Unidentified Company Representative: With Calvary and Dunns Bridge. For Fairbanks and Gibson upon that decision associated with Calvary and Dunns Bridge, we would expect to be done with the analysis on Fairbanks and Gibson roughly in that time frame. And then take the next steps forward associated with it.
Richard Sunderland: Got it. Understood. One, I guess, additional points on the outlook update here in sort of the gas price assumptions? I know this is a point of emphasis last year in terms of that customer bill impact and keeping rates at a moderate level. How much of the year-over-year gas price help did you roll into this plan? Is there still cushion relative to assumptions a year ago that help on the kind of upside CapEx from ex this generation discussion?
Lloyd Yates: Let me — when we built the plan and rolled out at Investor Day in 2022, when we use market curve on natural gas. We did not assume that gas would be $2 to $3 a million BTU. We are still assuming that same market curve in the plan that we have. So I don’t characterize that as cushion. We manage that. We don’t build. So we didn’t build a plan piling in excess capital because we’re assuming gas prices are going to stay at $2 to $3. Our land is built on gas prices, whatever the market curve I think its $4 to $5.
Shawn Anderson: Sustaining $4, that’s right.
Lloyd Yates: $4 curve.
Richard Sunderland: Got it. And so just to put a bow on kind of the incremental capital and how to think about layering that in — is this an ongoing effort where over the next few quarters, we could see some of that come into the plan. Or is this more about annual refreshes and kind of the bucket that could be additive versus base CapEx as it stands today?
Lloyd Yates: I would say both as we look at incremental capital opportunities. Now when they come to fruition when we do the analysis and we understand them in terms of customer benefit, shareholder benefit, ability to execute accretion the plan for shareholders, then we’ll layer those plans and whether that’s on a quarter-by-quarter basis, we’ll take advantage on the quarterly opportunity. And then we’ll also refresh our capital plans annually to reflect those incremental opportunities.
Richard Sunderland: Got it. Very helpful. Then sorry, one final quick one for me. The NIPSCO transaction with Blackstone, just some of the qualitative synergies there, if there’s any upside potential that might come in Indiana territory as a result.
Lloyd Yates: Shawn, do you want to take that one?
Shawn Anderson: Yes, absolutely. We’ve found the partnership with Blackstone, even before we’ve closed here as very robust. They’re very thoughtful, considerate, executors around capital as well as understanding infrastructure and just the global landscape. They brought ideas to the table that we’ve already partnered with Mike Cooper, our President in Indiana and the Indiana team more broadly to try and evaluate how we can benefit the state of Indiana, from this partnership. And that’s mostly in the vein of economic development, on shoring, increasing manufacturing, potential for data centers, increasing NIPSCO’s load. But more specifically, bringing jobs and broader tax base to the State of Indiana. And Blackstone has brought a lot of ideas to the table on that already, and we’re looking forward to continuing to action those and bringing some of those into fruition.
Richard Sunderland: Wonderful. Thanks for the time today.
Shawn Anderson: Thank you.
Operator: Our next question comes from the line of Paul Fremont with Ladenburg. Please go ahead.
Paul Fremont: Hi, thank you and congratulations on the additional capital spend. You mentioned $400 million for Fairbanks and Gibson, how much CapEx is associated with Calvary and Dunns Bridge?
Lloyd Yates: Michael?
Michael Luhrs: So when you look at the incremental $1 billion that Shawn mentioned, approximately $500 million is associated with Calvary and Dunns Bridge for the tax transferability, and that’s simply going to the full ownership of those projects.
Paul Fremont: Right. So for the 24 through 27 period, it looks like your capital spend went up by about $1.150 billion. So I guess what makes up the additional spend?
Michael Luhrs: Yes. So when you look at the elements between that, I mean, some of that, if you’re looking specifically at the generation projects. I mean some of that, honestly, is just rounding associated with it. And then we did have some general modifications with the projects. But then when you look at the other capital opportunities on top of that, Shawn, I’ll let you.
Shawn Anderson: Yes, sure. The incremental MISO transmission projects are a portion of this becoming part of the plan in the middle of the year — middle of the decade really earlier than what we previously had shared and modeled those were part of the road for change in legislation that we saw come through in May of 2023 and part of Tranche 1 that MISO had handed down for execution. We also see incremental gas modernization in PHMSA work and a little bit more work necessary for us to ensure electric resiliency. Most of that is towards the back half of this decade.
Paul Fremont: Great. And then it looks like there is some delay in — on the gas side in terms of your spending, it’s like less spending, I think, in 25, but a lot of that looks like it’s moved out to 27.
Shawn Anderson: We’re just moving capital projects associated with the regulatory time lines that our jurisdictions are supporting for their programmatic investment. But I don’t think that’s a significant shift nor an indication of change in investment thesis.
Lloyd Yates: Yes, and to add to that, I think that is also a shift in our development of workforce and aligning our contractors and employees to make sure we can execute that work effectively and efficiently.
Paul Fremont: And then last question for me. When I think about any spend that’s incremental to now what’s in your base CapEx, can you give us a sense of the percent of that incremental investment that would be supported by equity.
