Charles Zebula: Yes. Sure, Julie. Look, the other thing is the O&M Management. As I mentioned during my comments, if you look at Slide 16, right, you’ll see that O&M is a drag two through three quarters, right? We expect that to completely reverse itself for year-end and actually have a net positive on O&M year-over-year, meaning that the fourth quarter will have a substantial difference in O&M versus last year.
Operator: Your next question comes from the line of Shahriar Purreza with Guggenheim Partners.
Jamieson Ward: It’s Jamieson Ward on for Shar. Looking at your new FFO to debt pass side, could you give us a sense on what if anything could cause any potential slippage like the deferred fuel recovery? And what might dictate you being at the bottom or the top end of that 14% to 15% in 2024? I know you talked previously about being at the midpoint by the end of the year. But since we’ve got an updated disclosure here, I just wanted to ask that again here.
Charles Zebula: Yes. No, sure. When you look at the chart, several of these are just simply facts, right, that are going to come out. All the outflows, right, are no numbers, right, that are rolling out of the 12-month average. So then we’re just subject to the normal variances. In FFO that would occur. It’s a preworking capital number. And the reality is, right, softer weather, better weather, all those things will influence it. But I think we’ll be solidly in both ranges, right, by the time frames that we talked about. .
Jamieson Ward: Got it. And one more from us. On load growth, what’s driving the large — I know you mentioned data centers, but — if you could just talk a bit more about what’s driving the large increase for the guidance this year? And then more specifically, as we think about the updated capital plan, which you’ll be providing, just directionally, should we expect this higher load growth to be a driver of capital growth opportunities?
Julia Sloat: Yes. This is Julie. I’ll pass off the Chuck here to we’ll take him a little bit. But as Chuck mentioned, the primary driver for our loan growth as we go into the end of 2023 is all around that commercial segment. So if you look at Page #11, look in that upper right-hand quadrant, you’re going to see a serious or material shift in what our updated guidance looks like versus what we originally had for 2023. The vast majority of that loan growth is coming from data centers located in Ohio, Texas and also in the [indiscernible]. And if you look across the rest of the segments there. So residential, a little soft. We talked a little bit about at the beginning of the call here on our monologue our prepared remarks about the fact that customers are feeling this in the wallet as it relates to inflation, et cetera.
We expect that that’s going to improve over time. But nevertheless, what’s allowing us to get a little more comfort the residential side is we’ve added 30,000 customers year-to-date. So that offset a lot of the otherwise pressure we would have seen in that segment as usage for customers come off a little bit. And on the industrial side, it’s really driven by interest rates. And the expectation, I guess, concerns that there could be some softening in the economy. So we’ve seen certain customer segments within that industrial aspect kind of come off a little bit. But we expect over time that will improve I don’t know Chuck, is there anything else to come on hand?
Charles Zebula: You mentioned that the drive your capital forecast. And of course, the new data centers, of course, require capital to hook those customers up. We do have what is known and customers that are coming into our capital forecast going forward. And there are lots of discussions otherwise, right, in our economic development activities. But everything that we know of and its firm is in our capital forecast.
Jamieson Ward: Got you. Just one clarifying — one last clariffying question. So question is really focused around that 7.3% guidance for ’23 for commercial versus the 80 basis points originally, Presumably, the infrastructure necessary for those data centers to be receiving a load that they are in place, especially extremely about a couple months left in the year. And we obviously saw that you’ll be providing ’24 and ’25 guidance on the EEI. So we’re just directionally trying to think, is this a trend likely? Is this isolated to ’23? Or is this something that could continue and could drive, therefore, capital opportunities as you look to sort of about increasing commercial data center load and then that’s it for me.
Julia Sloat: No, I appreciate the question so much. Yes. That trend, we expect that to continue. I mean you see the fluctuation a little bit in the commercial segment up in the upper right quadrant that slide I mentioned earlier. We have projects in the Q so you kind of see those ebb and flow, but you’re right the infrastructure is in place today the pending or incoming request for additional capacity from our customers. So that customer touch point or our economic development team is incredibly important because that allows us to not only have confidence around what our forecast is, but it also drives what the CapEx program needs to be. yes, we think that, that’s going to continue, and we will keep a keen eye on that in particular because the infrastructure gotten be there.
We got to make sure that we’re communicating with our customers that they know exactly what the appropriate and realistic time line is for them to enter into our service territory so that the infrastructure is there because it’s not something that’s done overnight. So I appreciate that question so much because it is a fine orchestration that absolutely has to happen. .
Operator: Your next question comes from the line of Carly Davenport with Goldman Sachs.
Carly Davenport: Maybe to start, as we just think about the moving pieces on cash sources going forward, could you talk a little bit about how the asset sales processes are progressing in terms of interest that you’re seeing but ask. And then on the timing side, it seems like a little bit of a narrowing of the time frame for NMRD. But anything else on the timing side that you highlight?
Julia Sloat: Yes, I can start in Chuck and jump here too because tucking really close to the optimization that we’ve been doing. Anyway, yes, so from an MRB perspective, we’re getting close here. So I would anticipate a contract being signed in a not-too-distant future and isn’t really going to be a story around when can you close? So that can be driven also by our regulatory and won’t probably get FERC approval depending on who the purchaser is that can drive other issues that we’ll need to address. So we can give you a more precise time on when we can land that jet. So stay tuned, that ones in the hopper and coming along here relatively quickly. And then Chuck, do you want to talk little bit about retail and distributed?
