Progress Energy Inc. Q1 2009 Earnings Call Transcript

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2009-05-05 12:23:19.0

Tags: Merrill Lynch & Co. Inc., Call Transcript, Earnings, Progress Energy Inc., Taxes, Free Trade, Personal Finance, Financial Planning, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). Our first question will come from Jonathan Arnold with Merrill Lynch.

Jonathan Arnold - Merrill Lynch

Quick question now. Can you just give us a sense of how you would rate the prospects of potentially settling the Florida case? And what timeline that might be most likely to happen on? What point is we should be looking at as you move along the schedule here?

Bill Johnson

It's a good question. This will be our, I believe third rate proceeding since the merger in 2000. The first two we settled. I believe we settled both of them the day before the hearing was supposed to start, maybe even on the courthouse steps the night before the hearing. So, I think you have the TECO decision out there, which at least gives you some boundaries.

And once you have all of the filings in and do a little discovery, your chances are better at settling, once everybody knows where all the facts are. But, I wouldn't predict that. Actually I wouldn't predict it at all because it's an unknown. But if it is going to happen, I think it's much closer to the hearing date.

Jonathan Arnold - Merrill Lynch

Okay. Thank you, Bill. And if I may just ask one other. The items you mentioned in the quarterly variance for tax, I think it was benefits related to the nuclear decommissioning trust funds. I missed how much that was, when you went through it. Can you just talk a little bit about what drove that or?

Mark Mulhern

Yes, I can, Jonathan. It's Mark.

Jonathan Arnold - Merrill Lynch

Wouldn't there be an expense on the other side?

Mark Mulhern

Well, this has to do with a transfer of funds between qualified and non-qualified accounts and the tax impacts that are related to that. And there is about $14 million of positive contribution from that in this quarter. So, that's the essence of the tax item.

Jonathan Arnold - Merrill Lynch

Anything further, sir?

Mark Mulhern

Apparently not.

Jonathan Arnold - Merrill Lynch

No.

Mark Mulhern

Well, sorry, Jonathan.

Jonathan Arnold - Merrill Lynch

Is that something that would repeat or does it reverse or is there?

Mark Mulhern

No. It's kind of a one-time thing, Jonathan.

Operator

Now, we'll move to the next question from [Vidula Murty with CDP US].

Unidentified Analyst

Obviously, you highlighted the rate case and the base rate increase. What type of incremental fuel offset is also going to be kind of in play here in terms of what the customers are actually going to end up experiencing across the total bill?

 

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