Question-and-Answer Session
Operator
(Operator Instructions) Your first call comes from Greg Gordon – Citigroup
Greg Gordon - Citigroup
Two questions. One is, as you look at the dividend policy of the company, you did state pretty much the same philosophy on the second quarter call as you're stating now in terms of what you plan on recommending to the Board.
Has your point of view on what a reasonable level of dividend policy in '09 should look like changed at all in the last three months, given how much tighter market conditions have gotten on credit?
Gale E. Klappa
Gregg, not really. I mean we tend to look at things in three to five year increments to the degree that we have certainty and we really are making a dividend decision and recommendation to the Board based on not just a six month look or not just a one year look, but on how we see the business evolving over the next three to five years.
So, if anything, we've been boringly consistent about that. I mean clearly, we've taken into account what we're seeing in the credit markets, but as Allen mentioned to you during his portion of the call, our liquidity situation is in good shape. We have some flexibility in terms of the next 14 months and the debt offerings. We don't need to issue any additional equity.
So, certainly we've taken a look at it and factored in the current credit conditions, but it has not changed our long-term three to five year view.
Greg Gordon – Citigroup
So, all things being equal, the payout ratio that you would have thought appropriate in August is the same payout ratio you would recommend today if you were going to the Board with that recommendation?
Gale E. Klappa
That is exactly right, Greg.
Greg Gordon - Citigroup
The second question for Allen, can you reiterate what you said about where you thought you'd be on fuel recovery going into the summer and where you think you'll be now? And can you tell us whether the majority of that benefit has already occurred in the peak summer months and how much of that do you think is going to flow through into Q4, given the decline in gas prices?
Allen L. Leverett
Sure, I'd be happy too. Just by way of context, again on the July 31 call, at that point Greg, we expected our under-recovery for the calendar year 2008 to be between $20 million and $40 million, and we now sitting here today, our latest projection would be essentially to be in a fully recovered position for calendar year 2008.
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