We’re also seeing some reductions on the generation side as a result of our Lansing retirement. So, I would say it’s a mix, maybe half sustainable half what I would characterize as strategic spend in 2022 that we see for reductions, but we’re continuing to anticipate we’ll see some further O&M reductions in the fourth quarter and probably end up lower than we expected from 2022.
Andrew Weisel: Very good. Next on the 400-megawatt solar in Iowa, the settlement I believe called for 10.75% ROE under the advanced rate making, but the IUB approved 10.25%. Can you talk about why that was reduced and do you see any kind of read through to the rate case as a result of this?
Lisa Barton: Yes Andrew, so basically what the IUB did is they said that 10.25% would be in essence the base and we have the opportunity to go up from there. So we’re going to use our rate review process to be pushing for that 10.25%. As you know, the settlement that we had in place in Iowa was with one party and was not with all of the parties. We do not think that anything, you know, that was decided as part of this RPU is indicative of anything with for — respect to the rate review filing. So we continue to think that there are opportunities to settle in Iowa similar to the history and the strong history we’ve had for settlements in the past.
Andrew Weisel: Okay, very good then on equity, two-part question. So first of all, the $200 million that you might need. Robert, did you see that was for IPL and WPL, or is that just WPL and how much, you know, it looks like a sensitivity? Every, you know, 10 basis points of equity ratio would need some amount of equity. Can you provide that?
Robert Durian: Yes, I think of that, Andrew, as just the WPL decision that we’ll hopefully be seeing here in the next few weeks. And so, yes, as we’ve stated in some of our previous remarks, what we’ve requested is about a 250 basis point increase in our equity layer in Wisconsin. So that equates to about $200 million. So it’s about $40 million for every 50 basis points.
Andrew Weisel: Okay, very helpful. And then just to clarify, other than that, quote-unquote, one time step up, are you suggesting about $25 million of equity per year in ’25 and beyond, or am I reading too far into that?
Robert Durian: Yes, we would plan to continue to utilize our share direct plan to be able to issue approximately $25 million a year in new common equity. That’s dependent upon the decisions of our shareowners as to how much they want to leverage that program. But that’s just a continuation of what we’ve had historically, and we plan to keep that going into the future.
Andrew Weisel: Perfect. Thank you so much. Look forward to seeing you soon.
Operator: Your next question comes from Alex Mortimer with Mizuho Securities. Please go ahead.
Alex Mortimer: Hi. Good morning, team.
Lisa Barton: Good morning.
Alex Mortimer: So, while you highlight the transferability benefit helping to keep financing costs manageable in the future, given a higher for longer rate environment and your increased capital plan announced today, how should we think of the magnitude of rate requests in future cases going forward as compared to historical levels?
John Larsen: Yes, I think — thanks for your question, Alan. You know, we continue to push for what I’d say, you know, a general rate increase that, you know, kind of keep the increases very similar to, you know, kind of like cost of living increases, if you will, at or below. So we’ve been very, very consistent with that over the past few years, and we would see that continuing going forward.
