Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Paul Ridzon - Keybanc.
Paul Ridzon - Keybanc
What are you thinking your earned ROE at Tampa Electric could be for the year? Could you break through the bottom end of the bracket?
John Ramil
Paul, this is John Ramil. We haven’t talked about what we expected to be this year because it’s kind of a split year with rates come in the middle of the year, but our focus for 2010 and beyond as we have a full year of those new revenues is to earn at our allowed ROE at both utility companies.
Paul Ridzon - Keybanc
What was, as far as the VAD in Guatemala if that were to go your way, what will the upside of that be, whenever it would happen?
Mark Kane
We said the VAD decision basically put the earnings from EEGSA, and only EEGSA at risk and historically that’s been about $10 million a year. So, if the regulators just restored the VAD back to the prior level, it would be about $10 million of net income on an annual basis.
Paul Ridzon - Keybanc
For the balance of the year, any potential pick up from the very slack labor markets for miners? Are you still living with prior contracts?
John Ramil
We have some prior contracts Paul, but we are looking at every single thing and every single place that we can reduce our costs. You may have read we did shut down a cup of our higher cost mines, we moved that production elsewhere and wherever we can buy the product and produce it ourselves we will take that option.
Operator
Your next question comes from Greg Gordon - Morgan Stanley.
Greg Gordon - Morgan Stanley
Looking at your guidance page, page 14 the guidance update. So the motion for consideration you now, you are saying you are assuming just over $3 million of fiscal year ?09 impact and that will be in Q4?
John Ramil
Little in three, but mostly in four Greg
Greg Gordon - Morgan Stanley
So that’s basically a penny right?
Gordon Gillette
After tax, yes.
Greg Gordon - Morgan Stanley
It says that on page 15, general cost controls and reductions in cap spending. So part of the way that you guys are looking to get to earn your authorized ROE given that sales are lower is that the rate base will grow at a less rapid pace.
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