So all this comes as a function of our wildfire mitigation plan if we have better early warning devices like cameras, weather stations, our ability to effect on a more localized level where the risk is and where the outage would need to be can get better. But that’s going to take some time, some effort some partnership with our agencies and stakeholders in Colorado for sure.
Ryan Levine: And then shifting gears on the financing plan as security prices continue to move. How do you look at maybe assessing a time to come to market for capital raises. And again earlier question, you suggested the avoidance of asset sales, but any color around response to maybe different security prices and how that can impact your financing plan?
Brian Van Abel: Ryan, I think a little bit as the color I provided before is obviously, overall, we believe our growth plans from an investment perspective, a long-term EPS growth perspective impact and same in our sand and maintaining a strong balance sheet. What I talked about not necessarily in avoidance, but how do we look at the timing of equity and the timing of capital, particularly on the timing of the equity, given that we have a strong balance sheet, is we can look at being flexible there. But I would expect that when we’re investing $39 billion of capital at a 9% rate base growth. That does come with the financings. And generally, our prior financing year in and year out, that’s aligned with the capital spend. So that’s the best way to think about it.
But obviously, we’ll understand what happened to the cost of equity here. And also with the cost of that we have gone off [indiscernible] the short term in terms of our chain rates have gone. So but that’s factored into all of our plans, as I sit here today and talk about reiterating being at or above our 5%, 7%.
Ryan Levine: And then just last question, in terms of CapEx outlook, given maybe acceleration of infrastructure build-out in North America, are you seeing any indications that maybe costs will come higher for what’s already slated to be built in the coming years? Any color you could share on that?
Bob Frenzel: Yes. Ryan, it’s Bob. Look, I think as we see reindustrialization, we see data center build-out certainly, there can be cost pressures that come from basic materials and construction materials like concrete, steel and things like that. I think we take our best estimates when we put our capital forecast out, but something we watch pretty closely. Labor is another area of opportunity there. I think that one of the things we’re very focused on as we see an energy sector transition, making sure that there’s a pipeline of talent starting early on in trade schools and partnering with our labor unions and business partners there, to make sure that the pipeline of linemen and pipe fitters and welders are capable of keeping up with the demand.
So we try to send early demand signals to them and it help them recruitment processes across our territories and really partner on a national level to make sure that we’re seeing enough trade come into the business broadly that we don’t see a an immense amount of labor pressure.
Operator: Our next question is from Paul Patterson with Glenrock Associates.
Paul Patterson: I apologize if you guys have gone over this. But just on the [ NUC ] life extension, could you remind me what the impact financially is, have you guys already — it varies from company to company how the depreciation impact when it’s recognized, et cetera. I was just wondering if you could review that for me shortly, quickly if it’s not a problem.
Brian Van Abel: You’re referencing the resource plan that we just filed here in Q1 related to the extension on cell once, we already extended to 2040, and we’ve recognized that depreciation in terms of lower customer bills. So we’re looking to extend money from 2040 to 2050. And then Prairie Island both units 2 years, so we’ll go a little from the early 2030s to the early 2050s. We have not recognized those 3, call it, lower depreciation rates in the customer [indiscernible] rate case. We’ll wait until we get through this proceeding to get approval and like we wrap it into our next rate case. So this proceeding is probably going to take 18 months ago at the very least. So it’s going to be held before we can plow that back into customer rates in terms of lower depreciation.
Paul Patterson: Okay. Great. But just is there any potential for regulatory — sort of positive regulatory lag? Or does it — are you guys planning on having immediately impact customer rates?
Brian Van Abel: No, this would likely just be captured either how to defer here or likely if we’re in a multiyear plan to have a true mechanism part.
Operator: Thank you. As we have no further questions in the queue, I’d like to turn it back over to CFO, Brian Van Abel for any closing remarks.
Brian Van Abel : Yes. Thank you all for participating in our earnings call this morning. Please contact our Investor Relations team with any follow-up questions.
Operator: Thank you very much. That concludes today’s conference. You may now disconnect. Host, you may stay on the line.
