Question-and-Answer Session
Executive Name (with no title behind please)
Analyst Name – Company Name
Operator
(Operator Instructions). Your first question comes from Ross Payne – Wells Fargo.
Ross Payne – Wells Fargo
First question is on Florida Gas Transmission expansion. Do you have locked in contracts with contractors or is it more of a cost plus situation?
Eric Herschmann
No, it's locked in contract. It's a unit price contract so we're going to, the contracts are based on a per mile and at this stage, we're fairly locked in.
Ross Payne – Wells Fargo
Okay, great. Also, I just wanted to ask if you guys are seeing any impact as REX kind of comes across the top and ends up in Ohio as it relates to Panhandle, maybe that was more of an impact last quarter, but wanted to ask you if there was any impact this quarter and your expectations for next year.
Rick Marshall
No, not really. Actually, over the last several years we've managed to increase the contract life on many of our major customers on Panhandle, so we did not feel any difference in our revenues or our contracted volumes or our throughput on Panhandle in the most recent quarter. Quite frankly, I would expect as REX continues to make its way further East that the overhang of gas in the Lebanon area will ease. And perhaps we'll see some additional demand back into the Western Ohio market area.
Ross Payne – Wells Fargo
And what is the average life on contracts on Panhandle now?
Rob Bond
A little over six years.
Ross Payne – Wells Fargo
And on Florida Gas?
Rob Bond
Nine or ten I believe.
Operator
Your next question comes from Carl Kirst – BMO Capital Markets.
Carl Kirst – BMO Capital Markets
Actually, the last question is what I wanted to touch on and to the extent maybe, Rob, you can throw in what the average contract life of Trunkline is. And also just to kind of be clear, understanding with average lives, if we get into a situation and it looks like basis is already kind of beginning to recover a little bit, but if we kind of get into sort of a for whatever reason, a sustained two-year very flat national basis. How do you think that could impact, if at all PEPL and Trunkline?
Rob Bond
Well first of all let me just answer the first question. Trunkline's average life is slightly over eight years. And a lot of Trunkline's longer term contracts are really moving gas from Texas to Louisiana or Louisiana to other points in Louisiana.
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