George Sakellaris: I’m sorry, I may add, and that’s why I said in my opening remarks that we have become a company to go through, and we are working on several projects right now along those lines similar to the Southern California Edison contract. And you might recall, when we signed a contract in September in 2021, everybody thought we will come in out of the COVID-19 situation, but then we ended up bringing back into it. And we have the supply chain issues that basically, we executed that project, what I call unprecedented situation. I think we did pretty well.
Joseph Osha: Okay. Thank you guys.
George Sakellaris: Thank you, George.
Operator: Thank you. One moment please for our next question. Our next question will come from Chip Moore of EF Hutton Group. Your line is open.
Chip Moore: Thanks. Hey, everybody. Wanted to ask a question on visibility as it relates to IRA. When do you think customers maybe get better clarity on potential funding opportunities? And then how do you sort of in-cap risks for any push outs there or potential for acceleration?
Mark Chiplock: I don’t know that I would necessarily frame it in the context of push outs or acceleration. So I think as the treasury guidance comes out, it seems like our customers and their advisers are kind of waiting with bated breath as soon as come out — as soon as the guidance comes out, they jump on it and they’re immediately in contact with us about, okay, what do we do next? They do seem eager. But it is out of all of our control collectively the pace with which the government will actually issue guidance. And we had totally — the same day the treasure came out with the guidance on low income communities, the clients were e-mailing us, okay, ready to go. Here we go. This is the project and this is where we think it’s going to apply and so on and so forth.
But we’re — so I think that’s going to be an interesting dynamic as the guidance comes out. There’s likely to be some scrambling, but I think as George talked about a number of times and we also need to be realistic about execution timetables with our customers and ensure that once we have certainty on structure supported by the IRA that we have time to pursue execution, procure equipment, et cetera.
Chip Moore: Got it. Thanks for .
Operator: Thank you. Our next question will be coming up shortly. Our next question will come from Pavel Molchanov of Raymond James. .
Pavel Molchanov: Thanks for taking the question. You’ve been asked several times about higher interest rates. I’d like you to also talk about higher utility rates and how that’s affecting both the efficiency side of the business and your solar power plant development? Thanks.
George Sakellaris: The higher interest rates that why it’s on any project that we underwrite, let’s say, solar or whatever the asset we might own ourselves, we take into account the new interest rates. And of course, on the performance contracts and that’s why that goes on what I said earlier on that contract, we had to go back and renegotiate the baseline energy prices. We use the current prices rather than the old one, and that’s what made that project expense even though it’s higher interest rates. But they’re doing impact us, no question about it. But on the other hand though, because of the energy prices have gone up, it gets neutralized with the performance contract. And on the assets we own, we take that into account. So we go out, we shop, and we see what the long-term rates will be, and the long-term rates haven’t gone up as much as the short-term rate, but the short-term rates impact us on the working capital that we use in the line.
