Question-and-Answer Session
Ladies and gentlemen, we will now begin the question-and-answer session for members of the financial community. [Operator Instructions]. The first question is from Dan Eggers with Credit Suisse.
Daniel Eggers - Credit Suisse
Hey, good morning. Tom I wonder if you could just expand a little bit more on the end around the Indonesian coal contract conversation. What are the alternatives that you guys see out there? Can you switch to a domestic coal and how do you see pricing comparisons between the $60 range pricing and what you could replace the coal with it if that's an option?
Thomas M. O'Flynn - Executive Vice President and Chief Financial Officer
Yes, Dan I'd say the Indonesian coal has been good for us. We may have some flexibility... that flexibility would expand and be a Hudson once we finish our back-end at Hudson in late 2010 we will have a very broad flexibility to use lower grade coals specifically and that will be our expectations at Hudson.
As we currently see it, there is still value in that coal. Prices have moved up. Let me try to kind of bracket that for you. So expectations is to work towards a resolution with our supplier over there that may result in some cost pressures and we want to make sure the people were aware of at least what the range of those could be.
Daniel Eggers - Credit Suisse
Any idea, when resolution could come on that contract?
Ralph Izzo - Chairman, President and Chief Executive Officer
We are having discussions, I think it would be certainly, during this quarter, it's probably hard to put a final point out in that.
Daniel Eggers - Credit Suisse
Okay. And then you talked about lowering the CapEx for 2009. Any commentary kind of on expectations for O&M cost inflation '9 versus '8 both utilities and the generation business in kind of in [indiscernible] mode.?
Ralph Izzo - Chairman, President and Chief Executive Officer
The utility has consistently, last five years respectively been seeing O&M increases at or below CPI. We had to make a few more investments on our fossil fleet. So that's has been slightly above, but next year we are targeting all business to be at about 3% levels.
Daniel Eggers - Credit Suisse
And now the CapEx reductions. Is there any allocation between where those dollars has been pulled away right now between utility and generation?
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