Zach Dell

And they're going to tap into opportunities to improve their infrastructure, add additional flexible capacity to the grid, and ultimately lower cost for their repairs, for their customers, by using batteries, and particularly at the edge in this distributed manner.

We think batteries have fundamental value.

Yes, a lot of that value today is in energy arbitrage in Texas, but in other markets, it's through things like voltage control, frequency response, CapEx deferrals for infrastructure upgrades.

And I think more of that is starting to play out as the discourse and kind of acceptance of what's referred to as BPPs or virtual power plants becomes more mainstream.

We really have two businesses.

So we have the core deregulated business where we're your power company, we're the name of the power bill, et cetera.

And then we have a utility partnerships business.

And we've announced our first partnership with Bandera Electric, who's fantastic in Texas.

And they were the first ones to really take a bet on us.

And it's starting to really work out well for them and us where we show up and we say, hey, Bandera, you need flexible capacity in your service territory.

We can deploy it faster and cheaper than anybody else.

And so we show up and we deploy batteries in their territory and we hand them the keys to the fleet for which they pay us for dispatch ability of that fleet.

And they're able to use those batteries to lower their cost to serve their customers, but also to do frequency control, voltage regulation.

They can defer CapEx.

On their infrastructure, they don't need to upgrade transformers as frequently because they can take demand off at the neighborhood level in times of high prices.

We're starting to work really closely with them and other utilities in Texas and across the country on creative ways to use distributed batteries as a good resource outside of energy arbitrage.

Price volatility is fundamental to commodity markets.

And so electricity will probably be volatile for quite some time.

And we think our batteries will benefit from that.

But batteries are valuable fundamentally as a good asset for many other reasons.