Gale Klappa: Yeah. Great question, Julien. So let’s put a couple of numbers around it. In this five-year plan, in this new five-year plan, we’ve included about 1400 megawatts of additional capacity to support the Microsoft data center development and some of the broad based economic growth that we’ve described to you. And that new capacity is really going to be needed for energy security, and for us to continue to decarbonize. But in the current plan to support the Microsoft development and some of the other that I-94 corridor development that we’ve talked with you about, we’re seeing the need for roughly 1400 megawatts of additional capacity that’s embedded in that $3.3 billion increase in our capital plan. And we’ll see where it goes.
Obviously, we are beginning the process of looking at ordering equipment and starting work on identifying sites, et cetera, et cetera. So much of that capital for the capacity, the generating capacity will be in years three, four, and five.
Julien Dumoulin-Smith: Got it. Excellent. And just on the other side of the CapEx update, if I can. First off, LNG versus more gas storage, obviously you guys have done a number of those announcements over the years. Thoughts about further acquisitions on that front, or just how you think about the fungibility one between LNG and the other? And then related here, also big update on the ATC front. Is that just all MISO Trans 1? Does that have white space in it? I mean, just a big step forward on that front too. It’s overshadowed here by the generation, but I just want to come and address that too.
Gale Klappa: No. There — again, no white space at all. Scott’s on the ATC board. We’ll let — ask Scott to respond to your question on the transmission.
Scott Lauber: Yeah. When you look at the transmission, and it’s up significantly as you noted, it is a combination of the economic development that Gale talked about, getting transmission to the region. Also the renewables we’re putting on the system and other utilities in the state of putting on the system. And then just regular system renewal in ATC’s footprint. So you’ve put it all together and it’s about a $1 billion more. And I think you maybe saw their 10-year capital plan just came out and it was also a significant increase from the prior one. So good growth, just good executable capital also at American Transmission Company and we’re 60% of that.
Gale Klappa: And Scott, from your — here in my discussions, some of that capital is really upgrading aging transmission facility.
Scott Lauber: Exactly. It’s renewing some of those older facilities that are put in years ago.
Julien Dumoulin-Smith: Awesome.
Gale Klappa: Does that answer your question?
Julien Dumoulin-Smith: Okay. Thank you.
Scott Lauber: Yeah. The gas storage. Yeah. The LNG and gas storage, the LNG is really making sure we have the capacity and putting those units in the state of Wisconsin, just like over Christmas day weekend there was gas supply challenges. Having the LNG tank that we had at our South Oak Creek plant actually really helped the system that particular day. So having that in the state of Wisconsin is going to be very helpful on those very cold days when we need that capacity.
Gale Klappa: Yeah. Scott’s exactly right. And just to add onto that. We don’t ever want to go through another Christmas Eve like we went through last Christmas Eve. I mean, as you know, there was a very significant cold snap. And many parts of the country had rolling blackouts. We did not, but a major transmission gas pipeline into Wisconsin lost about 40% of its capacity to bring gas in. If we hadn’t had LNG storage right here that we could direct eject into our gas distribution networks, we would’ve had some real issues. So there’s no doubt in our mind that for energy security, particularly at times when it gets to 20 and 30 degrees below zero, we need to have that capacity to keep gas flowing, to keep the heat on, and to keep the lights on in Wisconsin. So that’s a big rationale, a big part of what we’re accomplishing with this investment that we’ve outlined.
Julien Dumoulin-Smith: Excellent. Thank you again. Good luck guys. See you soon.
Gale Klappa: Thank you.
Operator: Your next question comes from the line of Neil Kalton with Wells Fargo. Your line is open.
Neil Kalton: Hi, guys.
Gale Klappa: Hey, Neil. We’re good. How’s it going, Neil?
Neil Kalton: It is going well. It’s Halloween, fun day. So all is well down here. Just one quick question for you. So in the EPS CAGR, I think you affirmed the 6.5% to 7%. And just curious, are you assuming any changes to the allowed earned ROEs in that forecast over five years?
Gale Klappa: No, we’re basically assuming status quo.
