David Arcaro: I was wondering if you could maybe give the latest on the status of the New Jersey rate case. Current thoughts on the settlement potential and maybe specifically on the pension normalization mechanism, how optimistic you are in that coming through?
Brian Tierney: So, we are – as you know, they have stayed the schedule for now to the last settlement discussions to continue. And we are working all of those things that you just mentioned are still in play, and we are still working – engaging with staff, interveners, others to try and bring a successful conclusion to that case and without having to take it through adjudication.
David Arcaro: Okay. It sounds good. And then also curious if you could give the latest feedback from rating agencies on prospects going forward to achieve investment-grade ratings at the parent and how the FFO to debt outlook is sitting right now as you are heading into 2024 as well?
Jon Taylor: Yes. I think we continue to have dialogue with the rating agencies. Those have been constructive conversations. They have our projections. It clearly shows that we are going to be in that 14% to 15% in ‘24 and ‘25. I will say that we have kind of taken a little bit of a step back this year in terms of our performance in the metrics. And a lot of that is because of the unseasonable weather, the fact that we made a voluntary pension contribution, we have – we had some one-off items associated with severance associated with the voluntary retirement program. So, if you kind of take those out of the mix, I mean, we are closer to that 11% range. But clearly, with the rate cases that we have in flight, which we risk adjusted in terms of what we are going to get, the fact that we are going to get now 100% of the FET proceeds in 2024, whereas before, it was going to be about 50% next year, 50% in 2025.
So, we will have an opportunity to deploy all of that. It clearly shows that we will be in the 14% to 15% range next year.
David Arcaro: Okay. Excellent. I appreciate that color. Thanks so much.
Brian Tierney: Thank you, David.
Operator: Thank you. Our next question comes from the line of Angie Storozynski with Seaport Global. Please proceed with your question.
Angie Storozynski: Thank you. Just following up on that FFO to debt question, so I am looking at your financials, I mean the FFO looks particularly weak, right, for the first nine months. And I hear the explanation of why that is. But I thought that we are waiting for some improvement, not even to hit that 14% to 15%, but just some improvement in the FFO to debt, to warrant any upgrades? And it doesn’t seem like it will happen this year, is that fair to say that the trailing 12 months doesn’t seem to have any upward momentum for now.
Jon Taylor: Yes. Like I have said, I think the trailing 12 months and where we are this year, we have taken a little bit of a step back. Some of that was planned because we wanted to make the voluntary pension contribution. Some of it was associated with non-recurring items such as the severance that I have mentioned, that’s really going to have about a 1-year payback if you think about it. So, that will improve the metrics next year. And you can’t discount the impact of weather and it, what’s that done to cash flow, right, in terms of the lower weather-related sales. So, I understand your question, but we are very confident in the plan. We are very confident in the metrics that we provided to the rating agencies, and we will see where we get to.
