Bryan Buckler: Well, on the transmission side, the data centers work with us and they do look to place their infrastructure where we have the load capacity on our transmission lines. So the need to invest on that front is pretty minimal. And as I mentioned earlier, our IRP has some pretty substantial growth numbers already included in it, the draft one I’m speaking to has assumed some of these large loads that we were speaking to today coming to fruition in the next 5 years and they’re very likely to come to fruition. So yes, that gets embedded into the generation capacity planning, including our DSM energy efficiency programs, load reduction type services. So it may or may not have an impact on our generation depending on how successful we are with energy efficiency load reduction in DSM.
Operator: And our next question comes from Aditya Gandhi of Wolfe Research.
Aditya Gandhi: Can you hear me?
Sean Trauschke: Yes, we can.
Aditya Gandhi: Bryan, I just wanted to go back to next question on holdco leverage. Could you give a little bit more color around holdco debt issuance needs beyond 2024? And you’ve mentioned the 5% to 7% consolidated annual and your — you’ve reiterated confidence in achieving it. Just how should we kind of think about where you’re tracking within that range beyond ’24?
Bryan Buckler: Aditya, I’ll maybe go back to some of my messaging in previous quarters. I think the one thing that’s changed from a year ago is our capital investment plan has been updated our messaging has been very consistent. We’ve been speaking to all the investments that Sean alluded to earlier. And so when you think about our consolidated entity and maintaining the cap structure at utility and in the dividend payout ratio we’ve spoken to. I believe what I’ve referenced in the past is the holding company debt increasing somewhere in the neighborhood of $200 million to $300 million per year. That number gets smaller as the 5-year period goes on. So I wouldn’t necessarily think the $0.05 increase you’re seeing this year is necessarily going to be $0.05 each year.
That should decline a little bit as time goes by. But again, this is all a part of the consolidated EPS package. And don’t forget about the great tailwinds that we’re seeing at the utility and the overall growth we’re seeing in our core operations.
Aditya Gandhi: And then just on the Oklahoma rate case. I know it’s still early testimonies yet to be filed, but can you speak to how you feel about the case given that the lower fuel factors were sort of passed through to customers late last year? And what was the time for a potential settlement be?
Sean Trauschke: Aditya, it will be an ongoing discussion. I think the first step in all of that is you need testimony to be filed and then we’ll begin those discussions, but I think that would be in the second quarter.
Operator: [Operator Instructions] And our next question comes from Greg Orrill of UBS.
Greg Orrill: Congratulations. The only thing I have left is just guidance on the tax rate for ’24 through the plan.
Sean Trauschke: Bryan?
Bryan Buckler: All right. Well, Gregg, the tax — effective tax rate we’re estimating for 2024 at 16%. And — what we — when you think about our effective tax rate reconciliation, one of the larger items is the flowback of excess deferred income taxes, which lowers that effective tax rate compared to the statutory rate. So while you may see the ETR tick up a bit as time goes on, that’s just because we’ve returned state ITCs and then the federal excess deferred income taxes. So the net income impact should be negligible from an ETR changing over time point of view.
Operator: I’m showing no further questions at this time. I would now like to turn it back to Sean Trauschke for closing remarks.
Sean Trauschke: Thank you, Deedee, and thank you, everyone, for joining us today. Thank you for your interest in OGE Energy and for being on the call, and have a great day.
Operator: This concludes today’s conference call. Thank you for participating, and you may now disconnect.
