Question-and-Answer Session
Operator
(Operator instructions) And our first question comes from the line of Greg Gordon with Citi Investment Research; please go ahead.
Greg Gordon - Citi Investment Research
Thanks. Good morning Ben.
Ben Fowke
Good morning to you.
Greg Gordon - Citi Investment Research
So cutting to the chase and going to note six of the press release and just comparing it to note six from the fourth quarter year end call, there’s changes in five line items, you are now assuming weather adjusted electric sales down 1% versus flat. You talked about that in the comments. A $20 million of improvement in your O&M picture, and then you’re also assuming D&A will be $20 million lower; AFUDC will be low or flat versus down and; I’m assuming that’s because of the rate treatment in Colorado?
Ben Fowke
On the AFUDC?
Greg Gordon - Citi Investment Research
Yes.
Ben Fowke
Yes, it’s really a function Greg, of just adjusting for the actual expenditures and when things come in service, more budgeting true-up than anything else.
Greg Gordon - Citi Investment Research
Okay, so the D&A and AFUDC, that’s just as we move through time, you’ve got a better read on it and it’s not a cause on the effect thing with the Colorado decision?
Ben Fowke
Precisely. I think depreciation by the way, we have going down $30 million Greg.
Greg Gordon - Citi Investment Research
Interest expense, you have down $5 million, I’m presuming we heard this across the board from other companies on earnings calls over the last two days, that just your short term debt expenses and financing costs are projected to be lower.
Ben Fowke
Yes, that’s right. I think we saw significant improvement in working capital in the quarter, almost $300 million of improved working capital. So you also obviously need less short term debt to carry that, plus the forecasts for the inherent interest rate is lower than it actually has turned out to be.
Greg Gordon - Citi Investment Research
Okay great. So unless the economic climate were to decelerate further, you’ve been able to compensate so far for everything you’ve seen.
Ben Fowke
That’s correct.
Greg Gordon - Citi Investment Research
Thank you.
Ben Fowke
Thank you, Greg.
Operator
Thank you. Our next question comes from the line of (Inaudible) with CVP US [ph]; please go ahead.
Ben Fowke
Hi Abala.
Unidentified Participant
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