Lisa Grow : Yeah. That’s a question we get frequently and it’s one that we look at. We certainly haven’t really felt like we were able to do that. But Brian any color you would add?
Brian Buckham: Yeah. I’d say one thing to look at is when we published in February, we had a rate base CAGR in there when we had our CapEx forecast put out. And we looked to that rebate CAGR and really executing in the regulatory arena on that, as an avenue towards looking at what the prospects are for the future of the company. So we would rely on that more so than our long-term EPS forecast. What we’re tasked with doing is going through the regulatory cycle and really getting fair results out of that. So for now, we’ll execute on our CapEx plans and we’ll get that into rates. As we’ve talked about in the past, we’re probably headed into a series of cases or a series of cases with certain types of mechanisms whether they be trackers or otherwise.
The doors are open for those types of things at this point to at least have conversations. And as we do, we’ll start to look more like a normal utility in the rate cycle and really execute on that, and for the interim, we do still have the mechanism out there that points to the year-end GAAP book equity and that’s another way to look at forecasting growth in the company’s EPS.
Paul Zimbardo: Okay. Yes. All very good. Again, thank you for time well done across the board.
Lisa Grow: Thanks, Paul.
Brian Buckham: Thanks, Paul.
Operator: Your next question comes from the line of Chris Ellinghaus with Siebert Williams Shank. Chris, go ahead.
Chris Ellinghaus: Hey, everybody. How are you?
Lisa Grow: Good. Hi, Chris.
Brian Buckham: Hi, Chris.
Chris Ellinghaus: The increase in the guidance does that tell us that your third quarter was above expectations? And in what kind of ways?
Lisa Grow: Actually, it was a little lower than planned. It’s been a series of other things for the full year-to-date is higher than expected. Brian do you want to take some of those details?
Brian Buckham: Yeah. I can touch on that. I mean as we look at the third quarter, if you saw your irrigation load, they didn’t really come in where they typically would and if you compare them to last year’s third quarter last year’s third quarter was also low. So from a sales perspective to that customer class, it wasn’t a strong year. We were bolstered by a few other things like customer growth. The bridge rate change from a year-to-date perspective has been beneficial and we saw transmission wheeling. O&M is in a good spot. I think you can see that we’re lower year-to-date on O&M than we were last year and that was one of the things we mentioned a while back that we’d really be focused on this year. So that has been materializing for us.
But the uplift in the guidance, some of those factors just outweighed the lower sales to industrial customers. We did have some positive results on the tax side as well. One thing to note though is that our results for this year do have $7.5 million of ADITC. So from a comparable year-over-year basis, didn’t have — don’t have comparability there. So if you take an average fourth quarter just as an example it does get you sort of into the range that we have out there right now.
Chris Ellinghaus: Okay. The IRP has a very significant resource requirement in the preferred portfolio. Can you give us any insights or what your philosophy is today in terms of thinking about owned versus procured resources out of that preferred portfolio?
Lisa Grow: Yeah. Great question. We have certainly — there’s a number of things that drive our selection of our preferred portfolio obviously at least risk lease costs. And certainly, we look to own some of that. I’m not sure we expect to own all of it. So that’s why we view competitive bidding and as required by our regulators. And so we try to compete in those, and we’ve been successful with some of them and some of them we have not been the winner of those. So we let that process really sorted out once we’ve decided what our preferred portfolio looks like. Anything that you would add Adam?
