Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from the line of Greg Gordon with Morgan Stanley.
Greg Gordon - Morgan Stanley
Can you -- I have a couple of questions. The first one is explain the rationale for the transition to PJM, and is one of the reasons to get better transparency and better pricing signal on the underlying value of capacity? Because when I look at the implied value of capacity in the pricing you got in the last procurement, it seems to be pretty skinny.
Mark T. Clark
I would say yes.
Greg Gordon - Morgan Stanley
And if you were to be accepted into PJM, would you be pricing that capacity through the same types of pricing mechanisms that current PJM generators -- the auction that they currently bid into, and if so, when would that event occur?
Anthony J. Alexander
Let me take that one because it will have some -- there will be a transition involved if, depending on how the FERC reacts and the timing of their decision.
Let’s just assume that the FERC approves the transaction, us moving into PJM by January or by December or January of this year -- this December of 2009. We would intend to participate in the May auction for the 2013 and 2014 capacity in that time frame, or the capacity requirements when we move into PJM on June 1 of 2011 through May of 2013, that would be conducted under a special transition mechanism that will be proposed as a part of our filing.
Greg Gordon - Morgan Stanley
Right, so that would be -- there would sort of be a fill-in auction.
Anthony J. Alexander
Yes, that’s what we will propose.
Greg Gordon - Morgan Stanley
Okay. Second question -- anecdotal evidence on industrial, potential pick-up in industrial production, we’re seeing a lot of news about the big, the huge feedback that the government is getting on the cash for clunkers and I read some things over the weekend about dealers actually saying that they are running out of cars in specified models. Taking that, as well as other economic factors into consideration, do you think industrial production in your region has bottomed? And if you were to give us sort of a base case for the next six to 12 months on what we should be assuming, what would it be?
Anthony J. Alexander
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