Maria Pope: So this is an area where we have seen rapid change over the last couple of years. I think more than any of us would have expected in a short period of time and while we forecasted the underlying issues, they’ve come at us much faster. I’ve been really impressed with how our folks have learned and how with each period of time, we are better prepared with more flexible capacity and more tools. Clearly, the change in hydro conditions from this time last year to this year has had a big impact. But going into the third quarter, you almost never have any excess hydro, because it’s all run down through the river systems with a few exceptions maybe in Northern British Columbia. The — I would say that as we look at where we’re going into third quarter.
We’re well set up. We clearly have event risk, whether that would be our own plant operations, which are particularly hard to keep online with extreme weather conditions, particularly heat, but also just overall of the region. But we feel and as one of our leaders quoting the other day, we have more pep in our step as we are moving into the third quarter. And certainly hope not to repeat the truly unusual $40, $50 natural gas prices we saw and extreme issues in the last two weeks of December this past year.
Richard Sunderland: Got it. Very clear. Thanks for the time today, and Joe, congrats as well.
Joe Trpik: Thanks.
Maria Pope: Thank you.
Operator: And thank you. [Operator Instructions] One moment for our next question. And our next question comes from Anthony Crowdell from Mizuho. Your line is now open.
Anthony Crowdell: Hey. Good morning. Joe, congrats on the new job. I just — a couple of quick questions here. I guess, first, previous slides, you guys highlighted an 8.5% rate base CAGR. In this slide deck, that’s removed. I mean, our — when do you expect to get an update on the rate base growth?
Joe Trpik: Good morning, Anthony. So we will update on a — the slide you’re talking to and we have given an illustrative guidance on what rate base growth could look like long-term. We’ll update that as we come into our next year or both on what we’ll call our — what our base case is, I believe, with a — we’ve reflected with a 25% win rate on the RFP and then also what a potential case is as it relates to a more favorable outcome. We’ll continue to update that, Anthony. Nothing has changed up in what we are thinking that would cause us to reduce that. But then as a reminder, in our materials, there is a second set of materials out there, Anthony, where we do have what I’ll call a soft update that really just reflects the small changes.
And you will see in that — in the — what we label as the investor presentation, which was also distributed. We do have an update in there to reflect the — both the, what I’ll call, the base and the periodic. But again, I will call those soft updates for small changes that we’ve made here without any type of longer term adjustment. Hopefully, you can see that attachment.
Anthony Crowdell: Apologize, is it likely to get another update this like EEI our third quarter call or a hard update is more going to be an end of the year update?
Joe Trpik: We will do a hard update when we do our full — when we issue our new — our capital forecast for 2024. Historically, we have done that in the October period.
Anthony Crowdell: Okay. Great. And then, I guess, jumping around, Maria, when you spoke about the PCAM and the changes to maybe the power markets that have impacted your region with more renewables, the Western zone and everything else. Are the intervenors kind of highlighting that the PCAM is not as volatile as it once was and maybe that’s some of the struggles already including that partial settlement or that the issues have become even a higher hurdle and maybe more challenging to maybe modify and include in the settlement?
