Arthur Calavritinos: Got it. Thank you. And one last thing. We’re like, I was going to say, we’re in Boston. So we’re going to have like some, we’ve already had shutdowns in the summertime. The industries nobody cares about. But if we get some shutdowns, national news type of stuff, like in New England, right, where it’s really tight. I’m just thinking how you €“ like where you guys are let me more specifically ask, would legislation or regulation change to be more favorable to you as people realize, finally the regulators realize how and the citizens are valuable these things are.
Brent Bilsland: Well, yes. I think anyone who sits in the dark for any period of time realizes how valuable electricity is. They say power generation is 7% of the U.S. GDP, but it’s the first 7% because without it, nothing else works, right? Yeah, so we’ve seen this happen. Look, every grid that approaches 30% renewables, crashes, we seen multiple crashes in Casio, we’ve seen it in Texas, energy capital of the United States. We’ve seen a five-day outage that cost over $200 billion and 100 people lost their lives. And we saw Texas make massive changes to the rules around power generation and they’re caught, right, the Electric Liability Council of Texas. So I hope this doesn’t happen in other ISOs throughout the country, but I wouldn’t bet against it.
You’ve got literally the grid operator, MISO saying, our plan is to be backed up by PJM. PJM’s plan is to be backed up by myself. But if they’re having a bad day, the same day we’re having a bad day, this nation’s going to have a bad day. I mean, that’s a public quote from the Chief Operating Officer of MISO. So they realize that the grid is changing very rapidly, and this is bringing a new risk profile to the grid. It’s being done in the pursuit of trying to reduce climate change, but there’s new risks that are associated with that. So from an economic perspective, we think all this is happening too fast. We think the Merom plant needs to stick around for a while. We’ve set all along, we have the rights to shut it down when we want to convert it to something else, we’re going to let the economic market decide.
And right now the signals are telling us this plan should remain online and we should continue to invest on it. And that’s where we’re headed today.
Arthur Calavritinos: Okay, great. Great commentary. Thank you very much.
Brent Bilsland: Thank you.
Operator: Our next question comes from Andrew Love with Hallmark. Your line is now open.
Unidentified Analyst: Thanks. So congratulations on a good quarter. My question is, could you explain a little more clearly what it means when you sell capacity? Are you selling something that then is a bilateral obligation to deliver electrical energy at a market price or at a predetermined price or what?
Brent Bilsland: So if you are a public utility and you have €“ so you’re a load following member of the grid, which means, I have, in that particular scenario, someone who has 500,000 customers and they need to be able to buy electrons from MICO to sell to their customers, right? So MICO basically sell, if you want to buy a gigawatt worth of power in any given hour, you have to supply MISO with a gigawatt of rated capacity. So there’s all sorts of different ratings on power plant. MISO’s nameplate, excuse me Merom, Merom’s nameplate is 1,070 megawatts. It’s will actually produce somewhere around 960 megawatts in any given hour. It’s €“ rated capacity with MICO today, which changes every year is 917 megawatts, right? So we can sell, because we are not a load following member, we do not have customers that were selling electricity to.
