But for now, I just don’t see any upside saying anything more on it. A – Jason Wells Sure, thanks. If I may add. Obviously, as Dave alluded to, we’re early in the legislative session. On the regulatory front, though, as we look at the upcoming rate case for Houston Electric, obviously, customer rates are top of mind for all of us here at CenterPoint. I don’t anticipate, at this point, much in the way of a revenue requirement increase. I’m proud of the work that the teams have done with respect to O&M. And as you look at where we set the test year for the 2019 rate case and kind of where O&M is currently trending, I think we can offer a fairly significant revenue reduction in the upcoming rate case that would offset any of the other things that we are trying to pursue, like a more equitable equity layer.
And in addition, I think we’re pretty fortunate in the fact that – maybe unlike Encore, we have very little, relatively speaking, in a way, of deferred costs as regulatory assets. And so, I think we can, again, position the company sort of to have a more equitable equity layer relative to some of the non-ERCOT T&D companies here in Texas. But at the same time, keep the revenue requirement very modest. So we’re in, I think, a fairly fortunate place as we prepare for that filing.
Shahriar Pourreza: Terrific. Thanks, Jason. That actually did exactly what I was trying to ask. Appreciate it. Thank you, guys.
Operator: Thank you. Our next question comes from Nick Campanella with Credit Suisse. Your line is open.
David Lesar: Morning, Nick.
Nick Campanella: Hey. Good morning. I cut out there, but I think I heard my name. So I hope everyone is doing well. I guess just on the CFO search. I just wanted to tie that off. When is your intention to have something more formally announced here? Is it by the next quarter call? Or are you taking your time? Thank you.
David Lesar: No. I think by the next quarter call, we should have someone announced and on board. We’re down to a handful of finalist, candidates. As I said, part of it is just the process of getting an individual or individuals in, get them interviewed and more importantly, for me, making sure that they have a complementary skill set to not only Jason, but the broader executive committee we have here. But I think as we said in the call, we’ve been really pleased with the quality of candidates that we’ve talked to. This is a really great job, believe me. I think Jason would attest to that. This is a great job, and we’re going to get a great CFO out of it.
Nick Campanella: Great. Thanks for that. And then I just thought the annuity lift-out comments were interesting. Can you just maybe walk us through that strategic action a bit more? And I guess, if you were to pursue that, how would that affect your 6 to 8? Presumably, I guess, it would be a headwind. And could you quantify that at all? Thanks.
David Lesar: Yes. Let me ask Jason to put a CFO hat back on and answer that.
Jason Wells: Good morning, Nick. What I would say kind of overall, the annuity lift-out was a strategic decision to derisk our exposure to businesses that we’ve disposed of. I think about this as part of the continued effort to focus CenterPoint on a strong set of regulated operating companies. We’ve been very active in exiting unregulated businesses and a handful of a couple of gas utilities in Arkansas and Oklahoma. And so, this is really just a step to derisk any of that tail exposure from those employees that are currently receiving pension annuity benefits. As I said, it was non-cash. There’s a really kind of liquid market for this. Insurance companies took the obligation. They took the assets. It has no impact on our pensioners.
