Ryan Levine: On the cost sharing or earnout clawback like structure, what’s the time line where you would receive cash payments, if costs were lower than targets? And conversely, if there’s any cash flows — cash outflows? And any sense on timing when you expect those payments to be made?
Joseph Nolan: Sure. I mean would be all resolved at COD. At COD, our contingent liability is resolved. We plan to have the Revolution project in service in the fall of 2025. So that should be the timing you should be thinking.
Ryan Levine: Okay. And then given the uncertainty of the contingent payments, would you look to wait to time your equity issuance once you have resolution on COD?
Joseph Nolan: Well, the equity issuance is a multiyear program. So it wouldn’t be anything, it would be right, it’s still the same window of time that we’re talking about. John?
John Moreira: Yes. And that’s been factored into our financing plan, the timing of when that would reach COD and so we’re — we feel good. Joe, in his formal remarks and some of the Q&A that he’s responded to, we feel good where we are with the most current forecast — construction forecast for Revolution and that has become the baseline for the sharing.
Ryan Levine: Okay. And then on the water sale, to the extent you can respond, did the process already start? Or is it being initiated with the announcement last night?
Joseph Nolan: No, it’s — the process has not started. It’s going to — last night, we kicked it off and it will be — we’ll get to work on it as soon as this call is over.
Ryan Levine: Great. And then last question for me. We’ve seen other utilities slow the dividend growth to be less than EPS growth. Is the management or Board considering a change in dividend policy on a go-forward basis, as the capital needs and equity needs evolve?
John Moreira: No, we don’t. I just reiterated what our expectations are for both long-term earnings, EPS growth of 5% to 7% and we have — we expect to grow our dividend in line with the earnings growth.
Operator: Our next question comes from Travis Miller with Morningstar.
Travis Miller: On the Revolution, what kind of involvement are you going to continue to have on the operational construction side? And I’m thinking in part to make sure that the costs stay in line with your estimate. Will you be involved in the project or more third party?
Joseph Nolan: Yes. No, no, great question. So we’re actively involved in the land-based portion of that construction. I’ve been down in Rhode Island. I’ve been with Governor McKee, we broke ground on the substation, the conduit work that runs from the point of entry from the ocean to the substation. We will play a very, very active role. And I think that having a seat at the table is important for all the reasons that you stated. So we will continue to play that role until such time as that project is in commercial operation.
Travis Miller: Okay, perfect. And then going back kind of strategic over the years. I think one of the initial thoughts that you had behind all these nonutility investments was to reduce some of the exposure to Connecticut. Now it seems like you’ve come back and now have more of that exposure post this. What’s kind of changed over the years to — in Connecticut to suggest that you think perhaps a better operating environment — investment environment there?
John Moreira: Well, I would say the Aquarion transaction was more — it’s predicated on the fact that our equity needs that we need to raise equity and this is an accretive — potential accretive transaction that we are looking to execute. So that’s really kind of the impetus of us pursuing a transaction for Aquarion.
Operator: [Operator Instructions] We now turn to Paul Patterson with Glenrock Associates.
Paul Patterson: Just really quickly to make sure I understood the answer to Anthony Crowdell question. There is no earnings impact associated with 2023 and 2024 with offshore wind on a non-GAAP basis and adjusted basis. Is that correct?
John Moreira: I believe Anthony’s question was more on the ITC.
Paul Patterson: Okay. Yes. Okay. Well, I’m just wondering, just generically speaking, is there any EPS impact on an adjusted non-GAAP basis for offshore wind in 2023 and 2024?
John Moreira: No.
Paul Patterson: Okay, great. And then, moving to the PBR case. I noticed that in December, you guys and also United Illuminating, as for the case to be withdrawn and then reinitiated as a new type of case. And without getting into the details because they’re very complicated. But how do you see that case proceeding, I guess, at this point? I know that the commission earlier this month said no to that proposal. But obviously, there’s some concerns that you guys have about it that you voiced in your filings. Any thought process we should have about what the outlook is there?
John Moreira: Yes. Paul, a couple of things there. Number one, quite honestly, we were a bit disappointed that docket or those dockets, there is actually 3 of them got delayed or pushed out a bit. So I think it’s still far too early for us to speculate because I think there are proceedings that we wanted to take place. And now some of those will likely happen. So we can’t speculate, as to what the outcome would be at this point. I think there’s a lot more work and a lot more discussion with PURA that will have to take place.
Operator: We now turn to Jeremy Tonet with JPMorgan.
Aidan Kelly: This is actually Aidan Kelly on for Jeremy. Just one quick question on our end. What was the parent interest expense drag in ’23 versus ’22? And could you just talk about like the offsets behind that?
John Moreira: Well, I would say the interest obviously is higher and we said that has an impact. But I would focus your attention more on to the financing plan, that we just disseminated and the EPS growth rate and for ’24 and the longer-term growth rate.
Operator: This concludes our Q&A. I’ll now hand back to Bob Becker for final remarks.
Robert Becker: Thanks, Elliot and thank you, everybody, for joining us today. If you have any follow-up questions, please reach out to Investor Relations.
John Moreira: Thank you, everyone.
Joseph Nolan: Thank you, everybody.
Operator: Ladies and gentlemen, today’s call has now concluded. We’d like to thank you for your participation. You may now disconnect your lines.
