Lynn Good: David, the one thing I would add. We’ve been really successful over the last many years in developing modern regulatory mechanisms for grid investment. And those grid investments are running in every jurisdiction to really prepare for this generation transition and that will continue. So if you look at our next 5 years largely reinvestments and so we’ll keep that going at a pace that makes sense. And just to emphasize Brian’s point we have such a wealth of opportunity here in both generation and grid investment that we see sustained growth out of our jurisdictions in a very constructive way delivering returns to shareholders over a long period of time. So we’re excited about what this growth potential represents.
David Arcaro: Okay, great. Very helpful. Thanks so much.
Operator: Our next question comes from Durgesh Chopra with Evercore. Your line is open.
Durgesh Chopra: Good morning. I just had two clarification questions. First, can you remind in North Carolina if any sort of intertwinings between the CPCN process and your IRPs? And then second, the CPCN ads will that be incremental to your current CapEx plan or is that already incorporated into the current CapEx plan?
Lynn Good: So Harry, you want to talk about the CPCN and IRP process in the Carolinas. And Durgesh, I’ll take the second question those CPCN investments are in the capital plan.
Harry Sideris: Yes. Durgesh, good morning. We’re in the process of our CIRP proceedings. Well, we expect a hearing in July in North Carolina and in South Carolina in September and we expect an order later this year in December and November for each of those states. And we proposed three different pathways, path 1, path 2 and path 3 with the preferred path being path 3. This is showing a 2-gigawatt increase from our supplemental filing in January from our previous filing. We’re still focused on making sure that we have an affordable and reliable plan for the customers in North Carolina while meeting our needs for our carbon reductions. The plans still show that we’re going to be out of coal by 2035. And it’s adding an additional resources particularly solar and batteries and new gas as well.
We’ve been through some of the hearings and the proceedings will continue this summer, but we feel very comfortable in what we’re putting forth to the commissions and look forward to defending our case and talking through it with stakeholders.
Lynn Good: And Durgesh, on the CPCNs we would expect the IRP hearings to occur and the CPCN hearings to follow. So the time line that Harry just outlined would have all of this in front of the commission in the second half of this year. And so we’ll keep you informed every step of the way.
Durgesh Chopra: Awesome. Just quickly, Lynn, just though, is — are the IRPs incremental to the CPCN filings the gigawatts that you’re proposing? I’m thinking the answer is yes.
Lynn Good: Durgesh, well, the way this works is the IRP is a multiyear view of generation. And it includes renewables and batteries and energy efficiency, demand response, the entire collection of resources necessary to meet load. The CPCN is a process to achieve approval of unique and discrete assets. So these gas plants that are included in the IRP go through a separate proceeding so that we can share cost estimates and the time line for when we would build those assets. So you should think about the filings as complementary.
Q – Durgesh Chopra: Understood, that’s where I was getting out with this. Thank you very much. I appreciate it.
Lynn Good: Okay. Thank you.
Operator: The next question comes from Anthony Crowdell from Mizuho. Please go ahead.
Anthony Crowdell: Good morning, team. Brian, no comments on the Canes Game 1 [ph], but just I guess quickly —
Brian Savoy: Not fair, Anthony.
Anthony Crowdell: It’s only one game though I am well aware of that as a range of share. I know this is going to be a brutal I know. Just I guess if I could — you talked about earlier of maybe the load growth is more back-end loaded. You guys have updated on the fourth quarter call. And I guess, if I could think of that and maybe how that maybe translates into earnings growth. Is the balance sheet where you’d like it to be? Your target is 14% at the end of ’24 you believe you’ll be there. And I know the company is already focused on the balance sheet. But as we think maybe earnings potential is stronger in the back end of the plan, would that be an opportunity to give yourself more cushion or you’re happy with where you’re targeting at the end of ’24.
Brian Savoy: That’s a good question, Anthony. And as we’ve mentioned in the Q4 call 14% FFO for 2024, 14 plus as we look out in time. So we’re not going to stay put at 14%. We’re going to continue to improve it over time and guiding through that we’ve got the benefit of the North Carolina rate cases this year. Next year, we’ll have the benefit of all the other jurisdictions, Florida, Indiana, Piedmont, South Carolina, all these rate actions are underway that will continue to support top line growth which also then supports the credit. And as we look out in the plan, I think the potential to earn at the higher end of the range also gives us opportunity to continue to strengthen the balance sheet. So I think we’re going to take a balanced approach that provides growth for investors as well as protect a strong balance sheet over time.
Anthony Crowdell: Great. That’s all I had. Thanks for taking the question.
Brian Savoy: Thank you.
Operator: The next question is from Carly Davenport with Goldman Sachs. Please go ahead.
Carly Davenport: Hi, good morning. Thanks so much for taking my question. Maybe just as you think about your capital plans, both from an investment and the grid perspective and also on new generation. Have you been seeing anything — any constraints from a supply chain perspective, whether it’s in procuring kind of generation kits or transmission equipment that we should be keeping in mind?
Brian Savoy: Carly, thanks for that question. As we’ve worked the capital plan and all the supply chain challenges since COVID, it’s kind of been issue by issue. I would say a couple of years ago, solar panels were a hot area, and we entered into framework agreements over a long period of time to secure our solar panel needs. We also had transformers last year that was a really hot spot. It’s still a tight market, but we now are going through these with the size and scale of Duke Energy and really partnering with OEMs on how we’re going to work with them multiple years in a row. And as we look to build generation at scale, we’re looking at areas like EPC contractors, turbine manufacturers and other components to support the generation build.
