David Arcaro: Understood. Yes, that’s helpful. And I’m not sure if you gave this level of color, but just going forward, as you’re thinking about all of these other CapEx opportunities to add to the plan, how are you thinking about financing that? Is there a rule of thumb for how much incremental equity you would need kind of per dollar of CapEx as you’re expanding the investment going forward?
Lynn Good: David I think it’s premature to talk about that because the first thing that we’ll do is run through capital optimization and allocation putting the capital in the area that both delivers the most customer value and is delivering the best returns. And I think we’ll have more on this refinement of capital as we move through IRP approvals in the Carolinas this year and then Indiana next year 10-year site plan as well. So, we’ll continue to keep you updated and our commitment remains to growth and a strong balance sheet.
David Arcaro: Okay, great. Appreciate the color. Thanks so much.
Lynn Good: Thank you.
Operator: The next question comes from Nicholas Campanella of Barclays. Please go ahead.
Nicholas Campanella: Hey thanks for taking my questions today. Good morning.
Brian Savoy: Good morning Nick.
Nicholas Campanella: Good morning. So, I guess just the payout ratio you’re taking that down obviously which seems very prudent. I know you’ve already been kind of growing into a lower payout ratio over time. The dividend growth has been lower than the EPS growth here. So, just I’m kind of wondering just how to think about your 5% to 7% EPS CAGR now like where you are in that range? Are you at the high low or midpoint of that? And then when do you get back into this 60% to 70% payout ratio in the plan? Thank you.
Lynn Good: Yes. So Nick, pulling that all together we’re very confident in our 5% to 7% growth rate. We have been building the capital plan to accomplish that as well as the regulatory mechanisms for several years. And so what we’re putting in front of you we have a high degree of confidence on. And as a result of that we see the payout ratio declining over the next five years we’ll be under 70% in 2024. And so as we look at our commitment to the dividend. We intend to continue growing it. We’re committed to the dividend as we have been for a long period of time. But believe in this moment with the level of capital that we have, that introducing some financial flexibility in our range so that we can make good choices around dividend, capital and growth is just prudent.
And so as you know we’ll look at dividend every year. The Board is involved in that approval process. But given the total composition of growth in dividend, we believe a 60% to 70% payout ratio is appropriate at this point.
Nicholas Campanella: Okay. I appreciate that. And then I guess just – I know you just recently filed in Florida, you have a history of – there’s a history of settlements in that state and constructive outcomes. Is just anything kind of changing in regulatory strategy that wouldn’t allow you to pursue another settlement in the future?
Lynn Good: No, Nick, what we have accomplished so far is procedurally what we need to do to provide notice and the filing would follow late March early April, as you know we have a history of engaging with intervening parties in all of our jurisdictions as part of the regulatory process and we will do – endeavor to do that in Florida as well. And we’ll keep you posted every step of the way. It’s a very constructive jurisdiction in Florida, understanding the need for infrastructure to balance the growth that the state is maintaining or achieving. And also maintaining critical infrastructure investment for reliability storm response, et cetera. So we’ll look forward to keeping you updated on the rate case.
Nicholas Campanella: Thank you.
Lynn Good: Thank you.
Operator: The next question is from Durgesh Chopra of Evercore. Your line is open. Please go ahead.
Durgesh Chopra: Hey, guys. Good morning. Thank you for…
Lynn Good: Good morning.
Durgesh Chopra: Good morning, Lynn. Maybe just I think the equity $500 million to have a year total for the plan versus the CapEx raises towards the low end? I think you might have said 30% to 50% funded those equity in the past. So maybe just a little bit more color kind of what puts you at that low end of the range since sort of we discussed this in November last year?
Lynn Good: Yes. Durgesh, I think about all of these variables, the capital, the regulatory outcomes, the equity issuance, the fact that we see nuclear PTC is something that we’ve been able to negotiate in a credit-supportive way. You’ve got all of those variables that we evaluate in establishing the plan that we have in front of you and believe that at this level that 30% ratio gives us the best match between the growth we’re trying to achieve as well as the strength of the balance sheet. And so that will be – that’s always our goal is to achieve both for investors and we believe we’ve accomplished that.
Durgesh Chopra: That’s helpful. And thank you. And then the rate base is when I look at year-over-year growth rate in rate base it’s pretty healthy. It’s within your 5% to 7% EPS, long-term EPS growth guidance. Do we think about annual EPS growth rates within that range as well in that 5% to 7% range? Or is that more kind of a CAGR approach and back-end weighted?
Lynn Good: No, Durgesh, we endeavor to hit it every year, every year and that’s how we plan our investments, that’s how we plan our strategies around regulatory and otherwise and so that’s how I would share it with you year-over-year.
Durgesh Chopra: That’s very clear. Thank you, Lynn. Appreciate the time.
Lynn Good: Thank you.
Operator: And our next question is from Ross Fowler of UBS. Please go ahead.
Ross Fowler: Good morning, Lynn. Good morning, Brian. How are you?
Lynn Good: Hi, Ross.
Brian Savoy: Hi, Ross.
