Andrew Walters: Right. That’s an excellent question and that’s what it’s meant to do is to try to give a little bit of guide rails as people think about it. We are not through our budgeting process, but we know that there are some things that we want to do that is not like maintenance-related, but are things that we can invest in our business to make it stronger in the future. There’s going to be a little bit of that investment that we will take this opportunity in 2024 to execute on some of those items. Now, if you think, though, about it, the $0.08, if you just go from high point to high point of $2.50 to $2.70 [ph], that $0.08 comes off for next year because it is definitely not a recurring item. That was something that was due to the IRS regulation change and allowed us to take that benefit into this year.
Richard Sunderland: Understood. Understood. I guess changing topics to Texas, the drought conditions sound like real local challenges. Can you speak to, I guess, a little bit of the push and pull here between the strong growth in the state relative to the drought and usage impacts and how to think about overall risk or opportunity here in 2024? Should, I guess, A, the conditions stay as is, or B, there’s an improvement in the drought?
Andrew Walters: It’s a great question. Look, I think, the good news is that, this is definitely a weather-driven aspect and what we are seeing is we have seen some early rains impact the area. It’s not the kind of rains that will change our water supply, but this is a little bit on the earlier side to see some of those rains. It could be a view towards where the El Nino will drive a higher usage or precipitation in Texas in that old belt that has been quite impacted by the drought. So I think that those are the possibilities. Now, I am not going to talk about 2024 per se, but I will talk about the future. That addition of KT Water and the 40% increase in the water supply that that brings to the system, that is something that the team is working very hard to get implemented and as we get that implemented into our system, that will further diversify the water sources that we have, able to support not only the growth, but also times of drought and so it’s a very significant addition that will have a meaningful impact on our resiliency into the future.
Richard Sunderland: Got it. Very helpful. You got to where my follow-up was going to be. So maybe I will just ask one other question on the Connecticut side. I think in terms of the filing, you framed it as two-thirds related to capital. Just thinking about that overall, is that inclusive of WICA roll-ins in terms of the two-thirds and the overall increase? How does that look excluding the WICA side, just in terms of a new ask on rate payers here?
Andrew Walters: Yeah. So that’s a good question. I am going to follow-up with you on the specific that comes off of the WICA. But if you think about the WICA just off the top of my head, there’s a 7% that’s filed in place of revenue of the 10% revenue. There is definitely a portion that those will get rolled in. But as we looked at our overall numbers for Connecticut, the amount of investment has driven the rate increase and that’s really what the story is, is that, as opposed to having an expense increase driven, this is about capital investment, which is the most sustainable approach towards rate increases for our customers.
Eric Thornburg: Yeah. Just what I would add, Richard, is that, none of the amount filed includes any WICA, because that’s our — that’s a separate proceeding and it will get rolled in, but it doesn’t reduce the amount requested. And I would just further comment that we are actually optimistic regarding this filing in Connecticut. We have carefully reviewed the Aquarian and Avangrid decisions, and I think, we have very effectively applied the lessons learned and some of the new expectations that PURA articulated in those final orders. So our delay in our case filing was effective, I believe, in addressing those concerns and we expect to be treated fairly in this process and we will keep investors posted as we proceed throughout the year.
Richard Sunderland: Understood. Thank you for the time today.
Eric Thornburg: Yeah. Thank you.
Andrew Walters: Thank you.
Operator: Please stand by for the next question. The next question comes from Jonathan Reeder with Wells Fargo Securities. Your line is open.
Jonathan Reeder: Hey, Eric and Andrew. How are you all today?
Eric Thornburg: Hey. Hi, Jonathan. Thanks for calling in today. Appreciate it.
Jonathan Reeder: Yeah. Thanks for having me. So, a lot of my questions have been asked, but, Andrew, I did want to get just a little clarity. When you were talking about the revised 2023 guidance, what was the $0.04 to $0.06 dilutive impact related to?
Andrew Walters: Yeah. The $0.04 to $0.06 is for 2024, so do not think about that as this year item. But as we look at our business and the opportunity that we can use to invest in it and create future growth well into the future, we are going to take some of that opportunity in 2024. So that’s what it is. It’s really meant to kind of keep people in mind that there is, it’s not just like you start adding the numbers on. You need to account for the fact that we do have some plans as a management team to continue to make that growth be sustainable well into the future. The $0.08 that you do need to account for this year is just really the non-repeating item related to the tax change and so that, again, those were all meant for people as they think about 2024 and beyond. It was not to do with this year.
Jonathan Reeder: Okay. That makes sense. Great. And then what was the benefit from the year-end repair tax study? I mean, is that something that carries forward?
Andrew Walters: That’s something that will come in. It’s something we don’t — we actually, when we are giving you the guidance, we don’t have the answer to that as we are giving guidance. So that’s the — hence the range and why we are highlighting that is one of the items that we have to pay attention to for the outcome of which, which could drive results higher or lower than what we are projecting.
Jonathan Reeder: Okay. But that’s something that based on that study that it’s — it will continue in the future.
Andrew Walters: Right. Typically, when you do those studies, you have kind of a one-time catch-up for stuff that you — that’s been in the system. But it will continue to have an impact on those new additions that qualify under that study.
Jonathan Reeder: Okay. Okay.
