Question-and-Answer Session
Operator
Thank you. (Operator Instructions) And our first question comes from Brian Russo with Ladenburg. Please go ahead.
Brian Russo - Ladenburg Thalmann & Co.
Good morning.
Richard C. Green - Chairman, President, CEO
Good morning, Brian.
Brian Russo - Ladenburg Thalmann & Co.
You mentioned earlier that you expect the merger to close in first half '08 and I'm just wondering does the revised merger proposal that Great Plains filed, does that give you more confidence that the PUC will approve the merger?
Richard C. Green - Chairman, President, CEO
I think there's no question that Great Plains has done a good job in making tremendous movements in the regulatory plan, and I think that has to be looked upon favorably.
Brian Russo - Ladenburg Thalmann & Co.
All right. Thank you very much.
Operator
Thank you. Our next question comes from Yiktat Fung with Zimmer Lucas Partners. Please go ahead.
Yiktat Fung - Zimmer Lucas Partners
Good morning.
Richard C. Green - Chairman, President, CEO
Good morning.
Beth Armstrong - Chief Accounting Officer
Morning.
Yiktat Fung - Zimmer Lucas Partners
Just a question about the transmission opportunity to the Crossroads plant. How much - it says on the note on that slide with the Capex plan that $186 million of that Capex for the emission turbines would be eliminated if this transmission is built. How much incremental Capex would be needed to build this transmission line, and how much value can you get by rate basing the Crossroads plant?
Beth Armstrong - Chief Accounting Officer
Yiktat, this is Beth. The transmission is actually a transmission request to the RTOs, and what we are looking at doing is trying to lock up long-term ability to obtain transmission. So it's not the construction of a line but rather the rights to utilize transmission through the RTOs to bring that capacity to Missouri.
Yiktat Fung - Zimmer Lucas Partners
I see. And what's the potential rate base addition by adding the Crossroads plant?
Beth Armstrong - Chief Accounting Officer
The net book value of Crossroads is $112 million at the end of '07.
Yiktat Fung - Zimmer Lucas Partners
I see. And is there currently any earnings drag at the Crossroads plant?
Beth Armstrong - Chief Accounting Officer
Right now we do have a net earnings drag that would be projected in the Merchant segment because the margins don't fully cover the operating costs. So it's on the order of about $2.5 million.
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