Mike Dudas

Mike Dudas asked if customers are increasingly securing Quanta's time and resources, potentially leading to better scale and margins, and expressed concern about how the industry will fund all the new capacity given rising rates.

Answer

President and CEO Duke Austin acknowledged affordability concerns related to fuel and interest rates. He stated that transmission lines are typically NPV positive, and generation projects can benefit ratepayers. He noted that technology companies are willing to pay, and utilities and tech are collaborating for ratepayer benefit.

Mike Dudas asked if customers are increasingly securing Quanta Services' time and resources due to high demand and tight capacity, potentially leading to better scale, execution, and margins. He also raised concerns about the industry's ability to fund all the new capacity amidst rising rates and affordability issues.

Answer

President and CEO Duke Austin acknowledged affordability as an ongoing issue, influenced by fuel and interest rates. He noted that large transmission projects are typically NPV positive and that models like the NiSource example demonstrate ratepayer benefits from new load. He emphasized that technology companies are willing to pay, and utilities and technology are converging to benefit ratepayers, while remaining cognizant of affordability.