Shar Pourreza: Hey, guys.
Jeffrey Guldner: Hey, Shar.
Shar Pourreza: Good morning, Jeff. Let me ask you, so Jeff, you historically have said that, you’re under-investing in APS by maybe roughly a $200 million to $300 million per year. Is that still the case? I mean, obviously, from your prepared remarks, it sounds like the $600 million, you guys just bumped up in CapEx is sort of agnostic to APS and base level spending. But I’m just kind of curious, if you take this increase layered in with what you’ve said, you have under-invested in the system, how do we sort of think about the two together?
Jeffrey Guldner: Yeah. And Shar, I wouldn’t say we’ve under-invested in the system, I mean, as you know, we’ve been keeping up with what we need to invest in for load growth where the opportunity is around the generation side and where there are opportunities particularly now with the tax credit framework that the IRA has set-up. There are opportunities for us to do more optimized mix the self-build. Obviously, it wouldn’t be 100% utility owned, but we’re doing probably what in the 25% range of utility on where a more rational, I think if we could do it, would be in the 50% range so that we’re actually being able to maximize the benefit of those tax credits for customers. So a lot of this opportunity is really going to depend on how the rate case outcome goes.
We’ve got the clean tracker proposal that would take our renewable energy adjustment charge and allow us to again flow through some of those clean investments. And if we can do that, then we get to a more optimized mix of utility-owned versus PPA, solar and storage, primarily is what I think you would expect to see. But a lot of what you’re seeing is just the investments that we have to make for load growth. And so I think you’re getting at is that there is an ability to further optimize that after the rate case and looking at that mix of generation. But we’re going to invest what we need to invest in the poles and wires and the infrastructure to serve customers.
Shar Pourreza: Got it. Yeah, I was just more curious on that $200 million to $300 million, you’ve quoted before in the past and how that correlates with the CapEx increase today. And then just on the CapEx increase, what does that sort of puts you around that 5% to 7% rate base growth range? They have out there now? The $600 million?
Andrew Cooper: Yeah. So that — you saw the upper-end of that rate base growth number come up with our update. And that’s really the result. There is a much narrow range of rate base growth with the prior forecast, Shar. And you can think about it is more extended range, I don’t think there is a broader range of uncertainty just with the CapEx we have in there, more of an opportunity. You’ve seen some of the timing move around in our capital, Jeff, was just talking about our clean spend. You’ve seen some of those buckets move from 2024 into 2025 with the addition of the 2025 forecast. So there’s some timing around some of our capital investments and some of the decisions we need to make. But that’s really been, the main thing is the increase in the range, driven by the higher CapEx forecast.
Shar Pourreza: Got it. Okay. And then just lastly, if the Court of Appeals where to rule in favor regarding the Four Corners SCR and Ocotillo projects. What would that look like, I guess from an EPS standpoint in 2023, would it be retroactive? And what would the incremental EPS be going forward since you only obviously report GAAP results? Thanks.
