DoestherecentlockdownsinIndiaextendthenegotiationtimeline?

WherearethelatestPPAsinthemarkettoday?Areyoustillseeingmorecompetitionfornewprojects?

Canyoutalkaboutgrowthcapitalsourcesandtimingforthisyearornext?Howmuchcapitalraiseorrecyclingdoyouenvision?

Istherisingspotmodulepriceimpactingyou?Howmuchof2021installationsareyettobeimported?

CanyoutalkabouttheimpactofnewtechnologiessuchasBifacial,stringinvertersandtrackersonsolarplantpriceandperformance?

CanyoutalkaboutyourrelationshipwithmajorityholderCDPQ,andhavetheyindicatedanyinterestinacquiringassetsorhelpwithgrowthcapital?

Thinkingaboutthelong-term,canyoutalkaboutgrowthplansfor2025andbeyond,andpotentialfundingneedsandsources?

Highlevel,howshouldwethinkaboutwhatdifferentiatesAZREvsothers,andhowmuchmarketsharedoyouexpectinfutureauctions?

CanyoutalkaboutyourexpertiseonthewindsideandwhatchangeswouldberequiredatAzurePowerasyouthinkaboutwindandbatterystorageprojectsinthefuture?

WhatinterestratesdoyouseeinthemarkettodayfromdomesticaswellasinternationallendersinIndia?Areyouseeinganyratepressuregivenglobalriseinrates?

Whoisyourpreferredlender?Domesticbanksorinternationalgreenbonds?

Canyoutouchuponpolicychangesforimports,specificallyforthebasiccustomduty(BCD),approvedlistofmodulemanufacturers(ALMM),andperformancelinkedincentive(PLI)formanufacturers.Whendoyouexpectthetariffchanges?

Howshouldwethinkofpotentialupsidetoprojectreturnsfromcostreductions,newsolarpaneltechnologies,refinancing,andothertechnologies?

ElectricUtilities&Renewables

9

11May2021

BallardPowerSystems,Inc.(BLDP)–NotCovered

PaulDobson,CFO;GuyMcAree,IR

Pipelinevisibility–giventhemultipleannouncementsacrossverticals,whendoyouexpectthosetoconvertintofirmorders?Canyoubrieflytalkaboutthedifferentoptionalityyousee?

ForPaul–Givenyourexperienceingasandelectricutilities,whatlearningsdoyouhaveforthehydrogenindustry?Neworders,

Costreduction.Whatisthecostofahydrogenfuelcellandelectrolyzertodayandwheredoyouseeittrendingthisdecade?Havethetimelineschangedsincethelastyear?

BidenpolicieshavebeenmostlyfocusedonEVsandEVcharging.WhatdoyouexpectfromBidenadministrationorcongressforfuelcellsandelectrolyzers?

Doyouseeanyimpactfromtherecenttrendsacrosssectorsinhighercommodityandshippingcosts?

WhatarethecapexneedstoexpandmanufacturingcapacityinCanadaandChinafrom2020to2025?Toachieve~7GWcapacityby2025vs~3.6GWin2020.

WhendoyouexpecttoturnEBITDAorcashflowpositive?

Whataretheneartermcatalystsacrossthemultipleverticals?Inroadtransportation,trains,ships,powergeneration,etc?

Whichcountryorstatelevelregulationsaremostlucrativeforthefuelcellorelectrolyzerindustries?

Canyoutalkaboutthemanufacturingcostsandperformancemetrics(yield,life)forthe

hydrogenpoweredfuelcells?Howareoftenarethefuelcellsservicedorreplaced?

HowdoesthePEMtechnologyworks?WhatdroveyourdecisiontoadoptPEMtechnologyincomparisontootherfuelcellandelectrolyzertechnologies?

Howdoyouthinkaboutpotentialcompetitionasmanyindustrialsandenergycompanieshaveacquiredtheirownfuelcelltechnologies.

ElectricUtilities&Renewables

10

11May2021

Bayotech–Private

MoVargas,President&CEO

CanyoutalkaboutBayotech’sproductsinthehydrogenmarket,andhowbigisthemarketopportunity?

HowisyourdistributedSMRtechnologydifferentfromtraditionalhydrogenproductiontechnology?Whatisthedeliveredcostofhydrogenandequipmentlife?

Lasttimewespokeyoutalkedaboutlaunchingthenewproductinthemarket.Howhasthecustomerresponsebeenandhowdoestheorderbooklook?

Howistheorderbacklogacrossapplications?Whoareyourmaincustomers?

Whatareyourthoughtsonelectrolyzertechnologytoproducehydrogen?Givenmanycompaniesarefocusedonit,doyouseeanycompetitivethreatoverthenextfewyears?

Giventhefocusondecarbonization,canyoutalkabouthowyourmodularSMRtechnologycanbeusedtoproduceblueorgreenhydrogen?Whatistheroleofrenewablenaturalgas(RNG)orrenewablefuels?

HowdoyouthinkaboutcompetitionfromGreenHydrogenfromelectrolyzers?CanyoutalkaboutBayotech’splanstowardsgreenhydrogenproductioninnearfuture?

Whileweseepolicyfocusshifttolongtermtransitiontogreenhydrogen,whatareyouhearingfromthecustomerstoday?Wheredoyouseethemostdemandforamongcarbonreductionorzero-carbonofferings?

Whatisthecostinvolvedinsettingupanon-sitehydrogengeneratorandthesubsequentmaintenancecosts?Whatpaybackarecustomerslookingfor?

Canyoutalkaboutyourmanufacturingstrategy,howmuchisinhousevsoutsourced,whatarepotentialcapitalneedsforyouinthisindustry?DoyouexpectanyincentivesfromfederalgovttohelpexpandmanufacturingintheUS?

Whatarethemainsourcesofrevenues?Isitequipmentsales,orleasing?Whatisthecostofservicingtheseequipmentthroughthelifeoftheasset?

Areyouseeinganyinterestfromgasutilities(orothernaturalgassuppliersupstream)

lookingtoexpandintohydrogenproduction?

DoeswatersourcingfortheSMRprocesspresentanyproblem?

ElectricUtilities&Renewables

11

11May2021

BlackHillsCorporation(BKH)–Outperform,TP$78

RichKinzley,CFO;JeromeNichols,DirectorIR;DaveSoderquist,IRanalyst

Yourecentlyreaffirmed2021guidanceof$3.80-$4.00vs.CS/cons$3.86/$3.89,whatgivesyouconfidencethisearlyintheyear?

Youalsoreaffirmed2022guidanceof$3.95-$4.15,in-linewithCS/cons$4.05/$4.06.Whatconditionsdrivethehighvs.lowendofyourtargetedlong-termratebaseandEPSgrowthranges?

EquityNeeds.Youcontinuetotarget2021equityissuanceof$100M-$120MthroughAt-the-Market(ATM)program.Canyougiveusanyinsightonthetiming?Isthismorelikelytobeexecutedmoreheavilyin2Qor3Q?

Furthermore,youaretargeting2022equityissuanceof$60Mto$80MinATMprogram.Canyougiveusanyinsightoftiminghere?

WinterStormUriImpact.Yourecentlystatedapretaximpactof($12.5M),ornet

($0.15)impacttoEPSfromURI(withthemajorityofthelossresultingfromunrecoverablefuelcostsfromEnergyServicescontractualarrangementswithcustomers),canyoudescribeexactlyhowyouexpecttofullyoffsetthe$0.15drag?

ColoradoGasratecaseupdate(requesteda$13.5Mrevenueincreasebasedon50%equityanda9.95%ROE)

Discussthehistoryofthecaseandtheprogressthathadbeenmadeonsettlementtalks.

Whywastheratecasedismissedon1/6/21?

Whatledtoarefiling?

Whatarethenextsteps?

OtherRegulatoryUpdates.CanyougiveusanupdateonKansasGasandIowaGas?

DoyoustillexpecttofileforratecasesinQ2?

IsanewArkansasfilingispossibletoo?

Capitalplan

Youleftyourcapitalplan(2021-2025)unchangedinQ1withanexpectationof$600M+annuallyfor$3B+through2025.Whatarethepotentialincrementalprojects?

Doyouexpectfurtherincreasestogasprogramcapexintheouteryearsofthefive-yearplanasyoucontinuetorollforward?

Istheplaninherentlyconservativeasitrampsdowntowardthebackend?

Onapotentialhighertaxrateandinflation

Howwouldahighertaxrateand/orextendedrenewabletaxcreditsaffectthecompany’scashflows,creditratings,deferredtaxstatus,andinvestmentgrowthpotential,particularlyforinvestmentinrenewables?

Manyholdingcompanieshavebeenconsideringorexecutingdivestmentofnon-utilityassetsthattheythinkareadragonvaluation.Doyouseeanyopportunitiesoneithersideofthistrade?

Whatistheappropriatetimeframefordecarbonizationfromyourviewgivencustomerbillimpactsalongtheway?

ElectricUtilities&Renewables

12

11May2021

ArePresidentBiden'spolicyproposalsandspendingplansforrenewableenergy,batteries,nuclear,andrenewablenaturalgasadequatetohelpalleviatecustomercoststoachieveyourgoalsontime?

Doestheprospectofinflationconcernyou?

Howcanthisbemitigatedifinflationprovestobeamorepersistentproblembeyondthecurrentperiodofpandemiceconomicrecovery?

ESG.Forelectricoperations,youexpecttoreducegreenhousegasemissionsintensity40%by2030and70%by2040.Atthegasutilities,youexpecttoreducegreenhousegasemissions50%by2035(basedoff2005baselinelevels).Areyouontracktomeetthesegoals?

Whatisthemosteffectivewaytoachievenetzerocarbonemissionsovertime?

Howdoesthecompany’stargetforgreenhousegasemissionreductiontargetdrivelong-terminvestmentopportunitiesandgrowth?

Doyoustillexpectgenerationinvestmentstosavecustomers~$4B>30yearsandreduceGHG90%by2030?

Howcanthegasutilitiesprepareforamoreelectrified,hydrogen-focusedfuture?

ElectricUtilities&Renewables

13

11May2021

BlinkChargingCo.(BLNK)–NotCovered

MichaelFarkas,CEO;MichaelRama,CFO

Highlevel,wheredoyouseemostofthedemandforelectriccharging,especiallysincemajorityofhouseswillhavetheirownin-houseelectricchargers?

Bidenadministrationaimstoincreasethe#ofEVchargingstationsby5xto500,000chargers.Wheredoyouexpectmostofthechargerstobeinstalled?

HowdoyoudifferentiateBlinkvsotherEVchargingplatforms?

Howshouldwethinkaboutyourgrowth?Whatarethebestmetricstomeasuregrowthforyourplatform?Whichcountrieswilldrivegrowthinthecomingyears?

Willgrowthbeorganic,ordoyouexpectconsolidationinthespace?

CanyoutalkaboutBlink’smonetizationmodel?Whatistheavgperiodofexclusivityatsites?

WhatistheaveragecostofaLevel2orDCfastchargerandwhatistheaveragepaybackorIRRthresholds?

Whatisthesiteselectionprocess?

WeseemultiplechargingstandardsevolveintheUSandEurope.Howdoyouplantoaddressinteroperabilitytoexpandnetwork?

Howdoesthemixbetweenretailandfleetcustomersevolveforyou?

DoyouseepotentialcompetitionfromotherautoOEMsandenergymajors?Especiallyexistinggasstations?

CantalkaboutyouragreementwithGMtoprovideseamlesschargingfortheirUltiumCharge360platform?Whataretheeconomicsandhowdoesitimpactprofitability?HowdoyoudifferentiateBlink’sofferingvsotherEVnetworksontheUltiumplatform?

Whomdoyouprocurethecharging/mediaequipmentfrom?

Dotherecentsupplychainissuesimpactstationrollout?Eitherduetosemiconductorshortagesimpactinginverter/chargingequipmentorportcongestionsdrivingupimportcost?

IsEVchargerinstallationstandardizedordoyouseeanypotentialsavingsonthatfront?

ElectricUtilities&Renewables

14

11May2021

BloomEnergy(BE)–Outperform,TP$35

GregoryCameron,CFO&EVP

CanyouelaborateonyournewcollaborationwithbakerHughestojointlydeployfuelcellsalongwithgasturbinesformicro-gridandoff-gridapplications?

Howareyouprogressingonyourdifferenttechnologyplatform(Hydrogen,Biogas,Marine,CarbonCapture)?

Canyoutalkaboutthehydrogenlandscape?HowbigistheopportunityandwherecanBloom’ssolidoxidetechnologyshinevsothertechnologies?

CanSolidoxidefuelcells(orelectrolyzers)operatewithvariableload(orrenewables)?

Canyoutalkaboutgrowthplansatcurrentbusinessfornaturalgasbasedfuelcells?HowshouldwethinkaboutshipmentandEBITDAgrowthforthebusinessincomingyears?

CanyoutalktothelevelofcustomerengagementyouareseeinginTexasaftertherecentweatherevent?AreBloom’sfuelcellscompetitiveinTexas?

HowshouldwethinkaboutcostreductionswithGen5nowandwithGen7.5launchthisyear?Bothforthefuelcells,aswellaselectrolyzers?

Whencanweexpectnewsupplycontractsforhydrogenfuelcellsandelectrolyzers?Areyouorpotentialcustomersawaitinganyspecificmilestonesinproducttestingorcapacityexpansion?

Canyoutouchuponservicebusinessprofitability?Whatisdrivingtheimprovementtopositivemarginthisyearand20%by2025?Whatcouldacceleratethe20%milestone?

InQ12021,youstatedthatbacklogisgrowingsupportedbyexpansionsinmultiplestates,canyoupleasequantifyitforthequarter.Whatdevelopmentssoyouseesofarandwhatareyourexpectationsforbacklogandgrowthin2021?

Whatisthecostofasystemtoday?WhatshouldweexpectforGen7.5deploymentthisyearand2022?

WhatisthestatusofexpandingJVsinnewgeographies?WhichregionswouldyouprioritizebeyondtheUSandSouthKorea?

CanyoucommentontheelectricitycostwithGen7.5andthetimingofthecoststructure?AndcanyoutalkaboutelectricitycosttodaywithlatestGen5.0,andwhatdrivesthecostreductionincomingyears?

Whatisthemixofinternationalsalesinbacklog?AndhowshouldwethinkofmixofUSvsinternationalbookingsorsalesincomingquarters?

Whendoyouexpectcashflowprofitabilityfornewinstallations?

PolicyexpectationsfromBidenadministration?

ElectricUtilities&Renewables

15

11May2021

CMSEnergy(CMS)–Outperform,TP$70

GarrickRochow,President&CEO;SrikanthMaddipati,VPTreasurer&IROnapotentialhighertaxrateandinflation

Howwouldahighertaxrateand/orextendedrenewabletaxcreditsaffectthecompany’scashflows,creditratings,deferredtaxstatus,andinvestmentgrowthpotential,particularlyforinvestmentinrenewables?

Manyholdingcompanieshavebeenconsideringorexecutingdivestmentofnon-utilityassetsthattheythinkareadragonvaluation.Doyouseeanyopportunitiesoneithersideofthistrade?

Whatistheappropriatetimeframefromyourviewgivencustomerbillimpactsalongtheway?

ArePresidentBiden'spolicyproposalsandspendingplansforrenewableenergy,batteries,nuclear,andrenewablenaturalgasadequatetohelpalleviatecustomercoststoachieveyourgoalsontime?

Doestheprospectofinflationconcernyou?

Howcanthisbemitigatedifinflationprovestobeamorepersistentproblembeyondthecurrentperiodofpandemiceconomicrecovery?

2021GuidanceReaffirmedat$2.83-$2.87,inlinevs.CS/cons$2.85/$2.85,whatgivesyouconfidencethisearlyintheyear?

Whatassumptionsareembeddedinthisguidance?

Whatconditionsdrivethehighvs.lowendofyourtargetedlong-termratebaseandEPSgrowthranges?

CostSavings.Yourecentlyreaffirmedanexpectationofachievingatleast$200Minfutureplantretirementcostsavings(excludingincrementalO&Msavings)through2031,whichincludes$90MfromPalisadesin2022,$30MforKarn1&2coalunitretirementsin2023,$50MforMCVcontractchangein2025,and$60MforretiringtheCampbellcoalunitin2031+.

Canyougiveusaquarterlybreakdownofthecostsavingsandalittlemoreinsightonhowyouexpecttoachievethis?

Whatconditionsdrivethehighvs.lowendofyourtargetedlong-termratebaseandEPSgrowthranges?

IntegratedResourcePlan(IRP)

DoyoustillexpecttofileanewelectricratecaseinQ22021?

ThoughtsonwhatthenextIRPfilingcouldlooklike:furtheraccelerationofcoalretirements,integrationofrenewables,storage?

EquityNeedsUnchanged.CMScontinuestoexpecttoissue$250Mofequityin2021andupto$250peryearinthecompany’slong-termplan.Canyougiveusabitmoresenseontiming?

CapitalPlan(2021-2025)reaffirmed~$13.2B

Howdoyouexpecttofundthisplan?

Thecompany’s10-yearcapitalplancontinuestostandat$2