Question-and-Answer Session
Operator
(Operator instructions). Your first question comes from the line of Brian Russo, your line is open.
Brian Russo – Ladenburg Thalmann.
You know my first question in terms of guidance I think previously you were assuming you would be at the lower end of the range and now you're assuming the middle end of the range, and I'm just wondering what the driver is for that?
Pete Delaney
Sean?
Sean Trauschke
Sure. Hi Brian. Really when we look at this we are looking at utility as slightly ahead for the year and going forward as we look through this from a utility standpoint, now that we have the Oklahoma and Arkansas rate cases behind us, we feel very confident that we will be right there in the middle of our range. And again I think a key variable here is we are expecting normal weather principally in the third quarter.
Brian Russo – Ladenburg Thalmann.
Okay. And in your queue you outlined some of the guidance assumption, it looks like your margin expectations on the transmission storage as well as gathering and processing has come down a little bit, what is the driver for that?
Sean Trauschke
On the transmission and storage?
Brian Russo – Ladenburg Thalmann.
Yes. On the gathering and processing. I think it is 182 to 190 million versus 192 to 220?
Sean Trauschke
On the gathering and processing?
Brian Russo – Ladenburg Thalmann.
Yes.
Sean Trauschke
And that is really – you know I think what Pete mentioned earlier, we were very pleased with the idea that we have converted a number of our – a large percentage of our keep whole volumes to fixed fee contract and so we have – that is actually a ten year fixed fee agreement and so we think that is a good value for our customers, so we have removed that commodity exposure for the balance of the year.
Brian Russo – Ladenburg Thalmann.
Okay. When will you guys convey 2010 guidance?
Sean Trauschke
Well, Pete and I have not discussed this but I would expect it would be towards the end of this year, early part of next year. I think we certainly would like to have a little more information around the economy and where spread are at, but in particular what I would like to see is we mentioned we would be filing for the OU Spirit filing, I would like to get that behind us, so we could lay out exactly what our capital spending plans and our the financing plans for you. So I would anticipate later this year or early next year.
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