Pedro Pizarro : I think as you are looking at longer term, we will also start seeing the benefits across the economy of things like the CHIPS laws Act, right. The focus of the federal government has had I’m bringing back manufacturing supply to domestically. So that’s not a next year thing. And so, the answer to the question, what went into the near term? But I’m also a confident in the longer term supply chains will respond to market signals and the impact of, the CHIPS laws to act and other infrastructure bill et cetera in bringing back manufacturing for supply of critical components in the US will help.
Ryan Levine : Great. Thank you.
Pedro Pizarro : Well, thanks, Ryan.
Ryan Levine : Our next question from Shar Pourreza with Guggenheim Partners. Sir your line is open.
Pedro Pizarro : Hi, Shar.
Shar Pourreza: Hey guys. Hey Pedro. I just want to get a sense here. Obviously claims cost recovery and CCM trigger, CAISO transmission opportunities, it’s pretty significant, it’s incremental. So I guess, should we be thinking about these opportunities to save their food at extending that 5% to 7% growth rate or could we see a step up increase assuming that we get some of these in plan.
Maria Rigatti : Yeah, so maybe, Shar let’s first check through some of them that you mentioned.
Shar Pourreza: Yes. Yes.
Maria Rigatti : So, the CAISO opportunities are significant as you say, $2.3 billion for the projects for which SCE is being the incumbent transmission owner, Those are largely going to be incurred, probably post 2028. So, that’s a runway issue, right? You’ve talked about the CCM trigger. We absolutely believe that two months left as I said before, it’s highly likely that the CCM will trigger. And then, we think that it is fully supported by what’s going on in the broad financial market. We are not relying on the CCM trigger for our 5% to 7% growth trajectories. So we will go through that process as we go through that process. I would also note that by the time we get to 2028 we are going to get another cost of capital cycle though.
So, you’ll see some interplay there. And then in terms of claims cost recovery, as Pedro said earlier, we have been fully prudent and we will make a strong case for our cost recovery when we file our application, in August. The proceeds from that, of course, would be used to pay down existing debt at SCE. And so you would see for sure, it will be a help to our earnings profile because interest expense is currently hitting the bottom-line would be authorized for recovery and also we will have an improvement on credit metrics. So I think you’ll see a lot of improvements from all of those things and we’ll take them as they come.
Shar Pourreza: Perfect. And then, obviously, there’s – one of your peers in this state is inching closer to selling part of its you do regulated Janko. There seems to be a lot of interest. There seems to be a wide amount of interest. You have a lot of CapEx, the stock still kind of trades at a bit of a healthy discount. Do you see other efficient ways to fund this capital increase versus having to rely on the equity markets, especially if you see the step up?
Maria Rigatti : So first, I would note in terms of the equity financing plan that we put forward for ‘25 to ’28, we’re really talking about our internal programs. So that’s about a $100 million a year for you typically realize through that program. So just to cite that for you. In terms of looking at other opportunities beyond that for other forms of financing, we will certainly watch with interest what’s going on up in the north. But there’s a regulatory process that we need to be gone through. And so I think it’s just for us and observational point at this point in time.
