Question-and-Answer Session
Operator
(Operator Instructions)
Your first question comes from the line of Dan Eggers of Credit Suisse.
Dan Eggers - Credit Suisse
Good morning, guys.
Jim Pignatelli
Hi, Dan. How are you doing?
Dan Eggers - Credit Suisse
I'm okay. Thank you. First question for you just on the fuel side for '08, how much of that is locked out or how much exposure do we still have if you've only put down a third of your gas needs? Is there still some risk that that number could put more pressure on guidance than what you have in right now?
Jim Pignatelli
We have 33% of our gas hedged from April through October, which are our main usage. So we still have some risk in that regard. The gas that we have hedged is hedged at about $1 under current prices. So we do have that. And actually we still have the risk of operating risk. I said we're providing guidance at an 87% availability factor. I'm confident I can run my units better than that. I'll leave it to others to run their units.
Dan Eggers - Credit Suisse
Fair enough. The next question I guess is what are you guys doing in preparation for the intervenor testimony tonight? Are you looking at trying to start settlement conversations in the next couple of weeks, at least to hammer out some of the big issues?
Jim Pignatelli
Yes. I believe we will sit down. We have requested the staff that we sit down. We're also looking at, once again, writing a letter to the docket and to the other parties saying it's time to sit down and discuss any type of amendment to the contract that we have with the commission that might be appropriate. That is something that, you know, as I have maintained all along we have a contract, we have contractual rights, we're willing to sit down and amend that contract. And we actually have an obligation that we notify any party which we believe is taking a position inconsistent with the terms of the contract. And after we review the testimony, we will be prepared to take that action also.
But to thrust your question, yes, I'm prepared to meet at any time to try to stipulate these specific issues, big issues, so that we can get to the real meat of the argument. And right now I think that the staff almost has to sit down. They are being inundated with rate cases. The process is breaking down in Arizona. And I think it's in everybody's best interest to sit down and try to reach stipulations on as many issues as they can.
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