Question-and-Answer Session
Thank you, sir. [Operator Instructions]. Our first question comes from Paul Ridzon, Keybanc. Your line is open, sir.
Paul Ridzon - Keybanc Capital Markets
Thank you. The $720 million of CapEx cuts I was a little unclear, is that the 500 plus the 200 in January, an incremental 20 or is that an incremental of 220?
James R. Hatfield - Senior Vice President and Chief Financial Officer
No. Paul, let's be clear about that category question. Gross CapEx cuts were $720 million, but because some of [Technical Difficulty] collect less from customer charge, the net impact CapEx reduction was $520 million.
Paul Ridzon - Keybanc Capital Markets
Can you hear me?
James R. Hatfield - Senior Vice President and Chief Financial Officer
Yes. Can you hear me?
Paul Ridzon - Keybanc Capital Markets
Yes. So is it 920 less 200 of --
James R. Hatfield - Senior Vice President and Chief Financial Officer
Previously, now $200 million.
William J. Post - Chairman and Chief Executive Officer
Hello?
Paul Ridzon - Keybanc Capital Markets
I'm sorry, is it 920 less 200 of line connections?
James R. Hatfield - Senior Vice President and Chief Financial Officer
No, it's 720 less 200 of line connections for a net CapEx reduction of 520. And that would be an addition to the $200 million that was announced late last year or early this year.
Paul Ridzon - Keybanc Capital Markets
Okay. It's an addition to the 200?
James R. Hatfield - Senior Vice President and Chief Financial Officer
Yes.
Paul Ridzon - Keybanc Capital Markets
Where does that given that you've materially exceeded the 500, where does that put you with regards to flexibility on your equity issue?
James R. Hatfield - Senior Vice President and Chief Financial Officer
Well, I think again part of our plan was the these reductions in conjunction with interim relief and rate relief as requested at the ACC. So, I think we're certainly not looking at the need for equity this year. And I certainly, probably not in 2009 or we won't get an order until late in this year, which was ultimately determine what if anything we need to do.
Paul Ridzon - Keybanc Capital Markets
Okay. So, we could be looking in at '10 issuances?
James R. Hatfield - Senior Vice President and Chief Financial Officer
At the earliest would be 2010.
Paul Ridzon - Keybanc Capital Markets
- To read the full transcript on Seeking Alpha, click here »
