Angie Storozynski: Meaning the drag–so the year-over-year drag, I mean, there shouldn’t be any, right, so that should be actually a benefit for year-over-year math for ’24, right?
Kirk Andrews: Yes.
Angie Storozynski: Okay.
Kirk Andrews: I think the better way to think about that is we’ve just rolled from a partial year to a current year, so now we’re kind of at current rates in that regard, so I would not–we don’t see a step function going forward into yet another increase in rates over time, and it’s really just the increasing debt rather than increasing rate exposure at the end of the day, thinking about moving from ’23 and forward.
Angie Storozynski: Awesome, that’s all I have. Thank you.
Operator: Thank you. Our next question comes from the line of Paul Patterson of Glenrock Associates. Please go ahead, Paul.
Paul Patterson: Good morning guys.
David Campbell: Morning Paul.
Paul Patterson: On the IRA and Wolf Creek, I was wondering if you could give us a flavor for what the potential quantification could be and if that immediately goes to ratepayers or if there might be some sort of positive rate lag. How should we think about that?
David Campbell: Paul, it’s going to be fascinating as the rules come out around it. The first thing to note is that the eligibility will start in 2024, but it is an impact that will flow directly to our customers so it will not have an earnings impact. Now, I think anything that helps with respect to customer cost is a good thing. Regional rate competitiveness and affordability are critically important for us, so there’s a tangible benefit that we’re really excited about as well. In terms of the mechanism, it will be interesting to see how the rules operate. Presumably since it’s based on yearly realized prices, that may be assessed on a monthly basis, it may be assessed in a back cast at the end of the year, it may be based on day-ahead markets – that probably makes more sense rather than real time, but all that is yet to be seen.
But the net-net is if you went back a couple years, this wouldn’t have been true in ’22 given the high commodity prices, but if you look back at ’21 and ’20 and ’19 and ’18, the realized prices at Wolf Creek were below the thresholds that are laid out in the IRA for eligibility for a PTC, and it wouldn’t be the full $15 a megawatt hour in all years but, depending on what the go-forward pricing is, it could be up to $15 a megawatt hour for a 1,200 megawatt nuclear unit, so it’s a sizeable potential benefit for customers. But the mechanism, we believe that’s going to flow directly through the fuel clause, which is again very important but not an earnings driver. But it will be interesting to see as the rules come out and it starts in ’24.
Paul Patterson: Great, then with respect to Persimmon, which you guys made a pretty strong argument for, staff does seem to be–it’s a case, as you guys know. Is there any possibility for a settlement?
