Question-and-Answer Session
Thank you, sir. [Operator Instructions]. Our first question comes from the line of Greg Gordon with Citi. Please go ahead.
Greg Gordon - Citigroup
Thanks. Good morning gentlemen.
Gary L. Rainwater - President, Chairman, and Chief Executive Officer
Good morning Greg, how are you?
Greg Gordon - Citigroup
I'm good. Not to beat a dead horse because I know you reiterated it a couple of times, but you've already identified 4 to $500 million of capital and O&M cost at these non-regulated business, correct?
Gary L. Rainwater - President, Chairman, and Chief Executive Officer
That's correct.
Greg Gordon - Citigroup
I was hopping back and forth to another call, did you breakout how much of that is capital versus how much of that is O&M?
Warner L. Baxter - Executive Vice President and Chief Financial Officer
I have not, but I'll give that to you now. In terms of the unregulated generation business, and again this is related to 2009 expected spend that of the $400 million to $500 million, we estimate that the O&M piece of that is $50 million to $100 million and that the capital piece ranges from $350 million to $400 million.
Greg Gordon - Citigroup
Thanks. And are these deferments necessary expenditures or you have some flexibility on timing or are these expenditures that you have sort of be permanently shelved if economic conditions don't improve?
Warner L. Baxter - Executive Vice President and Chief Financial Officer
We know certainly that the majorities are deferments that we have some flexibility in terms of timing, but as we calibrate our plans; and certainly some of these expenditures could be reduced for some period of time. That piece is still under review, but its deferment as well as the potential reduction in future spending.
Greg Gordon - Citigroup
And what's the total targeted megawatt hour production in deregulated business for 2009 with the $3 million... with the 3 million megawatt hours added, how much total are you expecting now?
Warner L. Baxter - Executive Vice President and Chief Financial Officer
Yeah, I think in general, as we went into the beginning of the year Greg, we expected their generation levels will be around 30 million or so. With this additional 3, we expected it to be 33 million to 34 million megawatt hours.
Greg Gordon - Citigroup
Thank you. And then, the $400 million to $500 million that you're contemplating potentially deferring or cutting at the regulated businesses, should I assume that there's a similar sort of percentage breakdown of operating versus capital cost as you identified on the Genco?.
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