Question-and-Answer Session
Operator
(Operator Instructions) First to the line is Jim Lykins with Hilliard Lyons. Please go ahead.
James O. Lykins – Hilliard Lyons
First of all your North Carolina filing in addition to the coupling tariff and [inaudible] the cost revenue what is the actual amount of the filing going to be? Can you give us that?
Thomas E. Skains
No. We haven’t determined that yet. We’re still in the early stages of gathering our costs and expenses for the base period of that rate filing and won’t have that information for a few months at this point. That filing is not due until April 1st as I mentioned and we’re at the early stages of putting together cost revenues, billing determinates and other factors that would influence the actual rate levels.
James O. Lykins – Hilliard Lyons
What about South Carolina? Could you just update us on what is next on the agenda in that state?
Thomas E. Skains
In South Carolina as you know we have the Rate Stabilization Act that we’re operating under which we’ve opted to participate in and as a result of that we’ve been making annual filings to true up our cost and revenues. They’re consistent with the mechanism contained in that statute which again puts a band of permissible earnings around your authorized return on equity. So, we will of course make a filing later in the year. I believe that filing is typically made in the June timeframe, in the summer to be effective November 1, 2008. We will go through that process again this year. It’s a rather expedited process and any results from truing up those costs and revenues will take effect in fiscal year 2009 beginning November 1, 2008.
James O. Lykins – Hilliard Lyons
I believe you said that the housing market is starting to slow somewhat in Charlotte. I was just wondering if you could give us a feel for what’s happening with housing starts in Charlotte and also if the conversions may be able to – or how much those conversions may be able to offset any of the slowing.
Thomas E. Skains
Okay. I’m going to turn that call over to Frank Yoho our senior officer of the commercial operations so he can give you additional color around the growth that we still see in our markets, our real estate markets but again, decline slightly from what we’ve seen historically.
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