We have lowered our future capacity price assumptions for various power markets, including the Pennsylvania-Jersey-Maryland Interconnection (PJM)and ISO New England. In light of our revised assumptions, we believe Nautilus Power LLC's (Nautilus) cash flow will be adversely affected due to lower-than-expected capacity payments. As a result, S&P Global Ratings placed its 'B+' rating on Nautilus' debt on CreditWatch with negative implications. We expect to resolve the CreditWatch during the next 90 days as we assess the impact of our capacity price revision on Nautilus' credit metrics. The CreditWatch placement reflects the possibility of a negative rating action. We anticipate future clearing prices in select capacity markets, particularly PJM, will be materially lower than previously expected. We are making some significant
