Frank Frederickson: Certainly. Thanks, Bethany, and thanks for the question, Richard. So, yeah, I mean, we work closely with our customers and trying with our largest customers working on helping them with the estimates and they too have inflation in their operations like us. So, I mean, there is a level of understanding in that and we also pace with all of our customers and stakeholders on the clean energy legislation in Minnesota. Minnesota Power’s renewable energy leadership finishing off at nearly 60% renewables in 2022 for our retail customers and sharing the progress that is continuing on that as some of the key drivers for this case.
Richard Sunderland: Understood. But just to be clear, though, have you had conversations around the rate stabilization mechanism in advance of the case itself. I know it’s a little bit of a different proposal this time than with what you saw in the past. Just curious about the backdrop for that specifically.
Bethany Owen: We have. Frank, do you want to speak to that?
Frank Frederickson: Yes. Thank you. So, yes, I mean, we have had some of those conversations with that around the stabilization mechanism as — to do some more listening, but also sharing in terms of the sales volatility that Minnesota Power has that’s larger than some of the other peer utilities in the state and some of that’s built out in our case and also built out in our taconite forecast where we have been reaching out with all the different stakeholders that will be involved in this case and explaining it and explaining how this can be good for all as we have seen just over the last couple of years with sales both above and below the level that we filed in the 2024 test year.
Richard Sunderland: Perfect. Thank you very much.
Bethany Owen: Thanks, Rich.
Operator: One moment please for our next question. Our next question comes from the line of Alex Mortimer of Mizuho Securities. Your line is now open.
Alex Mortimer: Hi. Good morning team. Congratulations on the quarter.
Bethany Owen: Good morning, Alex. Thank you.
Alex Mortimer: So within your stated 5% to 7% EPS growth rate, I am just curious on the consolidated business, you touched on where you expect the different businesses to be within that range, i.e., the utility may be below, but the regu — unregulated above or vice versa? Obviously, understanding it can fluctuate year-over-year given rate relief and other drivers?
Bethany Owen: So that’s not the case, but Steve…
Steve Morris: Yeah.
Bethany Owen: … do you want to speak to that?
Steve Morris: Yeah. Good morning, Alex. Steve Morris here. So, if you look at our CapEx table, you can see it’s really heavily regulated, in fact, with the projects that we have and the renewable efforts going underway at Minnesota Power. So the 5% to 7% is more heavily weighted towards the regulated business and what we say is complementary earnings from our non-regulated business, primarily ALLETE Clean Energy and New Energy.
Alex Mortimer: Okay. Understood. And then turning back to the rate case. Can you touch on any items in the recent filing that you think might require more work or more education with policymakers and interveners, given that — I know you just touched on some stakeholder engagement, but sort of any ongoing efforts as you work through the case?
Bethany Owen: Yeah. I think I would just say, Alex, that we have worked hard over the last few years to help our regulators and other stakeholders understand the differentiated aspects of our company, our customers, the region that we serve and I think they have a really strong appreciation and understanding for all of that, and certainly, why we are in for this rate proposal at this time.
