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One way to think about what is coming is to consider what happened during the recent heat waves in the east. Three of our plants which will be deactivated on October 1 ran hard to meet demand during those heat waves. The seven units of those plants collectively with 762 megawatts listed on slide seven. At times when those units were running most of our peaking units in the same areas were also running.We think that as these seven units and units owned by others are deactivated as a result of environmental rules, events like the recent heat waves will result in high prices. Notwithstanding the heat wave and significant demand on our fleet. I am pleased to report that our plants ran well. I am also pleased to report that the construction of Marsh Landing in Northern California continues to remain on schedule to be completed by mid-2013 and the project remains on budget. During more than a 1.5 of construction and with about 500 construction workers currently on-site, we have yet to have a single OSHA-reportable safety incident. Turning to slide eight, I will address the recent capacity auction in PJM. Overall the $500 million of capacity revenue that we locked in fell within the range of our expectations, we think however that PJMs must offer price rule known as MOPR did function properly. New Jersey offered subsidized contracts for new plants which were permitted to bid prices well below their contractual prices. We don’t think it's appropriate for those new plants to have it in both ways to get rich capacity prices assured by the rate payers in New Jersey and then bid in the RPM auction at substantially lower prices. We think this is nothing less than manipulation of the market, as a result of this manipulation we are pursuing vigorously various bright line tests for MOPR. We PJM recognizes that the problems with MOPR must be addressed.
Turning to slide nine, we show our hedges as of July 9, both for the fleet and for our baseload coal. For our baseload coal we are fully hedged for this year, heavily hedged for next year and less hedged but nevertheless somewhat hedged from 2014 through 2016. And with that I will turn things to Bill Holden to walk you through the numbers. Bill?Read the rest of this transcript for free on seekingalpha.com