Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from [Danielle Six - Six Research].
[Danielle Six - Six Research]
Given the fact that the six months earnings are already at $0.94 and you maintain the same expectations in terms of EPS for the year, are there any major negatives that we should be expecting in the third and fourth quarter? And also, I was wondering if you had experienced so far in the third quarter any major storms?
Pamela J. Keefe
In the third quarter we will see the impact of the Vermont Yankee derate and as described in our 10Q that we filed on Friday that will be about $2.3 million in total. $1.1 million of that will be increased power costs and $1.2 million will be reflected in lost resale revenues. In the third quarter we have had more storm activity than we saw earlier in the year; not so much in large discreet storms but we’ve had more continuous storm activity for several weeks now.
[Danielle Six - Six Research]
I recall last year in the third quarter you already had the effect of some storms as well. So do you sense that so far it’s relatively similar to last year?
Pamela J. Keefe
Last year we had a large storm at the beginning of August. This year as I mentioned before we haven’t had one single large storm but over probably the last six weeks or so we’ve had pretty continuous localized storm activity. So while it may not be of the same magnitude as last year certainly it has been more active than earlier in the year.
[Danielle Six - Six Research]
Since you mentioned that you’re anticipating that you may be announcing some new major contracts with Hydro-Quebec and Vermont Yankee, it sounds like you want to actually find some new sources of power so that it limits the amount of obviously the focus on these two sources. Does that mean that you may be announcing contracts with other power producers for those periods or could you elaborate on that?
Robert H. Young
As we have said Danielle, we certainly expect that both HQ and VY will be part of our mix going forward. That of course in the case of VY is dependent on their license being extended beyond 2012. We will also be going to the market place later on this year with an RFP, Request For Proposal, to seek out some other sources of power, probably renewable in particular which we would look to being a part of the mix going forward. So we definitely think that we will have a broader based power supply four or five years from now looking forward than we currently have today.
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