Question-and-Answer Session
Unidentified Analyst
Two questions, the first relates to will you file another rate case immediately following your May decision and how early do you think you would be able to go back in. The second question is I guess I don’t understand that you’re showing about $100 million two-year improvement in EBITDA at EnergyCo but the EPS is flat in ’09 versus ’07, so I’m just not sure what’s eating up the improvement in EBITDA on an EPS basis.
Jeff Sterba
On your first question, the decision about whether we file or when we file the second rate case is really dependent on what the outcome is. So it’s going to have to be shaped by what they do in that rate case. But obviously we’re going to be looking very closely at the need for additional rate relief. On the second question, Chuck do you want to?.
Chuck Eldred
That goes back to [inaudible] actually run the numbers back through human resources and adjust for purchase accounting and the amortization of contracts. EBITDA for EnergyCo is reported on a cash basis and we have to run it through 50% of our [inaudible] based on the basis that we have on the 50% ownership of that particular company we adjust to the amortization of the first accountings of the contract, take away the interest costs and you’ll work your way back down to about a [inaudible] calculation on the high end for 2009 and is roughly about $0.02 or high end for 2010 of the EBITDA calculation. So we can go over that [inaudible].
Unidentified Analyst
?..[inaudible] going down by about $20 million.
Chuck Eldred
[inaudible]
Jeff Sterba
There’s a question up front. And after this, we’ll see if there are any questions on the web.
Unidentified Analyst
Just to sort of follow up on Paul’s question, assuming that you guys got 100% which is what is in guidance, when do you guys think you’d have to go in for another rate case, that’s number one. Number two, trimming purchase accounting just what was the sort of impact of purchase accounting in your expectation for 2009. And also trading margins, expectations for ’08 and ’09? What are we expect in that in terms of contributions and also the PB Trust benefit in 2009, what should we be thinking about that?
Jeff Sterba
On the rate case obviously we have to wait to see what the outcome is. We will still not be recovering our allowed return because of cost increases. And so you can expect that we will be filling a second rate case. I’m not going to give a date as to when that will be filed but clearly an additional mechanism is going to be necessary. Chuck do you want to take the?.
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