Progress Energy Inc. Q3 2008 Earnings Conference Call Transcript

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2008-10-31 15:13:12.0

Tags: Credit Suisse First Boston, Call Transcript, Earnings, Progress Energy Inc., Financial Accounting, Finance, Seeking Alpha, Credit Suisse First Boston, Call Transcript, Earnings, Progress Energy Inc., Financial Accounting, Finance, Seeking Alpha

Question-and-Answer Session

Thank you. The question-and-answer session will be conducted electronically today. [Operator Instructions]. And we'll take our first question from Dan Eggers from Credit Suisse.

Daniel Eggers - Credit Suisse

Hey, good morning. Bill I guess I know that guidance won't come into January, but if we were to sit down and think about a slowing economy and the implications of slower customer additions, how much of your CapEx budget is devoted to affectively bringing new customers into the system whether it be generation adds or distribution adds, dropping meters and that sort to figure out in a normal course of business major changes in plan, how much CapEx come down next year?

Robert F. (Bob) Drennan Jr. - Vice President of Investor Relations

Thanks, Dan. I will ask Mark Mulhern to give you numbers that without giving you too much peek of what we're going to tell you in January.

Mark F. Mulhern - Senior Vice President and Chief Financial Officer

Dan, just to give you some perspective, our total T&D growth capital, if you remember we breakout maintenance and growth capital. We have between the two utilities about $375 million in our CapEx budget for growth capital in T&D for next year.

Daniel Eggers - Credit Suisse

Okay. And if I mean some of that has to be spent regardless of customer additions, I suppose, but healthy amount of that would potentially be deferred if the customer growth isn't there, is that a fair assumption?

Mark F. Mulhern - Senior Vice President and Chief Financial Officer

Yes. That's a fair assumption.

Daniel Eggers - Credit Suisse

Okay, O&M cost inflation. You have a good success you shared on the slide keeping it flat this year adjusted. As we look out can you keep that at similar levels and could it actually come down if you're having less body supporting new customer decisions?

Robert F. (Bob) Drennan Jr. - Vice President of Investor Relations

Well we're hoping that it continues. It would be great if it came down or continue at the low level it is. I would tell you that we are mightily focused on that. We're looking for significant ways to increase efficiency, productivity, with a focus that we've never had before. So, I think the bottom line here is that we'll continue to control those costs and we'll just find new and innovative ways to do things better, faster and cheaper.

 

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