Vince Sorgi: Yes. So, let me talk about maybe data centers more broadly. You’re referring to one that’s specifically related or will be tied to the Susquehanna nuclear plant. So, most of that activity is really between Talen and the data center entity, although we are working with Talen to ensure that the reliability of power supply is there for that center. So, some incremental work there, Angie. What I would say, though, more broadly, beyond that specific instances, we’ve really started to see some data center activity, both in Pennsylvania and Kentucky, with some very large load requirements, again, 1-gig size projects, some smaller than that, but we are seeing some 1-gig projects as well. And in our territories, we have some — a number of positive attributes that these data centers are looking for.
Not only is our reliability very strong in the top quartile, top decile range, especially in our transmission side of the business, which is where these generally are pulling their power from our reliability there is extremely high. We also have relatively inexpensive land and an abundance of that land in both of our jurisdictions in PA and Kentucky. And then in Pennsylvania, in particular, we have a decent amount of capacity on the transmission network that we could add this load without a lot of investment that still is incredibly beneficial for our customers because that will still lower the overall cost and bill for our retail customers, the more and more load that we can connect to the transmission network. And then, of course, we’re close to New England and the Mid-Atlantic region, especially as you think about Pennsylvania.
So, there’s a number of things in our territories that make this attractive. And of course, in Kentucky, we have relatively cheap power prices. So, very active in working with the data center companies. We haven’t included these in our load forecast at this point. We will do that at the appropriate time if and when we close these deals with these folks. But I would just say at this point, a lot of activity going on with the data centers as you’re hearing with some of our peers as well.
Angie Storozynski: And can I ask about Kentucky. So, you mentioned that the grid is getting tighter from the power supply perspective. I mean, one, does it make you sort of reassess your plans about retirements of coal plants and/or additions of new gas plants in the state? And also, how do those data center providers actually look at thermal power from gas and coal versus, I don’t know, nuclear or renewables? Does that matter? Do they really care about the carbon footprint or emissions? Or is it mostly the total cost and how cheap the power is?
Vince Sorgi: Yes, for the most part, what we’re seeing, Angie, is reliability and reliability of power. I think you’re right, there are some data center companies that also want to ensure that, that power is coming from green energy sources like what we’re seeing up in Susquehanna, as you mentioned earlier. But for the most part, it’s about reliability and the cost of that power because, obviously, these are huge costs for these data centers is the cost of the electricity itself. So, to your point, we don’t have as much capacity in Kentucky as we do up here in Pennsylvania. And so we would expect there to be incremental investment needed to support data centers in Kentucky perhaps more so than we would need at least in the near-term in Pennsylvania.
Certainly, this will feed into, as I was mentioning before, into our IRP process as we look at our load growth as we think about our generation replacement strategy, a little too early I would say, to say we need to modify our current thinking on that. But clearly, if some of these large centers hit, we’re going to have to factor that into the IRP and then ultimately into that CPCN request a couple of years from now.
Angie Storozynski: Awesome. Thank you. Congrats.
Vince Sorgi: Thank you.
Operator: The next question comes from Paul Zimbardo with Bank of America. Please go ahead.
Paul Zimbardo: Hi good morning team.
Vince Sorgi: Good morning. Hey Paul.
Paul Zimbardo: First one on the O&M target and please correct me if I’m wrong. It looks like you reaffirmed them all, but exceeded the 2023 target by around like $20 million. Just what would — I know the targets are at least, what would you need to see to kind of increase those targets? And what kind of drove that initial outperformance versus target?
