Ralph LaRossa: Thanks Travis.
Operator: Our next question comes from the line of Anthony Crowdell with Mizuho. Please proceed with your question.
Anthony Crowdell: Hey, good morning, Ralph. Good morning Dan.
Ralph LaRossa: How are you?
Anthony Crowdell: Good. Just two quick ones, want to follow up from Durgesh’s two parter. You talked about maybe two of the three parts you were going to use to mitigate pension volatility. I think the third party didn’t talk about was a pension tracker that you’re going to ask for and rate case have filed the end of the year. Any feedback or discussion you’ve had with policymakers on support or anything around that?
Ralph LaRossa: I’ll start and Dan can add anything he wants to put there. But look at the end of the day, whether it’s a tract or any other kind of mechanism, we absolutely plan to have a conversation with the BPU about that. I’m just very happy with the near term what we were able to accomplish. And I think the combined with the American Water Adjustment or mechanism they put in for them I think the BPU is recognizing there may be some value here for not just for the companies but for the customers as well as they look at this. So we’ll continue to have a conversation. I won’t get tied into a tracker or mechanism but we’ll have a conversation about it. It’d be part of the .
Anthony Crowdell: And then just one last housekeeping. If I look at the long term EPS growth rate 5% to 7%, capital spending drives rate base to your 6 to 7.5 a slight difference there. There is just a difference on the book ends there. The growth at the CFIO.
Dan Cregg: Yes, because the five to seven is for enterprise and the rate base growth is solely of utility, so anything and everything and CFIO is going to be in there. And then you’ll have a little bit of noise as you go through O&M and different other components. But I think I think they’re largely consistent. You should think about them that way.
Anthony Crowdell: Great. Thanks for taking my questions.
Ralph LaRossa: Thanks Anthony.
Operator: Our next question comes from the line of Paul Fremont with Lautenberg Dauman. Please proceed with your question.
Ralph LaRossa: Hey Paul.
Paul Fremont: Hey good morning.
Ralph LaRossa: Good morning.
Paul Fremont: Sort of a quick question on rate base growth. You guys I think had a range. But I think most of the stretch CapEx looked to be in the out years. So I was wondering how you got such a strong level of rate base growth in 2022?
Dan Cregg: The only thing I can think of. And I’m trying to interpret your question a little bit fall is whether any see web, it kind of worked its way through the numbers that could change your ultimate rate base as you go year-to-year.
Paul Fremont: Okay. Also, can you give us cents per share in terms of what change in pension cost you’re assuming in 2023?
Ralph LaRossa: Yes, versus 22?
Paul Fremont: Yes.
Speaker: At EI. we’ve given a range of $0.25 to $0.30 for pension and OPEB. And we’re right within that range, that kind of around the midpoint of that range. So that’s a consistent number. Obviously, EI we were estimating where we would come out, and we didn’t see too much movement, either in markets or interest rates that moved us away from that. So you think about middle of that range? I’m in pretty good shape.
Paul Fremont: Okay, but you still got the accounting audit, right? And that didn’t change the range is what you’re saying?
Ralph LaRossa: It was assumed we had filed it at that point. And we had commented that we were optimistic that that would come through. It came through as expected. So it was part of what we were thinking at the time when we provide the range.
Paul Fremont: Great. And in terms of hedge guidance, I mean, is there a reason why we haven’t seen sort of 25 hedge guidance for peg power?
Dan Cregg: No we got updated through ’23 and ’24. I mean, part of the answer could well be if you want to think about it this way, Paul, is that we still are awaiting what Treasury is going to do from the standpoint of, of guidance. And so that’s going to be an important element as we go forward.
