Question-and-Answer Session
Thank you. [Operator Instructions]. Thank you. The first question comes from Ted Durbin from Goldman Sachs. Please go ahead.
Ted Durbin - Goldman Sachs
Hey, guys. On the Mid-Tex rate request, what are the key issues that are sort of going on now like there is some negotiations and what's the process, can you talk us through that?
Robert W. Best - Chairman, President and Chief Executive Officer
This is Bob. I'm going to let Kim Cocklin who runs our regulated operations answer that question for you.
Kim R. Cocklin - Senior Vice President of Regulated Operations
Good morning. Well, the process, I think, we've had several conversations with a lot of... it's an expedited, abbreviated approach to reviewing the capital investment and the expense increases. We were now seeking $33.5 million. And as a matter of fact, we are having meetings today with one group of cities and we have already had two meetings with the other group of cities. So, the process is probably going to be about two to three meetings and we anticipate settling on a dollar increase and that increase will be reflected in rates that will be made effective with our fiscal year beginning October 1.
Ted Durbin - Goldman Sachs
So, if I think about what are the big issues that are likely to be part of the negotiations?
Kim R. Cocklin - Senior Vice President of Regulated Operations
Well, there really aren't any big issues because we stipulated to return cap structure, depreciation, there is the normal discussion, and to-date about what expense levels are appropriate. There really... there is no difference actually with us and the settling parties on our capital investment. Most of it is associated with the O&M expenses. And if you follow the rate cases that's in the Texas Railroad Commission before, you know that we've had a lot of issues around shared services, corporate costs that are allocated to the divisions, and how the level of costs that should be allocated. So principally, the shared service was corporate costs that we are talking to them about right now.
Ted Durbin - Goldman Sachs
Okay. And then, if I could ask about the Ft. Necessity project, did you get a sense of pricing that you might see out of that based on the open season, you have got producer demand, but just a sense of what the sort of the demand curve actually looks like for the project?
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