Paul Fremont: Great. Thank you.
Operator: Thank you. [Operator Instructions] Our next question comes from Travis Miller with Morningstar. Your line is now open.
Travis Miller: Thank you.
Maria Pope: Good morning, Travis.
Joe Trpik: Good morning, everyone. Quick question on the battery stuff. That increase in the 2024 number, is that incremental projects? Or is that some kind of carryover spending from 2023?
Nick White: Specifically, as it relates to the battery, that is the 2021 RFP moving out. In fact, the battery spend you see in ’24 and ’25 was all existing from that RFP, and it is the — the first set of spend is more than — its a console project or the smaller battery and then the spend that goes into 2025 is the seaside battery, which is the larger one.
Travis Miller: Okay. I was thinking about the comp from the previous capital update which was, I think, $100 to something million to $235 million.
Travis Miller: Got it. Okay. These are the same batteries. We have not added any projects. This is the update to the pricing for those same batteries.
Maria Pope: So there were some payments that went from 2023 to 2024.
Travis Miller: Got it. Okay. Okay. Yes. That’s what I was thinking. And then related on that, how much of the battery specifically, CapEx in those payments do you anticipate you’ll be able to get into the rate case given that — and correct me if I’m wrong, given that they’re probably not going to be done, right, operational in the next [indiscernible].
Joseph Trpik: When we update the — so when we do the filing, the filing will look — we’ll use a future amount of rate base. So we’ll use an end of 2024 rate base. And we will — when we decide to file, we will place a structure in there that would expect recovery of the batteries on their in-service date. The first, the [indiscernible] battery, which has an in-service date somewhere right around at the end of 2024 and then also then the seaside battery that goes in service in 2025. As you may recall in our prior case and when we file, whatever we file our next case, we will address the RAC or the renewable adjustment clause that allows for renewables to go into service, we previously had requested that batteries get included there. So they just automatically go in service. We will again look within our filing to address that policy as well as potentially consider other policies to ensure that the batteries are timely into service similar to other renewable assets.
Travis Miller: Okay, great. That’s really helpful. And then a different question. Given the increase in the capital spending and your comments around trying to get back to the certain capital structure, what does that mean for the dividend growth do you anticipate?
Joe Trpik: Our expectation is, as we continue to grow, we are committed to drawing the line as it relates to our 5% to 7% earnings growth and that similar dividend growth. So we have no expectation of changes in our dividend growth rate off of our previously communicated plan.
Travis Miller: Okay. In line with earnings?
Joe Trpik: That’s right.
Travis Miller: Okay. That’s all we had. Thanks so much,
Maria Pope: Thank you.
Joe Trpik: Thank you, Travis.
Operator: Thank you. One moment for our next question. Our next question comes from Willard Grainger with Mizuho. Your line is now open.
Maria Pope: Good morning.
Willard Grainger: Hi. Good morning, everybody. Good morning. Just a question, sort of coming back to the equity, I see in the balance sheet debt to cap, you finished 2023 with around 56% debt to cap. When do you think you’ll be closer to the allowed 50% that you got in the last rate case? Thanks.
Joe Trpik: Sure. Good morning. Good morning, Willard. So we look to — as we built the 5-year plan, we’ve considered a path that will get us towards that 50% over that period with some flexibility on the timing in between peers considering the RFP or considering how with and without RFP scenario. So we have sort of a series of flexible strategies that will work us there over what I’ll call these longer planning.
Willard Grainger: Understood. Thanks for the clarity. And then maybe just thinking about the battery storage, is that something that you’d likely see more of with some of the load growth? Or do you think that the generation spend is more geared towards traditional renewables?
Maria Pope: Well, I think we’ll see both. Clearly, capacity is important as we — in particular, with all of the volatile weather that we’re seeing. So I think you’ll see additional batteries coming through, through RFPs. And I think you’ll also see more traditional renewables of wind and solar. There are also some pump storage projects and some other projects that are farther out that independent power producers have been working on. And so I think this is going to be what I call, all about a set of solutions as we move forward. We are also working very closely with customers on their energy usage and flexibility as well as standby generation to bring all of the resources to bear through this transition.
Willard Grainger: Thank you. I will leave it there. That’s super helpful.
Maria Pope: Thank you.
