Pinnacle West Capital Corporation (NYSE:PNW) Q1 2024 Earnings Call Transcript

And then you just got to be very careful in how you watch the cost of service. So the incremental costs incurred to, serve those customers, gets allocated appropriately to the cost causes to the customers that are coming on the side. So yeah, I think you’re going to see more attention paid to cost of service, just to make sure that we’ve got the balance right.

Alex Mortimer: Understood. Thanks for that. And then, just quickly, can you touch on any conversations you’ve had with either Regulators or other Stakeholders either at the national or state level just surrounding the wildfire issue. I mean are there any specific goals with these conversations as we see the entire industry and certainly the western part of the country try to work towards a solution.

Jeff Guldner: Yeah. There’s extensive conversations that go on in a number of different fronts. And it’s not just in the Western U.S. We’ve seen fire situations come really all over the country. And so these conversations you see for example in the some of the wildfire task force groups you see a lot more Eastern utilities that are participating in what usually just be a conversation among the Western utilities. There’s a significant amount of technical work that’s being done at EPRI to work through some of the technical solutions on wildfire. There’s a significant amount of sharing I’ll call out PG&E they are remarkably constructive in terms of helping to share work that they’re doing and that’s really true for all the utilities in the West.

And so the California folks have obviously been in the front tip of the spear for this. They’re very open about sharing those lessons. And what’s working for them. And what technology solutions are available there. So it’s certainly not there’s certainly a robust conversation that’s happening really at all levels. Regulators are I think get much more attuned to this. We’ve had very constructive workshops here in Arizona with our regulators and then most importantly with customers particularly as you start looking at the PSPS type programs. So you want to be as far in front of that as you can with customers so that they understand what’s going and can take measures to prepare for that. And then, there’s also conversations happening on the insurance side to try to figure out, how do you get better insurance.

Is there a role for the federal government to play in that? And so I’d say there’s there are a lot of work streams that are all aligning on trying to support the wildfire work that we’re all doing.

Alex Mortimer: Wonderful. Thanks so much and congrats on a good quarter.

Jeff Guldner: Thanks Alex.

Andrew Cooper: Yeah. Thanks Alex.

Operator: Thank you. That completes our Q&A session. Everyone, this concludes today’s event. You may disconnect at this time. Have a wonderful day. Thank you for your participation.