Question-and-Answer Session
Operator
(Operator Instructions) We’ll go to the line of Michael [Grissom] at Robert W. Baird.
Michael Grissom - Robert W. Baird
Good afternoon. First question in terms of the project that’s going on, is that in place of what you were considering to be a joint venture project?
Thomas E. Skains
Yes, that is the project that I made reference to in earlier calls that was under development. In this case, when we evaluated our growth requirements in the Carolinas, we evaluated our infrastructure needs in those states and looked at our core competencies around LNG storage facilities that we’ve been operating since the early ?70s. We felt in this case that we would go the project alone rather than joint venturing.
Michael Grissom - Robert W. Baird
And the second question, just in terms of the nature of customer growth, how is that changing and if you could -- even if there’s any difference in North Carolina, South Carolina between development or just back-filling the existing customer service areas?
Thomas E. Skains
Well, we continue to see good growth in our markets of about 2% to 2.5% in terms of gross customer additions, largely driven by continued residential new construction, residential conversions, and commercial and industrial growth. If you look at our customer additions year-to-date, of course with the slowing of the economy, our residential new construction numbers were down but we are very pleased that our conversion numbers are up, six months to six months, and our commercial industrial numbers are about flat. So we feel good about the growth. We forecast that to continue and this LNG facility will be needed to meet the growth in our markets, particularly during peak periods and seasonal winter days.
Michael Grissom - Robert W. Baird
Thank you.
Operator
Thank you. Next we’ll go to the line of Jim Lykins of Hilliard Lyons.
Jim Lykins - Hilliard Lyons
Good afternoon, everyone. A couple more questions about the new project -- I know you were supposed to, or you expect to begin construction in ’09 and then be operational maybe by the 2012 to ’13 winter heating season, but is there anything else you can tell us right now about the timeline and maybe when you plan to make any of the filings?
Thomas E. Skains
Well obviously there are filings to be made with this project but notably there’s no certificate needed from the North Carolina Utilities Commission. This is an expansion of our utility infrastructure and will be part of our utility rate structure and cost structure when it goes into service. And there are permits, environmental processes to go through but there’s no major regulatory filing that’s required in this case to demonstrate a need or any of those other features that you may think of at the federal level in advance.
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