Question-and-Answer Session
Operator
Thank you, sir. (Operator Instructions) One moment please for the first question. And our first question comes from the line of Daniel Eggers of Credit Suisse Securities. Please proceed.
Dan Eggers - Credit Suisse
Good morning. On the capacity auction outcome, should we assume that given the fact you didn't change '08 guidance that that fell within the tolerance band of your open exposure, so we shouldn't see any change there? And along the lines of the RPM auction, given the volatility in eastern MAAC pricing from the first auction to the second -- has that caused you guys to have some pause as far as the desire to go build new generation given some relative uncertainty as far as where those prices will continue to clear?
Tom O'Flynn
Let me see, Dan. Take one at a time. I would say it generally fell within the tolerance band given our level of open positions. I think the expectations or -- really I would call them planning assumptions that we use in our large conference, end of March, beginning of April -- were more consistent with the second auction. I'm not sure we were in a predictive mode as much as just saying that that was what the current forward market was, and for a simple planning assumption, we were going to use that number. The first auction was in some higher levels, but as you know, we had only a modest open position. So the impact on our P&L was smaller. In terms of our view on new build, I think we've said that we are likely to wait for the first of the four to be completed to get a full deck of information. We do continue to see tightening markets. Over the long-term we do believe that new generation will need to be added, but I think its incumbent upon us to see the first four series and then also assess the zonal breakdown that may happen as you get to subpockets -- as we go out in time and then make assessments. We do -- as we look at the market, we do have excellent abilities to grow from a cash and resource standpoint, but also from a site value perspective. Virtually all our sites do have the physical capacity to grow.
Dan Eggers - Credit Suisse
Okay. Then on the CapEx update today, how much ability do you have to get prompt recovery of increased spending on the E&G CapEx? And it looks like you have part but not all of the potential PJM transmission lines in that increased guidance number?
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