Steven Fleishman: Great. Thank you.
Calvin Butler: Thank you.
Jeanne Jones: Thanks, Steve.
Operator: Thank you. One moment for our next question. Our next question comes in the line of David Arcaro from €“ or Morgan Stanley. Your line is now open.
David Arcaro: Hi, good morning.
Calvin Butler: Good morning, David.
David Arcaro: Thanks for taking my question. Good morning. Maybe just a quick follow-up on the
Jeanne Jones: Good morning.
David Arcaro: PECO related question. I was just wondering, so you’ve got the one year in 2023 below the low end, but really back in the six to eight or above thereafter. And I was just wondering maybe more broadly or structurally like is the business now manageable within that 6% to 8% annual growth level year-to-year, even through some of the lumpier rate cases as you look forward?
Calvin Butler: No, if I understand the question, David, PECO is a very well run utility and operating at a high level. And because they have taken the option on the three-year forward-looking test year process, it is one that the regulatory agency understands, one with the company has deemed it is the best value for our customers. And although they have the option to file an additional alternative rate mechanism, we’ve stuck with this course. And we are also looking at to your point, how can we balance the earnings over the course of the three years where it’s more linear and process and the teams continue to work on that. We continue to look at other options, but have chosen to stay the course of where we are at the present time. And Mike Innocenzo, the CEO of PECO is here with us right now. Mike, would you have anything to add with that?
Mike Innocenzo: Again, I would just €“ I would echo that. In Pennsylvania, we do have the ability for three-year rate structure. We’ve continued to review this annually and believe that it’s the current course has been the best for balance between the shareholders and fair rates for our customers.
Jeanne Jones: David, I think the €“ so tapping off of that. On PECO, I would look you to Slide 16. So there is the second year of PECO in 2023. But to your point, beyond 2023, we expect to be within or above the range. And so, while you have PECO in 2023, there’s a couple other factors impacting 2023 that don’t carry forward. Unlike, our assumption that PECO continues on this three-year rate case cycle. There’s a couple other things that are unique to 2023 that I’ll just highlight. One is, as we’ve talked about, we’re not yet through the reconciliation processes in Maryland and D.C. for the first multi-year plans. Once we get through that, the alignment between rate-based and growth and earnings growth is strengthened. So that’s number one.
The second is in 2023, we have the D.C. stay out provision. So they’re still on 2022 rates. And so as we get out of that and move towards 2024, you’re going to have new rate cases, new multi-year plans for 2024, 2025, 2026. Starting in 2024, so that starts again to strengthen the earnings power there. And then on top of that, ComEd is moving to its multiyear plan. And so as you go through 2024 you start to see again three of our four operating companies on multiyear plans with reconciliations, strengthening that alignment between rate base growth and earnings growth. And then you’ve got PECO with that variability that Calvin and Mike touched on. So that’s why, if you look forward, 2023 is a little bit different than 2024, 2025, 2026, and I think Slide 16 really helps lay that out.
David Arcaro: Thanks for that.
