Question-and-Answer Session
Operator
(Operator Instructions). We'll take today's first question from Greg Gordon with Citi.
Greg Gordon - Citi
So it's a good news, bad news, good news, bad news, good news story, I guess, for 2010. I'm glad I got a laugh. I thought hard about that one.
Paul Evanson
I'm glad you had more good news than bad news there, Greg.
Greg Gordon - Citi
Me too. Can we talk about the $384 million of cash that you'll get in hopefully at the end of the year from the sale of the Virginia. What was the expected net income contribution in '09 and '10 from Virginia that will go with the sale?
Kirk Oliver
It's about $9 million or $10 million.
Greg Gordon - Citi
Is that $9 million or $10 million of net income in 2090.
Kirk Oliver
'10.
Greg Gordon - Citi
In '10? So in 2010 $9 million to $10 million of net income goes away and $384 million of cash comes in.
Paul Evanson
$340 million.
Greg Gordon - Citi
I'm sorry. I wrote that down incorrectly. The second question, where will the parent NOL balance be after you offset it with this gain? Will you have fully depleted it?
Kirk Oliver
I don't think so. I think its close.
Greg Gordon - Citi
Because that begs the question of when you go back to West Virginia and argue that you need a rate hike because they've offset revenue requirement in West Virginia with the assumption that you can subsidize it with these NOLs.
Paul Evanson
You are exactly right. An additional major benefit from the Virginia sale is the acceleration of the income tax benefit. I think it pretty well carries us through '09 and we'd have some in '10. So we may be able to adjust somehow in the rate file in West Virginia already to pick up that in anticipation.
Greg Gordon - Citi
Would you expect to file in '09?
Kirk Oliver
We're certainly looking at it and we may well do that in the fall.
Greg Gordon - Citi
So, if we were to presume that the West Virginia regulators were reasonable that would be up to a $55 million revenue requirement benefit in '10?
Paul Evanson
That would be the full amount, but it could be less than that.
Greg Gordon - Citi
If they give you less than you deserve, right?
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