Rejji Hayes: And Michael, the only thing I’d add is that you asked about storage as well. I think Garrick have numerated every last bit, and I’ll just add storage. We’re assuming around 75 megawatts storage in the plan. I mean, obviously, longer term for the IRP, we’ll do more than that, but over the course of this five-year plan, about 75 megawatts.
Michael Sullivan: Great, thanks again. Take care.
Operator: The next question is from Andrew Weisel from Scotia Bank. Andrew Weisel, please go ahead. Your line is open.
Garrick Rochow: How is the new baby?
Andrew Weisel: Hi good morning everyone.
Garrick Rochow: How is the new baby?
Andrew Weisel: Good, she is sleeping through the night this week it’s a miracle. I just want to elaborate on an earlier question about the non-rate base drivers. I guess my question is what are the offsets if rate base is growing faster than seven plus these adders you’re clear that we shouldn’t expect more than 8% growth, no sugar highs. So what’s keeping the growth below 8%? Is it the equity in the outer years or something else?
Rejji Hayes: Andrew hi, it’s Rejji. The only thing I would add is that to Garrick’s comment is if you ever need help getting your baby sleep feel free to play back this call. We try to make these calls to the extent . But to get to your question, I would say, yes, you will see some equity dilution in the outer years of the plan. So as I mentioned, we’ll be getting to up to $350 million of equity from ’25 through 2027. So that’s some of the offset to the non-rate base opportunities. And then we will have some parent funding costs in the outer years of plan beyond equity. So we’ll start issuing a little bit of debt. And so that’s the other bit as well. So I’d say it’s largely on the funding side. I mean is this helpful.
Andrew Weisel: Yes.
Garrick Rochow: If I just add to it. It’s also the mindset that we have. We’re going to – we’ve got great mechanisms in the state in this construct with the VRM that allow us to offer benefit in the next year for our customers and for our investors and that really helps to derisk. And so, that’s another reason why we think about it towards really the long-term versus one year in a sugar high.
Andrew Weisel: Sounds good. And then on the equity, the number went up. It was up to $250 million, now it’s up to $350 million in ’25 and beyond. Just wondering what’s the driver of that increase? And I know it’s up to, but why did it change?
Rejji Hayes: Yes, so it’s a good question, Andrew. And just to be clear here. So obviously, the capital investment plan has increased materially from the prior vintage. So we were $14.3 billion in the prior five-year plan, we’re now $15.5 billion. And we’re effectively addressing the Covert needs and that drives about $800 million of that increase. But the balance, we still have incremental investment opportunities above and beyond Covert. And so it’s really to balance out the funding for that additional CapEx and obviously maintain our credit metrics kind of in that mid-teens area, which we’ve always targeted for my prepared remarks. But I will also our general rule of thumb, obviously, is we always want to avoid block equity and we still think even at that level of up to $350 million per year, even where the market cap is right now that’s up 2%.
And in a perfect world, the market cap will continue to grow, and it will be a much smaller relative to the market cap at that point. So, we think we can triple that out comfortably without any overhang or material pricing risk.
