Question-and-Answer Session
Operator
Thank you. (Operator Instructions) Your first question comes from Paul Ridzon - Keybanc Capital Markets.
Paul Ridzon - Keybanc Capital Markets
To what extent have you bid self-build options into the RFPs?
Robert H. Young
We haven’t bid self-build options. I think I’m interpreting your question properly. These are all basically purchase power RFPs. What we have said, however, is that as we think about our power supply longer term, and by that I mean in the next five to ten years, that we are actively considering whether we should either on our own or jointly perhaps with some of the other Vermont utilities, build some new generation here in the state of Vermont. And there are some good reasons why that might be attractive. Attractive to us certainly from a rate base standpoint, but attractive to the state of Vermont on the basis of jobs and tax base and that kind of thing.
So that is under active consideration here, but in frankness we are as we continue to say to the marketplace, very active in restoring our own system infrastructure and VELCO investments as a shorter term priority for us. I hope that answers your question.
Paul Ridzon - Keybanc Capital Markets
Yes it does. What would you envision if you choose to go down that path? Would it be biomass or?
Robert H. Young
Well it certainly – I think the most logical things to consider here in Vermont, all things considered, would be biomass or a gas fired unit. We’d probably be looking for something that had base load characteristics.
Paul Ridzon - Keybanc Capital Markets
And just as a reminder, where was the treasury against what’s which ROE gets tweaked on the last update?
Pamela J. Keefe
I can’t remember what the treasury was, but I know that the date was 10/15 and it had gone down year-over-year by 88 basis points and so the effect on our ROE was the 44 basis points.
Robert H. Young
Are you talking about which duration treasury? Or did Pam answer your question?
Paul Ridzon - Keybanc Capital Markets
That was actually my next question.
Robert H. Young
Okay.
Paul Ridzon - Keybanc Capital Markets
Five year?
Pamela J. Keefe
The ten year.
Paul Ridzon - Keybanc Capital Markets
And then what’s the gap between your regulated ROE and your [gap] ROE?
Pamela J. Keefe
It’s typically about 150 to 200 basis points.
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