Gerardo Norcia: So let me start with the first question, how did we start on these lessons learned. We started that really early in the summer. We always get feedback from the staff through their questions and through their commentary. And we started to really sharpen our focus on improving quality of submissions going into this rate case. So we were working on this rate case before — months and months before. Probably 6 months before we even got the results in November. So it did start and then I think it’s intensified once we got the result. And the outreach certainly intensified after the result in November because we felt the need — great context for the fact that, hey, we’ve stayed out of a rate case for 4 years and we’ve invested $8 billion.
And we — and the feedback we’re getting is there’s very strong support for that investment. And unfortunately, we had a mishap with the sales forecast in the last rate case, but I think that will get corrected. And there will be strong support for the investments that we’re making and continue to make. So — so that would sort of summarize the rate case part of it. In terms of the forecast, I would say, as Dave said, we are tracking right towards the midpoint at this point in time. And that’s our goal. And all of the cost initiatives that we have undertaken, Dave and I review them weekly, and the rest of our team is reviewing it out daily. And we’re right on top of that plan. So we feel good about where we’re at. We’re also looking to restore contingency as it gets consumed sometimes by weather.
So that’s where we’re at. So we’re confident in hitting our midpoint at this point in time as we look at our outlook.
Operator: Your next question is from the line of David Arcaro with Morgan Stanley.
David Arcaro: I was wondering if — let’s see, on the IRM that you are proposing in the electric rate case, how long could that lead you to potentially consider staying out of rate cases to the extent you’re successful in getting that applied here?
Gerardo Norcia: Well, the positive side of the IRM is that we’ve been talking to the commission about it for years. And as you saw in the last rate case, they invited us to file one. So there’s strong alignment in order — in terms of creating the IRM. And we think that, that, as you know, in our gas company has simplified greatly the regulatory process for capital that’s not disputed, if you will, that needs to be invested. And it’s going to be primarily directed — actually not primarily, it will be directed at the grid. That’s what the IRM will be used for. And it will build over time. So it’s going to take a few years before it starts to have an impact on the timing of rate cases. But to give you an example, as we built it up in the gas business, it allowed us to stay out for 2 and 3 years at a time.
And that’s certainly the case this time. We’ve stayed out for at least several years already in the gas company. So we expect that to happen with the electric business. As we build confidence in the IRM, we’ll start with modest amounts going into the IRM, as you’ve seen in our rate case filings, and that will build over a 3-year period. And we’ll get used to working together on that because it does take some time to build confidence in the execution as well as the management of the IRM. So we’re taking a page out of the gas playbook to build up this IRM and achieve our goals of making the necessary investments as well as starting to put time between rate cases. So it will take a few years as my answer before we start to see a significant impact on timing of rate cases.
