So that’s how we approach it in not only Illinois but in each of our jurisdictions.
James Kennedy: Got you. Got you. And then just on the expense side, ’22 adjusted O&M look like it came in a little bit higher than the prior plan. I guess what were the drivers there? And how should we think about the, the future cost inflation embedded in the drivers and assumptions you guys laid out on Slide 16 that? Thanks.
Jeanne Jones: Yes. Great question. So for €“ you’re right, so for 2021 to 2022, we did see a little bit higher O&M. We had projected at Analyst Day to be up around a $100 million year-over-year due to certain IT investments, another infrastructure, cybersecurity work that was occurring in this year. But in addition to that, there were a couple other items at the end of this year or that impacted 2022. First was we have some onetime cost associated with the implementation of the Climate and Equitable Jobs Act at ComEd. So that’s reflective there. In addition to that, as I mentioned in the prepared remarks, we did some derisking this year. So we took advantage of the opportunity from some of the tailwinds related to the ComEd ROE and favorable weather conditions to get some work done this year, including corrective maintenance and veg management, but also some customer assistance and community support initiatives.
So all in all that, that sort of gets you to the higher O&M for 2022. And then you asked about how to think about it going forward. I think the, our goal is to keep O&M as low as possible. You can see 2022 to 2023 is only a 1% increase and our long-term CAGR since 2016 has been about 1.7%. So our goal is to keep that as low as possible.
James Kennedy: Perfect. Thanks guys. I appreciate it.
Calvin Butler: Thank you.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Durgesh Chopra from Evercore ISI.
Durgesh Chopra: Hey good morning team. Thank you for taking my questions. Jeanne, just a quick clarification on the $850 million – $875 million in CapEx which is sort of in the, I guess in the 2023 or the prior four years. Is that all in Illinois? Is that Illinois distribution?
Jeanne Jones: Yes, no, there was some also at BGE on the transmission side. So I think, while ComEd updated for its multiyear plan, there was also some added investment at BGE as well.
Durgesh Chopra: Got it. But most of it is in Illinois. And that is included in your, the multiyear rate filing?
Jeanne Jones: That’s correct.
Durgesh Chopra: Okay, thanks. And then just, I think this is back to you, but and I appreciate this is going to be difficult, but pretty sizable increase in CapEx that is great to see, and the equity didn’t move. Can you share any thoughts as we think about, sort of when you update your CapEx plan for future years, how should we think about equity needs? I’m thinking sort of 2027 and beyond. Are those going to be modest given that, you’re kind of trending upwards in your FFO to debt metrics?
Jeanne Jones: Yes, I think as you saw in the waterfall of the latest, sort of financing of the investment plan, our internal cash flows continue to strengthen as we step into new multiyear plans. And we have the roll-off of the onetime opening balance sheet adjustment in 2022. But, and as our rate base grows and depreciation, we collect that and reinvest it back in the business. As you think about, so for that period, right we’ve reaffirmed the 425 to the extent additional capital is required to help our energy, our jurisdictions with their energy transformation. You can expect us to fund it in a balanced way with a keen focus on our commitment to 6% to 8% as well as the balance sheet cushion that we talk about a 100 to 200 basis points.
