Pedro Pizarro : To read, Shar, the core thing as Maria walked you through the strength of the capital program, the strong growth rate and we expect that we can do all of that with only the internal programs. So that’s a – I think it’s good strong statement about the very limited equity needs and how manageable we expect this to be.
Shar Pourreza: No. It’s fantastic. Thank you, Pedro and Maria. Appreciate the additional color guys. Have a good evening.
Maria Rigatti : Thanks, Shar.
Operator: Our next question from Gregg Orrill with UBS. Sir, your line is open.
Pedro Pizarro : Hello Gregg.
Gregg Orrill: Hey. Congratulations. The transmission CapEx. You highlighted from the CALISO awards. How does that process renew itself over time? How often do those occur? Should we be expecting more CapEx to be identified?
Pedro Pizarro : Yeah, let’s have Steve talk about the CALISO’s planning process.
Steven Powell: Right. So, the California Independent System Operator create – develops and approves these projects through their transmission planning process, which they’re putting out updated plans on a regular basis going forward. They have a 20-year outlook that defines the big picture project that need to happen over a long time. The last one they did identified about $30 billion of project need to happen over the next 20 years. Now they’re going through and developing these ten-year plans. And right now, they’re working through the process with the current approved plan of both gain the incumbent projects assigned. And so we know that we’ve got our $2.3 billion of projects we need to do and they run their competitive process for their competitive projects in the current planned ten year cycle.
There’s three projects that are going out to bid that are worth approximately $3 billion based on their early estimates. I mean, those bids will go we do in the later in the fall and September and October and bids will be awarded next year. They’ll work their way through that process. A new plan has been developed and put out another two years out and then they will continue to work that cycle as they did assign new projects on the horizon that are filling out what’s in their long-term outlook.
Gregg Orrill: Great. Thanks a lot.
Pedro Pizarro : Thanks, Gregg.
Operator: Our next question is from Angie Storozynski with Seaport and ma’am, your line is open.
Pedro Pizarro : Hello, Angie.
Angie Storozynski: How are you? So, first with the operation of – so just so I understand. So if there is, if you will have, if you see upsides to earnings associated with the cost of capital or any other drivers, should I expect that there’s some offsets from those operational variances? And I understand that a big portion of that this AC DC, but again, if their a portion that can go up and down depending of how much you basically need to meet your earnings goals?
Maria Rigatti : Angie, that’s a great question and I think maybe I’ll step back for a second and historically we’ve given you some of the information to kind of think through our business and our operating model, if you will. We’ve kind of bucketed things into a number of different line items. And one of the operational variances that you just referred to. But when we think about our business, underneath those four line items, there’s many, many more things that we’re actually managing. And so, as we roll forward and we are thinking about ‘25 through ‘28, we’ve tried to actually provide you with some additional information that’s more granular. That we’re hoping is going to be allow you to get more insight into our business.
