Question-and-Answer Session
Operator
(Operator Instructions) Your next question comes from Paul Patterson – Glenrock Associates
Paul Patterson – Glenrock Associates
The Conectiv Energy margin of $300 million to $270 million, how much of that is hedged I mean the last thing I saw was 270 is that, how does it look, now?
Joe Rigby
We have Gary Morsches and hopefully, he will have that one.
Gary Morsches
We just updated the range based on our portfolio on the current poor market out there and we think that range very durable and locked in the down side. We have four hedged in place around our fuel expectations and around our load requirements and built those numbers into that range.
Paul Patterson – Glenrock Associates
Last time, the June analyst meeting, you guys had $270 million of total growth margins as being hedged. Is that still the case?
Gary Morsches
That is still the case, now; Paul let me explain one thing, too that our hedges are sometimes duty hedges. For example, when we are hedging our lows that we win in load auctions, we hedge the expected volume that we get from the utility.
This year, we are actually seen with this much lower demand, we have seen where some of those hedges have not worked as well and reported that, that is cost us to the tune of $11 million year-to-date. So, that chips away you might say at that locked in number, but we have taken all into consideration looked that where we are year to date, look that where we are expected to be year going forward and deal very comfortable but the range that we put out.
Paul Patterson – Glenrock Associates
You guys have some provided last result contracts and the quite understands you correct in some on the load expectations with respect to servicing those, the contracts.
Gary Morsches
That is correct, we’re active on the those puller load auctions as a way to hedge on our portfolio, we do participate in load auctions around our assets and frankly, we have seen where the actual demands for some of those areas have come in double-digits below where it was expected, where we hedged I mean with the utility expected with the mild weather that we would experienced year-to-date.
Paul Patterson – Glenrock Associates
The other thing that we’re seeing in some service territory it shopping and in few guys are already in that business with the, although, you maybe revaluating it, on the retail side what are you guys seeing in what are you expectations for shopping, given the lower power prices in many cases, now what we are seeing in current pullers I mean what kind of on you looking at 2010, 2011.
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