Robert Waldron: Exactly. So it takes SPB to the full rate, and then KLM, we didn’t double the rate on KLM. We took it to something slightly higher but not to the full ask. And there is going to be — or we recommended that there is an adjustment period in the summer of ’24 just in case — depending on where volumes go and depending on where expenses go. But what we’re really trying to solve for with this, bringing forward of what we think are the right rates on the system instead of waiting for the rate case to be resolved is to really reduce the cash burn on the Crimson assets. Now we’ve asked for retroactive treatment on our rate cases. So that would come back. And we’ll be able to collect all that negative cash flow that we incurred while we waited for the rate increases.
But we just feel like it’s just — it’s too much. And given where the Company is and what we’re trying to do, it’s a reasonable request. And we feel like it should be granted. And it has — I think there’s been three cases that have received approval for situations like this. And I think our fact pattern is right in the bull’s eye.
Selman Akyol: Got it. And then how long will it take them to either say yes or no?
Robert Waldron: It’s hard to say. We’ve been — it’s been challenging to predict CPUC timelines as you can — we’ve all lived through the change of control process. We think — look, the CPUC doesn’t want a utility to struggle and they — the utility should be earning its reasonable cost of capital, certainly not be negative cash flow. So we’re optimistic that it will garner the attention of the CPUC, and they’ll respond in an expedited manner. But it just — this is kind of — it’s not unprecedented, but it’s just not a very well-trodden path. And so it’s hard to predict the timing. But we would — we’re obviously going to do everything to get it in front of the commissioners or the ALJs so that they are aware of the situation, explain it. And we think it will gain traction, but timing is very difficult to estimate.
Selman Akyol: Okay.
Robert Waldron: But I will say one thing about that is the Southern California rate case, and that’s why we didn’t include it in this request is we expect that to be resolved Q1 ’24. And San Pablo case and KLM, which is now combined, we expect that to be resolved Q4 ’24 or maybe Q1 ’25 the latest. And so that’s why we think it should be resolved — this immediate acceleration should be resolved in short order, in the order of months because of — the total rate case is going to get resolved in, let’s call it, 12 months, 12 to 14 months from now. So it should be acted upon pretty quickly.
Operator: We have reached the end of the question-and-answer session, and I will now turn the call over to Robert for closing remarks.
Robert Waldron: Thank you for joining us today. We are diligently working to resolve our current challenges, and we’ll provide updates as appropriate. I want to thank our team for their hard work and dedication this year. Our MoGas and Omega team has remained focused on maintaining efficient and safe operations throughout the divestiture process, while our Crimson team has really stepped up after the senior management changes earlier this year. It’s an honor to work with such a dedicated and professional group of people, including our corporate group. Please contact our IR team if you’d like to arrange a meeting time. Have a great day.
Operator: This concludes today’s conference. And you may disconnect your lines at this time. Thank you for your participation.
