El Paso Electric Co. Q3 2009 Earnings Call Transcript

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2009-10-29 11:14:06.0

Tags: Texas, Call Transcript, Carpenter, Earnings, El Paso Electric Co., Sales Strategy, Sales Force Management, Sales, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Brian Russo - Ladenburg Thalmann.

Brian Russo - Ladenburg Thalmann

Just curious the 6.1% kilowatt-hour sales growth at the public authority customer segment, I mean how much was that weather driven versus is there way to kind of guesstimate what kind of the normalized growth was for that in the third quarter?

David Carpenter

Yes, this is David Carpenter, it’s hard to say how much of it was weather driven, but when we look at the, I just want to check here Yes, when you look at the third quarter sales to public authority, probably of the $24 million kilowatt-hour increase in sales, most of that was to White Sands and to Fort Bliss, Fort Bliss really accounted for, really almost 100% of that increase in the third quarter.

So I think you would have to say that really our sales to public authority in the third quarter were primarily driven by the military basis.

Brian Russo - Ladenburg Thalmann

Right, but I would imagine that the usage was also driven not only by the growth of the base but by weather, correct?

David Carpenter

Yes, we had some and excuse me, I was looking that year to-date, third quarter you still had at least 40% of that increase in sales was the military basis, and so maybe 60% of it was weather.

Brian Russo - Ladenburg Thalmann

Okay, and then just to touch base again on the timeline of your upcoming rate filings. We have the New Mexico step and then I think you have that nice slide that shows when you are going file. Again, when did you see new rates would be effective after the second New Mexico rate case filing to include Newman phase two?

David Carpenter

We can't say specifically when new rates would be effective, but if we file the future test year we would expect new rates to be in effect in the second quarter of 2011.

Brian Russo - Ladenburg Thalmann

Okay and then you’ve laid out the first or the upcoming Texas rate case filing new rates would likely go into effect in mid 2010, which will be after the Texas rate freeze, you will then file a second Texas rate case by year end 2010.

David Stephens

That Brian I think on that slide that the historical test year end that we would use for the second Texas rate.

 

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