John Moreira: And Julian, we have, as I mentioned in my formal remarks, is $1.4 billion that will mature at the holding company in 2024. And that’s all back end half year, those maturities will take place June and October.
Julien Dumoulin-Smith: Right. Indeed. And just coming back to trying to compare notes between Orsted and yourselves, and I’m sorry to do this. I think they quoted a number like $450 million here for break fees if Sunrise doesn’t have a positive ID. Again, I’m not sure what’s in or out of that bucket. Where do you guys assess that metric here on your side, as far as you’re concerned? What’s your understanding? And also maybe what are the offshore proceeds assumed in the plan with the EPS CAGR reaffirm?
John Moreira: Okay, so the breakup fees that Orsted announced on their call, we’re 50% partner. So we would be on the hook for that 50% as well.
Julien Dumoulin-Smith: Got it. And the proceeds just in the plan just to kind of think through super quickly?
John Moreira: The proceeds from the sale?
Julien Dumoulin-Smith: Yeah. Well, I mean, what are you reflecting in your plan as a placeholder, if you will? Right. I know you’re reaffirming the CAGR here today, and maybe it’s too close to a sale to be able to disclose. But how do you broadly think about that as a big piece of the puzzle?
John Moreira: Yeah. I mean, we haven’t disclosed that, but I think you can certainly kind of assess that as to where we stand. And the reason is that it’s a moving target as to when the transaction closes because we still have this funding commitment. But if you draw the line in the sand, as of [$9.30 million] (ph), I mentioned that our total investment was $2.1 billion, and we have $850 million of contingent consideration that covers that balance. So the balance would kind of be in the range of what you would expect.
Julien Dumoulin-Smith: Okay, excellent, guys. I really appreciate the details. Thank you guys so much. All right. You guys take care.
John Moreira: Take care, Julien.
Joseph Nolan: Thank you, Julien.
Operator: Thank you. Our next question comes from Travis Miller of Morningstar. Your line is now open, please go ahead.
Travis Miller: Good morning, everyone, and thank you.
Joseph Nolan: Hey, Travis. Good morning.
Travis Miller: Jump over to Massachusetts, the ESMP, and then the investments, the clean energy investments you have planned there. What’s your thinking around either rate design or rate filing? Do you foresee all of these investments going into just traditional rate cases, like we’ve done in the past, or are you going to think about some unique rate design where you could wrap these in more timely?
John Moreira: Travis, we’re so excited about that plan that we filed because it does differentiate Massachusetts as being very progressive in that regard. And we’re working with the key stakeholders, as Joe mentioned in his formal remarks. I would say from a cost recovery mechanism, I think it’s far too early for us to speculate as to what that would be. We need this process to continue to kind of play out a bit more. Right now, as per the legislation, it’s before this council, this Grid Mod Council that’s made up of key stakeholders and policymakers of Massachusetts. So that is still being reviewed by the Council, and we’ll file that early 2024 with the DPU. So I think it’s a bit premature to start speculating on the recovery mechanisms.
Travis Miller: Okay. And about what’s the rough mix in terms of O&M or variable-cost, operating costs, and capital costs in terms of your thinking about that?
John Moreira: I would say 70-30. 30 be in O&M.
Travis Miller: Okay. Yes. Perfect. And then real quick on the dividend, still, that 60% payout ratio kind of target the way you’re thinking about going into next year?
John Moreira: Yeah, I mean, consistently we’ve been at 62%, and our dividend policy supports that payout.
Travis Miller: Okay, perfect. That’s all I had. Thanks.
John Moreira: Thank you, Travis.
Operator: Thank you. Our final question for today comes from Paul Patterson of Glenrock Associates. Paul, your line is now open. Please go ahead.
Paul Patterson: Hey, great to hear you guys. Just really..
John Moreira: Hi, Paul.
Paul Patterson: Just really — I guess really almost — all my questions have been sort of answered. But I’m sorry to be a little bit slow on the timing here. Sounds like before we may get a final transaction sort of crossed T’s dotted I’s by the end of the year. And I’m just wondering, you mentioned the NYSERDA rebid process. If you could just go over, again, I apologize for being a little slow on this. The timing you’re expecting on that and how that might impact this potential for splitting up this — the South Fork versus the other projects and what have you?
Joseph Nolan: Sure. I guess a transaction announced by year end would be ideal. And, obviously, we wouldn’t close that until 2024. And then with regard to NYSERDA, they’re the ones that are asserting that it would be a very quick turnaround. So that is why we have contemplated this idea that we may, in fact, have not even transacted with the buyer when we already have line of sight on pricing around Sunrise, obviously, which would be beneficial for any buyer to understand what we’re dealing with here. So it’s very near term — it’s the end of this year, we would be optimistic that we could make an announcement and then a closing in 2024 and then some clarity around Sunrise pricing.
Paul Patterson: Okay. And then, I guess the — okay, you answered it. Thanks so much.
Joseph Nolan: Thank you.
John Moreira: Thanks, Paul.
Operator: Thank you. I’ll now hand back to the management team for any further remarks.
Joseph Nolan: Yeah. I want to thank everybody for taking the time to join us this morning on our earnings call. I’m looking forward to seeing many of you next week in the desert at the EI Financial Conference, and we can spend some more time digging into any of the details that are important to you. And also, as you know, our investment relations team is always available to answer any questions that you might have in the interim. So thank you again for your time, and have a wonderful day.
Operator: Thank you for joining today’s call. You may now disconnect your lines.
