Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Greg Gordon - Morgan Stanley.
Greg Gordon - Morgan Stanley
A couple questions, first I hopped on a little bit late. I just caught the tail end of your commentary on equity issuance. Could you review that again for me, please?
Peter Darbee
What I essentially covered was that our equity issuance through our drip and 401K programs continued at a fairly high pace, so far this year and so we’ve issued at about twice the rate we would have normally expected.
As a result, we will be planning in future periods to shut-off those programs, essentially supplying the needs for the programs through external purchases and not issuing net shares. Because of the issuance we’ve done to date, because of the earlier debt financing at the corporation level and the equity infusion that was made into the utility.
Because of our strong cash flow through our tax refunds and otherwise, we don’t expect to need to issue any new block equity outside of the normal 401K, or DRIP programs through 2010.
Greg Gordon - Morgan Stanley
So you would continue to have a normal, what you would consider a normal level of shares through the DRIP, or would you be using open market purchases to satisfy the DRIP?
Peter Darbee
We’re going to be potentially at periods doing both. We have the ability to go back and forth and manage our equity issuance. Obviously there are some restrictions on doing that, but within the restrictions we have sufficient flexibility.
Greg Gordon - Morgan Stanley
What is the weighted average share count analyzing in the guidance there?
Peter Darbee
We haven’t provided that.
Greg Gordon - Morgan Stanley
Okay. It was 368 at the end of the second quarter. I presume the shares outstanding at the end of the quarter we’re somewhat higher than that?
Peter Darbee
That would probably be true. We have a fairly complex share calculation, because of the two class method. So you really can back into that by looking at the financials, I think.
Greg Gordon - Morgan Stanley
The second question is; can you review where things stand in terms of resolving the controversy surrounding the energy efficiency incentive payment mechanism?
Chris Johns
We continue to move forward on that issue. We’ve actually done a joint filing with Sempra to try to put in place an agreement, a settlement agreement, on how they would resolve that. We still anticipate that well will get an order by the end of this year that would allow us to resolve the 2008 award and then, we would have in 2010, something in place that would allow us to address the hold back that that it’s been done for last year, and then the holdback that will be in place for this year.
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