Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from the line of David Tameron with Wachovia Securities. Please proceed.
David Tameron - Wachovia Securities
Good morning, Bob.
Bob Heinemann
Hi, David.
David Tameron - Wachovia Securities
A couple of questions. Lower drilling days in the Piceance. What's that mean to the bottom line well counts? Or what are your current costs running out there?
Bob Heinemann
Well, I think, you know, drilling days, obviously, means lower costs. I think our better wells now are under $2.5 million.
I think we would like to see a couple more improvements on the cost and the completion. We would like to see costs trend a two in a quarter, $2.3 million.
We think at those cost levels and $7.58 gas. We can have pretty competitive returns.
David Tameron - Wachovia Securities
All right. And you're still getting bcf and-a-half.
Bob Heinemann
Yes. That's a good number.
David Tameron - Wachovia Securities
Okay. Moving to the differential between the Rockies and California. What kind of problems and it doesn't look like it showed up in the numbers as far as electricity costs.
And I know you said you're hedged. Does that kind of take care of that spread between the two of them?
Bob Heinemann
It does. That kind of that blanket statements that -- I made right at the end saying $1 change in Henry Hub is, I think it turns out to be about 2.6 plus million dollars changed in annual income.
That takes into account the basis differentials, firm transportation that we have on pipe in gas coming into California and moving out of the Rockies.
So that kind of racks and stacks a whole picture. And obviously, it's a big benefit for us.
David Tameron - Wachovia Securities
Okay. One clarification question. You guys had obviously talked about the MLP. I know you can't discuss the specifics, but 2008 guidance does not take into account any MLP. Is that correct?
Bob Heinemann
Well, we can't discuss the MLP and the projections we talked about do not assume in MLP.
David Tameron - Wachovia Securities
Okay. Okay. That's what I was looking for. Thanks. And then finally, and I'll let everybody else jump on, but I'm a little bit ignorant here.
But I understand that the California Public Utility Commission recently made some changes with regard to the electricity market.
Bob Heinemann
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