Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from the line of Rick Gross with Barclays Capital. Your line is open.
Rick Gross - Barclays Capital
I guess I'd like to start with the pipeline question. I'm kind of intrigued with the whole back haul strategy on Tennessee. I know you've got a deal with Cabot that they claim is around $0.20 back to West Virginia. You've done a deal with Equitable. And I was amazed I guess at the 2b's a day of interconnection. I know there is some compressors that are being hooked up and small lines being tapped in, but can you tell me how that kind of plays out, how you think will cause the displacement in revenue opportunity on Tennessee is going to look as you get, you know, Marcellus production into the line?
Jim Yardley
Yeah. That's a good question. So the thrust of what's going on here is that we are fortunate and that we are right on top of big new supply base, and it's happening. And I think the innuendo in your question is that, well, does this long term displace long haul demand charges on Tennessee. We think it's clearly a net positive. What we are seeing the past, Rick, for example several years ago when Tennessee started importing through Niagara, large amounts of Canadian gas which, by the way, has fallen off a good bit now, but in that case the capacity holders on Tennessee, the utilities in New York State and New England they continue to hold capacity all the way back to the Gulf. Not wanting to rely on just one source. And so we think that that same thing is going to happen here. On the positive side, this is right now the backlogs are incremental revenue that quiet candidly we wouldn't have expected a couple of years ago. But then positively long term to take advantage of demand growth in the northeast while we are right on top of an opportunity to expand very cheaply into New York State and New England. So net we think it's clearly a positive.
Rick Gross - Barclays Capital
Is this capacity going to be actually usable seasonal, or do you think it's going to be usable all year long?
Jim Yardley
Year-round.
Rick Gross - Barclays Capital
Year-round?
Jim Yardley
On a backbone basis.
Rick Gross - Barclays Capital
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